WebWMS it is a smart WMS solution witch helps you to optimize warehouse space. As you already know till last articles that I wrote on this blog WebWMS it is a customer’s centric solution and also it is a ROI maximize solution.
Stay in contact with us and we will start to teach you how is better to calculate a WMS ROI, but first you must see what is all the benefits of a WMS solution, then you will have understood how ROI is better to be calculated.
Without WMS solution you will organize you warehouse some way to find easy the products when you search for it. This means that you will adopt one of static warehouse arrangement and groping products by category or by suppliers.
You think that your warehouse optimise space system works without WMS?
When someone try to find a products it has some basic info of the products: name, supplier (no all the time), category of the products, code etc. if person who wants to find products hs this info he/she must follow this info to find the right product.
Based on that (again without WMS solution) you must organize warehouse by are and in each area to place products for same category or same supplier. In this case people know where t go first.
Then, inside the category are or supplier area you will arrange the products in alphabetical order of products or alphabetical order of supplier name. in this case after person goes to the right area (suppliers or category) he know witch is the next step: goes to the letter of the product letter of the supplier.
It is a very efficient and simple to follow system, but it has a huge disadvantage: you will have a lot of wasting space into the warehouse and you cannot have tools to optimise warehouse space . Why? Because you have a optimum stock for each product into his physical location, but you must let empty space near each product to put their the maximum quantity of that products, but you have maximum quantity on the stock only for few time (when the truck comes into warehouse and you unload the product store it and then start to sell it, so you have maximum stock immediately after unload the truck then you will have empty space). For each product you must to have empty space, and cumulated for all products all this empty space you will not be use it for other activities.
On the other hand when the optimum stock become higher than maximum available space you must put those products in other physical location and this will give you more non optimise warehouse space. This means that will be difficult for people to find products because of the complication of the systems (systems become more complicate as you have more products store in more than one location).
How WMS helps you to have optimise warehouse space?
If you implement WebWMS solution you will solve all this problem because WebWMS use a dynamic cell allocation system and this systems helps you to optimise warehouse space. This dynamic cell allocation system means that you can put any products in any physical empty location that you have into the warehouse and WebWMS knows where you put every product. When you try to find the location WebWMS shows you all the location where the products are and send you to the optimal location (based on a simple algorithm) to pick the products. In this all the time you goes to right products. Also you can use a lot of tools and algorythm to optimise warehouse space (like ABC or ABC XYZ)
In the first scenario people must know very well the products and the location so you must take care that old people do not leave the company, this means higher salary package and benefits for this people. In the second scenario people do not know anything they must follow the software instruction, this means if some people leave the company it in more easy to be replaced than in the first scenario. The second scenario has the disadvantages that if the solution crush you will not find the products anymore, that way we recommend to not have the WMS solution like a module of ERP solution (read here to understand why).