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1. Reducing inventory storage levels
2. Transparency in inventory storage and accuracy
3. Reduces shipping costs and shipping errors
4. All of the above
4. All of the above_______+++++++++++++++>>>>>>>>>>>>>.A
A Warehouse Management System (WMS) will bring a range of benefits to many different types of organizations. Any operation where there is a need for stock control can benefit in a variety.
1. Fast access to information.
2. Eliminating the errors.
3. Storage optimisation.
4. Resource optimisation
A Warehouse Management System (WMS) will bring a range of benefits to many different types of organizations. Any operation where there is a need for stock control can benefit in a variety of areas.
Staffing LevelsWarehouse labour costs can be extremely high when there is a large throughput of items. Implementing a WMS will mean that companies can reduce staffing levels in two ways. Normal operational conditions will see reductions in staffing levels and seasonal peaks in demand are more likely to be met and managed by the system as opposed to the recruitment of temporary staff.
Equipment LevelsWith a reduction in the workforce comes a reduction in the volume of equipment required to run a warehouse facility. This results in a significant reduction on annual maintenance budgets and future capital purchases of new equipment can be reduced. Workforce reductions can, in some circumstances be so significant that shift reductions are not uncommon after the implementation of a WMS.
Inventory AccuracyProviding the customer with the goods they want, at the time they want them will be facilitated in no small way by a WMS. System driven routines monitor stock levels accurately and can be responsible for placing timely orders that ensure stock is always available to the customer. An inventory that can be depended upon means that an organisation can reduce inventory levels to the bare minimum and see the benefit of reduced operating costs as a result. In some organisations those costs can be reduced by as much as twelve percent.
Maximise Use of FacilitiesAs a business expands it needs to be capable of managing larger volumes of inventory throughput. This need not mean going to the expense of bring new warehousing on stream. A WMS can sit at the heart of a function that is optimised to make the maximum use of facilities. The ability to manage inventory more accurately translates into a better use of existing facilities. Automated routines for stock rotation and picking also mean there is a decreased requirement for space, leading to more efficient use of existing facilities.
Effective Management ControlReal time reporting from a well implemented WMS can provide warnings of stock control issues in advance. Historical productivity reports can be used to provide intelligence based system of warning reports that make costly mistakes less likely. Effective management control in this way provides opportunities for enhanced customer service. Backordered inventory can automatically be released, picked and delivered according to a customer’s exact requirements. A good WMS will also provide a rigid backbone for any distribution or stock control operation. The rigid backbone can then be used to drive further process improvements in areas once thought to cost ineffective to address. As fewer steps in an operation remain informal there is decrease in the need for training and lower error rates.
Hello Team,
The main one is labor; fewer people, fewer mistakes, more output, more accuracy… more profits.
But a WMS saves you in money in ways that go far beyond just the quick and obvious labor savings. The next big money-saver lies in inventory.
Inventory improvements in accuracy are generally at the top of the list of expectations from clients implementing WMS. Whether it’s reduced backorders, improved fill rates, better customer service through improved accuracy or less time spent chasing down mistakes – improvement in any of these areas implies an improvement in all of them – and they all save money.
The first benefit of improved inventory accuracy is the ability to carry less inventory. Companies that deploy WMS and the disciplined processes to match find that inventory turns are improved anywhere from 15 to 50% (depending on who you talk to, how you measure it, and who you believe…)
Even at the low end of that range, a 20% improvement in turns on a million dollars in inventory results in real savings. [Definition: Inventory Turns simply refers to the number of times your inventory is “turned” – or sold – in the course of a year. It’s a calculation of the cost of goods sold of your “average inventory.”] If you carry an average of a million dollars in inventory, a 20% reduction (improvement in turns) frees up $200,000 in working capital – not to mention inventory carrying costs like financing, and what happens to that value if you’re on a growth track.
Small wonder companies go after WMS just for the improved inventory accuracy benefits alone. Mind you, they don’t come overnight… but they pretty quickly, and they do come.
Ultimately, reduced inventory can also lead to less warehouse space requirements – or growth of sales and shipments utilizing only the same space.
Then there’s the value of eliminating inventory counts. Most companies we see (before deploying WMS) count inventory anywhere from one to twelve times (or more!) per year. These counts can be largely eliminated with a good WMS and today, by Generally Accepted Counting Principles (GAAP), counts supplied by firms with WMS and RF bar code scanning devices are deemed as acceptable and valid. Less time counting means more time spent on productive activities. You’re reduced merely to periodic cycle counts at worst.
More accurate, software-tracked inventory ultimately leads to less safety stock, lower overall inventory valuations, and sometimes less scrap too.
As a rule of thumb, your ROI just from inventory turn improvements alone – will generally pay back the entire cost of a WMS system.
As we used to say in an old promo piece: “We found money in your warehouse! We’ll split it with you.” It was our not so subtle way of saying that a WMS is like found money – and client after client will tell you the same.
Next up: yet a few more specific ways WMS saves firms money. And a couple intangibles that are just as important.
Regards,
Saiyid
It should be All of above
the reason being it provides the customer with the goods they want, at the time they want them will be facilitated in no small way by a WMS.
 system driven routines monitor stock levels accurately
It can be responsible for placing timely orders that ensure stock is always available to the customer.
An inventory that can be depended upon means that an organisation can reduce inventory levels to the bare minimum and see the benefit of reduced operating costs as a result.
Full Agree with expert answers above
i fully agree with the answers been added by EXPERTS..................Thanks.
4. All of the above>>>>>>
all three are correct options
