space and stock infographic

Many firms use ERP-derived ‘stock modules’ to manage inventory levels and positioning. Unfortunately these usually respect the commercial ordering units, rather than the units in which the physical warehouse deals. A true WMS makes possible the optimisation of stock levels and space usage, with obvious benefits to both cash flow and customer service.

SPACE AND STOCKThe Financial Frontier

Cost of runningwarehouse ops

Optimisingstock levels

Accuracy offulfilment

Managingreturns

Integrationbetween WMS& financials

Accuracy ofinventory records

E�ciency ofdespatch

Speed offulfilment

Pickinge�ciency

Comms in thewarehouse

E�ciency oforder taking

43%

39%

33%

33%

30%

29

%

29

%

26

%

24%

24%

17%

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Optimisingstock levels

Cost of runningwarehouse ops

Small

29%Large

51%

Accuracy offulfilment

PICKLIST

Small

16%Large

42%

Managingreturns

Small

19%Large

40%

21%18%

32%

37%

0%5%

10%15%20%25%30%35%40%

Harder to organisestorage efficiently

Time wastedlooking for

misplaced items

Possess the technologyLack the technology

TECHNOLOGYWhat problems/challenges do you encounter in the day to day running of a large warehouse

KEY CHALLENGESThe main problems/challenges by size of business

IMPROVEMENT FOCUSWhat are the main problems/challenges you would most like to see significant improvement in?

3%

20%

Delays between the warehousereceiving a pick instruction & getting

it into the hands of the picker

Possess the technology

Lack the technology

Almost 40 per cent of companies with stockholding operations rank stock level optimisation high on their priorities - in practice this emphasis is keenly felt mostly by larger companies and, interestingly, by those firms that do not run a dedicated Warehouse Management System (WMS).

If you have real-time visibility of your stocking and warehousing, you can start using Business Intelligence tools: you can analyse trends, identify seasonal fluctuations, and develop true forecasting of forward stock needs based on analysis of historic data and, derived from that, the likely impacts of proposed marketing, promotional and other activities.

With a typical ERP stock module, especially one that is to some extent still paper-based, stock can be allocated, or even shipped, to an order but still appear as ‘available’ in the warehouse, because the relevant paper, or its electronic equivalent, hasn’t found its way home