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Warehouse Inventory-To Automate or Not Automate

By Len Bacharach (231 words)
Posted in Warehouse Operations on October 25, 2018

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Warehouse Inventory- To Automate or Not Automate

The question that 3PL warehouse operations managers often contemplate, why is it necessary to automate our warehouse operations? The answer that often arises is Yes, because it has become apparent that it is critical to maintain and streamline inventory and effectively manage costs and operational budgets to enhance the accuracy and productivity of warehouse operations.

An issue that often arises is the physical inventory in the warehouse does not match with the inventory on the books. Because inventory is often the largest assets of a business or 3PL warehouse operation, the importance of warehouse accuracy is of major importance.

Warehouse inventory that is not automated and not accurate, can have a major negative impact on a business. Including the following::
-Order fulfillment delays due to misplaced or lost products
-Negative sales results due to stock outs and over commitments
-Additional costs due to placing and managing back orders
-Searching for products that are lost resulting in lower labor productivity
-Higher freight costs that result from expediting shipments to customers

These adverse and impactful issues result in excess inventory which negatively impacts storage capacity and ties up capital. The end results are additional costs, minimal productivity and ineffective customer service support.

Core eBusiness Solutions offers CoreWarehouse a 3PL cloud based WMS software program that has . The company is headquartered in Fairfield, NJ and can be reached at (201) 836-8900.

 

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