6 Ways WMS Maximizes Profitability

Managing a warehouse is not the easiest task as there many logistical aspects that you have to deal with, such as the organizational layout, inventory control, accounting and the staff. For warehouses to ensure that they achieve success, it is crucial that there is warehouse productivity so that they can increase profitability. Warehouse Management Software offers strategies that can assist warehouses in ensuring that they achieve success, and we will tell you how it does that.

  1. Inventory Visibility
    Gaining inventory visibility throughout the supply chain offers some benefits that are important for the growth of the business as it allows them to follow retail trends and satisfy online shoppers. Some companies rely on their employees memory when locating products that might not always be viable, especially when employees are absent. During this time, it has never been as vital to meet customer expectations which is why WMS is essential for warehouses.
    WMS offers digital tracking of products, allowing you to know the exact location of products and the number of products available, which is necessary for order fulfilment. The system can further assist in reducing the misplacement and loss of products which can all help in reducing inventory management costs.
  2. Eliminates Stock-Outs
    Eliminating stock-outs plays a massive role in maximising profits as it heavily contributes to the bottom line. When more orders are fulfilled quickly, then there will be less back-ordering that customers experience. All these factors ultimately lead to better customer retention. However, if customers constantly have to wait for their orders to be filled, they might shop somewhere else to ensure that their orders are filled. WMS also assists in reducing stock-outs as it automatically re-orders products whenever they are running low.
  3. Increases Accuracy
    Accuracy plays a huge role in the warehouse’s costs as mistakes that occur in the warehouse, such as misplacing products, incorrect picking and packing, incorrect data, and the mismanagement of data, will affect the business’ warehouse costs negatively impacting the business affecting its profit margins. Therefore, through having a WMS automated data collection system, the inventory management system will be digitised, which will assist the picker and packers in increasing accuracy in the warehouse.
  4. Drives Efficiency
    One of the strategies that warehouses can use that will significantly impact their costs is by increasing warehouse efficiency. WMS allows for automated data collection, ensuring that businesses do not have to rely on data entry from paper and eliminating re-keying of information into the system. Through this, the staff will have time to focus on other productive tasks, and the business will also eliminate the need for more workers. The access to data is readily available also means that inventory counts are automatic, eliminating the need to shut down the warehouse for product counts.
  5. Manages Labour Costs
    Certain factors will play a role in the management of labour within the warehouse, such as picking, packing, and data entry. WMS assists in managing costs as picking becomes easier through efficient routes that reduce walk-time, packing becomes more accurate through scanning, and data entry is digitized. Improving data entry, picking and packing will contribute to the effective use of labour while ensuring that there is a happier workforce since there will be less movement in the warehouse and reduced chances of mistakes occurring.
  6. Improves Customer Service
    Whether your business sells to retailers or directly to customers, you should offer quality customer service as this is a deciding factor for customers making repeat purchases. Using WMS ensures that orders are more accurate and that they are fulfilled faster, which assists in reducing back-orders. The system can also automatically create and send delivery notices and EDI-compliant labels while ensuring that customer-specific needs are noted and fulfilled. All these factors contribute to fewer shipping errors occurring and improved service levels, which ensures customer satisfaction each time.


WMS offers businesses essential benefits throughout their supply chain by ensuring that they reach their objectives. These benefits translate to the warehouse maximizing its profit margins which are necessary for business success and growth.