According to a research study on warehouse management by Grand View Research, warehouse management systems are expected to grow at a compound annual growth rate of 15.3% up to 2028. Furthermore, the software segment is expected to have a faster growth rate due to increased adoption of warehouse management systems by small and medium sized enterprises that realize the benefits to having a warehouse management system (WMS).
Whether you are currently using a WMS and looking to upgrade, plan to purchase one, or are still unsure of the benefits, there are many considerations to assure your warehouse operations align with your business goals, and if a WMS is right for you. We have outlined some of the key benefits to implementing a WMS into your operations.
A WMS helps control the movement of materials within a warehouse. It is a software solution that simplifies the complexity of managing a warehouse. Some of the top benefits to a WMS include inventory management, space savings, and customer satisfaction.
The first benefit to having a WMS is full visibility into your inventory. Without having a full view of the inventories on hand, inefficiencies can pile up. This includes the potential for product overage or underage, higher inventory costs, and the potential for poor customer service. A WMS will allow for you to track, manage and view inventory real-time, thus allowing for greater cost savings and inventory control.
Through a WMS, employees have visibility into storage areas and locations in the warehouse. This based on rules set and established for your unique space and environment. This will allow you to better organize products with the potential of yielding additional space.
Distributors are challenged with the ability to manage operations when they are bogged down with inventory accuracy and location. This causes delays in shipments to both the distribution centers as well as customers. A WMS allows you to properly manage your inventory and distribution schedules, respond rapidly to customer-specific requests, and manage what tasks are associated with individual work orders.
Handheld barcode scanners in your warehouse environment further increase accuracy in fulfilling orders. Scanning barcodes in the order picking process ensures that the correct items are being packed for shipment.
Short Term ROI for WMS
The benefits to a WMS are clear. Though some are still unsure if the system is right for them and if the costs will justify the means. According to Inbound Logistics, operations that do not currently have a WMS will likely see ROI in 12 to 18 months. Before implementing, you should be sure you have a clear path for what you are looking to gain with your Warehouse Management System and build a plan to align those goals with your system.