5 benefits (and 3 downsides) of a warehouse management system

What does a warehouse management system do?

Before we proceed any further, let’s define what we mean by a warehouse management system. Put simply, it is software that allows ecommerce businesses to control and streamline a wide range of everyday warehouse processes – from receiving stock and managing inventory to picking and packing and dispatching orders.

Distributors, wholesalers, and third-party logistics providers can use a WMS to optimise inventory control and distribution. Industries with specific compliance needs, such as food and pharmaceuticals, can maintain regulatory requirements. Manufacturers can streamline production processes and reduce delays by integrating inventory management with WMS. 

Essentially, a WMS helps ensure that goods entering the warehouse proceed through it and to the customer as efficiently as possible. It also provides comprehensive visibility of warehouse processes. You can track inventory, control movement, and enhance order fulfillment. A WMS uses barcode scanning, RFID technology, and software algorithms to track inventory, manage storage locations, and optimise picking and packing processes for improved efficiency. 

Perhaps a warehouse management system’s greatest selling point is its ability to automate everyday tasks that otherwise would take up the valuable time of staff (more on this below).

5 benefits of warehouse management systems

So, what are the most compelling reasons to invest in a WMS? Here, we detail the top five:

1. Faster, more accurate order fulfilment

With online customers increasingly expecting next or even same-day delivery, there is a definite need for speed when it comes to order fulfilment. This is where a warehouse management system can help.

It can automatically consolidate orders from multiple online shopping platforms and allocate them for processing, providing staff with optimised picking routes. A WMS also allows staff to use technology like mobile barcode scanners to quickly and accurately pick stock, plus it can coordinate time-saving strategies like wave picking – the method of picking multiple similar orders across different warehouse zones simultaneously.

A warehouse management system can also automate the creation of pick lists and shipping labels, while integration with courier and multi-carrier platforms makes it simple to manage and track deliveries.

2. Happier customers

Getting orders out faster to ensure on-time delivery will of course result in happier customers, but a warehouse management system can do even more in this regard.

Because it integrates your online stores and couriers in one platform, a WMS can keep customers in the loop with automatic notifications sent upon order confirmation and dispatch.

There is no need to copy and paste tracking numbers from different platforms and potentially make mistakes, and you can even customise invoices and dispatch notes with your branding to give customers that personal touch.

3. More automation, and less manual work

Taking away the strain of error-prone, time-intensive manual work from warehouse staff is one of the most powerful benefits of a WMS.

Warehouse management software can reduce the need for staff to perform tasks such as:  

• Replenishment 
• Receipt and putawat rules 
• Raising orders 
• Producing pick lists 
• Arranging shipping 
• Invoicing clients 
• Producing KPI reports. 

In practice, a WMS can optimise picking routes to reduce the time and distance staff need to travel to retrieve items, allowing them to avoid errors that can arise when manually navigating the warehouse.

A warehouse management system can also allow you to use innovative technology like RFID (Radio Frequency Identification) scanning, which removes the need for staff to manually scan items one by one.

RFID scanners automatically scan tags attached to individual items or pallets, allowing you to track items as they enter, move through and exit your warehouse. This data is automatically updated in the WMS to ensure accurate visibility of stock.

Another way you can eliminate manual processes with a WMS is by setting up rules to automatically perform actions against orders based on certain criteria. For instance, you can set up a rule so the system automatically chooses delivery partners based on item weight and dimensions, or a rule to automatically create gift or order-related documents.

4. Better inventory management

A warehouse management system helps ensure you always have the right amount of stock on hand, at the right time, to fulfil orders. It gives you real-time visibility into inventory levels, locations and movements as well as the ability to forecast future demand for products.

If stock levels fall below a certain threshold, a WMS system can automatically trigger replenishment orders. It can also optimise the placement of inventory within the warehouse by analysing factors like item velocity, storage requirements and picking frequency.

5. An optimised, more cost-efficient warehouse

At the end of the day, a warehouse management system helps you save time, eliminate manual work, minimise errors and get orders out faster. It automates processes across the entire fulfilment process, from order picking and packing to shipping and handling returns.

