Now is the time to invest in your warehouse operations!

The suggestion to invest in new warehouse applications now may not at first glance seem the wisest counsel.  But there are a number of good reasons why improving your warehouse systems and technology during a downturn could be a good idea.  Taking such a measure might not only help your business in the short and medium term, it could also leave it more efficient and better organised to cope with economic recovery later.

• Even if your business doesn’t have the financial reserves to consider such a move, there are attractive tax efficient leasing options available that allow such projects to proceed if the business is stable with a reasonable cash flow.  The key message is that improving warehouse efficiency by advancing the solutions you use is going to save money
• It is generally accepted that successfully implementing WMS delivers the better accuracy, productivity and efficiency that impact positively on physical operations as well as having a significant effect on cost reduction.  High error rates alone can represent a large element of cost, which if saved can contribute substantially to WMS payback.  Systems designed to promote efficient processes and improve productivity can therefore have only positive effects on cost reduction and bottom line profitability.
• It is possible to focus the impact of warehouse technology and systems on areas where they can deliver maximum punch.  WMS and technology implementation often takes a phased approach, and a good warehouse systems company will be able to help you decide where key benefits can be realised faster within your own operation.
• Another good reason for considering the implementation of WMS systems in quieter times is the lessening of the negative, though short term, impact of the change.  There is inevitably some disruption and learning curve involved in implementing new solutions of this kind.  Going ahead while lower volumes are being processed means that people can become practised in the use of new systems and technology under less pressure. 
• Periods of economic slowdown can often be used positively for consolidation and improvement as a means to develop and perform better during stronger growth periods.  This is true for warehousing and logistics operations where taking a cold, hard look at practices and processes, and improving systems and technology can be invaluable to regeneration.  Those who grasp the opportunity may find it easier to withstand a period of recession and emerge stronger than their competitors when the economy recovers.
  

Source: Manufacturing & Logistics IT, 20/5/09 by Alex Mills
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