Carolyn Hunt has a candid response for distributors who are still using manual processes in the warehouse:
“Well, the first thing I’d probably say to people who are relying on spreadsheets and pen and paper is, ‘Why don’t you get into the 21st Century?’
“I don’t mean it to be insulting, but it amazes me how many people are still relying on paper and spreadsheets.”
Hunt has spent more than five decades in the distribution industry, and has seen firsthand how the right warehouse management solution can transform operations – and how the wrong approach can hold companies back.
Now an independent consultant, she shares her perspective on what distributors should prioritize when choosing a warehouse management solution to ensure the best possible fit and project success:
When it comes to strategic alignment, how can distributors ensure their warehouse processes align with business growth goals and customer expectations?
It’s crucial for everyone – from those entering sales or purchasing orders to warehouse personnel – to understand what makes the process flow smoothly. This requires proper training and visibility throughout the end-to-end process, as well as having a firm grasp of why each step in the fulfillment process is necessary.
For example, it’s important that an order is marked “ship complete” in the proper place instead of putting a note on the order for a warehouse worker to track manually. The latter can result in being shipped at the wrong time.
Most ERP (enterprise resource planning) systems have fields in their programs that allow information to flow seamlessly between sales, purchasing, and the warehouse to eliminate confusion or unnecessary questions. Beyond knowledge sharing, managers need to “inspect what they expect” to ensure all workers are following the proper fulfillment procedures.
Don’t overlook input from frontline workers. Their feedback helps streamline processes and eliminate unnecessary hurdles, while showing that you value their opinion. This can really help drive engagement with a new system.
When implementing a WMS (warehouse management system), businesses may commonly look to save costs around training and decide to handle this themselves. In doing so, they’re not positioning their project for success because they’re not giving their people the best possible training. You need management’s backing on that, too. If the boss isn’t supporting how your trainer is training, people will go back to the old way as soon as the trainer leaves.
What is the benefit of real-time visibility into inventory, particularly for distributors with multiple locations? How does a WMS support this visibility?
Real-time visibility should be non-negotiable. Having access to accurate, real-time information on quantities available for new order allocation is critical to good customer service. If I’m selling a product to a customer and they want to know when it will be shipped, I need to know its availability across my locations.
One important distinction many people miss: there’s a difference between quantity on hand and quantity available. Quantity on hand includes everything in your warehouse. Quantity available is what you can actually sell – it excludes items already allocated to backorders or specific customers. If we distrust inventory counts or don’t understand this distinction, we are unsure of what to promise our clients, which is unacceptable.
Having easy access to inventory across the company, regardless of location, allows us to serve customers in the most efficient way possible and make sure we are selling what we have instead of purchasing additional inventory that may not be needed. Additionally, the ability to determine whether inventory is “slow moving” in one location compared to another is important so that each location can help the other liquidate items that are turning into dead stock.
A WMS should enable cycle counting and make inventory counting so much easier while ensuring accuracy and reliability. It can simplify and streamline the process of locating items across multiple warehouse branches. For example, after implementing Latitude WMS at one company, our inventory accuracy became nearly perfect. My brother worked at a warehouse running Latitude and saw the transformation firsthand.
What are the risks of stockouts, overstocks, or mispicks – and how can the right WMS minimize these errors?
Having accurate inventory is critical to avoiding stockouts, overstocks, or mispicks. When inventory data is unreliable, these costly errors become inevitable. A barcode system that confirms the right bin locations, items and quantities can eliminate nearly 100% of picking errors. Relying on the human eye to read product numbers isn’t accurate, especially when technology can do this for you.
Being able to barcode the product received to ensure it matches what was purchased allows us to quickly determine if shipping errors were made by our supplier, so product can be quarantined and returned for replacement. Inventory counts stay more accurate, and improper fulfillment processes are often minimized.
When introducing a WMS, how important is system integration (e.g., with an ERP or other systems) for effective warehouse operations?
Suppose you are still relying on manual spreadsheets and paper reports to determine your purchasing needs. In that case, you are more at risk of being overstocked because spreadsheets are prone to data entry errors or user-based interpretation instead of real facts.
A WMS must integrate well with systems like your ERP to ensure seamless operations. Having a reliable ERP system that identifies items with increasing usage and accurate lead times and safety stock days is critical to making good purchasing decisions.
While system integration is important, it can also be helpful to have a WMS that operates independently. For instance, if a computer mainframe goes down, a WMS solution that can work independently allows workers to continue picking tasks and putting away receipts. They don’t have to wait for the computer system to come back up.
I’ve seen vendors who really understand this. When I was at one company, we had PathGuide helping us with Epicor issues that weren’t even related to their WMS. Fortunately, the consultant knew how to code. That’s the kind of expertise and flexibility you want in a vendor relationship.
How can distributors use a WMS to simplify training, reduce turnover impact, and improve workforce safety?
A WMS allows warehouse managers to train employees faster and more efficiently than teaching them how to navigate their ERP system. The user has specific guidelines to follow through the WMS, which helps avoid errors or omissions of information.
A WMS improves workflow by printing pick tickets at the right time instead of scheduling shipments for later. It allows teams to receive and allocate product to backorders in a manner that works for their company, using customer-required dates instead of oldest to newest order date.
Inventory traceability is one of the biggest impacts a WMS offers. Warehouse teams know precisely where product is located as it flows through the warehouse from putaway, to pulling from the bin, to staging for checks and balances, to going on the delivery truck or handing off to the carrier. Most ERP systems do not provide this kind of detail without a robust WMS package.
After decades in this industry, I’ve seen how the right WMS transforms everything. When people work more efficiently and accurately, their whole attitude changes. That’s the real power of a well-chosen WMS.
Carolyn Hunt is an independent warehouse operations and technology consultant with more than 50 years of experience in industrial distribution.
