The old decade comes to a close. And the new decade rolls on in. It is 2020, and everything is clean, brand new, and shiny. Just like our ancestors envisioned. We might not have flying cars yet. But there are a plethora of things that have arrived to make our lives much better.
Not all the ingenious examples of human ingenuity are as flashy as Elon Musk’s inventions. But even the most mundane can turn out to make our lives a thousand times better. In this article, you will find out about a certain few of these. Mostly in relation to supply-chain management. Read on to find out the tools that you could use to make your business a whole lot smoother.
With the shrinking of the globe and increased business pressures, it has become essential always to cut costs. Reduce inefficiencies. Customer expectations have risen, especially with the onslaught of big companies like Amazon. The supply-chain world has become more and more competitive. And you need to stay in the running.
Be it automated warehouse systems or with a few tips of home-grown wisdom. Here is all you need to make your storage business the talk of the town
Baby steps
Many business owners make the mistake of making purchases without proper forethought. The very first thing to do when deciding on a purchase is to plan. Look through the records of where and when any delays have taken place. Take stock of all the issues that typically arise that cause those delays. And then make a decision.
You need to work out the cause of any delays before you can begin looking for any solutions. Lean, mean and fast businesses beat out big ones any day of the week. And what can make your business leaner and meaner is intelligent planning.
If you think that the profit from installing a system does not warrant the costs, do not buy the system. The decision needs to be made intelligently to optimize what you get out of the investment.
For example, if your business is small enough, you can use spreadsheets, and that is all. Never underestimate the usefulness of a spreadsheet and someone who can use it. You can have custom spreadsheets created for you online as well.
Plan ahead and make any purchases according to your needs. Make sure to make an intelligent decision for your storage business.
What tools do I have?
As mentioned before, depending on the size of your business, there are many available.
These tools are known as Warehouse Management Systems. Basically, these are the series of software processes that streamline the whole business.
If your business and workload are small, then it is easy to keep track of inventory. There will not be any bottlenecks. However, as your business will grow, you will need better tools for the job.
Here is a list:
- Supply Chain Modules
- Stand-alone Modules
- Integrated with ERP
These are a few kinds and types of Ware House Management Systems that one can use. Each is a different kind of system that is available on the market. However, each needs to be analyzed with respect to your business. This will allow you to make the best choice with regards to your storage business.
Below will be each of these system’s defined use and cost. This is to enable you to make an informed decision before you can invest in a system. And to better acquaint you with the kind of technology that you will be working with aswell.
Following is the list of systems classified according to their use.
The Wide Approach
Supply Chain Management systems are very expansive. They can help you oversee almost every aspect of your warehousing business. The main purpose of this kind of system is the complete automation of repeating processes.
Things like complete inventory management, cycling of products, and even managing business relationships. All of this can be done using these kinds of systems. You have to understand, however, that these systems are complex. These are mostly used by big businesses that have large workloads. Storage warehouses that expect more than being managed with stand-alone systems.
These systems are wide in their approach towards helping manage the business. Completely unsuitable for smaller businesses. The complexity of such systems means a higher expense. Not only will you require more expensive hardware to run these systems, but you will also need highly skilled labour to work them. These systems are considerably more expensive.
If you are a big business with a workload that justifies the cost, these systems are the ones for you. The avoidance of bottlenecks and customer satisfaction will allow these systems to pay for themselves.
However, if you run a small business, it might be best to stay away from them.
The Narrow Approach
Stand-alone services. These kinds of systems are designed solely for Warehouse Management alone. This means that they will help you keep track of inventory from the moment it enters to when it leaves. And that is it. It will allow you to perform the functions required for specific tasks, but it is not too complex. Because of the kind of service it provides and the lower amount of complexity it affords. This is the best kind of approach for your small business needs. Your storage business will benefit from this system if it is just warehousing.
Fairly simple to use and fairly simple to install. This kind of system can also be customized to the specific need that you have. Because of these reasons and it’s comparative simplicity, Stand-alone systems are comparatively cheap.
If you own a storage business and want to become more organized. Stand-alone systems are the way to go for you.
Going Pro
Using ERP integration is the highest level of Warehouse Management. These systems allow you to combine many systems into one. ERP integration means that you can basically manage most of the aspects of the supply chain. Again this is fairly complex, and it does not make sense to get ERP integration when it is not needed. However, it does allow you to scale your business and still have all systems run smoothly.
ERP integration is clearly a move for bigger companies. Especially ones that are looking to expand.
Conclusion
The system you should use is entirely dependant on your size. If you are a smaller business, for example, one warehouse. You should go for stand-alone software that will be lighter on your wallet and bank. If you are a bigger company, then look for more complex SCM software and ERP integration.
