Why should your company adopt a warehouse management system?

Last Updated May 06, 2023

A warehouse management system (WMS) is a type of software that is extensively used by enterprises to manage and control warehouse operations from the time items or materials enter the warehouse until they leave. In simple terms, a warehouse management system (WMS) aids in the optimization of all warehouse processes.

A WMS system is crucial because it keeps track of all the items in your warehouse and creates methods for workers to pick products and pack orders more efficiently. It allows you to track merchandise as it enters the warehouse, as it is stacked on shelves and sent to various locations, and as it departs for order fulfilment.

A WMS also enables real-time visibility into an organization's inventory, regardless of time or place.

In today's article, we'll go through the advantages of warehouse management systems for your business. We'll go through the different sorts of warehouse management systems later. So without further ado, let's get this party started!

Why should your company invest in warehouse management software?

A warehouse management system can help you maintain track of what's selling well and speed up order fulfilment. You may also keep track of raw materials as they arrive, ensuring that they are in the correct location for stocking and manufacturing.

Let us also go through the primary warehouse management system advantages and why they are important to your firm.

Provides real-time inventory information

a warehouse supervisor Workers can get inventory information from the system's data whenever they need it. A warehouse management system (WMS) can read serial numbers and track each item from the moment it enters the warehouse. As a result, the outbound delivery procedure is speed up.

A warehouse management system can also help firms cut their workload. Magid Glove & Safety, for example, uses a warehouse management system to keep track of its product inventory.

The WMS' real-time cycle counting helps the organization to avoid doing a physical inventory every year and provides information on how much product is in each location.

Operating costs are reduced

One of the most significant warehouse and inventory management system advantages is that it significantly lowers operational costs. It aids in determining the most important factors.

A warehouse management system (WMS) allows businesses to determine where particular products, materials, and equipment should be stored in order to maximize warehouse flow.

Floor simulators are available in certain modern warehouse systems, allowing users to simulate alternative floor plans within the system. They can utilize these simulators to install shelves, pallets, and other warehouse equipment as needed.

In addition, a warehouse management system improves inventory visibility. This helps firms save money by reducing their just-in-time inventory and eliminating the need to store the items. A WMS can also help reduce waste by enforcing a first-in, first-out rule, which ensures that the oldest perishables are removed first.

For example, to improve their business operations, Nature's Best, one of the leading brands in health and natural food distribution, implemented a warehouse management system.

Billing accuracy is essential

This functionality is provided by warehouse management solutions that have in-built or third-party integrated billing management capabilities. This feature allows you to use activity-based billing to keep track of all supplier-related activities and produce the appropriate costs.

A warehouse management system can also accept credit card payments and connect to popular e-commerce sites.

Enhances demand forecasting

A warehouse management system might provide insight into future demand for a corporation. A company's demand projections might become more accurate as a WMS improves inventory visibility.

A WMS can also collect data on current outbound and incoming material movement, as well as historical trends for forecasting. When a warehouse has precise inventory, it is more efficient.

Renault, for example, has installed a warehouse management system in its Seville production facility (Spain). With WMS in place, the organization can seamlessly manage all internal processes and activities, as well as obtain real-time inventory information for precise demand forecasts.

Allows for continued improvement

Warehouse management systems enable an organization's ongoing improvement. Vendors of warehouse management software constantly add new features to reflect current industry best practices. This enables firms to stay abreast of new advancements and to continuously enhance their processes as a result of these advances.

Furthermore, if the warehouse management system is cloud-based, it may update rapidly, reducing the need for big, costly IT staff. Businesses with an on-premise system, on the other hand, may or may not be able to provide a quicker product delivery

There's no doubt that today's customers want and expect quick product delivery. And warehouse distribution must be swift in order for this to happen. The shipping process can be sped up by integrating a warehouse management system. Customers will be more likely to return to your online site or application if their orders are delivered quickly.

The processing is substantially faster with such management systems. This is due to the fact that pickers are familiar with the location of the item. A warehouse management system (WMS) uses an automated procedure to locate, track, and distribute products more quickly. It also saves time because none of the data is updated manually or with a slow system.

Decathlon, for example, prepares and ships products using a warehouse management system.

Boosts security

When entering transactions, most warehouse management systems require employees to use individual user accounts. This will generate an audit trail that links certain employees to specific transactions, lowering the risk of fraud and increasing accountability. Employers can also use it to find new training opportunities and other ways to enhance employee behavior.

User-based access levels also restrict illegal access to specific data and reports. This restricts each user's access to only the information needed for their job. You won't have to be concerned about company secrets or losing your competitive advantage this way.

Transparency is improved

Transparency is one of the key advantages of warehousing and inventory management solutions. They Make shipping, order fulfillment, and tracking operations entirely transparent to all employees.

Employees may access real-time data and provide precise and accurate information to their consumers because of this transparency.

Streamlines the supply chain

One of the most important purposes of a warehouse management system is to assist in the optimization of a warehouse's internal operations, which subsequently extends to the rest of the supply chain. A warehouse management system (WMS) automates the entire warehouse process, from inbound receipts to outbound deliveries, lowering costs and increasing operational efficiency.

By cutting or lowering redundant or non-productive processes, warehouse staff achieves accurate and speedier delivery. These cost and time savings, as well as enhanced processes, can be passed on to internal and external partners, helping them to improve their own operations.

The shipping time is also shortened as inbound receiving improves. As a result, delivery partners may better utilize their equipment and resources, while shippers can better control inventory levels.

Improved relationships with suppliers and consumers are also a result of increased inventory visibility and supply chain optimization. Customers benefit from shorter delivery lead times, fewer order inaccuracies, and better order fulfillment, while the supplier benefits from shorter wait times at docks and loading bays. With such processes in place, your company's reputation among customers and suppliers increases as well.

