Effective warehouse management plays a crucial role in the triumph of any determined online store. To achieve this, you must grasp the methods for arranging your storage area and when and how to introduce an ecommerce warehouse management system.
This task might appear challenging, which is why we’ve crafted this comprehensive guide. It encompasses every facet of storage management and storage management systems.
A well-organized storage area can serve as the solid base upon which your company can expand. Conversely, an unproductive one can stifle your prospects for prosperity.
What does an ecommerce warehouse management system do?
An e-commerce warehouse management system is like a computer program that keeps track of what happens every day in a storage place. This software is really useful because it makes sure that all the stuff coming in, being stored, taken out, packed up, sent off, and restocked in the warehouse happens in the smartest and quickest way.
How is an ecommerce WMS important?
In a warehouse, many different jobs are going on all at once. There’s getting stuff, storing it, taking it out, putting it together, putting labels on it, and sending it away, among others.
When all these things are happening together (and in different parts of the warehouse), it’s easy for them to not match up, lose important information, or make mistakes. It’s even more complicated when businesses try to keep track of these tasks by hand, using paper and pens to write things down.
But, a warehouse management system (WMS) stops this from happening. It’s like a boss that keeps everything organized and correct. WMSs use special computer programs and automatic actions to make sure lots of warehouse jobs happen smoothly and at their best speed.
Types of warehouse management system for ecommerce
Not all WMSs are the same. There are different types of WMSs, and the one that’s right for your business will depend on what your business needs and wants to achieve.
Standalone WMS
Some WMSs work all by themselves, but they can only handle a small number of supply chain jobs.
These standalone systems are good at managing stuff like keeping track of what’s in the warehouse and how things move around. However, they can’t help with tasks that need teamwork with other systems or technologies, like taking orders, buying things, or handling returns.
Integrated WMS
Unlike a standalone WMS, an integrated WMS does a lot more in the supply chain. It doesn’t just handle inventory and the warehouse; it also looks after other things like taking orders, dealing with returns, and keeping track of money.
With an integrated WMS, a business can do almost everything using one system. For some businesses, this is a better way because it saves time and money compared to using lots of different tools.
Cloud-based WMS
A cloud-based WMS is a bit different. It doesn’t rely on special machines (like certain computers or screens) because it’s all on the internet. Since it’s in the cloud, business folks who use this kind of WMS can usually get to it using any device that’s online.
Usually, merchants don’t actually own the software or the big computers that keep everything in the cloud running. Instead, they pay a fee (every month or year, usually) to the company that does own all that stuff. This means the business doesn’t have to worry about fixing the software or setting up any big computers themselves.
On-site WMS
On-site WMSs are similar to other WMSs because they use a computer program, but there’s a key difference. Instead of the program being out there on the internet, it’s on computers in the warehouse itself.
Setting up and getting help with these on-site WMSs can be a bit more complicated. But the good part is that you can usually make them work just the way you want for your business’s special way of doing things.
When to upgrade to an ecommerce warehouse management system?
When should you think about upgrading your Warehouse Management System? It all depends on what your business needs. Here are some questions to help you decide:
Are you getting nearly all your orders right, like 99.9% of them? If not, think about how much money it costs when you make a mistake.
How are your other warehouse performance numbers looking? Think about how much it would help if they got better.
How many people are working to run your warehouse right now? Would it be cheaper to use a Warehouse Management System or some software instead of some of them?
How many orders do you handle every day, and how much money does that bring in each year?
Are you hitting your goals for growth? And how fast do you plan to grow soon? These are important things to think about when considering an upgrade.
Benefits of a warehouse management system
When you pay attention to things like checking how much stuff you have, keeping track of costs, and knowing where orders are at, a WMS can assist you in creating a warehouse that doesn’t need as much manual work. Your WMS is like the main support of your online store’s warehouse, and it will make things work better, save time, and grow your business.
Better inventory counts
WMSs make it easier for you to see how much stuff you have, so you don’t run out of stock. Some WMSs can even send you a reminder when you need to order more stuff if a certain item is running low. This helps you get new items just in time.
A lot of WMSs also keep records of what you’ve had in stock and what you’ve sold. This way, you can see how fast certain items sell and use that information to guess how much you’ll need in the future.
Efficiency in ordering
A WMS can work together with your online store to make sure that your inventory is always correct. This way, customers won’t accidentally order something that’s not available. When there are fewer mistakes with inventory, your orders will be right more often, and they’ll get delivered faster.
If you keep your stuff in different warehouses or centers, some fancy WMSs can help you send orders to the best place. This means the order goes to the warehouse that’s closest to where the customer lives, so it costs less to ship, and it gets there faster.
Productive warehouses
Reworking stuff costs a lot in warehouses. If your team has to keep counting things or fixing how stuff is packed, it’s like throwing money away.
Warehouse management systems can make things better. They help organize what needs to be done and make sure it’s done correctly the first time. This saves you money.
Cost-effective
You might think a WMS costs a lot, but it actually saves you money in the long run. Here’s how:
- Reduce human error
- Simplifies tasks
- Quicker turnaround time
- Prevents inventory shrinkage due to enhanced visibility
- Centralized and organized operations
Experience success in your ecommerce business with a WMS
A WMS is more than just a software; it’s your partner in success. It keeps your inventory counts accurate, streamlines your ordering process, makes your warehouse more efficient, and saves you money in the long run. It’s time to upgrade and take your online store to the next level with the right Warehouse Management System. Don’t wait; it’s the future of successful e-commerce.