WMS which stands for Warehouse Management Software (or Warehouse Management System) is one of the most sought-after software among traders, including retailers, wholesalers, and manufacturers. With the increasing consumer demand and competition in the trading industry, traders have become aware of the importance of adapting to technology. WMS is one of the most effective solutions that can help traders simplify their warehouse operations and improve strengthen competitive advantage.
In this article, we have summarized five main benefits of WMS for trading companies, but if you have never heard of WMS before, let’s find out what it really is!
What is Warehouse Management Software (WMS)?
Warehouse management software (WMS) is a software application designed to simplify warehouse operations, from acquiring goods from suppliers to delivering them to customers.
WMS can be installed on a server (on-premise) or accessed through a browser (cloud). Sophisticated warehouse management software can be installed on mobile devices to make it easier for users to get real-time information anywhere and anytime. Reliable WMS can also be used to manage multiple warehouses located separately from each other.
Main Benefits of WMS for Trading Companies
Not only does warehouse management software simplify operations, but also provides accurate data for business owners which then ultimately affects the decision making. Below are several main benefits of warehouse management software for traders.
1. Optimized Inventory Management
WMS provides complete inventory visibility for traders. With real-time inventory data, traders can always know the availability of stocks without having to check them out directly.
Warehouse management software enables traders to forecast their inventory needs so that shortages and excess inventory can be avoided. It also helps actualize just-in-time inventory so that customer demands can always be fulfilled on time. Stock transfers from one warehouse to another can also be handled and monitored properly through the system.
2. Reduced Lead Time
With WMS, the time between the initiation and completion of a production process can be shortened. The automated solution makes it easy for manufacturers to ensure the availability of raw materials to be used in production processes.
Warehouse management software also helps speed up order fulfillment processes. Inbound and outbound logistics can be monitored properly. With optimal and accurate inventory levels, order fulfillment can be done faster
Note: Integration of warehouse management software with EQUIP Inventory allows traders to track order shipments via smartphones or other mobile devices to ensure timely deliveries and excellent services.
3. Improved Relationships with Suppliers & Customers
One of the most common issues that could occur due to the inability to track the inbound logistics is miscommunication between traders and their suppliers. Traders who can’t figure out which items are coming to their warehouses or when exactly their orders arrive are more likely to have a dispute with their suppliers.
Thanks to warehouse management software, you can prevent that bad situation. Incoming products can be easily recorded and tracked. Your supplier data is centralized, making it easier for you to place orders. You can also easily check your transaction history with each supplier so that whenever there is a mistake related to your purchases, you will always be able to solve it with detailed and accurate documents.
In addition to improving relationships with suppliers, WMS also helps increase customer satisfaction. With real-time inventory information, traders can inform customers of the availability of goods whenever needed.
Complete shipment visibility helps traders anticipate any issues early so that delays can be prevented. WMS also helps speed up the process of returning and exchanging products so that customers won’t have to wait long to receive refunds or exchanged items.
4. Reduced Operating Costs
The most important benefit that traders can get from using warehouse management software is operating cost control. There are several ways WMS can reduce operating costs.
Firstly, WMS reduces waste by identifying items that must be sold first, thereby reducing damage or spoilage. Secondly, it helps reduce dependency on labor, so traders can reduce labor costs. Thirdly, it minimizes order fulfillment mistakes, preventing traders from spending extra costs on compensations. Last but not least, it enables traders to determine the type and quantity of goods that have to be in stock based on forecasts, so that unnecessary purchases can be avoided.
5. Data-Driven Decision Making
WMS helps traders make better business decisions in several ways, such as:
- Helps find out the type and quantity of products that must be in stock
- Identifies profitable and non-profitable goods
- Helps analyze supplier performance and choose the best quotations
- Analyzes the order fulfillment process and tells you what needs to be improved for better customer service
- Facilitates budget allocation for products, storage space, couriers, and many more