May 19, 2016 02:19 AM EDT

Warehouse Management System: 5 Reasons Why Every Company Needs It

There are a lot of tools being developed for businesses in today's modern world. A warehouse management system (WMS) is one that would definitely help both small and large corporations, as Food and Bev Media noted.

The SD Exec reported that there are specific benefits for utilizing a WMS, especially in the warehousing or distribution industries. Some of the advantages that come with the system are increased order accuracy, faster picking and receiving times as well as better inventory control.

The publication cited five more reasons why every company needs to invest in a WMS. These reasons focus more on what it does for your employees, customers and competitors.

1. Decrease employee theft

 The number of stolen goods by employees is in equal proportion to the growth of the logistics industry. This reportedly costs the business as much as $80 billion per year. Having a warehouse management system will not only reduce this, it will also be able to pinpoint which materials or items have gone missing in order to detect the early signs of employee theft.

2. Track employee performance

 A WMS is a tool for measuring how your employees are doing their work. In turn, this information can be used to reward high performers as well as identify and help those who are struggling with their workload. Since WMS provides real data with their work, employees will also feel validated for their performance.

3. Keep up with competition

There are a lot of tools being developed nowadays that can be of much help to businesses. Although it may require a substantial investment, purchasing a warehouse management system can also bring about a considerable return in terms of profit and efficiency.

4. Improve branding

Having an organized warehouse will make a good impression on potential customers and suppliers. In seeing that you are keen with details, through the WMS, future partners will have a reason to work with you and trust you with their product.

5. Comply with customer requirement

 A WMS will also help you maintain a good standing with retail customers who require a specific electronic inventory data or electronic data interchange (EDI). There will definitely be higher expectations of businesses in the future and a warehouse management system can help you keep up with the demands.

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