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How to use Automation & Warehouse Management Software for Operational Efficiency

October 31, 2018 Published by

Ecommerce companies with high volumes of small orders need to be extremely efficient so that profits are not eroded by operational costs. If you can get through the initial pains of the implementation process, warehouse automation is a great operational advantage in this regard. But, you may find the ROI of automation to be underwhelming if it’s not completely integrated with your WMS. After all, since your WMS tracks and manages everything going on in the warehouse, it should also be facilitating the overall direction of your automated processes. When your WMS is synergized with strong automation strategies, you can significantly improve operational efficiency in the following areas:

Labor costs

Efficient automation will cut back on manual steps in the fulfillment process, allowing you to process more orders with less staff. However, a WMS with built-in labor management features will be required to orchestrate, schedule, measure productivity, and track labor costs across all operations.

Fulfillment throughput

As mentioned above, automation will speed up order fulfillment in general. A WMS will give you visibility into the production line and processes behind incoming product, put-away, picking, shipping, and returns. Together, you get the data needed to plan for the best use of your automated systems – pushing efficiency even further.

Order accuracy

Warehouses that rely more on manual processes than software or automation may have an order accuracy rate of 98% or lower. The day-to-day revenue loss may seems small, but it builds over time. With a WMS providing direction and automation taking action, you can expect to maintain 99.99% order accuracy.

Inventory transparency

Automation uses and provides inventory data while WMS provides data tracking, reporting, and planning features. Combined, they give you the necessary tools to enable real-time processing, eliminate errors with inventory locations, and make that information available to personnel in and outside of the warehouse.