Warehouse Management Systems Barcode ROI

Posted by Gerry Poe

warehouse management systems Warehouse Management Systems are how you maximize barcode ROI in your company: 

  • Light-Speed Transactions
  • Data Accuracy
  • Lower Labor Costs
  • Reduced Inventory Costs
  • Better Quality Control
  • Improved Customer Service

Next: The Advantages of Automated Data Collection

Harness Competitive Advantages

Automated data collection opens up new categories of information.  This new information can provides a competitive edge. 

For example, automated data collection permits precise assessment of cost data. Accurate cost information enables the most accurate bids on jobs, reducing over-and underbidding.

If your competition has a sophisticated data collection system allowing better response to customer needs, you may lose market share.  Such factors can decisively tip the scales in favor of an investment in automated data collection regardless of "what the numbers say.

Increased Productivity with Accuracy

The primary justification for installing an automatic data collection system comes from overall improvements in the productivity of the warehouse. This comes from better management control and increased motivation of operators. RF users perform more effectively when an easy to use automatic data collection systems are used.

The benefits associated with the system in the productivity area are many: Successful warehouse management requires timely, accurate, useful information about the goods in the warehouse and their location.

Employees will benefit from less paperwork and more accurate information. Mobile users or office personnel no longer spend costly time looking for goods that are not there or are in wrong locations.

Reduction in Overtime

With correct information on hand for location and quantity, accuracy within the warehouse will improve productivity and efficiency. Reducing costly overtime resulting from the need to get orders out of the door to meet deadlines and deliveries that would otherwise be missed.

Reduction in Inventory Stoppages

Accurate stock holding brought about by the introduction of bar codes, scanning and tracking from entry to exit throughout the warehouse will reduce the need for costly stock-takes (cycle-counts) which are usually performed at weekends and outside normal working hours resulting in costly payment to staff at overtime rates.

Many companies, which do not have warehouse management systems in place, need to do stock-takes on a monthly basis to insure inventory accuracy.  Companies using warehouse management systems are able to better harness the Cycle-Counting features of SYSPRO and annual physical inventories.  Inventory accuracy of 99.9% is not uncommon in many companies using barcode and warehouse management systems.

Improved Decision Support

Accurate costing is an essential for making correct cost accounting decisions.  Unfortunately, many companies assume their cost standards for labor and materials are accurate.

Reduction in Safety Stock Levels

Warehouse managers hold less stock if they have better, faster and more reliable information about what is in stock at any given time. Most warehouses without an automatic data collection system hold a safety stock of about 10%.  In addition, many sites use a high value to describe Dock-To-Stock.  Because barcode systems permit inventory to become visible in SYSPRO (ERP) in minutes rather than hours or days, inventory levels can be reduced.

Stock Takes and Inventory Control 

Rules in the warehouse can and should be if you touch product, you scan the ptoduct. Making each movement "count" within your ERP system. One failing of warehouse management is defining your process, policy and procedure guidelines for matarial handling. Stock takes are an inprovement over many iother benefits due to the automation behind the processes. When an WMS system is incorporated your company has the opportunity to improve many areas of materials management. Stock takes and cycle-counting, when automated, gives your company an edge on accuracies and increased customer satisfaction. By knowing stock levels supply against demand is managed in a new level of competency.

Download eBook: How to Choose Your Enterprise Accounting Software System 

Tags: Lean Operations, Warehouse Management, Data Collection, Barcode, SYSPRO, SYSPRO Support

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