A Warehouse Management System (WMS) can be indispensable for retailers and wholesalers – but where do you start?
Is a straightforward WMS system sufficient or is there a requirement for order management? Opting for a single system for warehouse management from one provider simplifies integration and offers one point of contact and accountability. Identifying the right WMS software for your business requires careful consideration of several factors.
Key Considerations for Selecting a Warehouse Management System
Real-Time Inventory Management
A WMS warehouse system that offers real-time visibility into inventory levels enables accurate tracking of stock across your warehouse or warehouses if you have several locations. It provides you with immediate updates on stock levels.
Order Management
For businesses considering order management, look for a system that provides immediate updates on stock levels, ensuring accuracy across all sales channels and storage locations.
WERC (2022) reported that companies with integrated order management systems saw a 25% reduction in order processing errors.
Multi-Location
Do you have lots of stores, warehouses, depots? The ideal warehousing management system should enable you to manage inventory across these multiple sites seamlessly.
The Aberdeen Group’s “Warehouse Management Excellence” report mentions that Multi-Location WMS can enhance order fulfillment efficiency by 20-30%.
Multi-Currency Capabilities
Do you trade internationally? A system with currency conversion and financial reporting allows for smoother international transactions. Companies should have the flexibility to adhere to HMRC currency rates or apply their own custom rates.
Accenture (2022) found that 58% of global retailers cited Multi-Currency capabilities as crucial for managing international trade efficiently.
Insights and Reporting
Access to comprehensive analytics and reports is indispensable for strategic decision-making, with the system providing detailed insights into inventory, order processing, and overall warehouse performance.
Aberdeen Group (2023) showed that organisations using advanced reporting features in their WMS experienced a 20% improvement in operational efficiency.
Barcode Scanning and Bin Location Management
Implementing features like barcode scanning and bin location management can significantly enhance the pick, pack & dispatch process and storage management. Barcode scanning reduces errors, while bin location management optimizes space utilization and reduces retrieval times.
Studies have shown that implementing barcode scanning in order fulfilment processes can increase accuracy rates to 99.9%, effectively minimizing the incidence of returns due to incorrect picking (Journal of Business Logistics, 2020).
Implementing bin location management can increase warehouse space utilisation by 30% and reduce retrieval times by 40% – Logistics Management, 2023
Purchasing and Replenishment
Automating purchasing and replenishment based on real-time inventory levels can prevent stockouts or overstocking. The system should automate stock level management, enabling quick replenishment through stock transfers or purchase orders. Look for features that alert you when stock reaches a specific level and needs replenishing, along with the ability to set stock rules for different channels and locations.
A report from Shopify highlights that automated inventory replenishment methods enable businesses to accurately track inventory levels, set reorder points and automatically generate purchase orders. This reduces the risk of stockouts and overstocking, ensuring timely replenishment based on actual demand and lead times (Shopify).
Cloud-Based Accessibility
A cloud-based warehouse management system offers the flexibility for real-time access to warehouse operations from anywhere.
Forrester Research (2023) indicated that 57% of companies experienced enhanced flexibility and a 25% reduction in IT costs after adopting cloud-based WMS solutions.
Management of Bundles or Composite Items
The ability to manage bundles or composite items is important for businesses that sell products in various combinations. The warehouse management system should accurately track and manage these complex inventory items ensuring real-time stock level updates of all individual items.
McKinsey (2022) found that 45% of companies improved their inventory accuracy by managing composite items effectively within their WMS.
Integration with Other Systems
Seamless integration with courier, accounting and other essential systems is a critical consideration. This ensures a smooth flow of information across platforms, improving efficiency and reducing manual data entry errors.
Deloitte (2023) showed that businesses integrating their WMS with other systems saw a 40% reduction in operational costs.
Choosing the right Warehouse Management System (WMS) is a strategic decision that can significantly impact your business’s operational efficiency and customer satisfaction. The ideal WMS should offer real-time inventory management, support Multi-Channel and Multi-Location operations, provide valuable insights through reports and ensure seamless integration with other essential systems. By carefully considering these factors, businesses can select a WMS that not only meets their current needs but also scales with future growth.
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Author: Iain Coplans CEO Stok.ly