Digitalising a warehouse is possible without stopping operations. The key is to plan the phases well, involve the team from day one and not try to change everything at once.
Many distribution and logistics companies put off digitalising their warehouse because they fear disrupting day-to-day operations. This fear is understandable, but it carries a very high hidden cost: picking errors, undetected stock-outs, excess inventory and loss of traceability.
Why traditional warehouse management is no longer enough
Inaccurate inventory
Differences between theoretical and actual stock generate stock-outs or surpluses that directly impact margins.
Picking errors
Without digital verification, errors in order preparation are costly in returns and lost customers.
Lack of traceability
Not knowing where a product is in real time makes it difficult to manage claims, expiry dates and warranties.
Limited scalability
When volume grows, the manual system collapses. The warehouse becomes the bottleneck for the entire company.
Prior diagnosis: know your current situation
Before choosing any tool, take time to answer these questions:
- How many product references do you manage? How many inbound/outbound movements per day?
- Do you have an ERP with a warehouse module or do you work with standalone tools?
- Which processes are most critical: receiving, put-away, picking, dispatch?
- What is the digital skill level of your current team? Have they used RF terminals or warehouse apps before?
- What is your available budget and within what timeframe do you need the return?
The 4 phases to digitalise without stopping operations
- Stabilise the product master. Before digitalising, make sure your product catalogue is clean: no duplicates, correct references, defined units of measure and packaging.
- Implement coding. Assign barcodes (EAN-13) or QR codes to all products and label the warehouse in clearly identified zones, aisles, shelves and bins.
- Pilot in one process or zone. Start with the process that generates the most errors (usually picking) or with one zone of the warehouse, not everything at once. Learn and adjust before scaling.
- Progressive rollout and training. Deploy the system to the remaining processes and zones, with continuous team training. Adoption is achieved through practice, not manuals.
Key tools: WMS, barcodes and RFID
A WMS (Warehouse Management System) is the software that controls all physical movements in the warehouse. It can be a module of your ERP or a specialised solution. When choosing, consider:
- ERP-integrated WMS: recommended if you already have or are implementing an ERP. Avoids data duplication and reduces total cost.
- Specialised WMS: more powerful for high-complexity warehouses (multi-warehouse, multiple clients, dynamic slotting), but requires ERP integration.
- RF terminals or smartphone apps: operators work with devices that communicate in real time with the WMS. Reduces errors and eliminates paper.
- RFID: for sectors where inventory speed is critical (automotive, fashion, pharma). Higher initial investment, but very high ROI at large volumes.
"The first inventory carried out with the new system usually reveals differences of between 3% and 12% compared with the stock the company thought it had. Those differences are money: products lost, stolen or incorrectly recorded over the years."
KPIs to measure the success of digitalisation
Once the system is implemented, measure the impact with these indicators:
Inventory accuracy
Target: >99%. Ratio between actual stock and stock recorded in the system.
Picking error rate
Target: <0.5%. Orders prepared with errors / total orders.
Order cycle time
From receipt of order to dispatch. Measures overall operational efficiency.
OTD (On Time Delivery)
Percentage of orders delivered within the committed timeframe.
At Grupo Unifema we have accompanied distribution, food and retail companies in digitalising their warehouses. To find out which solution best fits your operations, contact us without commitment .