ERP Software

Warehouse Distribution Software:  What is it?  How does it work? - Part 1

Warehouse distribution software is fast becoming an essential tool for today’s businesses.  Efficiency is key to decreasing waste and increasing profits.  Business 101 teaches that efficiency is tantamount to success and warehouse distribution software can play an integral role in increasing a company’s profitability.  

Warehouse distribution software is backbone of supply chain management and logistics in the manufacturing world.  It keeps track of the “who, what, when, where and why” of production and product delivery in an organization.  Properly administered, warehouse distribution software can help a company deliver do business in the leanest way possible.

Lean manufacturing practices have become the litany of modern business. Trim the fat (unnecessary processes or actions) and lead times can be shortened and excess inventory kept to a minimum delivering cost efficient goods to the customer a winning business scenario for all.  Warehouse distribution software can provide near real time stock updates in terms of finished on shelf product and/or required material on-hand, minimizing the need to stockpile finished products or materials to the point of wastefulness and revenue loss.

Warehouse distribution software allows supply chain personnel, (planners, supply chain agents, and project managers) to map out project timelines and milestones, servicing their customers more efficiently and increasing return business.   In terms of customer service, warehouse distribution software provides the functionality of tracking an order as it is in progress and efficient communication with the customer and within an organization make for great customer relations and repeat business.

How does it work? Warehouse distribution software is sometimes a subsystem within a company’s business enterprise software (i.e. SAP, Oracle).  This dedicated subsystem interfaces with the rest of the system to track inventory, most often by dedicated part number. These part numbers are usually proprietary to the organization but are sometimes based on manufacturer part numbers.  

In a distribution warehouse where a finished retail product is being shipped directly to the customer or the consumer, the system looks for that part number to find out how many are on the shelf, if they need to be ordered. These part numbers are a unique value within the system upon which all interaction with that item is based.

In a manufacturing business, blueprints, drawings or recipes are referenced by the system and each component or ingredient has a unique part number.  In this case, the system checks that all the components or ingredients are in stock.

Written by :

kristine H