Investing in automated business systems may help your business reduce human error and save a great deal of money each year. Just how much depends on your business and where automation can reduce such errors, but one common area where automated business systems helps is in warehouse and inventory management.
Investment in Business Systems Set to Grow
Manufacturers expect investments in technology to increase this year, according to an IDG Research Study conducted for Sage. They’re still spending on automated business processes, especially barcode systems in the warehouse. That’s one area, however, that continues to pay off in surprising and unexpected ways.
The report indicates that the second-highest priority among manufacturers is automating business systems and processes to better manage cash flow. Changes in both accounting systems and inventory management can improve cash flow and inventory tracking.
Investments in Automated Business Processes and Barcodes
Improving the efficiency of warehouse logistics and minimizing costly mistakes is high on the list of important tasks for many manufactures. According to the IDG study, 61 percent of those surveyed invested in technologies to improve warehouse logistics. These automated business processes resulted in an 86 percent improvement as a result of the investment, a good return for any business.
Automation Reduces Human Error
According to a study conducted by Wasp Barcoding Systems, if companies had unlimited money to invest in technology, 9 percent would invest in an automated inventory management system. Such technology investments shouldn’t be viewed as “nice to have.” If companies understood how much money these systems would save them, they’d quickly move them onto their “must have” list.
One small business quickly found out that by implementing an automated business process they could save $40,000 per year. An HVAC contractor featured in Small Biz Trends was losing money on parts and supplies that slipped through their manual inventory cracks. Once barcoding technology was installed in the company’s warehouse, they quickly found out where the gaps had occurred and were able to rectify their inventory mistakes. Their investment in automation reduced the human errors encountered during inventory checks and helped them save money.
Business System Automation Yields Surprising Benefits
If you’re considering investing in business systems, there are more benefits beyond improved warehouse efficiency.
- Precise inventory control: Barcode systems and other automation enables precise just in time inventory management. Never be out of stock on critical components or materials.
- Improved cash flows: Because precise inventory control reduces expenses, cash flows improve. You’ll have more cash available to invest in other projects.
- Reduce waste: Automated business systems can help you reduce waste and excess.
- Faster data: Business systems can provide faster, more accurate data. This can help you more quickly address changes in marketplace dynamics, buyer demand and more.
- Better tracking: Never be without essential supplies or equipment again. Barcodes can be used to track equipment, trucks, supplies and more so that you’ll always know precisely where they’re located. You can plan better and reduce downtime when you know where everything is at a moment’s notice.
Automated Business Systems from IWI
If you’re looking to automate your business systems, speak with an IWI representative today. With so many choices on the market, it helps to have a vendor by your side who understands the nuances of manufacturing and can guide you through the myriad choices available.