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Are there any long-term benefits to implementing WMS?

14 October 2023

I have spoken about WMS a lot in my previous posts. As a result, I have been frequently asked about long term benefits of implementing an effective WMS.

Let me tell you, the long-term benefits can be broadly categorized into two streams:

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In this post, I’ll try to give a bird’s eye view of the cost benefits of implementing an effective WMS.

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Implementing an effective WMS means a definite reduction in the cost incurred towards resources.
You can expect a good WMS to pave the way for realignment of the organization’s resource structure.

All of it makes sense because planning, monitoring, and utilization insights for a deeper analysis would be provided by a WMS, if it’s really efficient.

So, when to expect to see the cost benefit with respect to resources?
Preferably from the 1st quarter after implementing an effective WMS!

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If resources were impacted by the WMS, shouldn’t assets be affected as well?

The truth is the number of assets may or may not increase after implementing WMS.

The way forward is to include depreciation calculation in the total ROI calculation.

But also make sure the new assets are well justified in terms of their actual benefits with respect to the total ROI they would help generate. Don’t forget to factor in the depreciation as well.

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This one is a no-brainer. Having an effective WMS means you’ll be able to better utilize the warehouse area and its various functionalities.

Some businesses might experience that the new WMS is helping them store inventory in a much better way within the same area as available before.

While others could be witnessing effective and efficient consolidation.

Due to transparency in inventory management, the scale of human errors would drop down to almost negligible.

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Share them in the comments below. I’ll be happy to answer.

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Domnic Regies Amalraj

Co-Founder & Director, Tekclover