A WMS system gives you the real-time visibility needed to ensure your inventory levels are always on point, eliminating the need for manual stock counts. It helps you optimise space in your warehouse, or across multiple warehouses. And its reporting functionality allows you to quickly and easily monitor dispatch times, order processing volumes and picker efficiency.

The latest cloud-based warehouse management systems also enable you to consolidate all your fulfilment functions into one platform. Without needing to switch and manually transfer data between different platforms, you can seamlessly manage all your warehouse processes, inventory, orders, delivery partners, shopping carts and even your accounting systems in one intuitive system.

3 downsides of a warehouse management system

Here at The Access Group, we do not want to simply paint a one-sided picture of what it means to invest in a WMS. It is important to consider its benefits relative to the potential costs and risks that come with an implementation, which include:

1. The time and cost of implementation

Your initial outlay of time and money can depend on a range of factors, including the sophistication of your WMS, the number of users and any customisations you require. If you need to integrate other software, like your accounting system, this can also add to implementation costs and timelines, which can range from a few months to a year.

Besides the implementation costs, it is also critical to factor in the recurring cost of your software license or subscription. So too the likely need to provide training to staff so they can get the most out of your new system. All these costs, however, must be considered against the long-term cost and time-efficiencies you stand to gain from a warehouse management system.

2. Data validation

Once your implementation is complete, the work does not stop there unfortunately. Integrating disparate systems and data sources means you will likely need to monitor your WMS to ensure transferred data is complete, accurate and consistent across all your systems and that all your integrations remain connected.

3. With integrated systems comes risk

While consolidating all your disparate systems into one platform simplifies processes and saves time, it also opens you up to risk. As you now have a single point of failure for all your warehouse operations, if your WMS fails, you will lose access to your data and be unable to control key processes.

While this is a potential concern, it is important to remember that leading warehouse management systems offer world-class reliability, and in the event of a failure, software vendors often provide dedicated support to get your systems working again as quickly as possible.

Key features of a warehouse management system  

A warehouse management system, such as Mintsoft, helps businesses manage warehouse operations in the following ways:  

• User access control: Access groups determine who can perform various tasks and access specific areas within the WMS. This ensures authorised personnel handle critical functions while restricting unauthorised access. 
• Inventory management: WMS oversees inventory by tracking goods, maintaining real-time stock levels, and optimising storage. Access groups regulate who can view, edit, or modify inventory data, with warehouse supervisors having comprehensive access and staff having limited access.  
• Order management: WMS streamlines order processing, including picking, packing, and shipping. Access groups assign tasks to authorised users or groups, enhancing operational efficiency and security by preventing unauthorised access. 
• Shipping management: A WMS should be capable of automating aspects of a warehouse’s shipping requirements. Automated courier and service selection considering the order and package details, destination and generate any required documentation. 
• Reporting and analytics: A WMS needs to provide real-time data reporting and trend-based analytics on all aspects of your warehouse. This allows employees to monitor KPIs, SLAs and make informed decisions to optimise operations. 
• Mobile functionality: This is typically thought of regarding picking and tasking, allowing workers to scan barcodes for SKUs and warehouse locations when completing tasks to log for traceability and ensure operational efficiency and accuracy.   

Want to know what sets us apart from our competitors? Read our side-by-side comparison between Access Mintsoft and Cin7 to discover how these two powerful solutions compare. 

Enhance your warehouse with Access Mintsoft

Access Mintsoft is a powerful cloud-based warehouse management solution that can help you eliminate manual tasks, boost order output and accuracy, and provide faster, more consistent service to customers.

Trusted by over 600 ecommerce businesses worldwide, the solution automates everything from inventory management and customer order tracking, to shipping processes, helping you gain back time that can be better used to grow your business.

With 175+ pre-built integrations with top couriers, multi-carriers and marketplaces like Shopify, DHL and Amazon, Access Mintsoft gives you complete visibility and control over all key functions in one intuitive platform.

Watch Video: Top 4 ways Mintsoft can help automate your order and warehouse processes