5 March 2022 In the current scenario, with strong competition and increasingly demanding consumers, your main competitors are companies that can deliver faster and offer an excellent level of service. These companies have something in common: they invest heavily in technology, striving for excellence in all processes and, above all, in customer service. As a result, many companies lagging behind have already started to rethink their current structure and investment plans, prioritizing innovation in logistics as a strategy to get closer to the leaders. In this process of self-evaluation, a common question is whether business performance is hindered by the lack of a Warehouse Management System, the WMS. Distribution centers are highly dynamic environments that face new challenges every day. In these operations, the watchword is to innovate, always with the aim of increasing efficiency and optimizing the use of resources (people, equipment, and territory). But how can these goals be achieved while maintaining manual processes, paper lists, and spreadsheets? It is practically impossible, as traditional tools create gaps for human errors, rework, and slowness. And the most dangerous thing is that this directly affects the customer experience. Hence the great need to have the support of specialized software. “Does my company need a WMS?” This is a question you might be asking yourself right now. The answer may lie in one of the signals we will list below. Evaluate all situations and rethink your business, understanding that investing in technology is the first step to eliminating problems and paving the way for growth. Discover the 10 situations that indicate your company needs a WMS system: 1 – Increasing or above acceptable error rates The more complex the operation, the greater the likelihood of errors occurring, such as out-of-stock products, sending wrong items or incorrect quantities, improperly packed or damaged goods, among other situations that cause customer dissatisfaction, which can lead to returns and refunds. If these errors occur too frequently, they will surely result in higher expenses for the company and, worse, the permanent loss of customers. This indicates that it’s time to rely on technology support to eliminate failures. 2 – Missed deadlines If the layout is not optimized, if there is no strategy to reduce picking trips, or if the picking lines are not filled at the right time, your employee will spend more time searching for items, which can cause order delays, as well as increase your operational expenses. With the WMS and its features aimed at optimizing storage space and increasing productivity, such as routing, wave picking generation, and automatic replenishment, these problems are eliminated. You deliver on time and reduce costs. 3- Low OFR (Order Fill Rate) or OTIF (On Time In Full) rates If your operation does not show a good OFR (Order Fill Rate) or OTIF (On Time In Full) rate, it is a sign that you have many dissatisfied customers with the service. And frustrated consumers are usually the first to file complaints online, reducing your company’s reputation. Therefore, the entire operation must revolve around a primary goal: the perfect order. If today you are dealing with inaccurate forecasts, supplier delivery delays, poor inventory visibility, poor accuracy, and separation issues, for example, you definitely have problems ensuring excellence in customer service. To avoid such situations, you need a system that offers total control over stocks, purchases, and sales, and monitors the performance of intralogistics processes. WMS is the best solution. 4 – Increasing costs to fulfill an order As your business grows, the cost to fulfill an order should decrease, not increase. But this is still not a reality in many companies. In an attempt to deliver faster, many operations fail in their strategies, whether related to the use of space, labor, or process organization. The result is increased expenses without necessarily providing better customer service. The WMS follows business growth and offers all the tools that allow you to separate more orders per day without burdening operations. And in this way, you have fewer errors and higher profits, besides avoiding wasting precious time searching for products, redoing work, or, worse yet, canceling orders due to errors that could have been avoided. 5 – Out of control inventory management The lack of total control over stocks can be indicated by out-of-control inventory, that is, the loss of goods, stock deterioration, and the hidden cost that this represents. Sometimes, you have the impression that there are “black holes” in the warehouse, but without knowing where they are. To solve this problem, the WMS uses technologies such as barcode scanning and RFID to ensure complete control of goods in the warehouse, minimizing errors and improving accuracy in counting. 6 – Difficulty in complying with regulations and standards Whether it’s requirements related to tax regulations, safety, labeling, or product quality, compliance with regulations is an imperative that cannot be ignored. And having total control of your inventory, combined with proper documentation and recording of operations, is essential to avoid penalties and fines that could undermine your operation. The WMS can help you comply with various regulations by automating processes and generating compliant documents. 7 – Inability to adapt to activity peaks or demand changes The market does not wait and, at times, can entail unexpected demand peaks or sudden changes in sales patterns. If your operation cannot adapt flexibly and without negative impacts, it means you lack agility. With the WMS, your business is ready to face any situation, without productivity losses and maintaining high-quality service. 8 – Lack of visibility on operational efficiency You cannot improve what you cannot measure. If you do not have accurate information on the efficiency of operations, it is difficult to identify critical points and make improvements. The WMS offers comprehensive dashboards and reports that allow you to constantly monitor performance, obtaining essential information to make informed decisions and continuously improve processes. 9 – Lack of traceability and visibility in the logistics process The customer wants to know everything about their order, from confirmation to arrival at the destination. If you cannot provide this information quickly and accurately, you risk losing trust in your brand. A WMS allows you to track every movement of goods and packages in real-time, providing detailed information to customers and improving their experience. 10 – High reliance on operator memory and experience If your processes are mainly based on employee memory and experience, the risk of errors increases, especially during high activity periods or staff turnover. With a WMS, operations are systematized and guided, reducing reliance on memory and ensuring greater accuracy and consistency in daily operations. In conclusion, if your company finds itself in one or more of these situations, it is time to seriously consider implementing a WMS system. Investing in a warehouse management solution can lead to greater operational efficiency, better customer service, and ultimately, greater market competitiveness. 10 Signs That Indicate Your Company Needs a WMS System Deagor WMS per ecommerce può aiutarti!