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Companies that have reduced warehouse labor costs and improved perfect order percentage to 99% or above are far more likely than their lower performing peers to use warehouse management software (WMS) in their distribution centers, according to a newly published report by Aberdeen, a Harte-Hanks Company (NYSE:HHS). The report, "Warehouse Management Software-Five Key Capabilities for Every Distribution Center," details a specific set of capabilities that can have a positive impact on nearly any warehouse, regardless of the type of goods being handled, or the volume and makeup of outbound orders.
"There is a tremendous performance gap between companies with automated warehouses versus those with manual processes," says Ian Hobkirk, Senior Analyst for Aberdeen's Supply Chain Execution practice. "Warehouse management software allows a company to move past the day-to-day battle of just getting orders out the door on time, and to turn their attention to operational efficiency. The results can be seen in improved warehouse labor utilization, and reduced or eliminated administrative labor."
Some key findings of the report include:
1. Best-in-Class companies are 59% more likely than their peers to practice bin-level location management.
2. Best-in-Class firms are 92% more likely than their peers to practice paperless receiving.
3. Best-in-class companies are 73% more likely than their peers to practice real-time put-away in the warehouse.
4. Best-in-Class companies are 50% more likely than their peers to practice order picking with mobile devices.
5. Best-in-Class firms are 49% more likely than their peers to practice cycle counting over physical inventories.
To obtain a complimentary copy of the report, visit:
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