11 July 2022 Discover how the WMS system can help you overcome warehouse challenges and ensure your company’s profitability The business world has experienced great dynamism, and it is increasingly clear that efficient management, combined with a vision for the future, makes a difference. This also applies to the supply chain. Today more than ever, it is necessary to apply industry best practices, seeking flexible and scalable processes and, above all, mitigating errors that impact not only the company’s revenues but also the relationship with the customer. To this end, the first step is to recognize recurring failures and seek an effective solution. Problems in the warehouse can affect the efficiency of a particular operation or the entire chain of processes connected to it. In most cases, these bottlenecks are identified only after the start or completion of a process, which means it may be too late to correct the error or prevent the damage it causes. However, by knowing in advance the potential challenges that may occur in a warehouse, it is possible to anticipate them or, at least, intervene as soon as they arise, avoiding significant consequences. In this text, we present the most common warehouse problems and how the WMS system, software specifically designed to support the management and execution of intralogistics activities, can help solve them. Take a look below: 1 – The picker repeatedly accesses the same address When a workflow is not well organized, you may find that the same task is performed over and over again, which means a waste of time and a drop in productivity. For example, multiple orders require the same product, and to fulfill them, the picker goes to the same location to retrieve the item multiple times in a row. This is quite common in warehouses that work with fractional items. WMS solves this problem with the batch picking solution, which groups orders. With its use, each operator picks the goods corresponding to a group of orders in a single movement, meaning the worker goes to the position of an item and, instead of picking the quantity required in a single order, picks a larger number, covering other orders that also required that merchandise. Subsequently, the items collected in a group are separated by order and destination, generally during the control phase (hive/wall placement). This results in a significant gain in efficiency that also reflects on the quality of customer service. 2 – Employees have to travel long distances to perform simple tasks In addition to repeated activities, another common problem in warehouses is related to employee movement. If there is no strategy to address each product, aiming to reduce the trips undertaken by operators, it is very likely that they spend unnecessary time on their journeys. The WMS adds intelligence to addressing, defining the position of each product based on its rotation. The system also issues separation waves to reduce movements and, consequently, increase productivity. 3 – The warehouse layout is disorganized Over the years, the increase in storage costs has led warehouse managers to use warehouse space more efficiently. However, in many cases, this has ended up causing a problem: disorganized layout. Furthermore, any disorder in the storage area can cause separation errors and other failures that ultimately impact productivity. That is why using the WMS system is essential for those who want to intelligently exploit the storage area. The software defines the positions of each product, aiming to make the most of the storage area, as well as coordinating turnover and relying on stock defragmentation routines, with the goal of keeping it always organized. With WMS, your team will no longer have to make decisions about where to allocate each item arriving at the warehouse or how to manage inventory. The system automates these functions. 4 – Inventory information is unreliable Does one of the situations described below occur in your warehouse? – You accept an order assuming there is enough stock to fulfill it and only later discover there isn’t. Subsequently, a backorder must be placed, which significantly prolongs order processing times. – You deny an order when you assume you do not have enough stock to fulfill it, but then discover that you do. These events reveal something very concerning: inventory management is poor, and you do not have reliable information. Your inventory data is practically the heart of your business. They must be constantly updated and always available. And you can achieve this goal with the help of a WMS system. With WMS, all movements are recorded and updated automatically. Additionally, instant communication is established with the ERP and other software used (such as the sales system). In this way, the system can provide reliable information, accessible anywhere and anytime, with great benefits for management and work execution. 5 – You have difficulty evaluating the productivity of your employees and the activity in general Have your employees demonstrated good performance? Are orders being fulfilled on time? Is there any delay? These are fundamental questions that every warehouse manager should answer. However, many do not have enough information to evaluate the productivity of the operation. This is where WMS comes into play. The system offers a series of dashboards and indicators that allow monitoring the progress of the entire operation. These indicators are updated in real-time and presented on monitors positioned at strategic points in the distribution center. In this way, employees can self-manage, which has a direct impact on productivity. Additionally, with the information, managers can make more precise changes and make assertive decisions to increase efficiency. 6 – You need to hire more people and expand space to manage business growth Is expanding space and increasing labor costs the solution to cope with increased demand? Often no, as this will lead to higher expenses and, consequently, a decrease in revenues. WMS operates with a prerogative: “allow the company to do more with less.” By automating activities, the system brings greater speed and accuracy to processes. Furthermore, the WMS makes all decisions aimed at making the best use of the distribution center’s resources (people, equipment, and space), meaning the software allows your company to grow sustainably. 7 – Your warehouse still uses paper to perform activities If your warehouse activities are guided by paper lists and you manage them based on lists and spreadsheets, there is a problem that may seem invisible but actually has a series of consequences. Manual lists offer opportunities for errors in control, sorting, and shipping, for example, as well as being enemies of efficiency. And managing a warehouse without software that provides you with reliable and updated data can significantly harm you in decision-making. By using the WMS system, you automate activities and significantly reduce the use of paper, benefiting not only the management and execution of processes but also the environment. Less paper, more efficiency, and sustainability. 8 – Only one inventory is conducted per year Counting inventory only once a year hides a danger: major losses and poor inventory accuracy. To prevent this from happening, it is essential to conduct cyclical inventories. With the WMS, you incorporate periodic counts into the operational routine, without needing to stop it to conduct inventory. By frequently inspecting inventory, accuracy is maintained, and there are greater chances of finding the cause of data discrepancies, losses, and management and operational errors. In this way, you will be able to make important changes before serious consequences occur. 9 – It is not possible to meet all the standards of regulatory bodies The rules for food and healthcare companies are quite strict regarding inventory control. To meet them, it is essential to have rigorous congressional processes, good quality control, and 100% traceability. This is very difficult to achieve in manual operation. Hence the advantage of having the WMS system. The software monitors all information about the merchandise (batch, expiration date, etc.) and its movements. From when the product arrives at the warehouse to its final destination, the WMS records everything. You have the data immediately and can send it to regulatory bodies when necessary. Additionally, in proposing addresses, the system strictly follows the storage rules of each product to preserve its quality. With the software, frequent checks are also conducted to ensure merchandise compliance. 10 – Customer complaints are growing If your company has received complaints for receiving the wrong product, it is a sign of problems with separation and shipping. One of the great advantages of using the WMS with data collectors or other picking technologies is that the system transmits the order information, and during the picking process, if an error occurs, the software issues a notification so that the error is resolved. Additionally, checking the shipment greatly helps avoid the customer receiving a product they did not order. With WMS, you ensure agility in order fulfillment and quality in service delivery to your customers! 10 Common Warehouse Problems That a WMS Can Solve Deagor WMS per ecommerce può aiutarti!