A warehouse management system (also called a WMS) is a category of software that allows businesses to manage goods and materials as they move into and out of their warehouses. WMS software allows businesses to operate efficiently and cost-effectively by tracking the movement of goods and inventory and by managing order fulfillment processes.

There are many warehouse management system benefits that can give your business a competitive edge. Supply chain management is complex for many businesses, particularly for those that have large-scale operations. If you have a business that manages inventory in a warehouse, or if you have a business that creates goods from raw materials delivered to your site, then you may benefit from a WMS. Here’s what you need to know about using WMS to manage your business and increase customer satisfaction.

Benefits of WMS

1. Real-Time Inventory Tracking and Management

An effective WMS helps you track and inventory raw materials as they enter the supply chain and also helps you track finished goods as they exit your warehouse. This real-time inventory tracking makes it easier to determine which materials need to be ordered or re-ordered while also making it possible to track the inventory of finished goods. Using a WMS, you can order what you need and track orders placed by customers to ensure smooth production from start to finish.

2. Improved Accuracy and Efficiency of Picking, Packing, and Shipping Processes

Shipping and packing take time and ties up members of your workforce. Using a warehouse management system ensures time spent picking, packing, and shipping is an efficient use of your workforce by ensuring that the work is done quickly and accurately.

3. Enhanced visibility into warehouse operations and performance

When something is going wrong in your warehouse operations, finding the problem can be far more complex than you might imagine. Layers of complexity in production can mask the true root of many problems. Using a WMS can give you enhanced visibility into your warehouse operations and performance to help pinpoint errors and inefficiencies where they exist.

4. Increased agility in response to changing customer demands

Customer demands can change overnight, but inflexibility in your production line can lead to problems fulfilling orders and money wasted producing goods that no one will buy. Using a WMS helps increase agility to ensure that your company can keep up with customer demand and outperform competitors with real-time inventory data.

5. Reduced costs and increased profitability

A good WMS helps your business operate more efficiently, which means reduced costs and increased profitability. You’ll make more money on every good sold when you’re using software that helps your business operate as lean as possible.

6. Improved customer satisfaction through faster and more accurate order fulfillment

Errors in order fulfillment can frustrate customers and can even lead customers to look elsewhere for the goods and services they want. Using a warehouse management system helps ensure that your company will fulfill orders error-free, or with far fewer errors, to make customers happy. Reducing errors also helps save your business time and reduce the return rate to operate more efficiently.

7. Streamlined receiving and putaway processes 

Inventory management, including receiving and storing goods, can be a labor-intensive process. Using a warehouse management system, your business will enjoy a streamlined, efficient experience from start to finish.

8. Optimized space utilization and reduced storage costs

Storing items inefficiently costs your business money and time. Wasted space in your warehouses means your business must operate more slowly and less effectively. Using a warehouse management system allows your business to track where every item is located on your property and make the best use of your space.

9. Scalability to accommodate growth and changing business needs

As your business changes, your warehouse management system can help you scale up or down as needed.

10. Increased security and regulatory compliance 

Your business must conform to local, state, and federal regulations in order to operate. A WMS makes it easier to comply with regulations.

Manage Your Supply Chain with WMS

Ultimately, working with a WMS can help your business operate more efficiently and with fewer errors. To ensure that your business has what it needs to fulfill customer orders to their full satisfaction, explore a WMS solution for your supply chain management needs.