SAP Warehouse Management (WM) is essential in the best of times to boost efficiency, integrate a myriad of warehouse functions to improve service levels and reduce operating costs. But when fluctuations and crises of supply and demand enter into the picture, the need to improve supply chain agility and keep customer promises takes on a whole new urgent meaning.
At a time when customers expect goods faster than ever before, period of disruption can become an obstacle to fulfilling world-class Available to Promise (ATP) service levels. The disruption to warehouse efficiency can come from many sources: demand volatility caused by a “black swan” event like COVID-19 or a natural disaster such as a hurricane or earthquake. Or it could flow from a new product introduction—a new iPhone model or Fitbits, for example—or a particularly successful marketing campaign that causes demand to surge above supply. Unexpected fluctuation, when the supply chain is not meticulously automated and managed, has the power to cripple warehouse material flow, both inbound and outbound.
Fortunately, there are many strategies and standard tools to help mitigate short-term disruptions and risks to customers. Times of disruption are the perfect opportunity to assess your supply chain traceability and visibility.