Warehouse Management Software a Key Success Factor for Manufacturers and Distributors

August 17th 2021 11:00:00 AM

Manufacturers and distributors know the inventory they have on hand is an important part of their business model. Good inventory management is one of the foundations of business success. Most businesses achieve good inventory management through warehouse management software.

Warehouse management software (WMS) helps businesses implement inventory strategies, track inventory, and monitor key metrics. The basic functions of WMS should meet these basic inventory management requirements:

Key Inventory Management Requirements

1. Organize and Locate Inventory

Inventory counts give business owners and managers valuable data about available stock. They also maintain focus on inventory as a priority and help ensure inventory numbers are accurate. To learn more about types of inventory counts, read this.

2. Organize finished goods

Tracking finished goods in bins make them easy to locate when ready to ship.

3. Identify Slow-Moving Items and Excess Inventory

Warehouse management software can help identify and track whether slow sales are due to seasonal demand only or if the product demand is low.

Excess inventory consumes working capital. WMS allows you to examine slow inventory movers when reviewing cash requirements for the company. However, they are only one factor in the mix when reviewing cash flow. The following factors are also relevant:

• Regular-season fluctuations in demand
• Success in achieving sales targets
• Length of time customers take to pay the company

Once it gets to the point that certain items have not sold any units at all for a set time (180 days or 365 days, for example), it may be time to step in and take action.

Inventory sitting on shelves or in bins is not helping a company make any money. In the case of licensed merchandise, a distributor will need to ensure it complies with any agreements. This may be the time to consider moving the inventory through secondary distribution channels to liquidate it at a discount. If the merchandise can’t be sold to a liquidator, it may be donated or disposed of.

4. Monitor Inventory Turnover Rates

It is crucial to keep track of inventory levels compared to sales forecasts and real-time sales data. With WMS, you can track the inventory on hand versus the number of units sold. The next step is to consider future production or sales orders to determine whether the company has over-invested in the raw materials side to meet its short-term needs.

Managing inventory by performing this function at regular intervals means your team can identify slow-moving inventory items before sales slow down completely. At that point, options may include offering the slow seller at a lower price to clear it out, bundling it with a similar item to move it faster, etc.

Are you interested in updating your warehouse management software immediately? Would you like to discuss how Scanco’s inventory management software solutions can give you the control and flexibility you seek? Contact us online or call (330) 645-9959 to make an appointment with a Scanco Solutions Expert to take the next step now.

Warehouse Management Software is a Powerful Solution

Today’s business owners and managers have enough to try to keep track of without trying to keep their inventory numbers current using spreadsheets. This method is slow and prone to human error. It certainly can’t track the bigger picture with ease, such as:

1. How much inventory is due to be delivered from suppliers?
2. How does your team count items in several bins (or stored in more than one warehouse)?
3. How much of each product is available after deducting orders that are currently waiting to be shipped?

WMS offers a number of advantages to business owners and managers, including the following:

• Better Accuracy in Inventory Tracking

With inventory management software, your team can track inventory as it enters and leaves the warehouse. Stock counts are updated automatically.

• Automated Inventory Management

The right inventory management software makes counting stock and preparing inventory reports a much quicker and easier process. It allows your team to track shipping and receiving with ease and provides a complete overview of the distribution chain. Track your pending purchase orders, items moving through your sales process, and compare current sales and receiving numbers with historical trends.

Scanco Has Warehouse Management Software Solutions for Your Business

Scanco’s WMS options fit multiple types of businesses. We know a start-up company and a large enterprise have different inventory management needs. For this reason, we are pleased to offer more than one solution to our valued customers. Our inventory management options are scalable to fit your needs today and as your company grows.

Scanco WMS Essentials integrates with Sage 100 and lets you throw away pencils and paper. Scan barcodes and automate your inventory counts. Perform physical counts by item, cycle counting, freeze items on the fly, and more.

Scanco WMS Advanced is the leading OEM warehouse automation solution for Sage 100. This solution gives your operation a complete warehouse management solution that runs on iOS, Android, and Windows mobile devices. It also gives your team voice command capability, advanced item inquiry, instant bin-to-bin moves, physical counts by item and by bin, and more.

Scanco WMS Professional can handle the demands of even the most complex warehouse and distribution operations. All transactions (updates and changes) are recorded directly into Sage 100. Increase communication with peer-to-peer messaging and track inventory in real-time with the configurable Dashboard.

Scanco has the warehouse management solutions to fit your business. Discover more by contacting us online or call (330) 645-9959 to make an appointment with a Scanco Solutions Expert.