20 January 2023 Discover 7 benefits of investing in a smart warehouse and understand why innovation is the way to make your company more competitive. What is a smart warehouse? Why has the automation of logistics processes become a trend? What are the main advantages and competitive benefits derived from the digitization and modernization of your business? You will have all the answers by understanding the current scenario and the changes taking place. The recent COVID-19 Barometer survey, conducted by Kantar, indicates the growing curve in the change in behavior of Brazilians in relation to online shopping in the post-pandemic scenario. With the flexible work structure, more time with family and at home, the possibility of shopping online has increased by 30% in the country. This means there is a great opportunity for those who truly want a strong and continuously growing business. In fact, we can say that this number has a direct impact on companies, which increasingly need to adapt to consumption changes that have already been consolidated over the years and have been strengthened by the pandemic. Today, consumers desire agility and convenience in their purchases. They also want to closely monitor the status of their order. Therefore, to meet new demands, you need to have an extremely fast, organized, and precise operation. Preparing the warehouse for the new market means, without a doubt, ensuring a competitive advantage, that is, enabling and consolidating attributes that differentiate your service, surpassing the productivity of competitors. But, in the end, what does it mean to “prepare the warehouse for the new market”? It involves investing in the right tools that will bring more intelligence to the processes, allowing you to do more with less. This is what we will see next. What is a smart warehouse? A smart warehouse consists of logistics processes carried out by machines, equipment, mobile robots, automated picking solutions, warehouse management software, all integrated with advanced technologies, aiming to increase the efficiency of centers. The term “smart warehouse” was coined by the German government and first used in 2011. The concept marks the reindustrialization of the West, which seeks, through the implementation of new technologies, an increasingly agile and efficient market, creating new opportunities for companies to evolve and generate positive experiences for their consumers. Even though it seems like a universe where the efforts and manual work done today by employees are set aside, smart warehouses directly interact with human supervisors, who perform specific and strategic functions. Therefore, there is a redistribution of tasks and better team integration, eliminating errors, avoiding downtime, organizing demand priorities, and leveraging each person’s potential to complete tasks quickly and productively. Make your warehouse smart and prepared for market competitiveness with management software. Companies aiming to grow in the market have constantly sought support from solutions that facilitate the execution of automated flows in their warehouses. Some of the most sought-after software that performs functions for more efficient and optimized management and resource savings are: WMS – Warehouse Management System This system can be considered one of the brains of a smart warehouse. It controls the entire warehouse management process, from receiving goods at the dock to shipping. With its real-time technology, it is possible to have control over the entire flow and its more specific details, such as inventory management, data analysis, delivery priorities, route calculation for each activity, goods handling, picking fluctuations, loading, among other functions, always aiming to make the best use of distribution center resources. YMS – Yard Management System YMS is a system aimed at warehouse management, contributing to the support and better operation of loading and unloading operations. One of the main objectives of this software is to organize the pickup schedule, ensure dock availability, and provide reliable and centralized information, as well as safety and smooth movements when vehicles enter and exit the yard. OMS – Order Management System This software allows for greater control and accuracy of information during order organization, providing and guiding both employees with information related to order entry and exit, management and stock, service and after-sales, and consumers, allowing immediate monitoring of the request status. Discover the main benefits of the smart warehouse By correctly implementing the main process management systems, integrating them with the automations that make sense for your business, it is possible to achieve the benefits listed below. In this way, your company becomes stronger and more competitive. See: 1. Reduced operating costs and cheaper products for the consumer In general, the cost of company labor represents about 2/3 of warehouse expenses. This expense is consequently applied to the product and/or service offered by the company, in order to balance its resources and ensure profitability. We know that price is still one of the main “P” of marketing and influential in the consideration and purchase by a consumer, therefore the smart warehouse allows a reduction in human demand, focusing on quality and not necessarily on quantity. Having a lean team capable of managing integrated management systems, it is possible to reduce the value of the product or service. Having a cheaper good is a determining factor for market competitiveness and consumer preference. 2. Faster order deliveries How much has the world changed in recent years? Communication is one of the greatest advances and time optimizations ever observed. Imagine communication a few decades ago. You had to write it in a letter, send it, receive it, and respond. What used to take weeks or months is now possible in a few seconds. Technology has enabled countless advances and it is no different for companies. Being fast is synonymous with efficiency, and one of the decisive factors for retaining the consumer is delivery time. Today the customer does not want to wait many days to receive their order. A smart warehouse also allows for reduced delivery times because: It reduces the error rate; Monitors in real-time the availability of products in stock and integration across all sales channels; Reduces employee task execution times; Indicates the exact route in the shortest execution time; Recognizes possible problems and directs solutions throughout the journey 3. Reduction in return rates It is normal for traditional manually managed warehouses to have an error rate between 1% and 3% during the order picking and shipping process. Even if the company’s staff is made up of the best and most trained employees, human error will inevitably be present. Management systems allow for a broad view of the entire management process, from dock entry, inventory, order picking, and shipping. In this way, the chances of error tend to zero. And, despite there being returns, these are also carried out more quickly because it is possible to identify the route to the customer and know precisely which products were shipped to the consumer and where to fix the errors. 4. Better use of storage space Which orders are sold in certain periods of the year? What are the most sold sizes, colors, and formats? Are there products that need to be stored in specific places to ensure their longevity? Setting up an inventory location strategy can take a lot of time and require time for all employees to adapt to the addresses of each product. To this end, systems help guide the best placement of a certain product in the warehouse, avoiding merchandise losses, optimizing travel times to distribution center addresses, indicating the best form of storage, and coordinating stock rotation, in order to ensure the best use of space in the CD. 5. More efficient demand forecasting Smart warehouses have technological resources capable of tracking the history and behavior of sales made in a specific period. What is generally done manually and can take a lot of time, in the smart warehouse is done instantly: reports are generated automatically, allowing managers to adapt their stocks to requests, especially during peak periods. 6. Greater customer satisfaction One of the companies that stands out in the market today is undoubtedly Amazon, especially when it comes to competitiveness. The company brings together a series of attributes that keep regular customers, such as prices lower than market standards, quality and delivery efficiency, and quick problem resolution. The recurrence of purchases comes from a great experience with the brand. In the case of Amazon, one of the main factors that contributed to the high service standard was the investment in smart warehouses, which allow for low prices, fast deliveries, information accuracy, and efficient solutions when it is necessary to make an exchange and/or return. 7. Advanced analysis Management systems, data analysis tools, and machine learning algorithms are some examples of resources of great importance for warehouse optimization. These technologies allow the collection of valuable information for management and advanced analysis. And it is undeniable that you can only improve what you measure, that is, if you want efficient operation, you must look closely at your numbers. By investing in innovations that make your warehouse smart, you can conduct in-depth analyses of your real performance, with reliable and complete data. Make your logistics strong and your business competitive The 7 benefits listed above have surely convinced you that technology can never be seen as an expense. It is indeed an investment with a certain return, capable of making your company strong and prepared for a highly competitive market. Always keep in mind that your customers expect more from your company and that you can meet higher demands when you have the right tools by your side. It’s time to invest in a smart warehouse. There are countless opportunities for those who are ready for the new consumer market. 7 Competitive Advantages of a Smart Warehouse Deagor WMS per ecommerce può aiutarti!