Employee morale is improved.

Employee satisfaction and experience can be improved with a warehouse management system.

A warehouse management system (WMS) can automate monotonous, manual processes, which can boost staff morale. Employees may be less productive as a result of automation.

While a WMS system won't be able to cure all of your company's difficulties, it can help to alleviate laborer and management frustrations. A more organized and stress-free work atmosphere may encourage your employees to think twice before utilizing potentially dangerous equipment or attempting an incorrect lift.

This all adds up to a safer, more engaged, and satisfied staff, which boosts your company's overall success.

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Now that we've seen the major advantages of warehouse management for businesses and how it can help your company grow, let's look at the many warehouse management systems available to help you streamline your warehouse operations.

Warehouse management systems come in a variety of shapes and sizes.

Businesses utilize four different types of warehouse management systems to improve their operational efficiency and streamline their warehouse operations. Many of the functions in these systems are similar, but the way they are delivered is what sets them apart.

It's critical to first understand the many types of management systems in order to select the best one for your company's needs. So, let's take a closer look at each of them.

System for managing warehouses on its own

The most basic systems are stand-alone systems, which are only used for warehouse management. These systems are sold without any additional supply chain functions, only the best and most important WMS modules, such as inventory management and warehouse operations.

Warehouse management on its own Systems is especially useful for smaller businesses that don't have full-fledged manufacturing capabilities, such as a third-party logistics provider.

Modules for the supply chain

Supply chain management includes warehouse management systems as a subcategory (SCM). SCM software covers a wide range of functions, from corporate operations to vendor relationships and risk assessment. It focuses on operations like product cycles, inventory management, and material sourcing that can be automated.

While a supply chain management warehouse platform allows for holistic supply chain management, standalone solutions are limited to warehousing and inventory management. It's critical to minimize overlaps within your present program if you're planning to use this approach.

If you already use inventory management, warehouse management, or fleet management software, for example, you can save money.

You may unite them all into a single warehouse platform for supply chain management. Another strategy to reduce overlap is to choose SCM software that is easy to link with other corporate software, such as ERP or payroll.

ERP systems that are linked together

One of the finest solutions for firms wishing to improve warehouse operations is the Enterprise Resource Planning (ERP) Module. It's a great option for 3PL companies trying to streamline their supply chain, accounting, HR, and even customer relationship management systems.

ERP is a customized system that provides scalability and reliable supply chain execution. These systems may include warehouse management capabilities, but they are not an integral part of ERP. When looking to purchase ERP software, keep this in mind.

ERP may be able to take the place of Streamline your processes by combining many software applications into a single user interface. ERP may be the ideal option for you if you're currently dissatisfied with your software solutions or want to merge them into a single system.

WMS in the cloud

A cloud-based platform is unquestionably the greatest solution for enhanced convenience and speedier integration. Warehouses benefit from cloud technology because it reduces IT upkeep, increases security, and lowers costs.

The maintenance and integration of the WMS become considerably easier and more economical since cloud-based systems run on a server and systems outside the enterprise.

Because a cloud-based WMS is housed on a distinct or private server, it results in a higher level of security.

This is especially important for firms that manage high-value inventory or just want their WMS to be more secure.

Regardless of volume, operational scale, or complexity, this type of technology can maximize business productivity.

Cloud computing also allows for automatic software updates at no additional cost, lowering costs and increasing technological competitiveness.

The following are a few important benefits of employing a cloud-based WMS:

Implementation time is reduced: Unlike on-premise systems, cloud-based WMS take weeks to implement rather than months or years. This is because a cloud-based WMS vendor handles the configuration, hosting, and implementation.

Ease of use: For the end-user – your staff – this type of system is less complicated. When the WMS solution is simple to use, warehouse operations can be more efficient.

Continuous improvement: As part of a continuous improvement strategy, cloud WMS users receive regular and routine upgrades. As a result, you'll always be able to take advantage of new features and frequent upgrades. You're also not obligated to work with developers to update your system.

So, these are the four basic types of warehouse management systems from which you can pick to improve the efficiency of your warehouse operations. We'll go over a few criteria in the next part to help you choose the finest warehouse management system for your company.

Choosing a warehouse management system that is suited for you

What you intend to achieve in the long run will choose which WMS to use. The correct WMS can assist your company in achieving greater success.


Examine the benefits you'll obtain from a warehouse management system to help you set a budget. You should get the following as a return on your investment:

Cost savings as a result of increased efficiency and better inventory management Process improvements

Improved customer service leads to higher client retention and income.

More efficient use of space

Visibility and traceability have improved.


Look for solutions that can handle the functions that are most vital to your company. The following are some of the features you'll want:

Labor, equipment, and space usage have all improved.

A better understanding of operations

Picking, packing, and dispatch accuracy are all improved.

Inventory movement tracking in real time

RFID, serialization, barcoding, mobility, and other cutting-edge technologies are all available.


Make a short selection of vendors and solutions that best meet your requirements and budget. Take into account the following:

Do they have experience in your field?

Is their WMS a stand-alone program or is it fully connected with their ERP system?

Are they receptive and accommodating?

Is it necessary to customize WMS?

What is the training procedure like for them?

Analyze the software from several suppliers and list all of its capabilities to support all of your business needs, excluding pricing, software licensing, training, support, and maintenance.

Viewing a demo of the program and learning about the numerous features it supports is a good way to choose the best WMS.


With the correct WMS, you can improve the efficiency, speed, and order accuracy of your warehouse operations. This will help your firm become more competitive and increase customer satisfaction while lowering operating costs.

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