Management of the finished goods warehouse
Finished goods warehouse management is a well-established inventory management system for an enterprise and includes:
- inventory management in terms of SKUs, batches and expiration dates
- routing of acceptance, placement, selection and shipment of goods and materials
- real-time billing of warehouse employees
- analysis of warehouse productivity, workload and operational efficiency
- minimizing errors through the development of operational processes and the introduction of new technologies
WMS systems are used to implement warehouse automation.
Features of automation of finished goods warehouse management
In the finished goods warehouse, the priority is the speed of turnover and the absence of re-grading, as the goods at the stage of acceptance are already ready for further sale. Under these conditions, it is advisable to use product turnover classes and conduct ABC analysis, and its results will help in effective zoning and placement: the most popular products should be located closer to the consolidation area for further shipment. All this saves time and resources. This method requires a clear organization of warehouse operations, and their management is associated with certain difficulties that can be solved by a WMS system.
Relevance of warehouse automation and why is it needed?
An automated warehouse of finished goods allows you to efficiently implement warehouse operations, minimize losses and increase turnover due to customized stages of operations and the distribution of roles between warehouse employees.
The procedure for keeping records of products, reducing operating time, technical and information development of logistics processes, and flexibility in changing business conditions allows:
- change the rules for performing operational tasks
- increase the speed of processing of goods flows
- increase the throughput capacity of the warehouse
- efficiently use the warehouse space
- analyze product balances at storage locations
- reduce risks associated with the human factor
- Analyze the overall performance of the warehouse
Problems faced by a warehouse without automation
If you ignore the automation of finished goods warehouse management, warehouse operations are not performed in a comprehensive manner, with a lot of time, resources and inefficient use of warehouse space, and, as a result, loss of profit. The problems are quite obvious and reasonable, since everything depends primarily on warehouse employees and their responsibility, namely:
- dependence on specific employees
- loss of time during order processing
- re-grading of the product range and batches
- Lack of control over placement and collection at storage locations
- losses due to expiration of products
- lack of control over warehouse personnel
Equipment for warehouse accounting
To automate warehouse accounting, you need to deploy the software on your own or a cloud server, prepare equipment, and organize a corporate network for uninterrupted work with the WMS system and within the warehouse. For the operational implementation of processes, data collection terminals should be put into operation; their number will be determined by the number of employees involved in the work of the finished goods warehouse. Depending on the number and types of operations, the warehouse will need to be equipped with printers for printing truck labels, storage locations, and nomenclature labels.
Benefits of implementing a warehouse automation system
The advantages of implementing a warehouse automation system for finished goods include:
- organized system of logistics processes
- accuracy of warehouse accounting
- minimization of errors in the process of work performance
- conducting inventories without interrupting operations
- billing of warehouse employees
- online monitoring of warehouse performance
- efficient use of warehouse space
- reduction of labor costs
- control of expiration dates of batches and serial numbers of products
Challenges of WMS implementation
A number of foreseen and unforeseen difficulties can hinder the implementation of a WMS system. For example, employee resistance to change, as employees may not be mentally prepared for it. An incorrectly calculated budget may prevent the full automation of the finished goods warehouse. Unforeseen improvements that were not considered even after a full study of the warehouse. Failure to fulfill the requirements of one of the parties (not purchasing the DCT and label printers, not setting up the Wi-Fi network, not preparing the exchange between systems by the implementation date, not preparing the topology, etc.) Failure to coordinate the work and expected results with the project sponsor. The political, economic, or epidemiological situation in the country and in the world.
For which companies is automation relevant?
Automation of warehouse processes is relevant for any business that produces or sells goods. For example, a production warehouse of finished products, distribution centers, regional warehouses, warehouses of trading platforms, online platforms, shops and pharmacies, etc. The introduction of an automated warehouse management system will have a good effect on the performance of any enterprise – it will increase product turnover, make control over all operations more efficient, and help to cope with the growth of turnover in the process of development.
Choosing the right warehouse software and implementing it
When choosing a warehouse management system for finished goods, it is important to study the market, meet with representatives of companies that offer warehouse automation solutions, and read case studies of completed projects.
It is advisable to conduct research and analyze the specifics of warehouse processes, identify weaknesses and implementation goals. Especially relevant will be configured and adapted warehouse accounting systems that are as flexible as possible and can be easily customized to the needs of the project customer.
Then, it is necessary to estimate the cost of the software, the amount of work for implementation, and agree on possible improvements.
After the parties approve the implementation, they will prepare for you
The schedule will describe the stages and timelines of the work, as well as the technical requirements for the successful implementation of the project. Preliminary tests will be conducted and after the test team confirms the correct operation of all operations, the project will be transferred to implementation.
Cloud-based accounting system
The cloud-based accounting system, namely the SaaS model of using a WMS system, involves the use of software on the server of a company that offers solutions for automating the warehouse of finished products. The main priority of such interaction is the absence of a number of requirements for the customer, and this eliminates the risks associated with the chain of technical specifications.
In this case, the software core will be located on the supplier’s server, and the payment for use is usually monthly and much lower than purchasing your own software. In addition, the price almost always includes technical support, which is very convenient at the moment.
