WMS software is an essential tool for any business in the fulfillment industry. Find out how this automation solution helps companies boost their profits.

How To Strengthen Your Profits With WMS Software

E-commerce has made the world a smaller shopping ground, and this trend is expected to continue in the coming year. Besides retailers, supply chain actors have been benefitting from this burgeoning industry. 

For instance, the warehouse management system market, or WMS market, is projected to reach $3 billion this year, twice its 2017 figure of $1.56 billion. WMS software is an essential solution that enables companies to stay on top of their inventory and fulfillment processes from the warehouse to end consumers. 

Manufacturers, retailers, and third-party logistics companies are only a few sectors that can optimize their resources using this software solution. But how exactly can these entities use WMS software to boost their revenues? Discover the answers in this article. 

  1. Using WMS software to reduce operational costs and losses

Warehouse management system solutions can be used to ensure that operating expenses and losses are minimized. This application enables warehousing companies and other WMS users to optimize revenues compared to traditional means. 

  • Optimizing labor costs: By automating repetitive processes, such as entering data pulling out reports, and correctly tracking products and items, employees can spend more time performing core tasks. Since last year, it has been difficult for the logistics sector to find and hire qualified workers. With WMS, staff can focus better and stay longer on the job.  
  • Reducing delivery and handling costs: With WMS software, users can practice cross-docking. By loading products from manufacturers or suppliers directly to outbound shippers and direct to consumers, companies can save on storage, delivery time, and costs. 
  • Preventing thefts and losses: According to the National Insurance Crime Bureau, cargo theft is a billion-dollar industry in the United States, yet conviction remains low. To protect your company, use WMS software, as it can track goods in real time and detect any missing items that have been recorded in the system. This software can also prevent losses by spotting missing items or alerting users of sales and inventory mismatches.   

Everything on the WMS software is automated, making it less prone to human error. Everything is tracked automatically, including inventories of raw materials and finished products. Firms can also place orders for diminishing stocks, monitor item movements, and send invoices accordingly.   

  1. Integrating WMS with ERP solutions for efficiency 

Warehouse management system solutions can be integrated with enterprise resource planning (ERP) software to optimize core business activities. Doing so can streamline workflows and processes without compromising revenues. This integration allows companies to organize raw materials, workforce, equipment, and warehouse space usage. Additionally, it enables more efficient cost tracking by linking WMS with accounting systems.   

  • Effective supply chain monitoring: WMS software ensures that the movement of goods in the supply chain, from manufacturing, storage, and distribution, moves smoothly and efficiently at the lowest costs possible. 
  • Maximizing space and labor efficiency: WMS can help improve storage space utilization to reduce costs and maximize the number of goods being held. The system can be organized to label items based on the first-in, first-out inventory method, which helps stocks stay fresh and helps manage the impact of inflation.      
  • Streamlining workflows: Because of automation, warehouse staff can focus on their core tasks and perform these with less time, for instance, when conducting inventories or tracking specific items. 

More importantly, WMS solutions, including third-party logistics software, run on cloud computing platforms and provide real-time information accessible to stakeholders.  

  1. Relying on WMS Software to improve customer satisfaction

Customers are the lifeblood of any business. Companies must do their best to retain existing clients and attract new ones. Besides effective marketing techniques, providing excellent customer service is essential. Companies must keep up with this by making fast and efficient deliveries and using WMS for accurate fulfillment tasks.      

  • Fast and error-free deliveries: WMS enables quick and accurate deliveries that manage delivery costs. More importantly, it helps prevent disgruntled clients and ensure customer satisfaction. Positive experience goes a long way in facilitating repeat business, and using WMS software can help you achieve this.   
  • Real-time information: By allowing access to real-time data using WMS and omnichannel platforms, firms can quickly respond to customer queries and needs—which adds to a positive client experience. 

Research has discovered that recipients consider delivery fees, speed, and delivery date as the most important attributes when evaluating options. WMS software is a valuable tool that lets companies use technology to keep up with the ever-changing consumer preferences and behavior.

  1. Tapping WMS software to reduce errors and returns  

Accuracy is highly important in all aspects of the supply chain. Without WMS software, conducting proper inventory management, flawless picking and packing tasks, or preventing lost packages and other data-related issues can be challenging. These mistakes can reduce profit margins that can hurt your business if it happens more frequently. 

WMS software is an essential tool for any business in the fulfillment industry.

WMS software enables automated data entry, collection, and management, dramatically increasing accuracy. Consequently, errors are minimized, helping boost revenues. 

Accurate and real-time tracking helps prevent stock-outs that lead to lost profit opportunities. WMS alerts users of low-level stocks, allowing them to order more products or raw materials ahead of time. More importantly, WMS software reduces return shipping errors and the costs associated with rectifying the error. It’s estimated that such mistakes can cost up to 5% of shipping costs are wasted on shipping errors annually. 


WMS software is a comprehensive solution that enables companies to optimize company resources, increase efficiency, reduce operational costs and errors, and improve customer satisfaction. With all these elements, a WMS-driven company can fulfill more orders without added expenses, increasing company revenues and consumer trust. 

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