Understanding ERP and Warehouse Management
In 2020, news channels reported that the sudden e-commerce boom necessitated another billion square feet of warehouses by 2025 in the US. So, are you looking to streamline your warehouse operations in the pursuit of improved efficiency? What you need is an ERP warehouse management solution. So, let’s start by discussing the key role ERP plays in inventory/warehouse management.
The Role of ERP in Warehouse Management
ERPs play a key role in inventory management by
- Centralizing inventory tracking and managing
- Streamlining order and shipment management
- Monitoring stock levels to prevent shortage of goods
- Tracking the movement of goods to ensure timely deliveries
- Optimizing warehouse layouts to improve workflow efficiency
- Managing orders from order placement to shipment tracking easily
- Automating tasks like label printing, carrier selection, shipment tracking, etc.
In short, you can generate detailed reports & analytics on your warehouse operations with an ERP. That’s why ERP warehouse management software has become a necessity of every business today.
Next, we’ll discuss the key functions performed by ERP warehouse management software in detail. You’ll learn why this software is so important and what its key functionalities are. Hopefully, it’ll convince you to invest in acquiring an ERP inventory management solution for your organization.
1. Inventory Management and Control
A survey says that two-thirds of businesses lose customers they oversell or run out of stock due to machine errors. When customers don’t get what they need after an order has been placed, they get frustrated and leave. ERP software will help you overcome this problem by improving inventory management. It’s a robust process involving the flow of goods into and out of a warehouse. It often involves tracking inventory levels, managing stock, and ensuring that products are available when customers need them.
Inventory Accuracy and Tracking
Want to minimize costs while maximizing profits? That’s something you can achieve via accurate inventory tracking. The perfect inventory management system will let you do that via:
- Tracking inventory levels in real-time
- Monitoring stock levels efficiently
- Ensuring product availability at peak times
Optimizing Inventory Levels
ERP warehouse management software also helps you optimize inventory levels by tracking demand so you can ensure an immediate supply of products. Also, you must monitor stock levels and adjust them as per the current demand. That’s how you cut down carrying costs and improve your company’s profitability in the long run.
Cycle Counting and Auditing
Warehouse management isn’t possible without cycle counting auditing. Here’s how these terms are very different from each other:
- Auditing: Examining the warehouse’s inventory records and physical stocks systematically to ensure that everything makes sense (also identifying discrepancies, product thefts, etc.)
- Cycle Counting: A technique in which you count a subset of inventory items on a scheduled basis rather than conducting a full physical inventory count (i.e., conducting an ABC analysis)
Regularly conducting cycle counts and audits will ensure that you have accurate inventory levels. You can keep these levels up to date and identify/address inventory discrepancies as well. That’s how an ERP tool keeps your business successful.
2. Warehouse Operations and Efficiency
When the Baltimore Bridge collapsed in March 2024, it was like a wake-up call for supply chain companies. They realized that they must streamline picking/packing processes for warehouse efficiency. Here’s what they can use ERP software for in terms of warehouse management:
Streamlining Picking and Packing Processes
Picking and packing are critical processes in warehouse operations that require careful attention to detail to ensure order accuracy and timely delivery. An ERP warehouse management system can help streamline these processes by providing real-time inventory visibility, automated order routing, and optimized picking paths. By implementing an ERP system, you can reduce the time and effort required to pick and pack orders, resulting in increased efficiency and reduced labor costs.
Enhancing Shipping and Receiving Operations
Secondly, shipping & receiving play a key role in warehouse management. So, you should plan and execute them carefully. With an ERP solution, you can automate these processes to gain real-time tracking visibility into inbound and outbound shipments. This way, you can reduce errors and increase accuracy.
Warehouse Layout and Design
The layout and design of your storage facilities are very critical factors here. If you optimize these factors, they will lead to benefits like:
- Reduced travel time
- Improved inventory accuracy
- Increased order fulfillment rates
An ERP system can optimize warehouse layout and design by providing real-time visibility into inventory levels, order volumes, and picking paths. This way, you can make informed decisions about the layout and design of your warehouse to improve operational efficiency.
3. Technology & Automation in ERP Warehouses
A survey says that the number of warehouses & storage facilities in the US grew by an amazing 26% from 2011 and 2020. As the world of business rapidly evolves, the business realm needs efficient warehousing. In recent years, many organizations have turned to cloud-based WMS solutions to streamline warehouse operations and improve inventory accuracy. Here are some aspects of automation in ERP warehouses:
Adopting Cloud-Based WMS Solutions
Here’s why more businesses are choosing cloud-based solutions over on-premises ones:
- Access real-time inventory from anywhere, anytime
- Eliminating the need for expensive hardware & maintenance
- Robust security measures and data protection
The Impact of Automation on Warehouse Functions
Another key trend in modern warehouse management is automation. You can automate different tasks in warehouse management, such as :
- Order picking
- Order packing
- Order shipping
This can be achieved through the use of robotics, conveyor systems, and automated storage and retrieval systems. However, don’t forget that automation isn’t some sort of one-size-fits-all solution. Different types of warehouses may require different levels of automation.
So, you should carefully evaluate your specific needs before implementing an automated system.
Hardware and Software Considerations
Also, you should consider your hardware & software needs when choosing an ERP warehouse system. In other words, you may choose barcode scanners and mobile devices as hardware. When it comes to getting the right software, you may look into SaaS solutions in warehouse management.
These solutions offer many benefits over traditional software, such as lower costs, easier implementation, and automatic updates.
4. Leveraging Analytics and Data for Decision-Making
Did you know that 8 in 10 companies intend to invest in warehouse management tech in the future? Most companies realized a need to make quick & accurate decisions so they can stay ahead of the competition. Here are two ways to use analytics and data to make better decisions.
- Real-Time Visibility and Reporting: These two are some of the most critical components of your ERP warehouse management software. Real-time visibility means that you can monitor how your warehouse is performing in real time. Reporting helps you get acute insights into this performance so you can easily identify trends and spot areas for improvement.
- Data for Forecasting & Demand Planning: You can analyze historical data and current trends. It’ll help you predict future demand, letting you adjust your inventory levels accordingly. This way, you always have the right amount of inventory on hand. Eliminate the risk of stockouts & overstocking! Also, data capture helps you make informed decisions by improving the accuracy of your forecasts. This helps reduce wastage and improve the overall efficiency of your warehouse.
How Can Alchemy 365 Help?
Looking for efficient warehouse management solutions to take business logistics to new heights of success today? You can modernize the way you do business with Alchemy 365. This software lets you organize your data, gain insights, and make the leap to the cloud. This way, Alchemy 365 emerges as an ideal option for startups seeking robust ERP solutions. We can provide you with the right tools needed to make informed decisions that drive business growth. So, try out Alchemy 365’s ERP and schedule a call with us!
