Shipping the wrong product can be an extremely costly mistake for a chemical distributor or manufacturer. Thankfully, avoiding these so-called misdeliveries is made possible with the help of an effective warehouse management system. Using the right tools also helps lower insurance premiums.
Misdelivery is a term often used by insurance adjusters to refer to a wrong, or incorrectly made, product being sent to a customer.
Unfortunately, this is not an uncommon occurrence – and one that typically results in contamination or damage to equipment. Either outcome can be potentially dangerous and extremely expensive to remedy. It can also significantly affect your brand, reputation, and ability to operate – and may even lead to a lawsuit and claims for damages.
Payments or losses from these types of incidents can easily range anywhere from $25,000 to as much as $6m. It’s therefore vitally important to protect yourself with adequate liability insurance.
However, even if you are fortunate enough never to suffer an incident, premiums are continuing to climb. At a time when the marketplace is facing supply chain uncertainly and prices are already spiraling, it’s imperative for businesses to do all they can to keep costs down and make savings wherever possible.
That’s where effective warehouse management tools come into play.
These integrated barcoding systems can provide real-time inventory transactions. Not only can these systems minimize the risk of sending the wrong product by validating each picked item in the first place, but it also helps to limit insurance claims. Case studies suggest that these systems can reduce misdelivery incidents by as much as 80% after implementation.
As a supplier, your fundamental role is to provide quality products on time. If you’re not meeting those expectations, it’s not good for business.
Manufacturing processes are extremely complex and often require very specific grades of product. Quality agreements with your customers may stipulate the viscosity or the Ph value, for example, must meet their needs. Ensuring your team has the tools to validate and enforce the correct product and lot passing your customer’s quality requirements is critical to avoid costly errors. Yet every time a human gets involved, there is opportunity for error. Manual input means you’re far more susceptible to mistakes – and the further down the chain that incorrect delivery goes, the more serious it becomes.
Take, for example, two similar sounding – but very different – chemicals, nitrate and nitrite. If a customer orders nitrite and you ship them nitrate, there could be huge repercussions. It’s all too easy to misread a label, copy the wrong lot number, or enter a misplaced digit into the system.
Barcoding systems – also known as wireless inventory management systems – allow real-time tracking of inventory transactions when receiving, storing, picking, and producing chemical products.
For over 20 years, Datacor’s warehouse management solution has helped bring logic to the process and make everything so much simpler with handheld scanners. We have recently launched a new dedicated mobile application which makes it even easier to stay on top of your stock. The latest mobile offering is available on iOS, Android, and Windows App stores. The Datacor Mobile App is optimized for use on dedicated Scanners, but can also be use users’ own cell phones or tablets.
With our warehouse management software, users can instantly confirm they’ve got the correct product and validate, in real time, that they’re following all the appropriate procedures and processes. That means orders, quantities, and specifications are all checked and confirmed before shipment and any issues can be caught early.
Datacor’s solution is fully integrated with its ERP and can be up and running in a very short period of time. It helps you:
- Track inventory more effectively. Instantly see the stock levels, what was sent out, when, and to whom.
- Reduce mistakes and cut costs.
- Make more informed decisions.
- Improve accuracy. Everything is logged, transparent, and tracked. Digital signatures show who was responsible for handling and shipment, and where errors occurred.
- Enhance customer relationships by better meeting expectations and eliminating disputes.
- Onboard people more quickly. It’s intuitive and easy to use without extensive industry experience.
There’s less manual work and little chance of mistakes with data entry. With this powerful tool, users have accurate information about their inventories in real time – right down to the bin and rack location, saving them time and efforts wandering the warehouse to look for available stock. It also reduces paperwork and improves accessibility to important documentation when, and where, you need it.
Managers and business owners can also rest assured that the right shipments are heading out the door. That leaves them more time to think strategically about the business and make the key decisions rather than having to rectify any issues or disputes.
Ultimately, Datacor’s WMS add-on helps customers get closer to every inventory transaction. Not only does it improve the accuracy of your shipments, reducing the cost of shipping the wrong chemicals and having to deal with returns, but it also enables users to improve their efficiency and productivity.
Frequently Asked Questions (FAQs)
What is warehouse management software?
Warehouse management software enables companies to improve their accuracy, productivity, and efficiency while extending better customer service. It keeps track of exactly where inventory is stored, how many units are available, and what items need to be shipped.
Why is it important and what are the benefits?
With increasing pricing supply chain issues, having a real time understanding of your inventory is essential. Integrated barcoding systems help reduce human error and proactively manage your stock. Reducing misdeliveries protects your brand, reputation, and helps control costs.
How does WMS work with Datacor's ERP?
The software integrates seamlessly through APIs to the ERP, updating inventory transactions in real time.
What should you factor in when looking for warehouse management software?
The most important factor is true integration with the ERP. After all, it all comes down to accuracy.