Conquering Costs and Complexity Through Advanced Warehouse Management Solutions

Across the manufacturing and distribution sectors, organizations are forced to reconsider their warehouse management practices, processes, and systems as they confront an increasingly costly and complex array of factors. Trends such as increasing customer compliance demands and ever more global supply chains mean companies must enhance warehouse productivity and visibility if they are to remain competitive, protect their profitability, and position themselves for continuing growth.

Customers have grown increasingly powerful relative to manufacturers in recent years and are making more demands on them. Big box retailers such as Wal-Mart and Home Depot are pushing for the perfect order.1 They want orders delivered more quickly, more accurately, and customized to their needs—all at lower cost.

Manufacturers and distributors are expected to turn around orders on shorter notice than in the past, delivering orders in 12- to 24-hour cycle times that once would have been expected within 36 to 48 hours. They are punished with fines and chargebacks if orders are improperly labeled, packaged, or delivered. And more elaborate packaging has become common as retailers demand more in terms of boxing and delivery formats. Unfortunately, heavy competition and big box retail power mean that suppliers are unable to pass on the added costs associated with these added demands.

Meanwhile, supply chain management has become increasingly difficult as companies source products, components, and materials on a global scale. Manufacturers that once sourced their materials regionally or nationally now turn to Asia, Latin America, Eastern Europe, or other overseas locations. Similarly, they are distributing their goods more globally as they seek to penetrate new and growing markets. That means products must travel far greater distances and be stored in more locations, exacerbating the challenges of visibility and threatening perfect order delivery.

Regulatory challenges also are looming. With high-profile recalls on everything from toys to dog food to peanut butter in the news, manufacturers are clearly under growing pressure to track their products with even greater precision.2, 3 They must have immediate access to data on everything from lots to serial numbers to shipping locations if they are to avoid crushing costs—and legal penalties—in the case of a recall. Lengthening supply chains, which magnify public safety concerns, further contribute to the risk of expensive recalls.

Given these factors, suppliers are faced with escalating costs and complexity, driving demands for greater productivity in warehouse operations. With distribution seen as a cost center, companies have no choice but to find ways to drive warehouse performance to new levels if they want to remain competitive and profitable. However, their existing ERP systems often lack the automated capabilities necessary to increase visibility into operations, enhance market agility, and boost warehouse productivity. Read the full report >>

More information
www.infor.co.uk