How Does a WMS Help Control Costs?

Supply chain businesses upgrade software solutions for multiple reasons. Whether they’re trying to improve the efficiency of their operations or expedite their fulfillment, there is a software solution out there for just about every task.

However, across the logistics industry, the most common objective for stakeholders is the ability to better control costs. 

And this focus on saving money is a major reason why warehouse operators opt for upgrading one particular platform; the WMS.

It is through a WMS platform that most, if not all, warehouse management tasks are processed and monitored. In fact, for many warehouses, it is the first line of defense. Moreover, those who operate smaller fulfillment centers without a dedicated WMS can discover significant savings across their entire operations by integrating a WMS platform. 

So, how does a WMS help to control costs for warehouse operators? What are the benefits of upgrading this system? And how can a 3PL help you choose the best WMS solution?

If you've been asking yourself these questions, you are in luck! Because these are the questions we’ll be answering today.

In this blog post, we’ll outline 4 of the top ways that a robust WMS can save a ton of money in the long-run...

WMS Helps to Automate Manual Tasks

Most of today’s larger fulfillment centers have far surpassed the task of creating manual pick and pull sheets.

However, this is still a practice in smaller facilities. Especially those that are, ironically, trying to save money.

Creating pick and pull sheets for warehouse employees only serves to consume resources, payroll, and they are frequently changing due to the ebb and flow of orders. A WMS can improve the process of order picking and pulling by creating automated pull sheets.

It can even be configured to pick and pull in sections or zones, during specific hours of operation, and based on specific delivery commitments. 

Not only does this help reduce the amount of effort needed to manually complete this important task, but it improves order fulfillment consistency. In addition, it can reduce wrong orders and improve overall customer service efforts. 

Improving Employee Management is Easy With a WMS

The key to warehouse efficiency is ensuring all employees are working smarter, not harder.

The modern WMS can make a huge difference in the way employees are hired, trained, and complete their daily tasks. Today’s WMS’s are intuitive and review multiple data points along with your operational goals and objectives. All in an attempt to create employee management tasks that help them complete their jobs with accuracy, efficiency, and safety.

The WMS can help improve employee retention and reduce turnover which saves money on HR, training, and operational costs. 

A Robust WMS can Have a Big Impact on Inventory Management

Holding costs are considered by many warehouse operators as a non-controllable expense.

The WMS helps warehouse operators fine-tune their inventory management solutions. This ensures your facility never runs out of products your customers order. The WMS can work in conjunction with an inventory management system to track orders, maintain a real-time inventory level, and can be configured to send automated alerts to suppliers.

A WMS can likewise help forecast sales, especially during peak seasons. Keeping an accurate inventory level without holding too much in reserve helps to increase bottom line profits. 

Helps to Measure Performance 

Like any other business, setting goals, creating benchmarks, and metrics that allow you to measure success is vital.

A WMS dashboard can be configured to provide custom reporting features on multiple warehouse operations from order fulfillment, on-time delivery, operational payroll, and shipping and receiving. The reports can likewise be configured to distribute to department managers, for quicker review and follow-up opportunities. 

Additionally, the WMS dashboard can be customized around various other specific criteria. 

Final Thoughts

A WMS is the perfect tool to help warehouses and fulfillment centers of different sizes and product distribution. They are scalable, always customized for specific business types, and can be accessed from mobile devices through cloud-based WMS platforms.

The best resource available to help warehouse operators find the best WMS solution is a proven 3PL like Redwood Logistics. 

For several years, Redwood Logistics has been a leading provider of warehouse management system solutions for multiple industries. From the small, independently-operated manufacturer, to the multiple facility 3PL that fulfills orders for hundreds of clients, Redwood Logistics can configure a solution that is perfect for each user. 

If you’d like to learn more about warehouse management systems and how they can help you save money, contact Redwood Logistics today.