Warehouse management systems (WMS) are designed to increase the efficiency of a warehouse and its processes. Through the advanced functionality provided by a WMS there are several improvements that can offer significant savings for businesses. Below are six ways that a WMS can help to save money in the warehouse.

  1. Picking Efficiency
    Implementing a WMS typically always includes a review of current orders as well as the pick, pack, and ship processes. By taking the time to understand your current processes the WMS will be able to make suggestions to adjust warehouse layout and make the most of your space. This results in orders being picked quicker and more efficiently as well as reducing the stress on your team.
  2. Inventory Control
    A WMS’s ability to provide real-time visibility into your inventory levels provides you with a significantly more accurate idea of required inventory and reduce your safety stock. Maintaining an accurate inventory of what is actually in the warehouse as well as knowing the minimum quantities needed to ensure on-time order fulfillment is crucial to reducing costs.
  3. Labor Costs
    Labor costs are typically the single most expensive part of warehouse operating expenses. A WMS can help to reduce labor costs by automating processes to make warehouse staff more efficient and productive. It can also help warehouse managers to optimize labor schedules and lead to more flexible and cost-effective labor planning.
  4. Supply Chain Visibility
    A WMS helps to reduce paperwork, track products as they move through the supply chain, generates a record of materials in transit, and can create alerts to changes that can affect receiving times. This creates visibility within the warehouse as well as provides data to your supply chain partners.
  5. Carrier Integrations
    Cost savings from a WMS can be extended to shipping processes thanks to direct integrations with carriers. You’ll be able to optimize shipments based on location and timing to improve customer service and save money.
  6. Returns Processing
    The unpredictable nature of returns processing makes it one of the most challenging and often costly processes in the warehouse. By implementing a WMS to automate inspection processes and customer refund processing you’ll be able to see significant savings from items that can resold or even returned to the manufacturer.

By simplifying and automating complex warehouse processes with a WMS you’ll increase potential savings by reducing the costs associated with particular tasks through increased productivity.