You will no doubt have heard the term ‘warehouse optimisation’. It seems to be everywhere, and as far as buzz words go, it’s one that has certainly caught the imagination of warehouse managers and business owners. Yet because it is everywhere, and because everyone uses it, ‘warehouse optimisation’ has quickly lost any sense of meaning. After all, what is warehouse optimisation? What has to be done to ensure it happens?
If you’re not sure, you can miss the important points, and then no amount of buzz words are going to help you out. Understanding warehouse optimisation and then utilising the tools out there that can help you – tools such as the best warehouse management software for you and your particular needs within your business – is crucial. And it all begins with your customers.
The Best Warehouse Management Software is Crucial
With around 40 percent of customers turning away from businesses – no matter what the size – after just two bad experiences, it’s easy to see how getting your warehouse optimisation right is vital to your success. Without this measure in place, those bad experiences can easily happen, and become frequent rather than almost unheard of. Customers begin falling away, which is bad, but what is worse is that they are likely to tell others of their unfortunate experience at your hands, and with so much competition and so many options open to anyone looking to purchase any product or service, your warehouse optimisation (or lack thereof) could be your undoing.
Meeting customer expectations
The truth is that every customer now expects a huge amount from any business they deal with. The levels have been set thanks to online trading, free delivery, discounts, and of course, speed. So anything falling below expectations could be deemed a bad experience. If your warehouse isn’t fully optimised and if you’re not using the best warehouse management software to get it done, you could be setting your business up for potential failure; you will struggle to compete in your market, no matter how good your products or service might be.
How to Improve Warehouse Efficiency: Adapting to the Customer Is Key
One of the main points when it comes to warehouse optimisation is to continually adapt. You need to be able to keep up with the competition and with any changes in the marketplace, or your industry specifically. By having the best warehouse management software in place, you can do this effortlessly. It’s a key way to ensure you are never left behind and that your customers are always able to receive their goods on time. Not only that, but this software will be able to collect and analyse data, enabling you to make the correct decisions in terms of stock control.
“Modern ERP systems increase on-time deliveries by 24%”.
It’s hugely important to adapt quickly in business, and this is perhaps particularly important if you have stock to consider. Buying the right quantities at the right time can be the difference between selling and making a profit, and shelves full of items that you can’t seem to get rid of, and which may have to be sold at a loss later on to recoup at least some of the cost, or to make room for more stock that will sell. This is a costly mistake that many businesses make, but using the best warehouse management software means that you can see exactly what is needed, and when, and order at the right time.
Should Cost Matter?
What some business owners balk at is the cost of warehouse management software. It’s true that there is an initial cost associated with getting the best warehouse management software, but when you consider the losses that can be made – loss of customers, the wrong stock levels – without something as effective as Microsoft Dynamics 365 Business Central, is it really something that you are willing to risk?