Why Do Companies Still Use Paper-Based Warehouse Management?

In years past, paper-based warehouse management was the only option available to many companies. While some of them have since successfully implemented barcode labels and Warehouse Management Systems into their warehouse, other companies stick with paper. Cost, difficulty in rollout, and lack of understanding are all reasons that companies have avoided upgrading and have instead stayed with what seems like a "simpler" solution.

The Price Tag

The primary reason warehouse managers fail to make the conversion to modern equipment and a WMS is because of the initial cost of investment required to make it work. While paper tracking of warehouse goods has huge costs due to inefficiency, these costs are already built into the budgets and planning of a company. The cost of purchasing a whole software suite and barcode or RFID equipment requires putting out cash today for benefits that will be realized over time.

Implementation

Secondly, many companies are afraid of the amount of time and energy it would take to effectively implement a new WMS. Time spent installing new software, training employees on the software, and the possibility of complications during the initial rollout are all reasons that companies avoid making the leap. After all, nothing is harder on warehouse efficiency than computers that crash or equipment that doesn't do exactly what you're expecting it to do.

This is solved by carefully choosing the partner that will help you implement the WMS and support you after going live. They have streamlined the training and rollout process so that they are able to train more people, faster, with a higher degree of retention than you could accomplish on your own. It's their job to make sure that the whole thing goes off without a hitch, and they understand the importance of a steady workflow while the transition is taking place.

How It Works

In some cases companies just fail to see the value of using a Warehouse Management System. Some people don't understand why it's important for all of the departments of your company to have accurate, up-to-date information, or how a WMS can provide a more detailed analysis of product movement and warehouse activity. In addition, WMS programs are extremely useful for identifying and fixing errors. They increase order accuracy and reduce downtime, both of which improve your overall warehouse efficiency.

If your company is stuck running your warehouse with a paper-based system, take a few minutes to consider why you are doing so much work by hand. A WMS can provide immediate results that enhance the way your warehouse runs and increase your profit potential. While the cost of a whole new system may seem daunting at first, you will save a ton of money in the long term, improve your customer service, and make your business more scalable.