Background:

Pen and paper have been the bread and butter of warehouse operations for centuries. But even decades into the print-out era, it can be hard for some third-party logistics companies to let go of their reliance on outdated record keeping. It’s comfortable, familiar and tightly woven into daily workflows.

Many 3PL companies fall back on the old refrain: It’s just how we’ve always done it.
But while cheaper in the short term, the costs of a paper-based system add up. The transition to a paperless warehouse can be daunting—change is hard!—and demand a significant outlay. And yet the long-term return on investment, both financially and in employee satisfaction and retention, is invariably substantial.

The Challenge:

The downsides of paper-based record-keeping include:

• Slow visibility: 24 to 72 hours can pass before incoming inventory is fully registered into the system. This data lag leaves critical blind spots about lots and quantities that slow everyone down. Customers are left frustrated by the lack of visibility of their products and the inability to expeditiously fulfill order requests.
• Clerical overhead: Staff spend hours printing, highlighting, and manually keying orders into the system.
• Physical drain: Taking notes and then keying in data poses a physical burden on employees that can lead to injury and burnout.
• High error risk: Each incorrect keystroke or misplaced paper document introduces the chance of mistakes that can have cascading costly effects on inventory and orders.
• Revenue leakage: Add-on charges, such as for shrink-wrapping or restacking, are often missed when notes don’t make it back to the office.
• Audit headaches: Warehouses must devote space for years of paper archives. And for audits, staff must spend days retrieving and sifting through files.

The SC Codeworks Solution:

Shifting to a paperless operation demands new infrastructure, training and a shift in workplace culture. And for companies that don’t already use a warehouse management system, or WMS, like Codeworks’ Enterprise, the upgrade can also require establishing such a technological foundation.

Implementation might look like this:

• Staff buy-in: Train the “champion” employees first, then have them get their peers up to speed.
• Phased rollout: Expand digitization to picking and then shipping.
• Receiving first: Introduce handheld RF scanners, dock tagging and barcoded locations.
• Systems alignment: Ensure the WMS can fully support electronic transactions.

The Results:

The paperless shift produces measurable, immediate benefits:

• Faster dock-to-stock: Inventory is available in hours instead of days, permitting faster turnover, more business and greater revenue.
• Labor efficiency: Clerical staff can be cut in half. Operators receive assignments instantly through handheld devices. Staff have reduced travel time throughout the warehouse.
• Error prevention: RF validation minimizes mis-picks and costly revisions.
• Real-time insights: Managers benefit from time-stamped productivity data and live visibility of inventory. They can pick up on trends and identify ways to improve efficiency
• Automated billing: Revenue isn’t lost thanks to order specs being automatically tied to billing.
• Audit readiness: Digital records provide instant trails for compliance checks.
• Reducing language barriers: The computer system can be tailored for non-native-English speakers, broadening the pool of potential employees.
• Improved workforce experience: Easier onboarding and streamlined workflows lead to happier workers and reduced turnover.

The Benefit:

The return on investment is undeniable:

• Lower staff head count
• Minimized clerical costs, including staffing, paper, printers and toner
• Reduced supply and storage needs
• Higher throughput with existing staff
• Stronger competitiveness in winning new customers and retaining existing ones

Conclusion:

Paper might feel safe, but it drags operations down. Transitioning to a paperless warehouse is more than efficient—it’s transformative. And it’s playing the long game for your business. For 3PLs looking to stay competitive, the move isn’t optional. It’s the future.