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Warehouse Management Systems: a New Trend in the Time of Pandemic

The COVID-19 pandemic that broke out in December 2019 to spread throughout the world in a matter of months, influenced every industry and every single business. Still, the consequences differ much: while some enterprises count losses, others look for ways to cope with consumer demand.

So what are the solutions that saw their "heyday" in these difficult times? You are welcome to read about them below.

The Pandemic As a Driver for a Digital Warehouse

The COVID-19 pandemic together with quarantine and a ban on crossing borders, on the one hand, caused a massive slowdown in all of the established supply chains; on the other — led to the transformation of business operations and accelerated the development of the logistics industry.

The very first market players who benefited from the COVID-19 in terms of profits were the Internet, food, and pharmaceutical retail. With the onset of the pandemic, the number of orders in these industries increased. But so did the load on warehouses.

However, some players were not prepared for such changes. The market saw more interest in 3PL services that offer the opportunity for flexible management of warehouse processes, and the rise of demand for warehouse space. These, in turn, have increased demand for WMS (Warehouse Management Systems) services.

At the end of 2020, the WMS market was valued at $ 2.4 billion. Due to the increasing number of orders, the boom in e-commerce, and the pressure warehouses face, the demand for WMS services is expected to grow. Experts predict that the WMS market will grow at the highest CAGR, and by 2025 the price of this segment will likely reach $ 5.1 billion.

SAP EWM is the Key to Your Business Modernization

The growing need for efficient order management, the increase of outsourcing in logistics and transport operations, and the globalization of supply chain networks — all lead to the active adoption of warehouse management systems in the 3PL industry. Still, it's highly important to find the product that will meet all your requirements.

SAP Extended Warehouse Management (SAP EWM) is a trusted solution that automates business processes and reduces the cost of warehouses with a high turnover of goods.

SAP EWM is comprised of the following functional blocks:

  • receiving and processing of incoming receipts;
  • storage of goods and operations with them;
  • assembly and shipment of goods;
  • transit warehousing;
  • human resource management;
  • cross-docking process (acceptance and shipment of goods through the warehouse directly, bypassing the long-term storage area);
  • accounting by batches and serial numbers;
  • material management.

With this SAP solution, your business will gain the following competitive advantages:

  • efficient use of labor, equipment, and facilities;
  • improved control of incoming stocks;
  • optimization of loading/unloading operations and warehousing;
  • tracking for each unit;
  • elimination of ineffective and excessive labor costs, etc.

LeverX Group Will Help You Maximize the Efficiency of Warehouse Operations

LeverX Group has been implementing SAP EWM since 2009. During this time, we have completed a large number of projects for various industries, including automotive, pharmaceuticals, and retail.

The expertise of our professionals allows us to:

  • deploy the SAP EWM architecture from scratch;
  • implement the solution into warehouses, the quality control department, and production workshops;
  • customize the solution in accordance with the specifics of our client's business processes;
  • enhance SAP EWM.

The company's specialists will help you standardize data on warehouse stocks, reduce the time needed for shipping, establish warehouse reporting, ensure full traceability and automation of warehouse processes, speed up the execution of warehouse orders, and organize specific storage processes to ensure more rational use of warehouse resources.

If you are interested in the ways SAP EWM can help your business stay competitive, join our webinar (the webinar language is Russian) on How to Save Up to 15% Time on Order Processing and Intra-Warehouse Movement with SAP EWM, which will take place on April 8th, at 4:00 PM. There we will disclose the solution possibilities, as well as share our experience of working with it on real-life projects.