WMS Software: How it Benefits e-Commerce Business Management?

May 2, 2023
Nandinee Biswas

The eCommerce industry is rapidly growing, with online sales reaching unprecedented levels. As more businesses enter the eCommerce space, competition is becoming increasingly fierce. In this highly competitive market, companies must streamline their operations, reduce costs, and improve efficiency to stay ahead of the competition.

Warehouse Management System (WMS) software development offers a solution to many of the challenges that eCommerce businesses face. The best warehouse management software offers a centralized platform that streamlines inventory, orders, shipments, and other processes enabling businesses to optimize their operations, minimize errors, and reduce the time and resources required for manual data entry.

9 WMS Benefits for eCommerce Sellers

Increase warehousing efficiency

One of the primary benefits of using WMS software is increased efficiency. The software automates and streamlines inventory management processes, such as order processing, picking, packing, and shipping. By eliminating manual intervention, the system allows you to operate all aspects of your warehouse more efficiently and reduce errors.

When your customer places an order on the e-commerce website, the WMS software automatically generates a pick list and sends it to the warehouse. The pick list would show the warehouse employee which items to pick, where to find them, and how many to pick. Your employee could then use a handheld scanner to confirm the items have been picked, which updates the inventory levels in real time.

Improve inventory accuracy

Inventory management ERP software keeps track of inventory levels, which helps you maintain accurate stock levels. This is crucial for your e-commerce businesses, as it reduces the risk of overstocking or stockouts, which often lead to lost sales and reduced customer satisfaction.

Inventory management software also helps with cycle counting. It is the process of counting a small subset of inventory regularly. This practice helps you identify and resolve discrepancies quickly, which helps maintain accurate inventory levels.

Better order fulfillment

WMS software enables you to fulfill orders quickly and accurately. It allows your employees to easily locate items in the warehouse and ensures that the correct products are picked and shipped to customers. This improves order accuracy and reduces the time it takes to fulfill orders.

If your customer places an order for multiple items, the warehouse management software could group these items and send the pick list to the warehouse. The warehouse employee could pick up all the items at once, reducing the time it takes to fulfill the order.

Reduce labor costs

WMS software automates many inventory management processes, which reduces the need for manual labor. This, not only saves on labor costs, it also increases productivity.

For example, instead of manually generating pick lists, they could be created automatically using the WMS software. This saves time and resources while minimizing the risk of errors. The system also optimizes pick routes, thereby reducing the time employees spend walking around the warehouse

Improved customer satisfaction

WMS software can improve customer satisfaction by ensuring that orders are fulfilled quickly and accurately. Customers expect fast and accurate order fulfillment, and businesses that fail to meet these expectations risk losing customers.

WMS software can also provide real-time updates on order status, which helps businesses provide better customer service. For example, if a customer contacts customer service to inquire about the status of their order, the customer service representative can quickly check the status in the WMS software and provide an accurate update to the customer.

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Reduced errors and returns

WMS software can help reduce errors and returns by ensuring that the correct items are picked and shipped to customers. When a customer orders a product but receives a different one instead, this leads to a return and loss of customer satisfaction. WMS software prevents this issue from happening. Using the code of the ordered product, the system verifies the item before it is shipped, which reduces the likelihood of mistakes.

Improve warehouse layout and space utilization

WMS software helps optimize the warehouse layout and use the space more efficiently. The system could analyze order data and determine the products most frequently ordered. This helps you to move those products to a more easily accessible location in the warehouse, reducing the time taken to fulfill any order and increasing the overall productivity of your warehouse.

Better traceability and compliance

Cloud-based WMS software could help you maintain better traceability and compliance by keeping track of inventory movements and ensuring that products are stored and shipped in compliance with regulatory requirements. That is when a product has a limited shelf life or requires special storage conditions, the system identifies it so that you could ensure these requirements are met and the product is not shipped past its expiration date.

Integration with other systems

WMS software with advanced features could integrate with other systems, such as order management systems, shipping carriers, and accounting software, to provide a seamless and streamlined e-commerce operation. When your company receives an order, the WMS software could automatically generate a pick list and send it to the warehouse, while also notifying the shipping carrier and updating inventory levels in the accounting system.

How Could your Warehouse Operation be Better?

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