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Running an e-commerce business can be tricky if you don’t have the proper mechanisms. With many things moving, you can quickly lose track of your items after they’ve left your warehouse. Thankfully, the introduction of a warehouse management system (WMS) has made things simpler even for start-up businesses.
This system and an effective e-commerce strategy can help keep your e-commerce business on track. In this article, you’ll learn all the benefits of WMS software for ecommerce. Keep reading for more information.
What is WMS software?
A warehouse management system (WMS) consists of processes and software programs that help organizations ensure that goods move along cost-effectively and efficiently. Moreover, WMS software is designed to optimize these procedures and streamline warehouse operations. The software offers visibility into your e-commerce business’s inventory. It also allows you to manage the supply chain fulfillment operations from when the goods are distributed to when they’re stored on the warehouse store shelves.
Benefits of WMS software
So, how can this software program enhance your e-commerce business? Here are some of the main benefits of investing in WMS software:
1. Inventory visibility
When operating a warehouse for your e-commerce business, you’ll want to have real-time data about your inventory. The goods can get lost in the warehouse or transportation without the right management system. Thus, WMS allows you to track the movement of your inventory and its accurate levels. You’ll know the location of every item from the time they enter the warehouse to when they’re delivered to customers.
With all this information just a click away, you can manage your inventory effectively and avoid unnecessary backorders. The software also gives you a good idea of the items that move quickly. As such, you can accurately create the demand projections for your e-commerce business and alert your suppliers accordingly.
2. Enhances customer service
Good customer service is one of the main benefits your e-commerce business may enjoy with the introduction of WMS. The clients should always be top of your concerns whenever you want to make changes to your operations. Hence, with this management system, your customers’ needs will undoubtedly be at the forefront. Nearly every positive aspect WMS introduces has a ripple effect on what the clients enjoy.
For instance, creating accurate demand projections makes it easier to satisfy consumer needs. You’ll be able to replenish your inventory at the right time and ensure that the customers receive given items whenever they require them.
In addition, WMS software is designed to reduce or replace—if possible—inventory paperwork. So, rather than signing papers or manually checking items, the program can do all these automatically. Likewise tasks such as packing lists, moving tickets, pick tickets, and reports can also be maintained electronically. As such, this streamlines all processes, reducing the time customers have to wait for order fulfillment. The automated system also enhances your estimations and gives the customer realistic delivery dates. In the long run, you’ll have a drop in customer complaints which can improve your reputation.
3. Enhanced labor productivity
Labor is one of the costliest factors in any warehouse operations. As such, reducing the number of personnel and enhancing their productivity should be among your top priorities. WMS software makes that possible by assigning tasks to the right people at the right time. This is crucial, especially if you have multiple warehouses because the software considers travel time, employee proximity, and skill levels.
The labor forecasting feature available on this software program also allows you to design schedules and assign jobs daily. With such as system in place, it becomes easier to monitor the productivity of your employees. In cases where the workers aren’t meeting their key performance indicators (KPIs), you can make the necessary readjustments accordingly.
Managing the movement of goods in and outside your warehouse is crucial for any successful e-commerce business. You can do more than just monitor your inventory with the right management system. WMS software allows you to check not only the location of every item but also the inventory levels.
With this information, you can easily create demand projections and make orders accordingly. This improves customer satisfaction because you’ll be able to meet their needs within the shortest time possible. WMS software also comes with a labor forecasting feature that enhances task allocation. You can assign warehouse tasks to the right people and monitor their overall productivity. It’s worth noting that investing in this management system doesn’t only optimize operations within your business but also helps build a good brand reputation in the market.
Jim O’Donnell, “Warehouse Management System (WMS),” TechTarget, October 2020,
William Barnett, “Four Steps To Forecast Total Market Demand,” Harvard Business Review,n.d.,
Medium, “Why You Really Do Need To Consider A WMS,” Medium, June 20, 2017
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