Warehousing has never traditionally been a high tech environment.
To many companies, their warehouse is a black hole of endless costs (labour, equipment, space, even the stock itself) why? because many companies make money from whatever it is they do well, producing or importing, marketing and eventually selling goods when the operation becomes big enough, companies start to stock pile and so the warehousing side of a company grows, the warehouse is always seen as a necessary evil, as a by-product of what the core business is all about.
And because the warehouse costs the business dearly in operating expenses, reducing the businesses overall profit, the business has reluctance to spend any money on the warehouse as it is.
And when it does decide to spend on racking or material handling equipment or more labour, there is usually zero return just adding to the capital and operating costs.
The exception to the above is 3rd Party Logistics companies (3PLs) specialist companies that provide warehouse storage and distribution services.
It is their business to make money from warehousing.
Consequently, these companies realise that they need to have the much efficient, productive and accurate means of running a warehouse, and investment in Paperless Warehouse Management Systems to deliver results with a great return.
The same principles that apply to 3PL companies should be adopted by many other organisations in order to reduce the operating costs of their own warehousing operations and increase competitive advantage through their supply chain within their respective markets.
The key is a WMS that is low risk using proven technology with rich functionality to cater for the business needs, and with a high return on investment.
This is only possible from a specialist WMS supplier with a WMS that is efficient in all it is processes.
According to Paperless Warehousing, unfortunately many companies believe all WMS software is the same, some systems should not even be referred to as a WMS, just because they use barcodes or RF does not mean they provide any real WMS value many are just basic location or inventory systems with no smarts and consequently provide no improvement to the operation in fact some require more administration.
The idea of a WMS is that it uses technology such as RF and bar-coding to automate and streamline all warehouse activity, reduce administration, improve visibility, efficiency and accuracy, and to better utilise MHE and labour resources quite simply to do things better, faster, cheaper.
WMS is more than just barcoding and RF, and a lot more than inventory management and order management.