While the economy has certainly improved over the past two years, businesses are still looking to reduce costs where they can. Manufacturers around the world are implementing Lean strategies and automating key warehouse management tasks in an effort to lower operating costs and meet customer demand. While automation and waste reduction are crucial strategies in helping warehouses reduce costs, many manufacturers are missing out on huge cost-savings where their software is concerned. Research has shown that Cloud-based warehouse management software solutions can help manufacturers reduce out-of-control operating costs. In fact, according to CompTIA’s 3rd Annual Trends in Cloud Computing study, 50% of businesses currently using Cloud solutions did so to reduce costs.
How Can the Cloud Help Manufacturers Save?
If your company is looking to reallocate costs in your operating budget and save some money, Cloud-based warehouse management software (WMS) can help you do just that. Cloud-based WMS has lower overall monthly operating costs than traditional, on premise software and does not require a huge investment to get up and running. Because there is little to no IT support required, manufacturing companies can virtually remove IT costs from the equation. Maintenance, recovery, and upgrades are all handled by the Cloud provider and covered in the monthly fee.
With Cloud-based WMS, hardware costs are also significantly reduced. Cloud software does not require you to invest in hefty and expensive equipment; in most cases, you can use what you already own. The implementation time for Cloud solutions is also significantly lower than traditional, on premise solutions, making it easier for companies to realize a greater return on investment (ROI) quickly. The Cloud can also impact your labor costs and efficiencies by giving you flexibility in the warehouse. With Cloud-based mobile solutions, your warehouse workers can access information wherever they are in the warehouse and automate manual tasks using their mobile devices. This has the potential to increase your workforce’s overall efficiency and reduce overwhelming labor costs.
Overall, not running your warehouse in the Cloud could be costing your organization value time, money, and missed opportunities. If you’d like to find out just how much your company could save by moving to the Cloud, contact our warehouse management experts today. We’d be happy to review your current software situation and determine if moving to the Cloud is the right fit for you.