1 March 2024

How does the WMS system increase delivery accuracy?

1 March 2024

The speed and accuracy of product deliveries are some of the important factors that influence the modern consumer in their purchasing decision. If optimized, they ensure customer satisfaction and business success.

According to the study published by the Discard Systems Group, 68% of consumers, when faced with problems during the delivery process, tend to react negatively towards the company. Such dissatisfaction can ultimately affect a brand’s reputation and trust.

Given this scenario, it is clear that the delivery process is an increasingly relevant element in consumers’ purchasing decisions and can directly compromise a company’s image as well as its long-term results.

But how can we offer strategic solutions that meet market expectations when it comes to precise deliveries?

Why invest in delivery accuracy?

In this article, we will understand how the WMS system can make a difference in your logistics strategy and how it contributes to increasing delivery quality and, consequently, improving customer satisfaction.

Before knowing the main advantages and how the WMS system can assist in logistics operations, it is essential to understand the importance of the delivery process for the vitality of businesses.

Overall, we can say that delivery accuracy is a standard indicator used to calculate the quality of a company’s shipping process. In other words, it is a metric (KPI) capable of identifying whether a particular product has been sent to the right place, at the right time, and in suitable conditions for consumption and/or use by the customer.

The calculation of this indicator can be done simply, through the ratio between the number of orders divided by the number of successful deliveries. Therefore, if a company received 100 orders throughout the day and managed to ship 91 efficiently, the delivery accuracy will be 91%.

There’s no mystery: from this calculation, it is possible to efficiently measure the quality of order processing and deliveries. The more you understand and monitor the data related to shipping rates, the greater the delivery accuracy will be. All of this contributes to satisfactory results, agility in processing, customer satisfaction, reduction of additional costs such as returns, exchanges, and complaints, in addition to the optimization of logistics processes.

The main challenges related to delivery accuracy

Achieving 100% efficiency in delivery accuracy is an ambitious and not always realistic goal. High demand, seasonality, and logistics strategies can influence results on a daily basis. However, the pursuit of satisfactory goals can occur through improvements, process enhancements, and the identification of opportunities, adjustments, and repairs during the workflow.

To help you, the manager, find improvement points in your supply chain, we have separated some recurring challenges when it comes to delivery accuracy. In this way, you can analyze each of these points and optimize your operation based on the current reality. Take a look:

1- Lack of inventory control

We can say that inventory is the backbone that supports any business model. Given this importance, the slightest interference in its operation can contribute to a cascading effect throughout the entire logistics chain.

The lack or excess of items in inventory are common examples that can be found when it comes to inventory management. This happens due to the lack of planning and demand predictability. An operation that does not frequently analyze, control, and monitor its data, or that fails to closely monitor the order history, is bound to make this mistake, causing severe delays and errors in the delivery process.

Additionally, another consequence of inadequate inventory management is the increase in storage costs. Since low-demand products remain inactive, there needs to be space to store them without predictable sales. In addition to generating expenses to keep them in stock, these items can generate waste, such as expired expiration dates or becoming obsolete over time.

2- Manual processes

Almost all manual processes are subject to human errors, and this represents a significant challenge for logistics and company performance. The lack of attention in controlling products, making incorrect notes, using paper spreadsheets, and performing tasks in a non-standardized manner are just some of the many examples that can occur in 100% manual supply chains.

Furthermore, excessive reliance on physical tools can cause delays in order processing, as employees need to move physically to perform the task, slowing down the operation pace and increasing the likelihood of errors. Additionally, these processes are less scalable and require more resources, contributing to increased operational costs.

3- Lack of end-to-end visibility

The lack of end-to-end visibility is a recurring challenge in supply chains. Without a clear view of the entire process, it is difficult for operators to quickly identify and resolve issues that arise along the way. This can lead to delivery delays, order processing errors, and customer dissatisfaction.

End-to-end visibility can be achieved through the implementation of advanced tracking and monitoring systems that allow for the monitoring of the flow of goods from origin to final destination. These systems provide real-time data on the location and status of goods, allowing operators to intervene promptly in case of anomalies or delays.

How the WMS system can improve delivery accuracy

A Warehouse Management System (WMS) is a fundamental technology to optimize logistics operations and improve delivery accuracy. Here are some of the main advantages offered by a WMS:

1- Process automation

A WMS automates many of the manual processes involved in order and inventory management, minimizing the risk of human errors. For example, a WMS can automate the picking process using technologies like pick-to-light or voice picking, which guide pickers through the warehouse and minimize the risk of errors.

2- Storage space optimization

A WMS uses intelligent algorithms to optimize storage space in the warehouse, minimizing space waste and improving overall logistics operations efficiency. For example, a WMS can use data analysis to identify high-turnover products and place them in easily accessible areas of the warehouse, reducing picking and shipping times.

3- Advanced tracking

A WMS provides end-to-end visibility on the flow of goods through the warehouse, allowing operators to monitor the path of each item from arrival to shipment. This allows for the timely identification of any anomalies or delays and prompt intervention to resolve them.

4- Improvement of delivery accuracy

Overall, a WMS helps improve delivery accuracy by minimizing human errors, optimizing storage space, and providing end-to-end visibility on the flow of goods through the warehouse. This results in greater customer satisfaction and a better business reputation.

Conclusions

In conclusion, delivery accuracy is a fundamental element for the success of companies in the modern market. Errors during the delivery process can compromise a brand’s reputation and trust, negatively influencing consumers’ purchasing decisions. To ensure precise and timely deliveries, it is essential to invest in advanced technological solutions, such as a Warehouse Management System (WMS), which automate processes, optimize storage space, and provide end-to-end visibility on the flow of goods through the warehouse. Only through such solutions is it possible to ensure precise and timely delivery and maximize customer satisfaction.


How does the WMS system increase delivery accuracy? Deagor WMS per ecommerce può aiutarti!


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