10 Costly Problems in a Paper-Driven Warehouse

There many reasons why a business decides to look into warehouse automation technology. In a paper-driven, manual warehouse, it’s one event or a series of events that will finally push the decision makers at a company to act. This event usually has had a significant price tag associated with it. Here is a short list of events that can create big costly problems in a paper-driven warehouse:

Loss of one or more customers
Continued lost sales due to poor fill rates or inaccurate inventory
Warehouse has run out of space
Inventory costs are too high
Overhead costs are exorbitant
Inventory accuracy has dropped below an acceptable percentage
High turnover rate for employees
Excessive labor rates due to inventory movement being inefficient
Having a high return rate on products that then have to be re-stocked
Not having complete operations visibility and lack of ERP connectivity

Any event that drives up your costs in the warehouse or contributes to lost sales and even worse lost customers are what supply chain professional consider should consider trigger events that ultimately drive a company to find a solution; including Warehouse Management Solutions. Supply chains are becoming ever more complex and demands from customers continue to escalate as perfection is frequently required.

Don’t make the mistake of thinking your business is too small to consider a WMS. It’s just not the case. The return on investment of a properly installed warehouse management solution can be surprising quicker than you may image along with the following benefits: