Request a free expert consultation
Delivers in 4 weeks.
1
Brief introduction call
2
Customized automation plan
3
Free onsite 30-day pilot
A Warehouse Management System combines all your warehouse operations into one platform. All levels of the supply chain are managed using the same software. You don't need to jump to a different application for dealing with orders, inventory, or deliveries - all of these processes can be found on your WMS. This allows you to effectively track your inventory, from order receipt to order release.
If you have other supply chain management systems in place, a Warehouse Management System will also be able to seamlessly integrate with these other systems. WMSs are compatible with Enterprise Resource Planning (ERP) and Transportation Management System (TMS) software. This provides more accurate inventory tracking at all stages of the supply chain.
Training your team on how to use your adopted Warehouse Management System is needed to streamline processes. With everyone on board, the real benefits of a Warehouse Management System become apparent.
A Warehouse Management System keeps tabs on how much stock you have and where in the warehouse that stock is located. The software provides you with real-time visibility about this data so that you can see whenever stock levels change or are moved.
By knowing this, you can more accurately determine when to make stock replenishment orders. You can also determine exactly how much stock you'll need to replenish at any given time.
This helps you avoid losing money by accidentally ordering too much or too little. You also won't have to waste money storing any excess stock.
With this level of stock visibility, you can more accurately manage your stock; Warehouse Management Systems help you avoid stock shortages and overstocks.
Barcodes and smart label scanning are also implemented at all stages of the supply chain, allowing you to track inventory from the stockroom to the customer.
A WMS uses algorithms and AI to predict the best picking, packing, and shipping routes for orders. It can generate instructions for the labor force to follow. These instructions will detail where to find the inventory, how to pack it, and the best route for shipping it. This allows minimum travel and labor time and optimized packing and shipping time. Naturally, this leads to faster order fulfillment.
WMS solutions can also enhance order fulfillment in the following ways:
WMS solutions can list the orders that are required to be fulfilled in terms of priority. The software can take into account delivery time, service legal agreement (SLA), and customer importance to ensure that the most vital orders are fulfilled as soon as possible. Humans could carry out dynamic order prioritization in a similar manner, but a WMS can do this much faster.
WMS software provides data on stock levels at all points in the supply chain. This ensures that stock levels are presented accurately on your company's website. It also allows you to ensure that you've got enough inventory to complete each order that's made.
This helps you avoid cases of stockouts. By only selling what you have available, you don't oversell, which makes fulfilling orders a lot easier.
A WMS system can help you consolidate the picking and packing of several orders at once. This allows you to save a massive amount of time, as fewer trips to the warehouse are needed.
WMS solutions can also accurately forecast how much inventory you'll need in the future. It can do this by analyzing current inbound and outbound inventory tracking, and by looking at historical data. It will then make a demand forecast, reflecting how much inventory you'll need in the coming months.
Again, with more accurate forecasting, you'll be able to avoid losing money by ordering too little or too much. You'll also ensure you can fulfill more orders based on future predicted demand.
The right Warehouse Management System can boost your company's productivity in various ways.
For one, it automates processes. This means that your warehouse employees don't have to spend time performing routine tasks such as data entry and order processing. The Warehouse Management software does this automatically so that your employees can focus on other tasks, such as gathering inventory.
Warehouse Management Systems also organize tasks in order of importance, and in an order that makes strategic sense. Similar orders can be completed together, meaning that less time is wasted by completing these tasks individually.
Plus, real-time inventory management ensures that no time is wasted trying to locate a specific item in the warehouse. The WMS can identify the exact locations of all inventory, meaning staff can make a beeline straight for it.
Lastly, creating greater warehouse efficiency can also boost employee morale. With smoother systems in place and the removal of routine and boring tasks, employee satisfaction can increase. Happier employees create a more productive workforce.
One of the best benefits of a Warehouse Management System is that it helps you lower operational costs quite significantly. It does this in several ways:
Warehouse Management Systems can accurately predict the most efficient picking, packing, and shipping routes. This ensures that employees won't waste time attempting inefficient shipping routes, which, ultimately, helps your business cut down on labor costs.
Cloud-based Warehouse Management Systems are much more affordable than on-premise systems. You won't need to waste money on hardware or need to hire an IT team to maintain your Warehouse Management System. The platform is completely cloud-based, which helps you save on maintenance and IT costs. The fact that Warehouse Management Systems are cloud-based is also beneficial for scalability purposes. You can expand or shrink your WMS as your company develops. You won't have to spend money buying an entire new system if the size of your operations suddenly changes.
With less time wasted in the warehouse, less energy is required for electricity and heating. This will save your company money in the long run.
Warehouse Management Systems can analyze items that need to be shipped, and make packing suggestions based on size, weight, destination, and urgency. This ensures that each shipment that goes out is running as efficiently as possible, which saves you money on shipping costs.
Additionally, these inventory management systems can prepare orders in a more timely manner, which ensures they're ready on time for shippers. This can help improve your company's relations with shippers, which may help you secure a better shipping deal.
The main way in which Warehouse Management Systems optimize space is by analyzing demand patterns to determine how deep to store inventory. This inventory control software can determine how to order stock based on how readily accessible it needs to be. This way, warehouse floor space has a specific order to it, which makes it easier for employees to fetch products when necessary.
You can also inform Warehouse Management Systems about specific storage rules and policies, such as the maximum amount of time that a certain type of stock can be kept in storage. The Warehouse Management System will then take this information into account and consider it when organizing the layout of your warehouse.
A Warehouse Management System will be constantly analyzing your stock levels and demand data to determine new ways to organize your warehouse based on this. If a piece of stock suddenly becomes fast-moving, it will suggest relocating this inventory to a more accessible position.
Additionally, Warehouse Management Systems can analyze the size and weight of different pieces of inventory and organize them accordingly. By allowing the Warehouse Management System to organize your inventory, you'll increase available floor space.
Not only does a WMS ensure that you can complete faster order fulfillment, but it also means these orders are completed more accurately. When orders are prepared by humans, there's lots of room for human error. The wrong product can be sent to the wrong customer; the wrong amount can be delivered.
With an effective Warehouse Management System in place, your orders are less likely to be inaccurate. This ensures a higher customer satisfaction rate, while also minimizing the amount of returns you'd have to pay for and deal with. With more accurate orders, customers are far more likely to trust your brand again in the future.
However, if returns do have to be made, these can be organized and completed promptly using the WMS. Real-time inventory visibility also ensures that you can provide more accurate tracking for your customers. Customers can review the status of their order at each stage. They'll also receive an accurate estimated time of arrival. Similarly, if there's a delay in the supply chain, the reason for this delay can be accurately reported to the customer. A new estimated delivery time can also be provided.
By providing a better service for your customers, you gain a strong competitive advantage. Plus, with increased customer satisfaction, you're more likely to retain customers, preventing your competitors from winning these customers over. As discussed earlier, a Warehouse Management System helps you reduce operational and inventory costs. The money you save could allow you to offer lower, competitive prices for your products. By offering a lower price, you may be able to steal customers away from your competitors.
Furthermore, a Warehouse Management System allows your business to become more flexible to emerging trends and seasonal fluctuations. With your Warehouse Management System making demand forecasts, you'll likely be more ready to take on drastic changes in your industry. Unexpected changes can also be better adapted to with the help of a Warehouse Management System.
There are four different types of WMS solutions: Standalone System, Cloud-Based, ERP Integrated Module, and Supply Chain Module.
Standalone Systems focus only on inventory management and warehouse operations and are not connected to any other system, such as an ERP. Cloud-based systems are the main kind of WMS you get in warehouses today. They're entirely cloud-based (no hardware) and are normally connected to other management systems to create a streamlined workflow.
ERP Integrated Modules are integrated with Enterprise Resource Planning (ERP) software. This helps streamline the rest of your business management system, including human resources and finance. Lastly, Supply Chain Modules also take into account risk management, vendor partnerships, and customer service.
The disadvantages of using a WMS for inventory management include the initial set-up costs and the risk of there being a single-point failure. However, these risks are far outweighed by how much a WMS can improve your inventory management.
There's also the drawback of having to teach your staff how to use the WMS properly. This can be achieved through regular staff training sessions and by testing their knowledge through simulations.
Warehouse management software can completely transform the running of your warehouse. This software allows you to streamline all inventory-related activities, which reduces human error and increases efficiency.
The main Warehouse Management System benefits include increased inventory visibility, accurate inventory planning, optimized supply chains, reduced operating expenses, and enhanced order fulfillment.