Benefits of Warehouse Management Systems (WMS Benefits)

warehouse shelves with boxes on pallets

You could be a small business. Or you might be a huge global brand. Whatever you do, warehouse management is key to keeping your firm running smoothly. Having a successful warehouse management system means quicker customer service. As well as having a better chance of keeping on top of stock and profit. 

Say, for example, a customer orders a product online. Having a warehouse management system (WMS) in place means that item can be swiftly located. Then mailed much sooner. Any returns that may occur can then also be dealt with efficiently. 

As a result, profit, tax, and any other accounting matter is easier to deal with. 

If your stock is stored all over the place in a warehouse far away, organization becomes a task. It’s hard to find products and it’s difficult to understand when products need re-ordering. As well as this, figuring out profit becomes complex. 

Having a good WMS benefits both your company and the customer. Here are some reasons why an effective WMS is beneficial. 

Fewer Mistakes

Putting items in categories will make things easier to find. It means that when an order is made, the picker knows exactly where to go and what to look for. 

However, it’s also just as important to code everything and give it a barcode number. Using an inventory barcode scanning system means less chance of items being miss-picked. Ultimately, reducing the mistakes that are made. 

This is because using a barcode scanner means that staff won’t have to manually enter data. An arduous and repetitive task where people may become easily distracted. Being able to put in a code with the press of a finger keeps mistakes low. Because everything is done quickly, efficiently, and digitally. 

Digitally storing codes means that numbers in the system stay the same. From order to delivery. What’s more, is that using a barcode system creates a digital record of what’s being sold and for how much. So, it’s also easier to track if that item has been returned and put back in stock. 

When using a warehouse management system (WMS), an alert happens if something is scanned wrongly. Therefore, any problems will be spotted early on in the production process. The customer is thus more likely to end up with the right product the first time around.

Returns Are Easier 

After the global COVID-19 pandemic, we want to reduce the amount that we handle products. So, it’s important to protect both customers and staff by having a simple returns system in place. Reducing the number of people that are in contact with an item, keeping people safe. 

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What does a warehouse management system do to help with this? 

Having a warehouse barcoding system means that staff can scan and match up items. Decreasing the number of stages it goes through to go back on the shelf. 

You may decide that due to recent events, you have a separate section for returns. This helps to ensure they are safe before going back to a customer. 

If this is the case, then having a warehouse management system can also help here. You can organize products so they don’t go back on the shelf to be sold just yet. Having a digital database makes issues like this so much easier to control. 

When using safe products, an integrated WMS enables you to update product numbers in real-time. That’s because it is linked to your accounts data and order management system. This allows all your finance and inventory to stay up to date as the stock goes in and out of the warehouse. 

Being able to manage returns more easily also helps with FIFO and LIFO accounting in the long run. 

More Accurate Decision Making

Having up to date information that matches real-time stats on stock creates accurate data. That allows you to make more precise decisions from that information. 

A WMS precisely records how much stock is left. Letting you discover what needs re-ordering and what is making the most profit. Warehouse barcode scanning is also a great way of finding out which products aren’t selling so well. 

It also helps you realize if there is a pattern in which items are being returned a lot. As well as the reasoning behind this. 

This is a great way to make the most profit through monitoring the success of each product. 

As well as this, you are also able to watch the productivity of the warehouse team. You can see in which areas they spend the most time and where they make the most efficient movements. 

Consistent warehouse scanning means data can drive and analyse sales and performances. 

Precise Inventory Counts

Inventory counts are essential to any business that sells the stock. They can often be time-consuming and boring. That leads to many companies not doing them as often as they should. The result of this being miscounts and mistakes. 

There are many methods used to do an inventory count. With some ways of working more efficient than others, depending on your business. However, using a barcode scanner means a more accurate and swifter stock take. 

Because those that learn how to use barcode scanners for inventory can digitally scan products. Meaning again, a less repetitive and mundane job for workers to do. 

Doing stocktake using a warehouse barcode scanner is simple. All a person has to do is a quick scan of location, then a further scan of all the products in that section. And that’s it.

It’s much easier and quicker to scan products and wait for a ‘beep’ than it is to spend hours manually putting in the info. If people can do a stock take more quickly, they are more likely to do it more often. That means more precise inventory counts are carried out on a more regular basis. Allowing you to understand the strength and weaknesses of your products. 

Products Are Delivered Faster

Customers like convenience. Whether that’s being able to easily browse through a site on their phone, or receiving an email to say when a product will be back in stock. People want things done with them in mind and with good results. 

Most of all, though, people like speed. Today, people like – and expect – things to get done quickly. And that includes fast product delivery. 

To get a speedy parcel, warehouse distribution must also be quick. This means organization and having a good warehouse management system in place. 

