Organizations harness warehouse management system (WMS) benefits to improve cost savings, operational accuracy, process efficiency, inventory management, order fulfillment, and more.
With a market value of $3.94 billion in 2023, WMS implementation demands are surging significantly as more warehouses, distributors, and retailers seek to streamline their processes. In fact, it’s estimated that by 2030, the projected revenue forecast of warehouse management systems will top $13.34 billion.
If one thing is for certain, it’s that more businesses will continue to turn to WMS for optimization. For more information regarding warehouse management system benefits, benefit availability across WMS providers, and the cost-related impacts associated with each benefit, continue reading our blog.
Top 5 Warehouse Management System Benefits
WMS, meaning warehouse management systems, have revolutionized how warehouses, retailers, and suppliers manage their inventory and fulfillment processes.
In our fast-paced and competitive business landscape, efficient and accurate warehouse operations are essential to success. Top WMS systems can help organizations achieve this by:
- Optimizing order fulfillment
- Providing real-time inventory data
- Streamlining warehouse processes
This not only improves customer satisfaction but also reduces costs associated with overstocking, stockouts, and inefficient processes. By providing visibility and control over inventory and fulfillment processes, a WMS can help companies stay ahead of the competition while meeting the evolving needs of their customers.
Additional WMS benefits, their market availability, and cost-related impacts include:
1. Improved Inventory Tracking
One of the leading inventory management system benefits is improved inventory tracking.
With real-time inventory visibility, organizations can make better decisions around purchasing, production planning, and order fulfillment, reducing the likelihood of stockouts or overstocking. This, in turn, helps businesses improve customer service, reduce lost sales, save on inventory holding costs, minimize their need for labor, and optimize warehouse space utilization.
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In terms of market availability, inventory tracking is a common feature offered by most WMS providers, including Softeon, Luminate Logistics, K.Motion Warehouse, TECSYS, and ERP providers such as Microsoft Dynamics 365 Supply Chain Management, Oracle Fusion Cloud Warehouse Management, and SAP Extended Warehouse Management.
It should be noted that many WMS providers offer flexible pricing models, including subscription-based and cloud-based solutions, making it easier to manage costs while benefiting from the system's features.
2. Reduce Warehouse Staff
By using a WMS to automate processes, organizations can save money by reducing labor costs, improving productivity, increasing efficiency, and minimizing human errors.
In addition to reducing the need for manual labor, a WMS enables businesses to allocate more resources towards other facets of their supply chain, such as procurement and transportation, helping improve performance, lower supply chain costs, and optimize warehouse operations.
While automation and customization levels of WMS vary per provider, Softeon is the top-rated WMS system provider that meets the needs of businesses - no matter the size and challenges.
3. Increased Operational Efficiency
One of the key benefits of a warehouse management system (WMS) is increased operational efficiency. From shortening inbound and outbound lead times and accelerating cycle times to delivering more accurate fulfillments, this WMS benefit helps improve customer satisfaction and retention rates, resulting in more cost-effective business growth and increased revenue.
In addition to optimizing warehouse space layouts to keep warehouses efficient and productivity levels nominal, the cost savings generated by increased efficiency can quickly offset the investment while improving overall supply chain performance.
4. Greater Flexibility
Each facility possesses unique demands from the next. That’s why the flexibility of a WMS is essential for those seeking an end-to-end solution for supply chain management.
It’s important to compare customization capabilities, features, and pricing. However, in many cases, a WMS is capable of integrating with other systems, such as:
- Electronic Data Interchange (EDI) systems
- Transportation management systems (TMS)
- Enterprise resource planning (ERP) software
For businesses operating across multiple industries, the flexibility of a WMS is absolutely critical - as the more flexibility and integration supported, the easier omnichannel fulfillment will be.
Need more information? Take a look at our 8-step WMS implementation project plan example:
5. Internal Automation
Manual processes can be time-consuming and error-prone, however, by automating warehouse processes such as receiving, putaway, picking, and packing, organizations can increase efficiency, reduce labor management costs, and improve accuracy.
While this is a common feature offered by most WMS providers, the level of automation and customization will vary. In terms of cost-related impacts, automation can lead to faster ROI and long-term savings by:
- Minimizing errors
- Lowering labor costs
- Increasing productivity
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Maximize WMS Benefits Today with Softeon
A warehouse management system helps businesses optimize inventory management, improve order fulfillment, and reduce costs associated with warehouse operations. Among the many WMS solutions on the market, Softeon stands out as a top provider, with its innovative technology and unparalleled customer service.
Our WMS offers a robust set of features that enable you to optimize your warehouse operations, including:
- Real-time inventory tracking
- Advanced order management
- Automated putaway and picking
- Powerful reporting and analytics
Furthermore, our WMS is highly customizable, allowing you to tailor the solution to meet your unique needs and requirements. With Softeon, you can maximize operational efficiency, improve accuracy, reduce costs, and enhance customer satisfaction.
Contact us to find out how Softeon helps businesses optimize operations.