Also, the right products should be shipped to the right locations and this makes WMS labor-intensive and complex. However, a well established WMS is essential to reduce incidents and loss.
Customer Service
An effective WMS is essential to ensure a high quality customer service. Errors in deliveries can lead to empty shelves and in turn, this will result in a financial loss for the company because the product was not available for sale. Also, customers will be unhappy if they see empty shelves all the time. They will also be dissatisfied if products are not delivered within the stipulated time. To prevent these problems, a state-of-the-art WMS is necessary.
Logistics Cost
Logistical costs account for roughly 9% of a company's total sales price (Van Den Berg, 2007). Though it depends on the industry to a large extent, the costs are nevertheless significant. These...
It ensures better customer service, reduced logistical costs for the company, more efficient management of inventory levels and to provide a quick response and action for incidents and problems as soon as they arise. All these aspects are critical for a company's growth and profitability and to maintain a good relationship with customers. This is why a state-of-the-art WMS is necessary for a company's success.
References
Van Den Berg, Jeroen. (2007). Integral Warehouse Management. Publisher: Lulu.com.
Richards, Gwynee. (2011). Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse. London: Kogan Page Publisher
