Digital warehouse management: how logistics benefits from digitalization

Digitalization has affected and changed almost all industries in recent years. One of the areas that is increasingly becoming the focus of this digital revolution is warehouse logistics. The digitization of Sites, also known as "smart warehousing", promises not only to optimize operational processes, but also to significantly increase efficiency throughout the entire supply chain.

Table of Contents:

  1. Goals of a digital warehouse management
  1. More transparency in the digital Sites
  1. The 10 most important advantages of electronic warehouse management
  1. The road to collaborative logistics
  1. It is high time for digitization in the Sites

Goals of a digital warehouse management

The intention behind digital warehouse management is to control and manage stocks and goods movements centrally. The digital warehouse system accesses all data in real time and thus creates an unprecedented level of transparency for all parties involved.

With future-oriented warehouse software, all players come together on one platform, can optimize processes and map the associated documentation purely digitally and paperless. This optimizes the entire warehouse processes and material flow.

Automation of warehouse processes

The digital transformation of warehouses manifests itself primarily in the automation of previously manual processes. Modern warehouses are increasingly relying on automated Sites and transport systems that are controlled by sensors, robotics and artificial intelligence. This not only enables faster and more precise picking, but also minimizes human error and reduces labour costs.

Use of data analysis and big data

The integration of data analysis and big data into warehouse processes enables a more accurate prediction of stock levels and optimized resource allocation. By evaluating data, stock levels can be monitored in real time and bottlenecks identified at an early stage. This leads to a reduction in overstocking and losses, as warehousing can be better adapted to actual demand.

Paper was yesterday - now it's digital and smart

To this day, there are still Sites where the knowledge of all the details of control and planning are stored solely in the head of the logistics manager. What also seems unavoidable in many places is the jumble of paper that everyone involved literally has to fight their way through.

What is supposed to ensure transparency and reliable processes often has the opposite effect in practice: picking errors in order picking, for example, are detected too late with an analog control system, and efficient planning of deliveries and collections is no longer possible without digital tools such as warehouse management software.  

In addition, there are ever-increasing requirements for fast warehouse logistics processes. The rapid growth of online trade and omnichannel strategies in the distribution of many companies are just as much a part of this as ever tighter time slot, cost pressure and limited personnel capacities as a result of the shortage of skilled workers.

The digitization of work at Sites also brings advantages in communication.

More transparency in the digital Sites

It is therefore high time for logistics companies to embrace the trend toward digitization and take advantage of the associated potential. In the digital Sites of tomorrow, transparency is not a coincidence, but the permanent state: All internal and external players have an optimized level of information at their disposal at all times and are guided in a smart way through all processes in the fully automated, digital warehouse.  

The electronic warehouse management system is where all the threads come together. This includes the control of deliveries, the recording of incoming goods at Sites , and the allocation and optimization of storage locations, as well as the monitoring of the entire picking and shipping process - right through to the subsequent procurement of the delivered goods. Warehouse Logistics 4.0 - or Warehousing 4.0 - digitally combines the entire supply chain in warehouse management.

Fewer errors, more efficiency in warehouse management

Even if paper is still involved in many warehouse processes today, this will develop further in rapid succession, from manual booking of picking orders and goods movements, for example, to digital control of the entire warehouse. This increases processing speed, reduces sources of error, and improves transparency, for example, with regard to current goods inventories.  

These effects in turn have a direct positive impact on intralogistics as a whole. Equally, however, external transport companies are also involved more efficiently. One example of this: The fact that pickup appointments can be coordinated more precisely in the digital Sites drastically reduces waiting times and the resources wasted as a result.

The 10 most important advantages of electronic warehouse management

In a nutshell, there are ten key benefits associated with digital warehouse management:

  1. Faster processes and optimized workflows in the Sites
  1. Reduction of pick errors and other sources of error
  1. Transparency about current stock levels in real time at all times
  1. Optimized control of delivery and pickup, thus better use of employee resources and reduction of unnecessary waiting times
  1. Time savings achieved mean sustainable cost reductions
  1. More productivity and safety in order picking thanks to paperless working
  1. Avoid unnecessary overstocking
  1. Optimized, predictive scheduling
  1. Demand-driven workforce planning and improved warehouse capacity utilization
  1. Assurance and control of own quality standards on the basis of completely digital documentation

All parties involved benefit from effective and digital delivery coordination at Sites . TradeLink's experience shows that costs can be reduced by up to 30 percent. Waiting times for arriving trucks are reduced by up to 95 percent - with 100 percent transparency across all processes at the same time.

Digitization reduces errors, optimizes processes and increases the satisfaction of everyone involved.

Added business value in the digital Sites

Transparency is worth hard cash in warehousing and brings with it extensive advantages in terms of business management. After all, excess stocks of individual goods unnecessarily tie up a lot of working capital, while shortages of other products jeopardize potential sales and customer satisfaction.  

However, optimized procurement is not the only positive effect of electronic warehouse management. Not only warehouse operators benefit from the increase in transparency, but also transport companies. On the basis of reliable information and good plannability, they can reduce their empty runs, optimize route planning and significantly reduce annoying, hour-long waiting times for drivers in front of the depot.

Networking the supply chain: the path to collaborative logistics

Sites digitization goes beyond the mere optimization of individual warehouses and considers the entire supply chain as a networked system. By using the Internet of Things (IoT), Sites can be seamlessly connected with suppliers, manufacturers and sales partners. This enables real-time communication, which in turn leads to improved coordination and a faster response to market requirements.

With ever tighter time frames in logistics and ever increasing requirements, the need for better networking across the individual process steps is growing. Warehouse management with printed paper lists? That will be unthinkable in the future.

Instead, the path to smart, collaborative logistics is paved by software systems that bring together all those involved in the digital Sites on an easy-to-use platform. Digitalization in Sites 4.0 helps to make better use of existing potential and to make better decisions based on high-quality information in real time.

The advantages of collaborative logistics

- Improved efficiency thanks to a networked supply chain
- Real-time communication for better coordination
- Smart, collaborative, optimized use of potential

The digitization of time slot management provides more transparency and communication in real time.

Analyze actual situation and redefine process

To get started with digital warehouse management, it is a good idea to record the current status quo of processes and interfaces and, in the next step, to define ideal processes. This approach allows the positive effects of digitization to be used in the best possible way and sustainable benefits to be achieved. One thing is certain: to meet the high demands of e-commerce, more efficient processes and a high level of transparency are required.  

With TradeLink as an intuitively usable software for delivery coordination and logistics planning, Sites also arrives in the digital age. Inventories are permanently documented without gaps, and incoming and outgoing goods can be precisely traced. At the same time, the key figures provided by the software are used to scrutinize processes and initiate continuous logistics optimization.

Your entry into proactive logistics

There are numerous advantages associated with digital warehouse management: You can increase the productivity of your logistics immediately and sustainably, gain more transparency, improve collaboration with all stakeholders and thus enter into proactive logistics. Find out how TradeLink can support you in digitizing the warehouse in a no-obligation initial consultation.

It is high time for digitization in the Sites

Can companies still afford to wait before digitizing the warehouse? The answer is obvious: it's high time to get to grips with digital warehouse systems and say goodbye to mountains of paper in administration. Those who keep delaying this topic risk successively losing efficiency and competitiveness. Small and medium-sized companies are also faced with the challenge of digitizing all warehouse processes in the coming years.  

Today's software systems make it possible to make the transition smoothly, easily and quickly - for collaborative, predictive and intelligent warehouse logistics 4.0.

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