Warehouse Management System: Why Is It Important For Your Business?

time to read article4 minutes

article date 2021-09-03

Warehouse management systems are essential for any warehousing provider. According to a survey conducted by Statistica, about 85% of respondents said they used a warehouse management system. Warehouse management consists of processes involved in managing warehouse operations daily. It comprises of:

• Organizing the warehouse space

• Scheduling and managing labor

• Inventory management

• Fulfilling orders

A warehouse management system helps managers seamlessly carry out all of their tasks. Here are a couple of reasons why you need to invest in a good WMS right now:

• It helps manage inventory.

• It leads to improved sales.

• It enables businesses to meet their productivity goals

• It increases customer satisfaction.

• It can integrate your current business management system.

• It helps companies meet their compliance regulations.

Following is a further breakdown of these six reasons and how they are essential for your business.

Reasons Why You Need a Warehouse Management System

1. Managing Mail

Managing the warehouse’s inbound and outbound mail is no easy task. Hundreds of packages come through the warehouse’s door each day. That’s why there is a need for an excellent mailroom management system.

This helps notify the staff of incoming shipments so they can receive them in time. Users can also track their package once it arrives at the mailroom and check the estimated arrival time.

2. Managing Inventory

An efficient warehouse management system makes managing inventory easy and efficient. It does so by lowering inventory levels and boosting order fulfillment. Consequently, this lessens the order’s cycle time.

A warehouse management software system precisely tracks every unit of the inventory and updates information in real-time. This allows companies to quickly and accurately provide feedback to their customers.

With the help of warehouse management system software, wholesalers know the warehouse's content, location, and capacity at all times.

3. Improve Sales

With the help of the right warehouse management software, you can sell units faster and more accurately. Rapid sales lead to happy customers and allow the workforce to do more in less time with fewer mistakes. This accuracy helps in reducing customer complaints. Satisfied customers lead to increased profits and a higher return on investment.

4. Meet Productivity Goals

Through a good WMS, workers can move units through a warehouse at maximum speed. It allows employees to manage each stage of order fulfillment efficiently. Ultimately, the use of WMS can make the process of inventory management efficient, consistent and smooth.

It allows workers to do more work in less time. As a result, your business can meet all of its productivity goals and more.

5. Customer Satisfaction

Customer experience is the cornerstone of a thriving business. According to research from Dimension Data, 83% of companies that strive to improve their customer service experience revenue.

Warehouses play an essential part in your customer’s buying experience. To provide good customer service, it’s essential that the ordered product is in stock and properly delivered.

With the help of automation, WMS makes tracking and organizing shipments easier. Warehouse managers can easily track and manage shipment routes and employee assignments. This efficiency leads to better customer service.

6. Easy Integration

You need your warehouse management system to evolve alongside your business. Luckily, most WMS can integrate with your current business management systems.

In this way, you don’t have to duplicate systems and procedures when your business expands.

7. Compliance

All businesses need to meet their compliance requirements. Failure to do so can lead to heavy penalties. Warehouse management systems record and track data in real-time.

Moreover, it automates all business processes. These features allow businesses to stay competitive while fulfilling all compliance regulations.

8. Lower Expenses

By using warehouse management software, you can analyze the best use of floor space. WMS allows you to utilize your warehouse space depending on the tasks and characteristics of the storage materials.

This helps save premium floor space and reduces the time wasted in locating products. As a result, companies can save money spent on excessively moving, placing, and retrieving materials.

Moreover, warehouse management software allows you to standardize inventory movement and location. With increased warehouse efficiency, additional personnel does not need to be hired, thus reducing training costs.

9. Optimize Stock Flow

Stock is constantly moving within a warehouse. The continuous coming, going, and storage of the goods make managing inventory confusing. Managers need to track items that have the quickest turnover. Doing so will allow them to store them more efficiently and minimize downtime.

However, tracking items in the warehouse can be a huge task. With good warehouse management software, you can quickly locate and retrieve your goods. It also helps maintain material rotation in and out of the warehouse.

10. Continuous Improvement

Warehouse management systems are designed to allow constant improvements. This makes them an excellent technological tool. WMS can be implemented in phases and be periodically updated with new features.

In this way, instead of remaining stagnant, the system evolves. Furthermore, cloud-based warehouse management software can be updated in an instant. This helps companies save costs by eliminating the need for expensive IT teams.


All these reasons mentioned above show why investing in warehouse management software is so vital for your business. It helps you lower costs, optimize stock flow and space, and increases productivity within the warehouse. It also helps you provide better service to your customers and fulfill compliance regulations.

Ultimately, the best way to manage a warehouse is by making sure that your inventory is safe and investing in the right warehouse management system.

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