Leveraging Warehouse Management Systems for Today's Economy

Dec. 17, 2008

69% of Best-in-Class companies use a commercial WMS to guide operations in their warehouse

The recent uncertainty in the global economy has not deterred executives from preparing for their next move in order to leverage their Warehouse Management System (WMS) investment to drive improvement, according to a study from Aberdeen. The Best-in-Class companies are setting their sites on being prepared for the next upturn.

An analysis of over 200 respondents found that Best-in-Class companies are more than twice as likely as Laggard companies to be utilizing a commercial WMS to drive warehouse operations. The Best-in-Class have set the bar very high for the Average and Laggards when it comes to performance. With 98% of their order lines being filled complete, 98.2% of all orders being picked accurately and a 3% year-over-year reduction in labor costs, the rest of the respondents have a gap to make up in order to remain competitive. In particular, Average and Laggard companies have seen a year-over-year increase (2% and 4% respectively) in labor costs compared to Best-in-Class.

In the latest report, "Distribution Center Strategies for Today's Economy: Managing Growth Without Adding Labor or Space," Aberdeen points out that having visibility to real-time operations is a critical component to maintaining velocity and efficiency in the warehouse. Today's Best-in-Class not only leverage commercial WMS solutions to drive processes, but are twice as likely than Laggard companies to utilize daily or weekly performance measures and three times as likely to use event management in order to create better workforce productivity, driving down labor costs.

"Today's economic uncertainties have baffled executives across the globe, especially when it comes to managing the warehouse," said Brad Wyland, Sr. Research Analyst, Aberdeen. "Despite the uncertainty, the Best-in-Class continue to invest dollars and time in order to streamline operations and sustain profitability; knowing that the rebound will happen quickly and being prepared and agile will be the difference to getting ahead of the competition."

To view the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=5376.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.