Why Small Businesses Should Implement a Warehouse Management System
Jun 05, 2023 |
12 minutes read
The rise in the digitalization era also brings a rise in e-commerce business management and operational tasks. Maintenance of the supply chain becomes crucial for business owners and managers.
Warehouse management is the option that allows monitoring the inventory for online businesses. Not only for medium or large-scale businesses, but it is also more beneficial for small businesses to implement a perfect warehouse management. To look forward benefits of warehouse monitoring, let’s keep an eye on what it is.
What is the Warehouse Management System?
The warehouse management system or the WMS is the software build with advanced technology to operate and manage the online business and allows the performing of the operations related to the warehouses.
The standard WMS is built with cloud computing and by performing tasks of the back-end development. It helps to continually keep an eye on the inventory such as tracking of the inventory, effective order management system, and allows optimization of the product supply chain in the eCommerce business management.
Features of the Smart Warehouse Management Software
Implementation of smart management software gives a path to utilize the advanced features which build the business stronger and could expand the visibility among the world. Below are the core features driven by WMS software:
A WMS Software can track the inventory or the stock at all levels and allows collecting the data for all locations in real-time.
With the integration of WMS in the e-commerce selling platform, it paves an easy way to order receive and measure the original data of total sales of products.
Real-time Data Analysis
It enables gathering real-time data that could be beneficial in making decisions regarding the operations of warehouse management. This way, it helps a business to grow and increase revenue.
Pick-off & Shipping
In the multiple warehouses, there are many products available having variations, product ids, and other parameters. The integration of WMS allows us to keep the inventory up-to-date to develop easy pick-off and shipping management services for the various locations.
Auditing & Documentation
A standard warehouse management system offers the auditing of the data related to total selling, inventory updates, and many more.
In contributing to reliable customer service, WMS integration plays a vital role. It enables sharing the of every product detailed information including its features, and the process of placing orders with the customers.
Advantages of WMS Integration
The use of WMS integration provides many benefits to small to large-scale businesses. For small businesses, it is like a kind of key to success in enhancing and empowering their e-commerce across the end-user globally. Below are the benefits of warehouse management integration:
Enhances the Efficiency
It is the short and direct advantage that imprints a good impact on e-commerce. For small businesses, it will update the data time-to-time, make faster processing of inventory, fulfilling customers’ demands, and it is responsible for timely pick-off and shipments of consumer goods.
It is especially important for cross-border clients to handle their orders, and fulfill those on time. Additionally, the automated warehouse management system integrated with EDI — Electronic Data Interchange is used by large-scale business owners and sellers help to coordinate with the logistics.
Reduces Labour Cost
An automated warehouse management system software eliminates the manual process of organizing and managing the operations in a warehouse. After WMS, there will be no need to carry a staff to monitor the inventory, prepare paper documentation, keep records of all goods and their variants, search for the particular product from the many, and other exceptional costs would be reduced.
WMS automation to streamline the operations of the system, WMS training to the employee, and optimizing the efficiency of the system of warehouse management also could help to reduce the cost of labor with less or no human interaction manually.
Improved Inventory Management System
An improved inventory management system can be attained with the binding of WMS with it. Warehouse management integration with IM reduces the errors occurring during the packing, picking, and shipment of the goods without performing unnecessary work.
Also, WMS shares its data with the ERP and transportation management system which helps the movement of goods faster. The inventory management system provides a smooth and sophisticated way to keep the records of goods with clarity and effectiveness.
Some of the advanced benefits could be driven in e-commerce by the integration of WMS. It enables digital transformation by modernizing operations. A company must build warehouse management software to get the latest technology.
As WMS provides great visibility of inventory from tracing to delivering, it makes it possible to forecasts the trends and upcoming updates related to the inventory managed in the warehouse. It helps to create efficient goals for the future considering the location, and also can the inventory by defining the deadline of the warehouse goods.
Types of Smart WMS Software
Among the various types of warehouse management software, each of the WMS offers its advantages and disadvantages. Let’s have a brief on the more specific types of its software.
The stand-alone software focuses on the process of warehouse management. Most businesses use this WMS to integrate with their existing warehouse solutions or to be used in the future for this purpose. Use of a stand-alone warehouse management system expected to maintain the inventory more specifically such as tracing the expiry date of goods, barcode scanning, and order receiving, packing, picking, and shipping. Standalone WMS can be used for inventory management or also can be used as integrated systems with others.
ERP is Enterprise Resource Planning which is the core panel of controlling the business automation system management. To integrate the ERP with the WMS system, it must need to be confirmed that the owner/seller is using a strong management system for their warehouse. The WMS integrated with ERP includes every aspect of the business and all of its subsystems like sales management and many more.
Supply-Chain Execution Modules
In general terms, the cloud-based WMS is not reliable compared to others in terms of the costs and the maintenance of the warehouse system. Though it offers noticeable benefits including scalable solutions, and implementation and installation of the system directly from a provider can reduces the cost of it. It allows to manage the multiple system functions from the central system and optimizes warehouse activities covering data entry time reduction, automated workflow streamlining, and many more.
Supply chain management is the subcategory that falls inside the WMS, and it is having many types of its own. It is the combination of a supply chain system and WMS which also offers the features of WMS as its own. Supply-chain execution modules help in increasing the efficiency of small-scale businesses. It also allows easy communication and a faster data transfer process within various departments.
The Way Forward
There are many things to be considered during the development and implementation of standard warehouse management system software. WMS offers some additional features along with those mentioned above like labor management, slotting and efficiency, scalability, and easy integration with existing working systems.
If you are running a small e-commerce business, it must need to implement a warehouse management system to adopt a new way of business transformation in the modern era.