Articles
Are Distribution Logjams Cutting In On Your Bottom Line?
April 15, 2009
Written by: Mac Cutchins, CEO, Intek Integration Technologies
Powerful and flexible warehouse supply chain execution systems overcome distribution center logjams and maximize response, accuracy and accountability.Success is great when it comes to sales, as long as you can keep up with it. For so many retail and wholesale distribution centers, this means keeping up with the demands of the shifting distribution landscape. In turn, that means keeping on top of evolving trends and operational challenges that impact costs, profits, customer satisfaction, and even future business opportunities. When businesses experience a sudden influx of growth, I've seen distribution challenges become even more formidable.
Among the more demanding distribution trends are those that affect the retail supply chain. Think about SKU proliferation, order tracking, accuracy, and the various forms of retail compliance. These are all areas where it's really easy for a company to fall behind. To avoid logjams and other setbacks, you've got to implement a robust yet flexible supply chain execution system. Without one, the effects can be dramatic.
So many fast-growth retailers wait months and even years before seeking a solution to their distribution center problems. Often they're trying to cope with a relatively archaic manual warehouse management system (WMS) that offers no tracking or real time accountability. These systems are so restrictive it's almost as if a company is handcuffed to its first WMS.
Other distribution centers may not be effectively utilizing storage space, or possibly their supply chain execution program isn't fully integrated with their material handling equipment. There's a whole host of problems that can stall the distribution process. And with so many stringent requirements in terms of configuration, scalability or implementation, companies tend to put off making any major decisions regarding WMS until they're really behind. I'm sure in some sense they know the problems will only escalate from that point, yet they can still be reluctant to make changes.
New systems are emerging which, in may respects, are the most scalable supply chain execution and warehouse control systems in the industry. Database systems and large supply chains are becoming increasingly complex. To that end, this new family of products provides a solution for very large supply chain execution applications and features multi-facility management and distribution databases. They provide a focused solution at a fraction of the cost of systems by traditional suppliers in the Tier One supply chain management marketplace.
One of the most common problems for warehouses is SKU proliferation and accuracy, and many companies are seeing these new warehouse control systems as the optimal solution. They provide a host-WMS interface and auto replenishment features that automatically send orders to the system on a daily basis. A pick-to-light system can be integrated for the high-flow zones. These systems are just bolted into the WMS so a company can have a very efficient and accurate means of picking product in terms of both volume and velocity.
Through these supply chain systems, up-to-the-second records of inventory provide exceptional accuracy. Inventory is validated when a customer purchases and the distribution center immediately ships the item. It's clear on many levels that this high-level efficiency enables retailers to consistently exceed customer expectations.
The right WMS software can provide an affordable comprehensive management and control system that's scalable and easily configured through software providing customized functionality and range. Best of all, one product can typically meet the changing needs of giant manufacturers, retailers, e-tailers and small firms alike.
For more information contact Mac Cutchins, Intek Integration Technologies, 35328 SE Center Street, Snoqualmie, WA 98065; Phone: (425) 455-9935; Fax: (425) 455-9934; E-mail: sceinfo@intek.com or visit the website http://www.intek.com
