Three ways a purpose-built WMS for bulk commodities delivers greater ROI than a generic WMS

17 June 2021 | BLOGS

The goal of a warehouse management system (WMS) is to help manage and intelligently execute the operations of a warehouse, distribution, or fulfillment center. The warehouse module of an enterprise resource planning (ERP) solution or a general WMS have many feature deficiencies which will ultimately inhibit the value you can gain from your digitalisation.

Based on a report by Accenture, 76% of supply chain executives surveyed see the top-two customer demands of the future as, “more customized products and services” and “faster order fulfillment times.”

What’s behind this trend? How does a purpose-built WMS enable greater order accuracy, productivity, and ROI in ways that a typical ERP warehouse module/ general-purpose WMS does not support? There are three key areas to explore. Let’s take a closer look.

1. Comingled storage

Bulk raw materials or commodities are stored in silos, stockpiles, or bins not in pallets or racks. This leads to many unique challenges.  Material lots from different owners across different grades are often placed together in comingled storage. This makes it essential to separate book and physical stock while having the necessary features to keep the two reconciled while managing shrinkage.

2. Grading

Grading of material can use different systems for receipt and sale. The sheer number of grades may require multiple grades to be stored and mixed together. Blending when used effectively can increase the value of stock. Optimize stock grades at sites through blending and smart binning considering weighted average of stock quality.

3. Sampling

Samples need to be tracked on-the-go- when they are moved, received, or dispatched to maintain accurate grade predictions. Also, grade changes need to be predicted when movements are made without sampling. Move from grade-based segregations to storage optimized based on individual analyte targets such as protein level. Plan pesticide treatment application by date and time for stocks segregated by commodity and grade.

Optimize your commodity supply chain

Warehouse management for bulk commodities is changing rapidly. To run the most efficient and optimized commodity supply chain operations, having clear knowledge of stock movement and associated costs of transport on a real-time basis, is extremely valuable. The ability to monitor stock across an entire enterprise through can significantly simplify operations, increase efficiency, and improve the quality of service.

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