10 Costly Problems in a Paper-Driven Warehouse

Manual Warehouse Problems

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:

  1. Loss of one or more customers
  2. Continued lost sales due to poor fill rates or inaccurate inventory
  3. Warehouse has run out of space
  4. Inventory costs are too high
  5. Overhead costs are exorbitant
  6. Inventory accuracy has dropped below an acceptable percentage
  7. High turnover rate for employees
  8. Excessive labor rates due to inventory movement being inefficient
  9. Having a high return rate on products that then have to be re-stocked
  10. 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:

  • Increase your profits
  • Improve your customer satisfaction
  • Increase employee accountability & productivity
  • Reduce Inventory problems
  • Lower overhead
  • Improve warehouse space usage

Learn more about the many Benefits of Warehouse Management Systems below:

Learn about Warehouse Management Systems

Download the Business Case for Warehouse Management Systems

Posted by iCepts Technology Group, Inc. A HighJump Warehouse Edge Partner in the United States

ERP to WMS Integration

ERP to WMS Integration

Warehouse Management Systems are becoming popular as supply chain logistics become ever more complicated along with increasing customer demands.  With an escalating volume of inventory movement, many organizations are turning to technology to streamline operations and meet these challenges. Seamless ERP to WMS Integration can help your company reach its supply chain operational goals.

Advanced technology through Warehouse Management Systems (WMS) allow companies to respond to evolving market pressures and deliver on ever-shrinking time to delivery windows. These systems efficiently capture every scan, every movement of inventory and are designed to make both accuracies along with cost reduction a top priority.

Improving the speed and accuracy of the fulfillment process and reducing the cost of labor are the key issues that distribution and warehouse-related businesses face. Gaining control over these issues requires technology that optimizes the utilization of your people and your assets–more than an automated data collection system that simply extends the paper processes leveraged from within some ERP System. ERP systems typically have extensive financial and inventory control functionality, however, not enough capabilities when advanced warehouse demands are required.

HighJump Warehouse Edge was built to empower you to automate your warehouse using tools like conveyers, carousels, sophisticated picking algorithms, advance replenishment methods, and order allocation, delivered in a simple, intuitive solution that can be implemented quickly and efficiently-providing your company the advanced warehousing inventory control functionality you need.

Common ERP Systems that Integrate with HighJump Warehouse Edge include:

  • Microsoft Dynamics ERP, including Microsoft Dynamics NAV
  • SAP Business One
  • Sage ERP Systems
  • NetSuite
  • Acumatica
  • Oracle
  • Other Systems (depends on ERP system)

With a complete ERP to WMS Integration, companies can realize:

  • Improved Warehouse Performance
  • Improve Accuracy
  • Better Inventory Visibility
  • Ability to Meet Customer Demands
  • A Complete End-To-End Supply Chain Solution

Learn more HighJump Warehouse Edge and ERP Integrations

Key Warehouse Management KPI’s Measurements

Warehouse Logistics

What To Measure in Warehousing:

The answer to the common question “What should we be measuring?” is two fold-At its core, a supply chain analytics solution should provide an enterprise level view of warehouse operations, empowering your team with timely, meaningful information that drives process improvements. This should include a set of industry-standard,best practice KPIs (Key Performance Indicators) for your operations.

However, to maximize your investment, your supply chain intelligence software should include tools that allow you to create metrics based on your company and its own way of doing business.

Dashboards and Metrics:

Let’s first look at the foundation of metrics you may consider as a starting point. Metrics should generally fall under dashboards that address a specific area of your organization, such as inbound or outbound operations. In some instances, the dashboards have drill-down capabilities where a more granular layer of information is presented.

Any software provider should offer, at a minimum, the foundation for best practice analytics. Compare these to what you’re already tracking, and consider which ones to add or remove.

Your metrics should cover these dashboards or areas:
1. Inbound
2. Outbound
3. Order Accuracy
4. Customer
5. Quality
6. Capacity and Utilization

The following is a breakdown of each dashboard and the KPIs to track with each.

1. Inbound
a. Dock-to-Stock
b. Percentage of Supplier Orders Received Damage-Free
c. Orders (POs) and Lines Received per Hour
d. Suppliers On Time

2. Outbound
a. Line Fill Rate
b. Order Fill Rate
c. Fill Rate Percent
d. Lines Picked and Shipped per Hour
e. Orders Picked and Shipped per Hour
f. On Time and Ready to Ship

3. Order Accuracy
a. Order Pick Accuracy
b. Order Pick Accuracy by Type
c. Orders Shipped Complete
d. Cases Shipped vs. Cases Ordered

4. Customer
a. Percent of SKUs In Stock
b. Cycle Time Percent (Internal versus External)
c. Back Order Percent
d. On-Time Shipments

5. Quality
a. Percent Unsaleable
b. Inventory Count Accuracy
c. Inventory Shrinkage by Month
d. Inventory Shrinkage by Type

6. Capacity and Utilization
a. Honeycomb Percent
b. Days on Hand by Inventory Type
c. Days on Hand by Item
d. Percent Capacity Used by Storage Device
e. Shelf Capacity Used by Inventory Type

Tools For Maximizing your Analytics:

Metrics aren’t helpful if they are rigid, lack context or can’t be manipulated and investigated to help you determine the best course of action.

Beyond the set of best-practice metrics for measuring your operations, you’ll also need tools that allow you to create metrics based on your company and its way of doing business to give you a better understanding of what’s really going on in your operations.

Whether or not you’re planning to implement a new workflow or not, it’s important to pause, take stock of where you stand on KPIs for your industry and company, and set your benchmarks so you’re maximizing your investment in both your analytics and any other warehouse technology.

Having a foundation of best practices, along with the flexibility and other tools that help you leverage the data according to your needs, will help you improve the tactical and strategic nature of your operations every step of the way.

Download the complete document below:

Suppl Chain Analytics: Tools and Tips for Continuous Improvement