WMS needs upgrades to be "best in class"
Research reports says companies operating the current version of their warehouse management system are more likely to be top performers.
By Staff -- Modern Materials Handling, 1/25/2008
According to a report from Aberdeen Research, almost half of companies that have a warehouse management system (WMS) have a version that’s at least five years old. “Best in class” companies, however, are almost three times more likely than their peers to be operating the current version of their WMS, according to the report, Warehouse Management Software: Five Key Capabilities for Every Distribution Center.
“Companies using outdated versions of a WMS can’t take advantage of new functionality in areas like slotting, labor management or speech recognition,” the authors observe. “Furthermore they may be operating with a version of the system that does not support their own changing business process.”
The Aberdeen report also says only a fraction of companies studied were able to meet their customer service objectives on 99% of their orders, while simultaneously reducing warehouse labor costs year-over-year. Companies that have been successful in these efforts tend to be “best in class” WMS users.
Other key findings:
Best in class companies are nine times more likely than their peers to have 99% or higher on-time and complete shipments from the warehouse.Best in class companies are 81% more likely than their peers to have one or fewer administrative workers supporting the warehouse.Best-in-Class companies are four times more likely than their peers to have inventory accuracy levels above 99%.
For more information, contact Aberdeen at 617-723-7890.
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