Why Are More Distributors Investing In Warehouse Management Software?

Manufacturers are expanding their distribution networks, according to an article on Supply & Demand Chain Executive website. With a growing network of distribution centers, the demand for warehouse management software to manage them is growing. The ability to automate processes across multiple locations will be a must for companies wishing to invest in these new technologies.

A research study released by Motorola Solutions, Inc., highlighted in the article, found that “the most commonly cited reasons for the expansion of storage and distribution networks include a mix of cost-savings and revenue-growth initiatives such as lower transportation costs (36 percent), shorter delivery times (35 percent), new suppliers and trading partner locations (31 percent), and heightened omni-channel pressures (11 percent).”

The distribution arms of global businesses are feeling the pressure to cut costs and enhance profitability and will be looking to modern warehouse management software to achieve these goals.

“As the industry moves to reduce order fulfillment costs and increase worker efficiency and productivity, the picking and replenishment solutions of the next five years will shift more toward true multimodal operation,” according to the article.

In the coming years, warehouse and distribution centers will increase internal agility by giving employees mobile devices for cycle counting and inventory validation. Overall, the entire industry will be trending toward modernizing warehouses through the use of integrated warehouse management software with mobile capabilities.

When choosing a system to manage a complex distribution network, it’s vital that all locations can use the same database from anywhere in the world with tablets, scanners and other mobile devices. An integrated cloud system allows visibility across the entire organization. Furthermore, it enables increased efficiency and results in fewer headaches caused by siloed data and software systems that don’t communicate with one another.

“Internal agility initiatives and the need for intuitive, adaptable and flexible solutions are increasing in importance,” the article states. When choosing which warehouse management software to deploy for your expanding distribution network, be sure to choose a scalable and agile solution.

Source: Supply & Demand Chain Executive, August 2013