Are You Getting the Most Out of Your WMS?

Most businesses today use software programs routinely. Sometimes, we can use our software too routinely and not get the most out of it. This is particularly true of commonly used Warehouse Management Systems (WMS) that became widely available well over a decade ago.

DC Velocity magazine conducted a survey, asking readers what they used their WMS software programs for. The results suggest many businesses weren’t making the most out of their software:

• 91% used WMS for overseeing inventory
• 73% used Warehouse Management Systems for label printing
• 44% used their WMS as an interface with automated systems

At the time of the survey, 41% of respondents said they were using WMS for analytics, 36% for managing warehouse labor, and 35% for error handling. While this was an improvement over the past when WMS was used almost exclusively for overseeing inventory, Warehouse Management Systems are still being widely under-utilized.

WMS can be fairly simple and inexpensive or highly complex, but all are designed to do basically the same thing: help track and control the movement of materials. Many users today aren’t keeping up with the times and may be missing out on features that can greatly improve their ability to manage labor, reduce waste and analyze data.

Highly functional warehouse management systems used to also be highly expensive — prohibitively so for small and even many medium-sized businesses. Like most software systems today, though, WMS is available “in the cloud” and can be very affordable. Surprisingly, only 8% of respondents to the DC Velocity survey were using cloud-based systems — perhaps because they were accustomed to using stand-alone systems.

 

Choosing a Warehouse Management System

Choosing a WMS can be harder than using one. There are dozens, if not hundreds of systems available. Some boast that, at $500 per month, they are “very affordable.” A claim like this can stop most small business owners from exploring further, but dig a little deeper and you can find systems for as little as under $10 a month that:

• Are multi-user capable
• Can be accessed via a smartphone with a free or inexpensive app
• Can manage quotes, orders, and in/out transfers
• Generate easy-to-understand reports
• Create and manage work orders and bills of materials
• Can track supplier availability
• And much more

Some of these systems also offer 30-day free trial periods or you can cancel the service after a short trial period.

Even an inexpensive warehouse management system can dramatically reduce the time it takes your office staff to perform many routine duties and help keep everyone in sync. Respondents to the DC Velocity survey who had invested in more advanced WMS believed they offered an excellent ROI.

Is a warehouse management system right for you? The name implies the software is for warehouses only, but while 32% of respondents to the DC Velocity survey were engaged in wholesale distribution services, another 29% were in manufacturing. If you’re still in doubt, try going back to using a ledger for accounting or a typewriter for writing letters. The digital revolution has made life easier for all of us and as warehouse management systems have progressed, they have made life even easier — and less expensive, too.

For more thoughts on software vs low-tech materials handling solutions, read Forklift Accessories vs Software in our Forklift Accessories blog.