Productivity

Your warehouse inventory represents a significant cost to the business, not merely in terms of the retail or wholesale value of the products, but also capital cost, risk, insurance, servicing costs, and obsolescence. Taking these considerations into account gives you the carrying cost of your inventory, which is useful to quantify.

Reduced Labor Costs: The company payroll is usually a business’s largest ongoing cost, and the bad news for warehouse owners is that logistics are traditionally extremely labor-intensive. The busier your warehouse, the more stuff you’ll need on-site (often in shifts) to handle the throughput. A WMS can help reduce overall staff costs by forecasting peaks and troughs in demand. This means you can accurately assign the right number of staff too.