How Warehouse Technology Improves Today’s Supply Chain Environment
If you’ve ever thought of upgrading your warehouse technology, now might be the best time ever to do so. Why? Because while the benefits of warehouse technology, including your warehouse and inventory management systems, remains the same as ever, the payoff you get from those benefits is far higher in today’s supply chain environment of disruption.
5 Ways Warehouse Technology Helps You Survive Supply Chain Disruption
There is one basic benefit of leveraging warehouse tech to its fullest right now. It helps smooth out the cracks and crevices that disruptions cause in your supply chain. And here are a few of the solutions it offers.
1. Lowers Costs
Of course, everything that benefits your business relates to improving the bottom line. But warehouse tech offers some direct ways to lower costs, including lower storage costs and lower labour costs. And minimizing overhead costs makes you more resilient to the costs of disruption.
2. Optimizes Warehouse Layout
One of the ways that tech helps lower storage and labour costs is through warehouse layout optimization. But that’s just the beginning. When you find the best place for everything, you’re better able to handle the disruptions. Need lots of space fast because the containers have finally arrived? You’re ready. Even if it meant you needed to have extra space off-site ready to go because you knew your current space couldn’t handle the eventual influx.
3. Improves Demand Forecasting & Inventory Planning
Disruptions are felt throughout your supply chain. Increasing interest rates are affecting buying cycles. Yours and your customers’. The greater visibility you have into your inventory levels and warehouse utilization, the easier you can identify even the tiniest ripple of disruption. And the sooner you can address it.
4. Reduces Waste
Even if you’re good at this, you can probably do better. Again, crystal clear visibility, including into raw materials, parts, WIP and finished goods, helps you improve tracking and identify problem spots. The less wastage you have, the less you’ll be affected by the next supply chain crisis.
5. Lets You Leverage Reverse Logistics
Have you ever gotten rid of returns to avoid the costs of putting them back into your work flow? There are two advantages to changing that practice. First, warehouse tech helps you track reverse logistics much better. Second, this may be the line in your supply chain with the least disruption. Or, in other words, the one you can count on most. There will always be returns. And the supply chain is often more local and controllable.
You can help reduce the effects of supply chain disruptions be learning more about supply chains. Check out our recent article The Pocket Guide to Ecommerce Supply Chain Management.
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