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Posted September 14 2018
Written by Étienne Gilbert

Turn Your Warehouse Into A Profit Generator

Source : Logistics Ressources International, Inc.

The roles and functions of warehouses have evolved greatly in recent decades. No longer simply a place to stock inventory, they have now become key players in achieving business goals.

With e-commerce, omnichannel distribution and increasingly demanding customers, it is imperative to be able to count on an optimal supply chain. In this context, companies must transform their warehouses and distribution centers from a cost generator to a profit generator!

As such, how is it possible to change the perception of your warehouse(s) inside the company?

The essential elements to get there

First, it is difficult to improve a process that cannot be measured. To do this, it is necessary to be able to rely on performance indicators. One of the key indicators in the analysis and pursuit of this goal is the cost per line. In fact, by lowering the costs that make up this indicator, the gains are directly transformed into profits for your company.

Second, using a state-of-the-art solution will enable you to transform your operations into profit generators. Thus, thanks to the implementation of a Warehouse Management Solution (WMS) solution, it will be possible to improve all the activities of your facilities.

Take the example of all the "Inbound" activities of your warehouse(s). A WMS solution will allow for a faster, real-time update into the availability of your inventory. By simplifying reception activities, either by using ASNs or RF terminals, you can greatly reduce errors and delays when receiving. Here's how:

  • Simplify order picking activities, which represent on average nearly 50 % of warehouse operating costs. Implementing a WMS solution combines different strategies to simplify and accelerate these activities in your facilities. These also include the use of barcodes for locating hardware in the warehouse. By reducing the labour efforts and transit time of your materials, you turn your warehouses into a profit generator.
  • Use the latest technology in sampling such as voice sampling.
  • Ensure real-time visibility of stocks.

To do this, the implementation of the HighJump WMS solution with the support of Createch will give you the opportunity to transform your warehouse to be a generator of profits!

References:
http://www.werc.org/assets/1/Publications/12234_WERCwatch%20Spring%202012_Final%20logo.pdf 
https://www.highjump.com/ 

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