Why You HAVE To Expect More From Warehouse Management
January 2012 Integrated Solutions For Retailers
By Richard Gaetano, chief operating officer, Island Pacific Systems Inc.
How mobility is changing omnichannel supply chain management.
The challenge — or as some retailers may lead you to believe, the art — of managing stock for brick-and-mortar stores as well as e-commerce is hard enough, but now retailers around the world are pushing the envelope once again. Retailers are driving inventory management systems to the brink in order to support the proliferation of mobile computing, expansion of franchise or concession operations that increase brand awareness, and improved real-time visibility across the supply chain. As a result, warehouse management systems have been caught square in the cross fire of visibility and demand.
Much like the influence e-commerce has had on how we organize the warehouse, mobile computing has brought on similar, if not slightly more challenging, requirements to the four walls of the warehouse. Those retailers who have been managing their e-commerce activity through the use of advanced warehouse management applications are best suited to take advantage of what mobile computing can offer today. Real-time visibility of warehouse inventory, as the request is placed, will better enable the retailers to ship directly to a store or consumer and is an advantage that cannot be overlooked. The pressure to get the correct stock levels in each store has changed the face of delivery. The warehouse can place itself in the driver’s seat to improve store-directed product transfer requests as well as enable the retailer to send orders to the consumer directly, using the same processes currently in place with e-commerce orders.
Warehouse Management Systems Grow Up
Warehouse management systems are far more complex than many may think. The days of a locator-based system that put received merchandise in locations and picked distributions have been transformed into an order-driven system. It continues to allow for the basics, now enabling the processes either through RFID via handheld terminals or with some sort of warehouse control system for automation assistance. Warehouse management systems are quickly becoming order management systems. Cross-docking remains a mainstay with many retailers, but as the need to react more to market demand increases during a time where purchasing is optimized to stores through effective grading and profiling techniques, the thought of inventory sitting somewhere occupying space still makes retailers shiver. Warehouse management systems not only have the ability to provide stock levels for back stock inventory, but more importantly, they can provide information on order inventory, customer or wholesale orders, and quite possibly supplier shelf stock. These are just a few of the ways that warehouse management systems can greatly improve the retailer’s ability to react to changes in demand and improve customer satisfaction.
Expect More From Your System
Demand drives need, and need increases supply. The time has come when we should expect more from our systems, and this is the opportune time to leverage the full capabilities of warehouse management systems and the established shipping and delivery processes typically already in place. All that being said, one shouldn’t discount the obvious advantages of direct shipment to store or consumer by the product supplier. It could very well bypass the effectiveness of the warehouse management system, but direct shipment is not as mainstreamed, can be cost-prohibitive, and may not be fully realized for quite some time.
Technology continues to be the great enabler. It is allowing emerging retailers to compete with larger, more established retailers on the same playing field. Warehouse management systems are quickly asserting themselves as the latest way to augment and enable retailers to improve customer satisfaction. Who knows what the future holds as retailers add more channels to the marketplace? No matter the source of the demand — stores, consumers, wholesalers, or franchises — there is no doubt that a robust warehouse management solution will continue to be the engine that keeps the retail wheels turning.