Read Time: 5 minutes
Overview
Efficient inventory management is crucial for businesses to minimise wastage and pilferage. A Warehouse Management System (WMS) reduces inventory wastage and theft by addressing four key stages of the supply chain: procurement, storage, order fulfillment, and distribution.
Stage 1: Procurement
WMS enhances procurement through:
- Demand Forecasting: Advanced techniques leveraging historical data prevent overstocking
- Vendor Management: Tracking delivery timelines and product quality from reliable suppliers
- Barcode/RFID Scanning: Real-time inventory visibility upon receipt
- Quality Control: Identifying damaged goods before acceptance into inventory
Stage 2: Storage
Proper storage conditions are maintained via:
- Inventory Segmentation: Categorizing items by perishability and handling needs
- FIFO/FEFO Principles: Ensuring oldest inventory is used first to prevent spoilage
- Temperature/Humidity Monitoring: Real-time alerts for storage condition deviations
- Location Optimization: Strategic placement of fragile or perishable items
Stage 3: Order Fulfillment
Efficient processes include:
- Real-time inventory visibility
- Automated order allocation reducing errors
- Optimized picking paths
- Quality verification during packing
Stage 4: Distribution
Protection during transit involves:
- Shipment verification against orders
- Route optimization algorithms
- Real-time GPS tracking
- Adequate packaging guidelines
Implementation Considerations
Successful WMS adoption requires tailoring the system to your specific business needs. Consider your industry type, product nature, and supply chain complexity. Additionally, invest in ongoing employee training and system monitoring to maximize the benefits of your WMS implementation.