News, Insights and Best Practices for Manufacturing in Mexico

Efficient warehousing can improve a company's operations

28 Aug 2013

Category: Logistics Management

Having an onsite warehouse can be extremely costly for U.S. manufacturers, dramatically increasing the company's budget and affecting it's bottom line. This it why it makes sense to team up with shelter companies in Mexico that offer third-party warehousing services. By using these solutions, manufacturers are able to experience several benefits, including reducing delivery lead time, having access to inventory levels around the clock and being able to price products more competitively. It also offers manufacturers the ability to make use of advanced warehousing services, which are becoming increasingly important to today's businesses.

Make warehousing a company strength
Warehousing is changing for manufacturers in the U.S. The days when inventory was recorded using a pen and paper are coming to a close. Companies are stressing efficiency at warehouses and are adopting more digital processes and putting a higher focus on saving money by storing supplies and finished products in warehouses in Mexico to maximize floor space at the facility. 

Businesses are now zeroing in on expanding the firm's customer base, and are using their warehousing strategies to get ahead. According to new research from Motorola Solutions, 26 percent of warehouse IT and operations professionals believe company management views warehouses and distribution centers as one of the assets that supplements growth for the organization. Third-party warehouses outfitted with the latest technology can give manufacturers the ability to check their inventory levels digitally in real time. With these solutions in place, manufacturers have an opportunity to have a stronger supply chain.

Mark Wheeler, director of warehouse solutions at Motorola Solutions, said businesses used to not pay enough attention to warehousing and distribution, but now companies can greatly benefit from mastering these functions. Technology can allow firms to have strong warehousing processes that allow for business growth.

Manufacturers plan to invest in new technology
The Motorola Solutions study revealed roughly two-third of respondents are making arrangements to automate processes by providing their staff with innovative technology in the next five years. In addition, during the same time period, survey respondents expected pen and paper-based processes to decrease 71 percent, while 100 percent believe handheld mobile computers and tablets will be used for cycle counting and inventory validation.

Benefiting from these new technologies will allow for a more streamlined warehousing process. Eighty-four percent of warehouse IT and operations professionals at manufacturing companies expect bar coded processes to be used at their company because of supplier management initiatives and trading partner compliance requirements. Using these innovations could lead to massive efficiency gains when having a third-party-managed warehouse stationed in Mexico.

Use a strong mix of digital and human processes
Some manufacturers will rush to go all digital when revamping their warehouse management processes, but doing so can often be a mistake. According to a Wisegeek article, finding the right combination of automated processes and human inventory management will allow manufacturers to have the most efficient warehouses. Third-party distribution centers in Mexico boast a trustworthy staff of warehousing professionals to ensure inventory management data is as accurate as possible for their clients in the U.S.

Because of the sheer volume of supplies, materials and products that can be stored in warehouses, even manufacturers that have adopted the most innovative warehousing solutions won't have inventory numbers that are 100 percent correct. This is why it's important for companies to ensure their third-party warehouses are having employees physically count merchandise and other items at least three times per year. Wisegeek stated inventory records should than be updated if any discrepancies occur in the numbers offered by inventory management solutions and physical counts.


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