Warehouse Management Systems – Software As a Service
A warehouse management system (WMS), is an electronic software program which assists in the management and administration of a warehouse. It manages the complete logistics process of receiving, placing and picking of goods as well as informs the management about stock out stocks and available space for storage. WMS manages the whole warehouse management and takes into account several factors including traffic management, warehouse floor space, optimum use of available space by products and saving energy and labor costs. It facilitates planning, real time inventory management, product tracking and data collection, real time inventory management and reduces warehouse risk and maintenance. It also helps in controlling warehouse wastage and minimization of risks such as product damage and customer returns.
How Does Warehouse Management Software Work?
WMS eases the warehouse management process by taking all the complexities involved in this process into one place and thus helps to streamline the entire process of storing and moving goods from point A to point B. It not only helps in warehouse management but also greatly helps in efficient handling of orders by keeping the system up to date with market demands and keeping track of customer activity in real time. With the help of an effective inventory management, companies can perform an assortment of functions such as preparing for invoicing, credit card transactions, tax payments, delivering goods, pick and pack, packaging and wrapping, data collection, customer service and many other functions related to warehousing.
The demand for supply chain fulfillment systems and the growth of e-commerce have increased the demand for efficient supply chain management systems. The supply chain management systems include inventory management, order management, and resource planning. This enables companies to improve their operational efficiency and makes the process of doing business more streamlined. Supply chain management systems are web based, flexible and convenient. The supply chain management systems are designed for businesses with limited personnel and resources and are easy to use.
Many warehouse management software are web based and are compatible with third party shipping and fulfillment providers. The fulfillment companies offer their clients efficient order fulfillment, transportation management, and real-time inventory reporting. The main advantage of using a cloud-based system is that companies do not need to invest in additional hardware or software. Cloud-based systems also help reduce operational costs since there are no Capital expenditure, Software licensing fee or monthly maintenance fees to consider.
Other Benefits And Applications
In addition to reducing operational costs, the use of warehouse management systems reduces warehouse overhead expenses as well. Cost of running warehouses increases over time. Managing stock levels, assessing warehouse capacity, planning for seasonal storage needs and maintaining an on-site inventory storage are costly activities. By using warehouse management systems, the warehouses need not incur these costs and thus results in significant cost savings. The cost of maintaining a warehouse can be substantial especially for small enterprises who cannot afford to hire additional staff and incur additional operational expenses.
Apart from reducing warehouse overhead expenses, the use of warehouse management systems also helps in improving the overall efficiency of the logistics chain. Using the information provided by the software, manufacturers and distributors can track their product and customer characteristics. This helps them make informed decisions regarding inventory purchases, returns, pricing, etc. Furthermore, they can also track where their products are currently located and optimize the distribution process and improve its profitability.