Does my business need a WMS?
If you manage a warehouse then a warehouse management system (WMS) is something you should consider. Whilst warehouses can be the driving force behind the revenue you generate for your business, they can also lead to financial losses, particularly if warehouse management best practices are not being followed.
Warehouse management systems work by integrating your warehousing processes into one system, helping you to streamline operations. With everything in one system, you can keep track of your products through every step of the supply chain. This level of insight helps you to manage your inventory effectively and identify areas of improvement to produce a workflow that benefits both your business and your workforce. In turn, this supports you in fulfilling customers on time without errors, increasing satisfaction and improving your bottom line.
In this guide, we’ll touch upon some of the benefits of implementing a WMS and provide you with some scenarios which indicate you need to implement WMS or upgrade your existing system.
- Why consider implementing a WMS?
- Signs your business needs a WMS
- Signs your business needs to upgrade its WMS
- Types of businesses that benefit most from a WMS
If you decide a WMS is right for your business or if you are looking for an upgrade, you can head over to our warehouse management system page to discover a range of options.
Why consider implementing a WMS?
Implementing a WMS can be a truly transformative decision for your business. There are several benefits of using a WMS if you choose to either enhance or replace your existing system.
It can improve the supply chain
Effective supply chains are reliant on all of the stages moving in tandem with each other. A WMS can improve a supply chain by giving you much-needed oversight at every stage of the process. It allows you to identify and react to issues quickly, whilst also giving you the chance to spot opportunities for improvement and change.
It can be used to overcome common warehouse mistakes
For many businesses, warehouses can be big operations, particularly if you handle large amounts of inventory. With big operations, comes more likelihood of mistakes arising.
Common warehouse mistakes can include things such as poor planning and oversight, an excess or lack of inventory, inefficient picking and packing processes and poor safety management procedures. Ultimately, these issues can have a huge impact on customer and employee satisfaction as well as impacting your cash flow and operational costs.
Implementing a WMS can help to give you the oversight you need to track your inventory in real-time, helping to improve efficiencies amongst your workforce and ensuring you have the right stock at the right time. In turn, this can also help you to identify bottlenecks within the supply chain and provide you with the information to make informed decisions for your business.
Signs your business needs a WMS
There are a few telltale signs your business should invest in a WMS. If you identify with the following scenarios, you may benefit from implementing or replacing your current WMS.
Products are always out of stock
If your products are consistently out of stock this can leave your customers feeling frustrated and dissatisfied. Dissatisfied customers will begin to look elsewhere for products, meaning you will be missing out on key opportunities to gain new customers and improve customer retention.
If you are manually processing your inventory and orders without a WMS, it’s likely that you don’t have accurate oversight of your inventory. This also includes the key data you need to make informed decisions on the required stock levels to serve your customers the right product at the right time.
There are errors with your orders
Your orders aren’t being fulfilled on time
Your stock levels aren’t accurate
This further increases customer dissatisfaction and confidence in your business, encouraging them to shop elsewhere for products and services.
Your warehouse is disorganised
Your employees aren’t happy
A poorly managed warehouse is not a pleasant place to work and you may struggle to retain and recruit new employees into the business.
Signs your business needs to upgrade its WMS
If you already have a WMS in place, but you are still experiencing issues such as delays and inaccurate inventory information, then this suggests your existing WMS needs to be upgraded. WMSs should be adaptable to your business, and give you the flexibility to customise the system to your requirements. If you are experiencing any of the following, then this is a sure sign you could benefit from upgrading your WMS.
The software cannot meet current or future needs
As your business evolves and customer expectations and requirements change, your WMS needs to be able to adapt to this. What works for your business now may not benefit you further down the line.
It is very important that if you invest in a WMS, you not only consider your business’ current position but also how it can support you as your business grows and develops.
