It is important to note that E-commerce businesses are in challenging times with rising costs and growing competition. Plus, internal inefficiencies in the warehouse and inventory management process can also take up a huge part of their revenues.
According to Statista, the growing e-commerce market is estimated to generate 1.2 trillion U.S. dollars in revenue in 2024. While the industry would see continuous growth, it would also mean greater competition. As a result, it becomes necessary for businesses to streamline their processes to reduce inefficiencies.
And it all starts with managing the supply chain to streamline the process of sourcing to delivering products. A WMS (warehouse management system) for e-commerce might just be the solution. But what is a WMS? Can you incorporate one for your Shopify store? And what is the best operating system for e-commerce stores? Find out the answers to all these questions in this blog.
What is an E-commerce Warehouse Management System?
Let’s first understand what eCommerce warehouse management systems are. Simply put, they are software that allows you to streamline the warehouse and distribution operations.
Businesses in the retail sector can use it to make their staffing, planning, picking, and packing processes smooth. From e-commerce-only to brick-and-mortar hybrids, businesses with a robust WMS can handle:
- Forecasting
WMS can give you full visibility into your inventory levels and storage so you know if there aren’t any issues in order fulfillment. - Integrations
Integrated WMS with other systems can improve collaboration and eliminate the need for manual back-and-forth data feeding. - Logistics
The predetermined workflows inside your WMS make it easy for your staff to follow the processes. - Returns
It helps determine which items are damaged, need to be labeled again, etc.
Using a WMS for Shopify E-commerce Store
Most e-commerce brands or retailers with an online presence tend to use Shopify. With the right warehouse management solutions for Shopify, you can coordinate various tasks for warehouses, such as
- Sorting out the returns
- Scanning products for receiving
- Restocking shelves
- Packing items for shipping
The best thing about the E-commerce WMS is that it can be a web-based portal. Therefore, it can ensure that supply chain managers can access it through computers and handheld devices. With the right WMS, businesses can also track, manage, and report various kinds of goods in a single place.
Benefits of Warehouse Management Systems for Your Online Store
Implementing a good WMS can help businesses in achieving significant improvements in inventory accuracy. They can also increase the efficiency of their overall supply chain process. Plus, it would help them get the following benefits:
Enhancing Inventory Accuracy
A WMS provides real-time inventory visibility. As a result, it can help businesses in preventing stockouts and reduce overstock. They can also keep a better track of their inventory shrinkage.
Improving Order Efficiency
When it comes to manual entries, there is always a chance of errors. Incorporating a WMS for your eCommerce business reduces manual errors and lowers labor costs. It can also increase customer satisfaction by ensuring the right order reaches the customers at the set delivery times.
Driving Cost Savings
As mentioned before, a WMS helps reduce inventory shrinkage and optimize shipping costs. Not only that, it can also help improve labor productivity by streamlining processes, such as packing. All of these things can help businesses lead to significant cost savings.
What is the Best Warehouse Management System for Online Retailers?
The requirement for the WMS may differ from business to business, depending on their operations, number of products, logistical operations, etc. Nevertheless, there are a few factors that you need to consider when choosing a warehouse management system. Here is a step-by-step process to help
Step 1 – Assess Your Current System
Before investing in a new Warehouse Management System (WMS), conduct a thorough assessment of your existing processes. Identify areas of strength, weaknesses, and inefficiencies. Consider the following questions:
- What are the primary pain points in your current operations?
- What are the most time-consuming tasks in your warehouse?
- How effectively are your picking and packing processes being executed?
- How are inaccuracies affecting your organization’s bottom line?
Understanding the current challenges is vital so you can better determine how a WMS can address your specific needs.
Step 2 – Gather Team Input
Since your warehouse employees will be the primary users of WMS, it is best to involve your warehouse team members in the decision-making process. Have them create a list of features they believe are essential in a WMS. Consider factors such as:
- How well will the WMS integrate with your ERP, accounting, and other software?
- What tasks can be automated to improve efficiency and reduce errors?
- How will the WMS help you track inventory, analyze performance, and make data-driven decisions?
- Can the WMS accommodate future growth and changes in your business?
Step 3 – Evaluate WMS Vendors
Once you have a clear understanding of your requirements, start researching WMS vendors. You can look for vendors with a proven track record in warehouse management and supply chain logistics. Make sure to evaluate the vendor’s implementation methodology and the level of support they provide.
Also, consider the initial investment, ongoing costs, and the potential return on investment. Before choosing the WMS, check out the scalability options to ensure the WMS can accommodate your business’s future growth. Additionally, verify that the WMS can integrate seamlessly with your existing systems.
Step 4 – Choose the Right WMS
The ideal WMS for your business will align with your specific needs, budget, and long-term goals. Consider the following factors when making your final decision:
- Does the WMS offer the features and capabilities you require?
- Is the system intuitive and user-friendly for your team?
- Does the vendor provide adequate support and training resources?
- Does the WMS offer a good balance of features and affordability?
Step 5 – Implement and Optimize
Once you’ve selected a WMS, develop a comprehensive implementation plan. It is best to consider factors such as data migration, user training, and testing. After implementation, continuously monitor and optimize your WMS to ensure it meets your evolving needs.
Following these steps and carefully considering your specific requirements will help you choose the right WMS. It will streamline your warehouse operations and improve overall efficiency. As a result, it can drive business growth.
Wrapping Up
A WMS for Shopify or any other e-commerce store can streamline your warehouse management. Therefore, you should evaluate your business needs to find the best warehouse management software for your house. The smart thing to do would be to approach Wizefulfill to help you out. Our expertise can help you get the best WMS for e-commerce businesses.