In the competitive world of logistics and supply chain management, optimizing warehouse operations has become a critical aspect of staying ahead of the curve. With the rise of e-commerce and customer expectations for fast and efficient delivery, warehouses are no longer just storage spaces for products, but key players in the supply chain. Enter the Warehouse Management System (WMS), a smart solution that helps businesses streamline their warehousing processes and maximize profits.
A warehouse management system is a software application that allows businesses to manage and optimize their warehouse operations. With a warehouse management system, businesses can automate many of their processes, such as receiving and storing inventory, picking and packing orders, and shipping products to customers.
It is worth noting that in the second quarter of 2021, semi-skilled work dominated labour demands in Malaysia, accounting for almost 55.5 percent of total job vacancies. Out of all jobs in the economic sector, 4.312 million were concentrated in the Services sector, which includes wholesale and retail trade, transportation and storage, and others. This alludes to the continued growth and demands of workers within the supply chain, and a need to understand the trends of our workforce availability and skills levels needed to propel that growth. However, there is often a stigma associated with warehouse management and low-skilled jobs or individuals. You may often hear anecdotal stories about how a poor-faring employee is relegated to working in the warehouse, or only employing entry-level workers to run manual tasks. With more innovation powering the modern supply chain, the reality is a combination of skilled workers and solutions need to work together to get the job done well.
Reinvesting in your people
Progressive businesses have realised the critical nature an operation strategy has on designing a working supply chain to meet the rising expectations of customers. Businesses are ramping up robotic operations in their warehouses as they race to deliver goods to customers at a higher speed with lower cost and enjoy much higher accuracy with higher profit.
Smart warehousing combines cutting-edge technology and best practices to streamline your warehouse operations, improve inventory accuracy, and increase productivity. With real-time data and insights, you can make informed decisions, reduce costs, and meet customer demands faster.
Implementing a WMS
A Warehouse Management System (WMS) is the backbone of smart warehousing. It is a software solution that automates and optimizes warehouse operations, such as inventory management, order picking, and shipping. With a WMS, you can track inventory in real-time, reduce errors, and improve efficiency.
Implementing a WMS can be a daunting task, but it is worth the investment. Here are some steps to get started:
Evaluate your current warehouse operations and identify areas for improvement.
Choose a WMS that fits your business needs and budget.
Train your employees on how to use the new system.
Implement the WMS in stages to minimize disruptions.
Monitor and evaluate the system's performance and make adjustments as needed.
While technology advancement such as AI, automation and big data analysis can bring about benefits such as reduction of headcount up to 75% and reduction of manual tasks, they may create uneasiness amongst your employees regarding their job security. Businesses can also consider changing their current workforce by employing better skilled individuals, however hiring new employees can often be time-consuming, expensive and also creates a loss of domain knowledge when an employee leaves.
The upside of resource savings from innovation can be put towards the upskilling of your warehouse management workforce. This includes working with your warehouse management solution partners to provide services around enabling your team members, and working closely with them to understand the needs of your supply chain, even prior to the deployment of a new solution.
Partnering for success
Implementing a new warehouse management system requires a strong understanding of one’s business needs. With AC2, this means taking a phased approach from consultancy to system implementation and support, to meet our clients’ operational and strategic requirements.
Take MYDIN’s recent success for example. With its eCommerce business growing rapidly due to customer demands, MYDIN has decided to upgrade to an advanced, cloud-based AC2’s WAVE Warehouse Management System (WMS) to better support its business expansion plan. During the transition, AC2 worked closely with the team to create a strategy and implementation plan to meet the company’s aggressive timelines.
The volume in MYDIN eCommerce operation is enormous, and WAVE WMS is well-placed to effectively serve MYDIN. While inventory management, cycle counting, picking, and shipping activities are all done simultaneously in real-time, AC2’s WAVE WMS is capable of handling the record-breaking volume in MYDIN, credited to a very experienced operation and IT team, their abilities to operate such a fast and efficient fulfillment center, and their impressive commitment to maintaining the highest level of customer satisfaction.
Over the years, we have witnessed the different ways in which innovation has propelled the successes of supply chain management. By managing people and processes together as the critical levers of success, profits are guaranteed as businesses continue to tap on the latest and greatest technologies to materialise a futureproof supply chain.