Rather than a bottleneck in the supply chain, the warehouse has the potential to be a place to gain speed and efficiency. Electronics manufacturers and distributors alike increasingly are using warehouse management systems (WMS) to stay ahead of quickly changing market demand and increasing speed of business.
Organizations are quickly realizing that WMS is the key to reducing inventory cost and increasing inventory accuracy. Between 2013 and 2018, the global WMS market is expected to grow at a compound annual growth rate (CAGR) of 16.7%, according to a recent forecast from Research and Markets. “By implementing a suitable WMS, companies can improve customer satisfaction and reduce production, labor, inventory storage, and handling costs,” the report said.
Globalization is arguably one of the biggest adoption drivers in the high-tech sector. A white paper from Xoriant explained it this way:
Globalization, a key driver of change in warehouse management, initially revolved around reducing cost as manufacturers moved production to offshore locations. Such locations that include China, Taiwan, and Korea have since developed economies of skill and concentrations of talent that make them central to the production processes. The trouble for many companies is that the lengthening of supply chains has reduced visibility and increased time lags related to distribution. Indeed, this lack of visibility ahs led to increase warehouse inventory, driving up both inventory costs and the risk of getting trapped with obsolete goods and materials.
The infographic below from Indigo looks at some of the benefits of the adoption of WMS technology. Let us know how this research aligns with the benefits your organization has captured.
— Hailey Lynne McKeefry, Editor in Chief, EBN