Causes Of The Reduced Number Of On-Time Deliveries
The root cause behind the reduced number of on-time deliveries is not being able to provide correct inventory information. For instance delayed orders. When shipping drivers are delayed it is difficult to know how long it will take for another order to take place because the dates have changed based on how late the deliveries are. That can cause a major overstocking and understocking issues. As I mentioned above our water bottles do not have shelf life but they still take space in a warehouse and orders for more will need to be on hold until the previous ones are gone if they were overstocked. This means that since our bottles come from overseas, we might have to wait longer until we order other items which if we run out of bottles sooner than our other items that can be a major issue. As a business not being able to supply an item at all can be catastrophic. Or make a special order from overseas just for water bottles which will be costly. Understocking due to incorrect inventory can be problematic. If we always fall behind on delivering goods we will lose to competitors, increase stress for our stuff and lose our reputation. How can a warehouse management system (WMS) affect the delivery performance of a supply chain?
A warehouse management system or WMS is a software designed for warehouses to track inventory, save receipts and calculate when the next order needs to take place. Knowing exactly how many items of each product is currently in the warehouse and how much of it will be delivered and when. They the warehouse will know if there will be any left or another order needs to take place. Margaret Rouse in her Warehouse Management System articles further explains what a WMS is and does. “A WMS can provide visibility into an organization's inventory at any time and location, whether in a facility or in transit. It can also manage supply chain operations from the manufacturer or wholesaler to the warehouse, then to a retailer or distribution center. A WMS is often used alongside or integrated with a transportation management system (TMS) or an inventory management system”.
Having a visual of each inventory, knowing where each item is shipped where and when and how much will help manage inventory better and avoid over or under stocking items. It can also be a great liability tool. If a retailer calls for concerns such as broken items, produce gone bad, ate deliveries or no deliveries at all. The WMS can be used to accurately trace back to the shipping of each item to relocate or find the issue and solve it.
