Warehouse Management System: 7 Indicators to Invest in One

A warehouse management system (WMS) provides an organization with flexibility and efficiency. These systems streamline operations in a warehouse besides saving time. They also reduce errors when locating items. As the owner or manager, consider these seven indicators:

Warehouse Management System

Growing Business

If you are growing, it can be challenging to keep up with the demand your business is experiencing. A growing business can operate at peak capacity. However, this is possible if you scale up your warehouse operations. A WMS can help you do that by providing an automated system. The system allows your employees to focus on what’s most important. This will, in turn, lead to efficient management of inventory.

A WMS will create a digital workflow system for your business. The system will simplify employees’ work to track orders from beginning to end. This will allow them to focus on other tasks. At the same time, they can wait on delivery details via the platform.

Inventory Errors

You can identify and fix inventory errors by using a warehouse management system. For example, if inventory is incorrectly identified as damaged, it might be an error in your system. A warehouse management system can help you identify the problem and fix it in these cases. It will ensure that all damaged goods are marked.

Another type of error occurs when duplicate items are placed on an order list by mistake. This often happens with low-cost items like pens or paper clips. However, if you have expensive products, the cost to replace them could be substantial! A warehouse management system will help cut this type of issue from occurring. 

There are many ways for inventory errors to occur in any supply chain operation. But, there are also ways to prevent these problems before they happen! A good example would be having someone double-check each item. This includes verifying serial numbers, barcode readings, dimensions/weight measurements (if applicable), etc.

Quick read: How 3PL Warehouses Can Calculate Customer Profitability.

Customer Satisfaction

Satisfied customers are the key to a successful business. If you’re not meeting customer expectations, you could lose the business. A WMS can help you improve customer satisfaction. This is possible by automating processes that keep your customers happy. This could include things like receiving goods and delivering them on time.

Improved customer satisfaction can help you retain customers while also attracting new ones. According to a 2017 study by Aberdeen Group, businesses with high customer satisfaction experience higher revenue growth than those with low satisfaction levels.

Labour Costs

Labor costs are typically a large portion of the expenses of warehouses. They are the wages and benefits paid to employees and all other costs. The costs could include hiring costs, training costs, and retaining employees. Labor accounts for 60% of a company’s total cost structure. There are many ways to reduce these costs. One way is through an effective Warehouse Management System (WMS).

The WMS can help reduce labor costs by:

  • Automating tasks that were previously handled manually by people
  • Using barcode scanners or RFID tags on products to track inventory levels. This way, you will reduce stock shortages. Besides, you can prevent waste due to overstocking or understocking inventory levels.
  • Automatically calculating item pricing based on rules established by business owners. This includes minimum or maximum prices per unit based on size or color.

Warehouse Safety

Warehouses are hazardous places. Employees must be aware of safety regulations and follow them to the letter. Warehouse management systems can help you follow all federal and state-specific rules. They can also help you keep track of employee training so that everyone knows what to do in an emergency (and, therefore, how best to protect themselves).

They can also help streamline your operations and make them safer. This is by doing things like keeping track of inventory. If something needs replacing, it’s easy for someone to call up an order through a control panel. 

Labour Issues

Labour issues are a significant concern for companies today. With the unemployment rate near record lows, hiring is more complex than before. One of the most common mistakes warehouse managers make is not staffing up when needed.

  • Labor costs are rising: In addition to being more difficult to find and hire, labor costs are also rising. Employers must pay more for health care coverage and retirement benefits. This increases overhead expenses significantly over time.
  • Labor turnover is high. It’s expensive to recruit new workers every time an employee leaves. This applies if they’re leaving. The reason is that they don’t like their job or feel underutilized by their employer! If employees feel undervalued, they will start looking elsewhere for employment opportunities. The implication is that they take valuable assets away from your company. As a result, you could cost yourself money down the road!
  • Labour isn’t fully utilized. In warehouses where there aren’t enough people working, productivity decreases. depending on when someone decides it’d be best suited for them not doing anything useful all day long.”

Task Indicators

  • More tasks than staff. If your business has more work to do than your current staff can handle on their own, it’s time for WMS software. A WMS makes it possible to increase efficiency. It does this by adding more workers without sacrificing quality or productivity.
  • More tasks. Do you keep a schedule of all orders? Is there no way for employees to see what needs to be done? Implementing Warehouse Management Software will help keep things organized. Besides, it will prevent bottlenecks from slowing down operations if this is the case.
  • More tasks than can be done with the current system (or none at all). The methods currently used in warehouses are often outdated. So, they cannot handle everything that needs doing anymore—so it’s time to upgrade!
Warehouse Management System


Ultimately, having a warehouse management system can help your business better organize operations. It will also increase employee efficiency besides collecting crucial data about inventory. Here’s the bottom line: a WMS will save your company money and make everyone’s lives easier. For more details, contact sales support.

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