QC Software President Discusses Greater Return on Investment in the Warehouse

 
CINCINNATI - July 8, 2013 - PRLog -- Without automation, how many orders would be a distribution center ship each day? Given the complexity of the supply chain, a manual operation ships less at a much higher cost when compared to an automated one.

Every facet of an organization that provides a product is affected by warehouse performance. The customer cannot be invoiced until the product is shipped. This means that for every hour orders sit in the warehouse, revenue is lost.  For instance, if a warehouse ships $100,000,000 of product yearly, assuming 260 working days in a year with two shifts, the distributor loses an average of about $24,000 each hour the operation is down.

“Because the warehouse control system manages the equipment on the warehouse floor, it has a big impact on profitability. By providing greater system reliability, accuracy and throughput, the warehouse control system essentially optimizes the company’s technology investment. The net result is that the distributor reduces costs while the customer receives better service,” states Rich Hite, President of QC Software, a leading provider of control software for the material handling industry.

A warehouse control system impacts the following Key Performance Indicators used in supply chain planning:

Efficiency.  Improving process efficiency reduces operating costs, while increasing throughput and on-time deliveries.

Accuracy.  Greater order accuracy minimizes returns. The distributor saves labor and shipping costs associated with receiving and restocking returned inventory.

Inventory Management.  Better inventory planning and tracking ensures that sufficient product is available for order fulfillment, reduces inventory waste, and allows faster inventory turns. By safely maintaining less inventory, the distributor saves on warehouse space and associated costs such as taxes and insurance.  

Labor Performance.  Distributors can reduce the number of workers and increase labor productivity. The warehouse control system optimizes the layout and order picking operation to reduce travel time.

Compliance. Providing the proper documentation and labeling, as well as the right product at the right time, eliminates customer chargebacks and penalties. Accurate recordkeeping improves compliance with regulators, while carrier-compliant documentation improves shipping.

For over seventeen years, QC Software has delivered the results that help companies succeed. Their Tier-1 Warehouse Control System provides the flexibility, visibility and control across warehouse operations that customers need to optimize resources and profitability. Through industry collaboration, customized training, and 24/7 support, QC Software ensures that each customer is fully leveraging their technology. In addition, QC Software helps customers develop a strategic focus to better manage new opportunities and future demands.
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