The software doesn’t integrate with other systems
Outdated WMS software can cause numerous problems for your business. You may find that your WMS is struggling to synchronise properly with other systems, making inventory tracking, management and reporting difficult. As your other systems update, you need a WMS that keeps up, integrating properly with these platforms to ensure that data is synchronised seamlessly.
The current WMS is not user-friendly
If your current system is too complex to use this can cause difficulties for your employees. This often means they are not taking full advantage of the software that you are paying for. Instead, they may be circumnavigating the system by carrying out additional processes which are a drain on both time and expense.
A WMS with a user-friendly design is more than just about aesthetics. If your WMS is easy to navigate, this can help to reduce the likelihood of errors and boost productivity amongst your teams.
Inadequate reporting or analytics
One of the biggest benefits of an all-encompassing WMS is its ability to support you in your reporting efforts. If your current system doesn’t allow you to do this, then you are missing out on a really important must-have WMS feature that can properly inform you and your business making decisions.
Inadequate reporting or analytics can hinder your ability to carry out daily tasks, misinforming you when making decisions intended to drive growth.
There is a lack of support with your existing WMS
When investing in a WMS, having the support and technical help available is crucial. If you are currently using an old system, you may find yourself in a position where technical support is no longer offered by the provider. This can make it increasingly difficult to navigate the system when issues arise.
Additionally, if you have opted for a WMS that has been developed in-house, this relies on the technical expertise of certain members of your workforce. If these employees leave the business, they will also take their knowledge of the system with them. This can make it harder when challenges arise or if you want to make improvements to your current system.
Types of businesses that benefit most from a WMS
Manufacturing
For manufacturers, a WMS is a necessity. A WMS is used for tracking materials, getting oversight of inventory and collecting important information for validation and compliance.
If you manufacture products, each product will be assigned a SKU number to track and identify the product. A WMS will work alongside an Enterprise Resource Planning (ERP) tool to facilitate the production of a product and to maintain an accurate inventory. All of these combined, ensure production runs smoothly and the risk of errors is minimised.
Consumer goods
Third-party logistics (3PL)
Because 3PLs manage logistics and orders on behalf of other businesses, a WMS could be considered a necessity. In most cases, 3PLs will require unique WMSs for each client they work with, allowing them to keep track of products, vendors and order systems separately.
3PLs also benefit from WMS packages which allow them to customise and build their own modules according to the needs of their client. Through unique client dashboards, they can create reports to track KPIs unique to each client, while still managing all the data.
Food and beverage companies
As food and beverage companies have strict requirements and regulations for selling consumables for human consumption, they can greatly benefit from a WMS.
Using a WMS, these companies can ensure products are shipped within specific timeframes, to ensure these goods are kept fresh and at the correct temperature through every step of the supply chain. Furthermore, the WMS can also be used to optimise warehouse layouts and picking and packing routes, facilitating more efficient processes to ensure timely deliveries.
In the event of a product recall, a WMS can also be beneficial for tracking goods back to the source. Product traceability ensures compliance with legal requirements and can help protect your brand in the event of a product recall.
Healthcare and pharmaceutical
Whilst health and pharmaceutical businesses may not have large-scale inventories, they do have to follow strict regulations, requiring accurate inventory visibility and traceability for safety and security.
For example, some products will have specific storage requirements both in transit and for long-term storage. Additionally, time-sensitive products need to be shipped within specific timeframes to ensure safety whilst others have strict distribution conditions which require audits through every stage of the supply chain.
Optimise your warehouse processes with The Barcode Warehouse
Assessing whether your business needs to implement or update your current WMS is no mean feat. With so many factors to consider, choosing the right WMS for your business can take time and resources away from the day-to-day running of your business.
The Barcoce Warehouse partners with the leading providers of warehouse management systems to offer you tailored solutions for your business. By working with us, we can help you and your team evaluate the current position of your business and provide you with practical advice and guidance on implementing the right WMS for your needs.
Keen to learn more about how a WMS can help you to optimise your warehouse processes? Get in touch with our WMS experts on our warehouse technology solutions page.
