Why Invest in a Warehouse Management System During a Recession?

The economy is starting to pick up again, but it has been a tough few years for North American businesses. Between the housing crisis and the credit slump, nervous consumers and the rising costs of gasoline, it almost feels like we will never climb out of the economic doldrums.

For distribution businesses, reduced sales and slipping revenues leads to instinctive cost cutting measures. When money is tight, it feels safer to hunker down and hang onto any incoming cash. But it’s not as though you can simply halt business plans and initiatives in their tracks. You still need to upgrade infrastructure, keep software patched, and make your business better. But can you do more, given the economic state?

The key to succeeding during economic lows, of course, is to find ways to do business more efficiently and with fewer mistakes, especially in the world of B2B distribution. After all, if your customers are businesses, and they are already suffering, the worst thing that you could do is fail to have the product that they need in stock. Or send them the wrong product. If your customers lose confidence in your ability to provide for their business needs, you’re in trouble.

So: How do you provide outstanding customer service when your own bottom line might be sagging?

Carpe diem. Seize the day, and seize the chance to jump ahead of your competitors and grab their market share through a strategic investment in warehouse technology.

What?, you are probably asking, You want me to invest in a WMS during a recession?

It might seem counter intuitive to consider investing in something as big as a warehouse management system when the economy is sour, but believe us, it’s an investment that pays for itself.

A WMS Saves Money

A warehouse management system (WMS) cuts labor costs, improves efficiency and reduces errors, and leads to not only happy customers, but a fatter bottom line. We know because we have watched our customers’ investment in WMS technology pay off rapidly, as their operations can operate faster and with less expense. Our customers are able to gain a wider customer base due to their ability to sell more while spending less.

Proof of WMS Investment Returns

Take IRLY Distributors, for instance. IRLY implemented Latitude WMS in their facilities in 2008, and not only did IRLY not flounder during the recession, but actually grew their business because their warehouse is simply that much more efficient. That’s right – a warehouse management system improves profitability, even when you are least expecting it. In addition, IRLY employees found that adopting the new technology was as easy as learning to use a cell phone.

You can watch IRLY employees and executives describe how Latitude WMS improved business, even during a bad economy.

By master