One warehouse management system benefit is that it speeds up the shipping process. Meaning that people get their product quickly and are likely to come back to your site. A point which is very important to online retailers

With a warehouse management system, the processing is faster. This is because pickers know where to locate the item. 

A WMS makes using an automated process to find, manage, track, and ship goods quicker. It also saves time because all the information is no longer updated manually or with a slow system. 

The outcome of all this being that shopping to shipping time is much quicker than it once was. 

Goods-in is a Smoother Process

Whether you are putting away a delivery of goods. Or returning sold items. Having a warehouse barcode scanner creates an efficient goods-in process with your stock. 

Using a barcode to digitally scan a product will speed up the time in which you put things away. This is because the staff won’t be using double data entry. Also, the products will be synchronized with purchase orders. 

Being able to work with goods quickly allows you to upscale your business. Bringing higher levels of customer satisfaction with more products. 

How a barcode scanner works in stock management is that items are tracked from start to finish. So, this suggests that when it comes to goods-in, there is always an idea of where the item is.

If any stock is missing in any part of the selling procedure, you can discover where that item has gone. You will find out if the item has been delivered in the first place, or if it went missing in delivery, etc.

Make The Most of The Storage Space

It doesn’t matter the size of your business, you will need some sort of storage space for your goods. The bigger your company, the more storage you need. Which also means the more money you spend on storage. 

So, how do you know your storage is worth it? 

Having a WMS will make sure that you are making the most of space and time. 

Why do we need a warehouse management system to do this when we trust our staff? Because even if we have the best staff in the world, people make mistakes. 

Things may be stocked in the wrong place. Or, for example, say a big delivery comes in. If they are in a rush, people may not be making the most of the space that exists in the warehouse. And if there is new stock, people may not know where to put it or how to organize it. Making it tough to make any sort of improvement to the warehouse. Not to mention the time it takes to sort out. 

One of the many WMS advantages is that it uses software that gives you options. And you can choose from multiple picking algorithms. This allows you to test each option and figure out which one gives you the best results. In turn, this allows you to see how to set up your warehouse for the benefit of pickers. You can fill bigger and closer spaces with popular items and vice-versa. 

This saves you both time and money. And will make life easier for your staff, too. 

Securer Accountability Options

Having a WMS benefits a company when it comes to more than customers. Unfortunately, from time to time, stock from the warehouse goes missing. Having warehouse scanners will help get to the bottom of that missing stock. 

It works through each team member having individual login details when using the WMS. So, items can be tracked to users who have handled that stock. Which is done through an audit trail. 

Of course, it won’t prevent theft or missing items when the stock is never delivered to the warehouse. One of the benefits of a warehouse management system, though, is that it prevents theft in-house.

It also makes managers aware of the problems. It allows them to provide training where needed. Tracking mistakes using warehouse barcoding helps you understand people’s downfalls. Giving you the chance to provide training in these areas, too.

Of course, it’s also a great chance to give praise where praise is due to your warehouse staff. 

Cheaper Processing Cost

One of the best inventory management benefits is that this system is time-saving across the board. There is less time to process goods, less time spent on orders, and less time on unnecessary admin. 

When using this system, goods are picked and packed quicker. Meaning, productivity levels are increased. With the overall result of this being money saved and more profit made. 

Using a barcode scanner warehouse inventory system makes life easier for everyone. It takes the pressure off your staff. Making them happier and more constructive in the workplace. More work gets done and you see a higher return throughout. 

More time saved means quicker delivery and the opportunity to get more goods in. This means a higher income and better payoffs throughout. You’re happy. Staff are happy. Customers are happy. Everyone is better off!

Happier Customers

With all these points in mind, the group that WMS benefits the most is the customers. Happier customers mean more returns to your shop and site. Resulting in more purchases and a higher profit. 

As fewer mistakes are being made, it also means customers will have fewer complaints. Faster shipping also means that customers are likely to return. They know, after all, that their item will arrive quickly and efficiently.

All these points give you a great name and the reputation of being a trusted brand. 

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Before starting the process of how to manage warehouse inventory, keep your customers in mind. Putting them at the centre of your thought process will also make happier clients. As they will know that you have their best interests at heart. 

Think about the items that sell the best. Consider this when wondering how to manage inventory in the warehouse. This way, you will put the products that customers love first. This can all be figured out through analyzing your stored WMS system data. 

Using a warehouse management system to organize stock means that orders are digital. Measurement of the stock is more accurate. And the staff are no longer having to deal with long, fiddly numbers manually. 

Fewer mistakes are made from start to finish and the overall process is much quicker and more precise. Customers also receive items more quickly and are more likely to return to your brand as a result. 

Quicker times all around means more money saved and a higher turnover and profit for your business.