Such a hypothetical scenario is just one instance in which automated warehouse alerts save time, enhance efficiency, and improve service.  Automated warehouse alerts can also be implemented in such situations when:

• inventory levels are low
• shipments are received
• shipments are sent
• purchase orders change
• order issues occur
• inventory discrepancies occur
• Additionally, users can create any event

And, because alerts are sent through e-mail in real-time, the possible benefits to warehouses are phenomenal.  Being able to quickly replenish stock inventory and promptly fix any discrepancies saves a warehouse an unprecedented amount of time and reduces backorder handling.  

The ability to instantly know where orders are, know immediately when products are sent and received, and know exactly when there's a problem, significantly increases a warehouse's visibility and thus its overall efficiency. 

Active warehouse alerts can also be used for sending confirmation and invoice receipts automatically as soon as a product is received, thereby triggering faster payment of invoices and increasing revenue.

With automated alerts and active messaging, a warehouse can provide better overall customer service.  This is because automatic alerts keep the customer informed with real-time information as opposed to waiting for them to call and ask for it.  And, by automating a process that is currently done manually, warehouse alerts free-up the customer service representatives allowing them to provide the next level of support to customers. 

As a result, the benefits of automated warehouse alerts are overwhelming.  By implementing this type of system, a warehouse can expect to save time and money, increase visibility, enhance customer service, and best of all, improve overall efficiency.  And since tracking, control, and accuracy are crucial in the warehouse, automated alerts can optimize day to day operations in any supply chain.

One particular industry reaping the benefits of the SaaS model is the Warehousing Industry. The benefits of using Warehouse Management Systems (WMS) SaaS applications are substantially impressive.  The significantly smaller start up costs and shorter deployment times make SaaS applications ideal for the warehousing industry.  

SaaS in the warehouse doesn't leave you with less functionality.  You can still have all of the features of a tier 1 warehouse management system and specific web-based features such as tracking inventory levels, locations, suppliers, orders, invoices, etc through a web browser and thus eliminating the need for in house servers, maintenance, or support.  Even with SaaS, yor WMS can also be integrated with barcode reading systems, RF, and even RFID (radio frequency identification) for high tech tracking.  

If SaaS is a more efficient delivery method for using a WMS, what are the benefits that you can expect from a SaaS-delivered WMS?  The answer is simple.  SaaS and the WMS applications can benefit your warehouse in three fundamental ways:

• 1. Greater Efficiency in Your Warehouse Operations
• 2. Drives More Revenue through Value-Added Offerings
• 3. Reduce Costs, Speed Payments, and Improve Cash Flow

Opting for these integrated WMS solutions is an increasingly popular strategy among warehousing companies. Because WMS increases efficiency and drives in more revenue at a significantly lower cost than traditional software models, the future of the Warehousing Industry lies with delpoying your WMS in a SaaS environment.

Software as a service (SaaS) is a relatively new term for the concept of software outsourcing that has essentially revolutionized the idea of IT responsibility.   In essence, SaaS is a software vendor that develops, hosts, and operates web-based software through which businesses can "rent" their services.   Variously termed "application service provider" or "hosted software", SaaS has proven to have a dynamic impact on the way people build, buy, and sell software.  The potential benefits of SaaS in the marketplace include saving money and time, access to updates and innovations, unlimited availability, and data storage, control, and security.

Save Money

First, and most importantly, SaaS has made it possible for any sized business to utilize top of the line software without the huge initial start up fee associated with implementing conventional software.  These large initial fees often prevent businesses from implementing the advanced systems that best solve their business problems.  Conversely, SaaS allows businesses to roll out new software without paying enormous up front costs.  As a result, SaaS opens up an entirely new range of potential customers because it has never before been cost effective to them. 

Next, subscription to a SaaS application allows businesses to pay as they go.  An on-going monthly expense is much less demanding to a budget than a large up-front layout.

And since a business has the ability to cancel its subscription, the investment risk is much less than a costly upfront payment.

And unlike traditional licensing models, software as a service does not require a large IT staff that requires an equally large budget.  As a result, application service providers offer low cost alternatives to small to mid-sized companies who have limited IT staffs, budgets, and infrastructures. 

Save Time

Another advantage of software as a service is the significantly shorter time it takes to deploy applications.  Application deployment can take months or even years with conventional software packages.  Instead, because SaaS software is already up and running at the SaaS vendor's data center, deployment time tends to be much shorter than with a traditional one.

Gain Access to Latest Innovations

With traditional licensed software, it's typical to have to wait (and pay) for the next release to get the latest innovations or to shift a business to a new browser or operating system.  On the other hand, application service providers offer upgrades and innovations on an on-going basis as part of the software subscription.

Availability

Because SaaS is internet-based, employees and customers can access information anytime, anywhere, and from anything with a web browser.  This capability means enhanced service to customers while effectively reducing the cost of customer service.  Systems are available 24x7x365, without the need for you to manage the infrastructure yourself.

Data Storage, Control, and Security

When subscribing to a SaaS service, application data is stored on the vendor's servers rather than the company's servers.  Because Saas vendors that implement best practices back up their data in a secure location, security of the data is ensured.  Furthermore, most vendors provide customers with a way to export their data, which safeguards customer control over their own data. 

Because of the advantages, software as a service's popularity is growing exponentially.  According to a prediction by the IDC, a global provider of market intelligence, worldwide spending on SaaS will reach $10.7 billion by 2009.  Furthermore, a recent IDC survey says, "clear indications that partners believe Software as a Service is a key area of opportunity with the potential to dramatically change the partnering landscape. Survey respondents identified perceived revenue annuity as the factor making SaaS a particularly attractive long-term strategy."  It is safe to say that soon all applications used by businesses, except made-to-order applications, will be delivered as web-hosted services via a browser. 

If you operate with tight order-to ship windows (do you ship orders same day if received before a cutoff time?), getting the orders to the warehouse floor as quickly (and accurately) as possible is critical.  Lets look at the traditional steps in non-automated order processing:

1. Your customer enters the order in their ERP system.
2. The customer prints the order and faxes it to you.
3. The order sits on the fax machine once received until someone sees it there and picks it up.
4. It's put in an order entry clerk's inbox and queued for entry.
5. The order is entered, double checked, and allocated.

One study we did for a busy 3PL found that these steps took 45 minutes on average.  They were accepting orders up until 12:00pm for 5:00pm delivery.  A full 15% of their 5 hour order fullfillment window was being used to acquire the order and make it ready to send to the floor!

For this customer, we implemented an order transformation process to streamline these steps:

1. Their customer enters the order in their ERP system.
2. The customer emails the order as a .pdf attachment to a designated mailbox.
3. Within 3 minutes, the order is picked up from the mailbox, converted into the correct format, and placed in the system for processing.
4. The order entry clerk receives an email indicating that the order has been received and is ready for allocation.

 The updated time to process an order?  1-4 minutes.  The 40+ minutes that they recaptured are now available for qc checking of the outbound orders or other value-added processes.

The upshot?  The long-term cost for acquiring the order went from $1.82 to $.30 due to labor savings, accuracy improvement in the order taking process and fewer misships.

This doesn't just apply to order processing.  Purchase orders, ASNs and Shipment Confirmations can all be automated in a similar manner.  Give us a call if you need more details or to talk about streamlining your processes.