Build Systematic Efficiencies to Eliminate Hidden Costs
Building efficiency into every aspect of an organization’s system is critical to maximizing both productivity and profits. From supply chain to customer operations and from finance to marketing, each aspect must be coordinated with accuracy. In doing so, companies are able to look at each element in their operations in order to identify weaknesses and capitalize on strengths.
Data visibility lays the foundation for not only detecting hidden costs, but developing ways to save money in the process. Integrating features like real-time visibility and on-demand cycle counts creates a new avenue for cost-efficiency that will trickle into every department in the organization. A well-design system has the capacity to recognize hidden costs and generate strategic solutions.
Some of the most commonly seen hidden costs stem from the following situations:
1. Shipping the wrong items to a customer
2. Issues with space in the warehouse of a rapidly growing company
3. Dead money in old inventory that is sitting and not selling
The actual hidden costs typically come in the following forms:
1. Losing customer goodwill and the cost of shipping the items back or giving steep discounts to the customer in order to keep them and avoid the shipping back costs
2. The cost of moving to a new warehouse to sustain the rapid growth of the company
3. The dead inventory likely never sells
Clearly, all of the above scenarios and resulting hidden costs are killers for companies, from both a monetary and operational standpoint. The solution, however, is as simple as a well-designed, cutting-edge warehouse management system.
Fighting Hidden Costs with the TSX™ solution
From the simplest to the most complex supply chain systems, a structured management system must be flexible, scalable, and profitable. The above situations are extremely common and must be considered when choosing an inventory solution.
For instance, a rapidly growing company will eventually have to consider moving to a new warehouse. However, an efficient system would cut down inventory safety stock and dead stock. As a result, those areas would be exposed and it would to allow them to delay or completely eliminate the need to move to a larger warehouse, which is a very costly endeavor.
In addition, having exposure to dead money gives companies the ability to move it. Thus, freeing up cash and making the bank much happier. With an efficient system in place, assets are stored for a shorter amount of time, this creates more space through turnover and reduces carrying costs. These changes satisfy both CFOs and banks.
The TSX™ Solution Driven By Data
A well-designed system will incorporate many paths to cycle counting the inventory in order to facilitate maximum real-time visibility to the current on-hand inventory, its movement, and accuracy. For example, the TSX™ solution incorporates on-demand cycle counts during picking. Bins that are low will auto-trigger replenishment tasks that restock the locations quickly and efficiently. Even more powerful are the TSX™ cycles counts, which are driven by “fresh data” allowing focus on the money-maker items, while exposing the slow or dead stock to allow creative thinking on how to move it out and free up valuable warehouse space.
In addition, with the TSX™ AI logic, users are empowered with on-the-fly real-time information to move more efficiently through the counting and validation process. The combination of these TSX™ algorithms and designs reduce the overall cycle counting and recounting times drastically. Most clients experience a 70%+ reduction in user time spent on inventory counting tasks. When inventory visibility is at the max, you are empowered to “proactively” manage your overall inventory position, and eliminate the day-to-day reactionary situations that we have highlighted above.
Data Management with WDS
Since the architecture in TSX™ revolves around your data, not the system, your company is better qualified to make strategic, cost-effective decisions. At WDS, we are driven by the revolutionary complexity of data management.
Are you ready to increase efficiencies while lowering costs? Contact us today to learn more!