Supply chain businesses continue to increase in complexity. Manual processes can no longer support these changing operations. Warehouse management system software is a necessary tool to manage these complex businesses. Using warehouse management software can help with inventory management tracking needs and may help to reduce costs, increase staff productivity and improve customer satisfaction. All of these factors are important to customer retention and finding new customers. Inventory management is critical to many supply chain operations as it allows your team to better analyze patterns in activity, both inside and outside of your facility. Paper-based inventory management does not facilitate the level of reporting needed to determine trends affecting your business. With this information your team can optimize inventory management efforts and facility layout. Using inventory management software also helps your business to better monitor inventory flow through rates. You will be able to better understand what inventory levels are most appropriate to both reduce inventory carrying costs and reduce out of stock instances. Supply chain businesses utilizing this type of technology typically see an average 7.5% decrease in out of stocks. Inventory management software can also help in improving the effectiveness of facility order fulfillment. With the real-time data availability created with the use of the software staff can pick, pack and ship orders in record time and with increased accuracy. 95.4% of businesses reported orders are delivered on time and complete when inventory control technology is used. Managing inventory with technology such as WMS can also help to improve benchmarking capabilities. With access to KPI data your team can compare against industry standards and make adjustments as needed. WMS also increases asset tracking capabilities and can help to reduce the amount of lost and damaged inventory within your facility. Performing activity such as cycle counts directed by the WMS your team can identify inventory loss patterns, leading to a faster issue resolution. The data collected using inventory control software also improves communication and decision making capabilities. This, along with the other areas of improvement, lead to a better customer experience and increased customer loyalty. To learn more about how inventory management can benefit your business contact Datex experts today.

1. WHY INVENTORY
MANAGEMENT IS
CRITICAL FOR
YOUR OPERATION
BY: ANGELA CARVER

2. Supply chain businesses continue to increase in complexity. Manual processes
can no longer support these changing operations. Warehouse management
system software is a necessary tool to manage these complex businesses.
Using warehouse management software can help with inventory management
tracking needs and may help to reduce costs, increase staff productivity and
improve customer satisfaction.

3. Analyze Patterns
Using paper-based record keeping makes running reports or compiling
trends in data much more difficult than when data is collected through an
automated process. Companies that use automated data collection methods
such as RF or RFID typically find that information tends to be more accurate
than when using manual methods.
Utilizing warehouse management software in your facility allows your team
to better analyze sales patterns which can give your staff further insight into
inventory turnover and how it affects your operation. This data can be used
in:
• Inventory level management
• Facility layout

4. Inventory Management
Once sales patterns have been identified using warehouse management
software, operational staff can utilize this data to better manage inventory levels
and inventory flow through.
For fast moving items higher stock levels can be maintained and for slower
moving items quantities can be adjusted as needed. This helps to reduce
carrying costs associated with excessive quantities of on-hand inventory.
* Supply chain businesses that utilize inventory control systems see an
average 7.5% decrease in out of stock situations, which in turn helpsto
improve customer service levels.
* http://insights.brook.ie/blog/13-statistics-highlighting-how-important-inventory-management-is-to-your-business

5. Facility Optimization
Utilizing these inventory control identified patterns, supply chain businesses
can adapt their facility layout to increase inventory flow efficiency.
Moving faster moving items closer to the staging/loading locations can help
to reduce the amount of travel time needed to fulfill orders. This also makes
product replenishment more efficient as staff has to travel less distance to
put away those faster moving items.
The cost associated with travel time reduction can be significant and may
vary depending on order fulfillment/putaway quantity and the size of your
facility.

6. Improved Order Fulfillment
As the industry standard is shifting towards omni-channel fulfillment and
the focus on the consumer, supply chain businesses must find solutions to
improve ineffective order fulfillment.
* 95.4% of businesses report orders are delivered to customerscomplete
and on time when inventory control technology is used
Inventory control systems have helped many businesses adapt to the shift
towards omni-channel retailing by providing order data in real time. This
allows their staff to pick, pack and ship orders in record time with greater
accuracy.
* http://insights.brook.ie/blog/13-statistics-highlighting-how-important-inventory-management-is-to-your-business

7. Performance Benchmarking
Warehouse management software is critical to supply chain businesses due
to its capacity to assist in performance benchmarking.
At any time businesses utilizing WMS software are typically able to access
KPI data related to productivity, accuracy, safety, price and much more that
can then be compared to competitors and reported industry standards.
Performance benchmarking helps supply in order to remain competitive and
retain their market position.

8. Inventory Loss Reduction
An unwanted cost for many supply chain operations is inventory loss due to
theft and damage. These costs can be mitigated with the use of warehouse
management software.
By performing regular cycle counts and monitoring audit trail data, theft can
be deterred and inventory that otherwise may have been considered “lost”
can be found.
Inventory control can also help to identify patterns in inventory loss or
damage. Identifying these issues is the first step to eliminating them in the
future.

9. Increased Collaboration with Customers
& Suppliers
Data collected and stored using supply chain management software can
also be shared and transmitted in many methods including:
• Email
• Online portal
• Electronic data interchange (EDI)
* Integrating your inventory control system with other tools makes your
business 1.67 times more likely to collaborate effectively with suppliers.
Collaborating with suppliers and customers builds partnerships that can
help companies to gain more business through positive referrals and repeat
business.

10. Improved Decision Making
The real time data collected using warehouse management system software
can also be shared in real time.
Sharing data openly between team members allows for more effective
communication and for more collaborative, informed decision making.
Informed decision making can help your business prevent mistakes and
reduce costs associated to these mistakes.

11. Increased Customer Satisfaction Levels
Implementation of warehouse management system software gives supply
chain businesses the opportunity to focus on activities that help them better
serve customers.
With the use of WMS software, orders can be fulfilled more accurately, costs
can be reduced allowing businesses to pass on savings to customers, and
collaboration can be increased with improved data sharing. All of these
items help to increase customer satisfaction.

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