Calculating the Real Value of a WMS: Key Cost Savings for Manufacturing Companies


SaaS solutions such as SOLOCHAIN ​​WMS have made effective technology solutions much more affordable than ever. Nevertheless, a WMS remains an important investment for small manufacturing companies. However, it is important to keep in mind that the table of contents of a WMS or an ERP is not indicative of the true value of the system – at least, not in itself.

Any investment in supply chain infrastructure should be evaluated by relating the TOC to the return on investment an operator is expected to achieve. It is therefore essential that operators rigorously understand the types of savings and gains that a given technology solution can generate in order to make an informed decision about its value.

In this article, we look at five ways manufacturing companies are realizing tangible and intangible savings and gains with SOLOCHAIN ​​WMS.

1. Coffee roasting to customer satisfaction, for less

A coffee roasting, packaging and distribution company offers a great product and attracts the attention of major players such as Walmart, Target and Menards. To benefit from these new revenue streams, the manufacturer must comply with distinct customer requirements, from packaging to labeling to shipping.

With the SOLOCHAIN ​​WMS integrated into their ERP system, the manufacturer can rely on automated compliance process and ensure that all shipments meet their customers’ requirements. At all stages of the production and distribution cycle, employees are informed of customer requirements through intuitive interfaces on portable devices or computer workstations.

With these efficiencies, the manufacturer is able to achieve throughput that meets the increased demand instead of having to invest in new real estate, new material handling equipment and a larger workforce. important.

2. Make cosmetics in an attractive working environment

Some savings generated by the SOLOCHAIN ​​WMS are easily quantifiable. Others are more intangible, but nonetheless very real.

Most manufacturers today struggle to attract and retain skilled warehouse workers. For a cosmetics manufacturer, that was true before the pandemic hit and it’s become a real thorn in the side today. Labor shortages are now affecting manufacturing and distribution operations to the point where they cannot meet productivity targets. Delays in shipments impact service levels. Meanwhile, high turnover leads to significant training costs and other operational penalties.

The SOLOCHAIN ​​WMS supports workflows from production processes to shipping. With clear instructions on intuitive interfaces, activities in the warehouse are more efficient and the cosmetics manufacturer can achieve productivity goals with fewer employees.

By implementing WMS on portable devices similar to iPhones and Android platforms, the younger generation of workers find their working environment much more pleasant. This helps the cosmetics manufacturer achieve a higher retention rate, which reduces training budgets.

By capitalizing on a smaller workforce and retaining more employees through an improved work environment, the company can achieve its productivity goals and ensure customer satisfaction while saving on labor costs. ‘artwork.

3. A workflow that never drops the ball

The benefits of traceability are perhaps most evident in the food and beverage industry, but the truth is that all manufacturers can achieve significant cost savings by keeping track of what goes into making what they produce.

With SOLOCHAIN’s traceability and automated order cycle capabilities, a baseball equipment manufacturer can keep tabs on the quantities produced as well as each item consumed during the process. Management can configure the WMS to automatically generate purchase orders to purchase items once a certain quantity threshold is reached. This way, SOLOCHAIN ​​ensures that production is never interrupted because items are missing from the shelves.

With management responsible for determining thresholds, the system also circumvents the risk of human error, preventing too many or too few items from being ordered. This leads to optimal utilization of warehouse storage capacity, which saves the baseball equipment manufacturer from having to make unnecessary investments in its physical infrastructure.

4. Your accounts

Weekly inventory cycles force an AV manufacturer to shut down areas of the warehouse. This slows down productivity and reduces the manufacturer’s margins. With SOLOCHAIN’s inventory management capabilities, the business can save on the costs of long weekly counts.

Once implemented on handheld scanning devices, SOLOCHAIN ​​allows the manufacturer to track, in real time, the quantity and location of each item in the warehouse. While performing cycle counts, employees are continuously supported in their activities with clear instructions, which significantly reduces the time required to complete their tasks.

Today, the manufacturer achieves inventory accuracy levels of 99.6% and strives to completely eliminate weekly downtime. Thanks to the support of SOLOCHAIN, the annual counts can be carried out in a single weekend, guaranteeing that their production of a5. Thinking ahead: Intelligently manufactured AV equipment never misses a beat.

A food processing plant specializes in the production of organic packaged meals that are delivered daily to various organic grocers in the area. Their products are growing in popularity and demand is on the rise. The number and complexity of customer orders quickly overwhelms their pen and paper fulfillment processes. The resulting production and shipping errors are now eating into manufacturer profits and affecting customer satisfaction levels.

The SOLOCHAIN ​​WMS facilitates just-in-time delivery through automated full-cycle order management. With system support, order fulfillment at the foodservice manufacturer is now virtually error-free. Customers are satisfied and demand is on the rise again. Meanwhile, lower yields lead to lower losses, which in turn saves the organic flour manufacturer from hectic margins.

About Generix Group

Generix Group North America provides a suite of solutions within its Supply Chain Hub product suite to create efficiencies across the entire supply chain. Our solutions are used worldwide and our experience is unmatched. We invite you to contact us for more information.


Comments are closed.