When choosing a Third Party Logistics (3PL) partnership it is extremely beneficial to opt for one with a cloud based Warehouse Management System (WMS) such as what is implemented at Westset Logistics.
The yielded benefits of any company involving stock control for using a 3PL with a great WMS range from convenience to significant.
Human Resource Costs
Warehouse staffing levels will not be as high therefore a reduction in labor costs will occur. This shave’s a portion of the overhead away which, the added value can then be passed down to the client. Labor costs can be very high especially when there is high turnover. Normal operations will have feasible staffing cutbacks. Secondly there will be less need for additional seasonal staff due to the WMS capably managing the peak demand. Picking is electronically automated so time pickers spend searching for inventory goes down as does time management. These cost-savings are passed down to the client.
Decreased Need for Equipment.
The reduction in Human Resource costs flows down into equipment costs. The smaller workforce equates to smaller volume of equipment necessary in running a warehouse. Future capital investments subsequently decrease as well as the annual maintenance budgets. Again, these lower costs will pass down to the client making the sum of cost-savings even more significant.
Inventory Accuracy
A WMS monitors inventory levels very closely and accurately. Barcode scanning reduces errors down to 1 in 3 million scans – far fewer than 1 in 300 keystroke errors if entered manually. It also calculates and forecasts extremely accurately so that timely orders’ can be placed ensuring the optimum amount of stock is always on hand (enough but not too much). The balance of having bare minimum stock and contingently having enough for uncharacteristic larger orders can cut operating costs by up to 12%! This positively affects you because pick, shipping and inventory accuracy rates go up, lowering order cycle times, increasing customer satisfaction.
Transparency & Management Control
Anytime custody of your companies inventory is placed in the hands of another company, trust is required as control is partially relinquished. WMS makes this cross easier to bear as it is 100% transparent. You get live tracking, reporting and monitoring of every activity that, consequently, can be controlled as well as up-to-the-minute all-embracing reports of all inventory activity on request. This transparency regains some of your control, which puts a company more at ease.
Assurance your Southern California 3PL will give better Customer Service
A strategically implemented WMS ensures Westset Logistics’ Warehouse Manager is better informed. Accurate and true feedback can be given to the customers due to clarity of the orders. Fulfillment of order, expected shipment date and schedule setbacks will be readily communicated via email or call-center to the customer’s satisfaction. Customer Relationship Management (CRM) is greatly enhanced as a database is employed with details of the customers with their preferences and demands as well as never getting a shipping detail wrong as is all too common when no WMS is utilized.
In Summary
WMS’ are expensive tools that most companies do not implement; rather they depend on a 3PL who does, such as Westset Logistics. The benefits derived from WMS (as opposed to a 3PL that doesn’t use WMS) are the passed down savings in labor and equipment costs. The transparency of a WMS gives you back some control of your assets. Inventory accuracy and superior CRM equal higher customer satisfaction, better ensuring loyalty.
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