Reduce Inventory Errors and Operating Costs With Warehouse Management Systems Software

Written by Business Success on . Posted in Audit automation software, Audit automation tools, Types of audit software

Government inventory

Do you have property inventory management software to assist you with itemizing and tracking your inventory for auditing or other purposes? When you’re responsible for government inventory management, for example, property inventory management software can streamline the inventory tracking process. Furthermore, it can automate the audit process, which is an added benefit.

Warehouse Management Systems Can Decrease Inventory Errors

According to Benchmarking Warehouse Performance, warehouse efficiency is a significant concern. They found that less than 30% of warehouses have demonstrated that they operate efficiently. When a typical warehouse management system (WMS) is used, errors will usually decrease by up to 70%. Furthermore, inventory accuracy will usually increase by about 20% when these systems are in place.

There are major costs associated with carrying inventory. When an environment is automated, however, these costs are usually 27% less than in a non-automated environment. Since there is a considerable amount of capital held up with inventory as well as with accounts receivable and payable, a WMS can make a significant difference with overall operations.

Warehouse Management Systems Can Lower Operating Costs

It’s important to note that these systems can lower a variety of costs. Operating costs, for example, can be reduced by up to 35% with a WMS. Approximately 10% to 20% of transportation costs can also be saved, which can make a significant difference in lowering overall costs.

Current Trends in Warehouse Management

Over the past 5 years, there has been an increase in the number of warehouses in the United States. In fact, there has been a 6.8% increase in these storage facilities. Currently, there are approximately 600,000, and 30% of these are using a WMS. In order to conduct inventory management, 67% of these warehouses are planning to use mobile devices such as tablets.

Despite the perception and actuality that shipping and manufacturing are becoming faster and more efficient, there continue to be issues with maintaining inventory. Many companies, for instance, continue to hold onto their inventory, and over the past 5 years, the “days inventory outstanding” has increased by 8.3%.

In order to address these and other issues, using a WMS can make a significant difference in warehouse efficiency. A WMS can also assist with reducing costs and errors and otherwise streamline the inventory tracking and auditing process.

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