If one issue of warehouse management stands out in a fast-changing retail supply chain it is the need for  warehouse management system (WMS) flexibility. Moreover, to fulfil customers’ needs accurately and swiftly the WMS should not be isolated from the global supply pipeline and for this cloud-based collaboration platforms seem essential for true, global inventory visibility. When combined with RFID it will streamline tracking into one single system, making the online and in-store inventory much more accurate than it is now. But such global stock visibility, no matter how accurate, is not enough when supplies are JIT oriented unless there are robust supply disruption recovery plans in place. The Japanese tsunami of March 2011 showed just how lacking global corporations were  in their disruption recovery plans. Japan was a choke point for nearly 100 products vital to the auto and electronics industries. When they were slammed the result was idled car plants around the world, costing billions of pounds.

chazAnticipating future events is not easy but it is key to prevent consternation. It is all the more critical in today’s environment because so much of the global supply chain is geared to JIT supplies. In this respect stock forecasting programs have proved their great value because now they can be geared to react to imminent events that will heavily influence consumer demand. A good example of this is the impact of sharp weather changes on demand for food and drinks and so many leading food retailers now rely on anticipatory stock forecasting programs. These are commonly capable of reducing inventory by one third without harming customer service, a great boon given that sock holding costs alone can dwarf all other warehouse costs combined.

To forecast demand changes accurately, however, WMS packages need to support swift handling tasks accurately for which they must be flexible. Order processing profiles and picking requirements may change sharply, as when, for example, a warehouse may be suddenly required to shift  from a bulk or unit load-based operation to a customer-driven need to fulfil single items picks at a much higher rate. Paper-based picking methods are not suited to this, especially on matters of accuracy, and so voice picking or pick-to-light systems should be considered, along with at least some level of automation that brings goods to the pickers.

Picking the right WMS, however, needs care, especially if they are only part of an ERP system because the WMS may be very limited. This is especially so with stock forecasting programs packaged within ERP because, among other reasons, they may not be able to react in almost real time to events affecting demand. Other WMS points to remember are to 1) ensure allowance for introduction of semi or fully-automated materials handing systems, 2) select robust software that has an established track record, including financial stability, 3) try to future -proof it with a feature-rich suite so that its functions are there should they be needed in future.

A significant concern for most warehouse operators is the building’s energy consumption but without accurate analysis of all warehouse movements best results are likely to remain elusive. A new warehouse operation analysis report, however, from Proteus Software and Touchstar Technologies could improve results to show energy savings of 15-25%, claim the companies. The package highlights those aspects of a warehouse that could be done more proficiently. The way a warehouse is laid out and the routes that materials handling equipment take will have a big impact on energy consumption. However, it is not just about routes. It is also about assessing if the existing hardware is the most appropriate, like forklifts and loading bay doors. Articulated forklifts, for example, can save so much space, and therefore energy and other costs like rent and rates, that they leave other, more conventional trucks in the shade.

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