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Overcome the Top 5 Challenges in Distribution with a WMS

Forgestik Team  |  June 7, 2022

What are the major challenges that a Warehouse Management System (WMS) can help you overcome?

Growing companies frequently face product management challenges in the warehouse: stock shortages, unfilled orders, perishable products on shelves, boxes of merchandise getting forgotten in a corner somewhere. When using a warehouse management system (WMS), it’s possible to overcome these challenges and avoid unnecessary expenses.

Lack of communication and risk of errors

Information shared at the right time by the right managers reduces errors and optimizes services. Ensuring that the right information is flowing without interruption will increase productivity and decrease the risk of errors. A WMS makes planning easier. By anticipating the actions to be taken, costs can be reduced. 

Inventory and approximate count of products

The most important challenge remains the inventory itself. Managers need to have accurate quantities of available products on hand. There tends to be disparities between estimated and actual quantities. This discrepancy may result in more products being stored than expected - mainly because supplier orders didn’t take into consideration the correct in-stock quantities. The reverse can also happen—having less product available than ordered, which will result in some customers not receiving their order on time.

A WMS enables you to track in-stock quantities precisely and in real-time, which avoids the problems of disparities between presumed and actual quantities. 

Location management and traceability

Location management simplifies inventory management. Having an overview of the entire warehouse and knowing the impact of each location on the production cycle or the preparation of deliveries is essential. The more time pickers spend searching for merchandise, the longer the shipping process and the higher the labour costs for each order.

A WMS gives you an overview of the available product quantities and their exact location. Analysis reports let you identify fast-moving items and place them closer together to reduce shipping time for routine orders. You can even identify products that are often purchased together and place them near each other. 

Change management (order cancellation)

It’s a common occurrence for orders to be cancelled at the last minute. If a cancellation or change request isn’t taken into account at the right moment, it’s very likely that the order will get shipped regardless or that pickers will have already prepared the order, which incurs costs in both cases. Using a system that optimally manages these changes and their impact allows for processes to be put in place for cancelling orders and returning goods to inventory so that the correct quantities are on hand. 

Tracking goods movements in the warehouse

Keeping track of everything that happens in a warehouse is the best way to control your inventory and optimize inventory management. All goods movements can be tracked, such as:

  • Receiving goods
  • Breaking down a pallet or carton into individual units
  • Creating a kit
  • Storing goods on the shelves
  • Picking goods from the shelves and filling orders
  • Routing an order to a packaging station
  • Restocking merchandise in case of return or order cancellation

The optimal management of goods in the warehouse is one of the most vital aspects of any distribution company’s operations. The purchasing, sales and even production departments depend on the quantities of products in inventory. Your business’s growth is closely linked to good inventory management.

Overcome major warehouse management challenges with a powerful system designed to reduce costs and anticipate problems that may arise. Use the reports and performance indicators this system provides to make the necessary changes to improve your inventory management.

Help for our experts

To help your distribution company grow and succeed, contact us. We will support you in improving your inventory management.