10 December 2021 The crisis caused by the coronavirus pandemic took the logistics sector by surprise. Even companies that already had an emergency plan felt the weight of the changes and difficulties, as no planning could account for all the nuances of the new scenario. What we witnessed was the creation and execution of strategies by companies overnight, demonstrating that creative solutions are the way to survive in an unexpected scenario. Many of them had to start e-commerce sales or open new lines to meet the ever-changing demand. For most specialists, market and consumption transformations have ushered in a “new normal,” meaning that for most companies that had to adjust their operational and logistics structure, this will be a permanent change, with the need to invest in automation, strengthen online operations, and identify risk mitigation strategies. These companies have sought to review all processes in their distribution centers to adapt their structure to the type of operation underway. For example, companies that had to halt physical sales and migrated to e-commerce needed to modify a series of parameters in their processes, as intralogistics for physical retail is different from that for online sales. There are also those that have become omnichannel, offering multiple sales channels to the consumer, which require changes to the warehouse to ensure efficient fulfillment of all orders. For these cases and similar situations, the WMS, a warehouse management system, is a great ally, helping to make the necessary changes, increasing productivity, and reducing costs. This is because, regardless of the operation’s format, the system always works focused on increasing efficiency and reducing costs. WMS System: Efficiency and Cost Reduction To better understand how the WMS system directly helps increase efficiency and reduce costs, check the 5 points we highlight below: 1. Location The WMS automates the storage process and helps you define the best address for each merchandise, based on the product turnover and its storage characteristics/rules. The goal should be for each item to have a specific location so that the cards know exactly where to find it. Additionally, this position must be strategically defined, storing high-production products near the shipping area. 2. Picking Planning The WMS system uses the day’s order data to generate waves of picks based on product locations and the priority of each order. A list of options will offer pickers the most efficient routes to follow, which can improve picking efficiency and productivity by up to 40%. It’s worth noting that increased picking performance allows for more orders/day. 3. Inventory Rotation and Smart Replenishment Using FIFO and FEFO principles, the WMS system manages inventory rotations based on a product’s shelf life, reducing waste and ensuring that products are as fresh as possible for your customers. All stock movements are carefully recorded. Additionally, the system informs you exactly when it’s necessary to reorder items and the right time to replenish picking lines (kanban). 4. Cost Reduction With WMS, your costs will be significantly reduced, as the system works so that the DC resources (people, equipment, and area) are used in the best way. With the Active Call solution, the WMS automatically calls the ideal employee to perform each task, determining the best route to follow and avoiding excessive movements in the DC. Inventory addressing and defragmentation routines ensure the best use of storage space. Moreover, with process automation, your operation will eliminate piles of paper. And, again, with features that allow real-time process monitoring, employee productivity increases by up to 100%. 5. Real-Time Data With the WMS solution Visual Management, all transaction data is available in real-time, and any discrepancies are immediately notified. Therefore, employees self-manage, and managers monitor the work, ensuring high productivity and efficiency. WMS offers a multitude of reports and trend analyses. These metrics allow you to conduct benchmarking evaluations by comparing processes, performance, results, and operations between DCs, make better forecasting decisions based on concrete facts, and perform a detailed analysis of a product’s lifecycle throughout the entire supply chain. The Right Investment Can Transform Your Business Investing in a WMS at this point might seem like the furthest idea. But the truth is that now could be the best opportunity, as you are already restructuring your business, and investing in technology that will support you today and tomorrow will give you more preparation to face the “new normal.” With WMS, the benefits are evident, with full control of intralogistics operations, optimization of storage space, increased picking efficiency, delivery accuracy, and most importantly: a quick return on investment. How to Maintain High Efficiency and Resources in a Warehouse? Deagor WMS per ecommerce può aiutarti!