The demands for greater efficiency and speed of response are a constant of logistics activity in the maquiladora industry. Faced with this class of challenge, an agile and precise warehouse management system in Mexico is a must for companies that want to successfully compete.
An effective warehouse management system (WMS) can help manufacturers of all types in Mexico to reduce their overall operating costs.
Companies that have maquiladora production and distribution facilities are undergoing competitive pressure to increase their productivity and performance. These market conditions magnify the importance of having a warehouse management system in Mexico. Companies that recognize this fact can achieve their objectives by making investments in state-of-the-art WMS solutions.
Market conditions demand Warehouse Management Systems in Mexico
As customers become more demanding and maquiladora supply chains become increasingly global, companies that do not implement a warehouse management system in Mexico are at risk of performing poorly. Immediate issues that can adversely affect warehouse management in Mexico include:
- Ineffective order management
- Excessive labor costs
- Inefficient use of company assets
Being aware of increased demand and frequent changes in the global marketplace are two of the biggest challenges facing manufacturers in Mexico. Complexities for maquiladora production facilities increase with the number of suppliers that they have.
The efficient management of inventory and other valuable resources involved in a warehouse operation ensures that customers will get the right product at the right time. Increasingly, supply chain management (SCM) solutions have become key components for achieving market-driven efficiencies. Simply installing supply chain tools, however, does not guarantee that products will be made available in a timely manner or that operating costs will be reduced. Warehouse management in Mexico is another essential component in the effort to achieve needed efficiencies.
The Evolution of Warehouse Management in Mexico
The evolution of WMS in Mexico is very similar to that related to other types of software solutions. Warehouse management systems that were initially used in Mexico were for the purpose of controlling the movement and the storage of materials. Today, however, the role of WMS has expanded to include light manufacturing, transportation management, order management, and complete accounting systems. The evolution of warehouse management in Mexico has evolved by adding these functionalities, as well as systems that are based upon speech recognition. These consist of WMS software, headphones, voice terminals with related software, and an RF network. They work by converting WMS instructions into audio instructions. Employees working in a warehouse have a headset to receive and to recognize orders through spoken language. This means that employees are free to work hands-free in an environment that improves process quality, reduces errors and boosts productivity.
The need for a Warehouse Management System in Mexico
Customer preferences, needs, and requirements have repercussions on the way a company runs its warehouse. Specifically, firms that are manufacturing in Mexico are often obliged to complete their orders in reduced time frames. Manufacturers that do not comply with agreements made with their clients can incur fines and returns in the event that orders are improperly labeled, or poorly packaged, or not delivered in a timely manner. For instance, packaging is becoming more sophisticated in terms of formats and boxes. In order to manage these improvements, it is necessary to have a WMS system in place.
It is a fact that top maquiladora industry companies recognize today’s challenges as an opportunity to strengthen their operations and to increase their profitability. Such organizations meet the challenge of increased customer demands by making improvements in the areas of warehouse visibility, agility, and productivity by making significant investments in advanced solutions for warehouse management. Typically, business logistics costs are high, so an effective WMS plays an important role in lowering costs and making companies more efficient.
The right time to implement a WMS in Mexico
Once a company needs real-time visibility and control of stock, inventory accuracy and storage activities, as well as picking, packing and freight, a warehouse management system in Mexico is necessary. In lower margin industries, it is critical for manufacturers to identify and to eliminate inefficiencies and to find the right platform to ensure growth. The main trigger for the implementation of a WMS, however, is the desire and need to outperform the competition.
The Benefits of a WMS
In an increasingly complex and competitive global market, it is important for manufacturers that manage a supply chain with high-volume processes to do so efficiently in order to meet customer demands and to improve their profitability. To do this maquiladora firms must master complexities such as meeting market standards, having reliable inventory visibility, and managing and tracking processes.
Businesses need to efficiently manage their operations by increasing visibility with automation. A WMS will help them to achieve this by enabling them to:
- Optimize order management
- Meet quality and market standards
- Automate arrival and exit processes
- Improve inventory processes
- Automate data collection
- Increase stock accuracy
- Lower labor costs in the warehouse
- Improve customer service by reducing time
- Organize storage so as to increase space capacity.