To keep up with the constantly rising popularity of online shopping, e-commerce and retail businesses must find clever solutions to fulfil orders with ease. One such solution is a warehouse management system (WMS), which eliminates the need for manual management by helping users digitally track their inventory and streamline order fulfilment processes. That said, if considering investing in a WMS, one must understand its key features to make the most of the tool.

Role of WMS
Warehouse management software helps businesses with their day-to-day inventory-related operations. Typically, a WMS can digitally assist with all inventory management processes, from order tracking and processing to picking, packing and shipping products.

The software is usually integrated into any business’s existing operations so that it can make inventory management easy for the organisation. 

A few key processes that WMS can tackle include purchase registrations, transportation, storage, and inventory management. In other words, the tool collects and maintains data and automates the receipt, storage, and shipping of the products.

Key features to consider
When utilised completely, a WMS can serve multiple functions for businesses apart from allowing them to keep track of their products.

1. Product storage
A crucial part of warehouse management is optimising the available storage space to maximise overall business efficiency. This is what a WMS does. The tool helps businesses arrange their products strategically to reduce wasted space and make it easy to access products when an order comes in. The tool uses layout and stock data to determine the best location for each product within the warehouse. It also recommends space-saving techniques, such as vertical stacking and dynamic slotting, to place products. This feature also allows warehouses to accommodate more products within the same space, eliminating the need to invest in additional storage facilities.

2. Cost reduction
Businesses can lower their operational costs with the help of a WMS. For starters, with optimised inventory management, space utilisation, and order processing, the tool helps increase sales and reduces delays, product wastage due to expiry, and returns/exchanges due to errors. Strategic storage management also allows businesses to make the most of the existing warehouse and avoid spending on costly additional storage facilities. Additionally, the tool reduces businesses’ dependence on manual labour. In this way, a WMS can help businesses save money.

3. Fast and accurate order fulfilment
A WMS also helps businesses improve customer satisfaction or at least avoid customer dissatisfaction. Its speedy and accurate order processing, combined with the live visibility of the order status, ensures customers get correct, real-time updates regarding their orders at all times. A WMS also reduces errors in order fulfilment, lowering the risk of returns and exchanges due to incorrect, out-of-stock, or missing products. 

Not just customers, accuracy in inventory data also helps businesses stay organised, make better decisions and avoid issues like stock mismanagement and inefficient warehouse layouts. 

4. Scalability
As businesses grow, their operations, including warehouse management, can get more complex. A WMS accounts for this possibility and allows users to grow their operations, bring in more products, fulfil more orders, and increase sales. So, retail and e-commerce businesses do not have to worry about manually managing a fuller warehouse.

5. Compliance
E-commerce and retail businesses need to comply with various regulations to operate. This includes safety standards, tax reporting, and product tracking requirements. A WMS simplifies maintaining compliance by generating accurate records of inventory movement, order history, and stock levels. This allows businesses to quickly access audit-ready reports, reducing the risk of non-compliance. Additionally, a WMS helps businesses maintain proper storage and track expiry dates. This is an essential benefit for businesses dealing in perishable goods or other heavily regulated products. With real-time updates and alerts regarding expired products, businesses can avoid any legal issues and financial losses resulting from non-compliance with industry regulations.

Key considerations for businesses
If considering switching to digital warehouse management systems, businesses must assess their needs. Based on the requirements, businesses can choose from many beginner-friendly or even advanced warehouse management solutions in the country. This tool can help streamline warehouse processes and make order fulfilment more convenient and organised. For instance, businesses that have been noticing errors and delays in order fulfilment and inventory management may benefit from a WMS that offers real-time inventory details. 

That said, a WMS is a worthwhile investment for businesses that have one or more warehouses and rapidly moving inventory. So, new ventures and small businesses must assess the benefits of investing in WMS and whether they justify the cost of using such tools. Alternatively, these businesses can start with an affordable WMS that offers limited features instead of a high-end tool with advanced features.