importance of warehouse management

The LeverX expert Yuriy Yakovlev talks about the importance of warehouse management for modern businesses.

Expenses or Investments: Why the Future Belongs to Innovative Warehouse Management Systems

Reducing distribution and logistics costs, precise inventory management, and excellent customer service — It is a big challenge to succeed in business without solving these problems. That’s why Yuriy Yakovlev, Project Manager at LeverX, believes innovative warehouse management is crucial for effective supply chain and inventory management. What warehouse management challenges do they address? How do they affect enterprise performance and help add value to businesses? Read about it in the interview.


Photo: Yuriy Yakovlev, Project Manager at LeverX

 — Why is supply chain management of growing importance for enterprise efficiency?  

It seems that today only unique businesses that don’t have any competitors can afford imperfection in their supply chains. But for other enterprises, the situation is more challenging: manufacturers and service providers can be replaced by other, more flexible companies. That’s why businesses must control their supply chains to ensure their smooth operation.

Precise supply chain management ensures product quality, compliance with production deadlines, and meeting the expectations of customers who are unlikely to be patient today, especially when it comes to major purchases, ranging from technical equipment to cars.

Accordingly, the final effect we get, including through precise supply chain management, is a customer loyalty improvement and the probability of a direct or indirect return to your goods or services. Your customers will likely do it themselves or advise your services and products to others.

We see that competent supply chain management leads to positive effects within the enterprise, but customer satisfaction is most important. Supply chain management directly affects this indicator.

— What role does effective inventory management play in this process?

Supply chains must be appropriately planned and used, and the stocks we receive must be promptly sent to production. The warehouse plays a key role in the overall process. The more efficient warehouse processes are configured, the less time it takes to process warehouse tasks. Given that their number could rise to hundreds and thousands per day, this is important.

When it comes to manufacturing plants, the accuracy of processing warehouse tasks affects the production support and the timely final product delivery. It is not enough to build efficiently managed supply chains and manufacturing. If the warehouse complex “fails” between these two stages, the overall impact will differ from what it could be.

— What benefits can businesses achieve through warehouse automation? 

Primarily, process monitoring and control allow you to increase the overall performance, but these benefits are individual for each enterprise. For manufacturing enterprises, where meeting deadlines for providing production sites is crucial, wave management in a warehouse complex really matters. According to SAP’s global customer experience, the use of innovative solutions in warehouse processes design can be up to 25% of the total economic impact.

A frequent customer request is a correct creation of warehouse tasks and their efficient allocation among performers. In this case, the effect of using ERP-class systems can reach several tens of percent. Global vendor experience confirms this.

By implementing innovative ERP-class tools in warehouse processes, the average labor effort can be reduced by up to 30%, and labor productivity can be increased by the appropriate percentage.

If you want to know how to build a unified environment and transparent inventory accounting processes, contact us. Our experts will share insights and their deep expertise in warehouse management.

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