Warehouse Management System (WMS) Benefits
By eliminating paper-based systems and adopting a real-time, digital warehouse management system (WMS), your team can reduce human error, save time and cut costs.
You can increase the speed and efficiency of daily tasks while improving accountability.
Implementing a paperless system will have a positive environmental impact, reducing the need for ink and paper while decreasing your carbon footprint.
Challenges of Paper-Based Systems
Human Error
Mistakes are inevitable when using a manual, paper based system. The more paperwork involved, the greater the chance of human error.
Common Errors Include:
- Inaccurate inventory levels from errors in processing incoming stock into the warehouse.
A study by the Aberdeen Group found that businesses using manual methods reported a 3%-5% error rate in inventory records, compared to 0.5% for those using automated systems.
- Lost inventory from errors in putting stock away within the warehouse.
According to a report by the Retail Knowledge Base, manual warehouse operations are typically prone to a 2%-3% loss rate of inventory due to misplacement or mislabelling.
- Pick and pack errors, such as shipping incorrect items or quantities. This significantly impacts customer satisfaction.
According to Shopify, around 65% of returned goods result from retailer errors. The Reverse Logistics Association also reported that handling returns can cost businesses about 20% to 30% of the original order value, largely due to processing, restocking and reselling the returned items.
Lack of Visibility
A paper-based system lacks real-time visibility into inventory levels and audit trails. Without this information, it becomes difficult to inventory levels, leading to stockouts, overstocking and cash tied up in the wrong stock.
Limited Accessibility
Paper-based systems can only be accessed at a specific location making it almost impossible to manage stock across multiple warehouses or locations.
Lack of Accountability
Paper offers no accountability, meaning it is very difficult to track errors made by your team to an individual and identify where training is required.
Reduced Productivity
Inefficiencies in manual processes can lead to a significant decrease in productivity of your team.
Data indicates that workers spend up to 30% of their time searching for items or correcting errors, which could be addressed by implementing an automated warehouse management system.
All the Above Factors have an Impact on your Business!
A study by the Centre for Economics and Business Research noted that businesses could lose up to 20% of their revenue due to inefficiencies and errors stemming from outdated manual processes.
Benefits of WMS Software
With Stok.ly’s Order Management and Warehouse Management System you can move to a paperless warehouse using barcode scanning and the android stock app to improve accuracy, speed and accountability of daily warehouse tasks.
Going paperless will not only revolutionise your warehouse management but also your sales order processing making it a seamless process with every order being tracked from receipt to dispatch. This makes this whole process quicker as well as offering real-time visibility across all location and sales channels.
The Next Step
If you are serious about improving the management of your warehouse, reducing human error, saving time, increasing productivity and reducing costs, a WMS should be a serious consideration when looking to scale and grow your business.
Click here for more information about Stok.ly Warehouse Management
Call us on 01432 804333
Author: Iain Coplans CEO Stok.ly