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If your business model involves selling a physical good or product to the consumer or another business, you already know that supply chain management is of the utmost importance. Two key pieces of supply chain management are your warehouse and transportation systems. Warehouse and transportation system software can integrate with your current workflow or become an integral part of a newer, more streamlined workflow to increase your productivity and decrease turnaround time.
With increases in wireless technology and mobile computing, businesses are now able to track the flow and movement of products from the beginning to the end of their journey in real time using warehouse and transportation system software.
Benefits
Real-Time Tracking
Warehouse and transportation system software can use barcode scanning, Auto ID Data Capture (AIDC) or Radio-Frequency Identification (RFID) to collect data about product movement. This data can be wirelessly transmitted to a database where employees can access the information instantly.
Automation
Many warehouse and transportation system software packages can utilize incoming order data to send alerts about stock levels in the warehouse before the order-fulfillment process even begins.
Reporting
Because of the vast amount of data being collected, you can receive detailed reports about any number of key performance indicators such as inventory, sales forecasts, and procurement and suppliers. Using these key performance indicators can give you an advantage among your competitors.
Optimization
Integrating your systems using warehouse and transportation system software can allow you to identify optimal configurations for vehicle loads, transportation routes, and warehouse stock. Optimization can boost your productivity and decrease your turnaround time with small adjustments to your already existing workflow.
Pitfalls
Up-Front Cost
As with all software, particularly business-related software, there are start up costs involved with the implementation of warehouse and transportation system software packages. Regardless of the amount of money that using these systems can save you in the long run, funding the installation of the software on every computer, providing warehouse and transportation staff with wireless scanning equipment, and training the staff to use these systems represents a significant financial investment.
Technical Training
Training your staff to use warehouse and transportation system software, particularly if they have no experience with these types of systems, can be challenging. While many of the advanced systems on the market today come with user-friendly interfaces that are both intuitive and easy to learn, there are always poorly-designed software packages that are unwieldy and difficult for employees to learn. These packages usually feature attractive price tags to lure you into purchasing a software package that is not user friendly.
Consistency
Warehouse and transportation system software rely entirely on the data that you put into them. If you want to use reporting features and receive optimization benefits, you must use this software for your entire operation. If there are sections of your business that are not tracked using these features, the reports and optimization suggestions that you receive from the software will not be as useful, because it is not a representative of your business as a whole, but rather only represents a smaller part.
Pricing
Cost of warehouse and transportation system software can vary widely depending on a number of different factors. Keep in mind that in most cases, you will have to invest not only in the software package itself, but also in scanning and tracking equipment that will be used in the warehouse and by your transportation staff.
Pricing is generally on a request basis only, but the software packages vary greatly in price depending on the number of features that they offer. The features that these software suites can include are vast. Here are just a few:
*Auctions
*Automatic Replenishment
*Benchmarking
*Vehicle Routing
*Point-of-Sale
*Productivity Analysis
The list of features that warehouse and transportation system software can offer your business is nearly without end, and you will see software packages with lists like these, but there are also important features to take into account that also add to the overall price of the package. These features cost more, and you may be tempted to skimp on them, however, these features can be the most important features that you can purchase. These things can streamline your implementation so that there is little to no downtime or learning curve for your employees, which can be invaluable. There is nothing worse than spending money on a software system and equipment only to be stuck not understanding how to use or implement it into your business. Then the same company could charge you even more money for technical support to alleviate the problems. These features include:
* User-friendly interface
* Technical Support
* On Site Training
* Professional Installation
In short, warehouse and transportation system software can be an enormous asset to any business that sells physical goods to either consumers or other businesses. Implementing these systems requires a significant initial investment, but the system provides benefits that increase automation, optimization, and overall productivity while reducing turnaround time. These improvements can give you an edge over your competitors.
It is paramount that before investing in warehouse and transportation system software you determine, beforehand, which features you need and which features you do not want. Create a list of functions that the software that you purchase must have. This, more than anything else, will determine which software package you will purchase. There are a vast number of software suites available on the market today, if you purchase a software package that does not meet the needs of your business you will not receive the return from your investment that you desire.
Lastly, do not buy in haste. Beware of software companies that claim that they will tailor a software solution for you, when the reality is probably that they have one software suite and will merely sell you pieces of it. If you find a warehouse and transportation system software package that you believe may be a good fit with your business; do some research. Attempt to find other businesses that use that software and ask them about it. Inquire whether the software company has pleased customers that you could talk with. If a company has a good product, they will be happy to let you talk to one or two of their customers.
Efficient product movement within your business relies on well-coordinated transportation and warehouse operations. This where the use of warehouse and transportation system software can be beneficial. Before purchasing the necessary software you should make yourself aware of the potential advantages and disadvantages. This will ensure your software is reliable enough to handle any disturbance in the production to distribution process.
Real-time tracking involves the use of barcode scanning and enables your employees to access information on specific orders and product deliveries. Because the information is wirelessly transmitted to an information point, employees can keep customers informed about their order,s whereabouts. This same information can be used to keep you aware of stock levels in your warehouse, allowing you to replenish stock when certain products are running low. The only real disadvantage to this kind of software is the cost. The combined cost of installation, equipment and staff training can mean it takes a large chunk out of your company budget.
The Business.com website is a useful resource if you are considering investing in warehouse and transportation system software. The website's software section has an entire page dedicated to this topic, as well as a comprehensive list of potential benefits and pitfalls.
