Top 6 Ways Warehouse Management Systems Deliver ROI

Inventory management often baffles managers. While managers have to make sure that they have enough stock for order fulfilment, they cannot afford to overstock as it will result in cash getting tied-up in idle inventory. Additionally, managing a warehouse is no child’s play. The warehouse management team has to perform a number of tasks on a daily basis. Warehouse management teams cannot do everything by themselves and need some assistance by their side. To provide their teams much-required breathing space, many organizations are opting for warehouse management systems.


WMS: What it is 

Warehouse management systems are software that help businesses manage their warehouses. Equipped with a range of features, a WMS helps every team involved in warehouse management perform their roles swiftly and accurately. Warehouse management systems define processes, help establish control and provide a bird’s eye view of every process, helping managers make effective decisions when it matters the most.

The movement of inventory right from the time when it enters the warehouse to when it moves out is tracked, which helps managers identify both problems and opportunities.



Businesses are obsessed with ROI. And rightly so. In today’s highly competitive business environment, every decision is a potential gamechanger. To ensure they take the right decisions at the right time, managers need to analyze the ROI effects of their every move.

Investing in a WMS is a major decision. Before taking this bold step, you need to analyze how the system will contribute to your business’ success. To help, we, take a look at some ways in which WMS contribute to ROI.

1. Better stock management

Both overstocking and understocking can hit businesses where it hurts the most, often eroding their ROI. Predicting the stock level that the business needs to hold can be a tricky task for any manager. There are a number of variables to be considered. To take effective decisions, your managers would need actionable data compiled in easily consumable formats.

Your WMS can be the final piece in the warehouse management puzzle. One of the most significant warehouse management system advantages is that it provides visibility into real-time stock levels. When your managers get critical information at the click of a button, they are able to take more informed decisions, which helps avoid overstocking and understocking.

High levels of inventory accuracy help cut costs. Additionally, you can earn discounts by ordering in bulk and consolidate orders to vendors to keep a tab on inbound shipping costs.


2. Improved labour management

Did you know that labour can account for up to 60% of warehouse management costs? Equipped with a number of features, your WMS can help you manage your labour better.

WMS allows managers to use pre-routing systems to decide the best routes for the movement of labour and inventory. Managers can use slotting techniques that focus on improving pick accuracy and replenishment rate. Additionally, WMS come with various tools for performance tracking. Your managers can use the WMS to shorten employee training cycles, helping improve your workforce productivity.


3. Customer satisfaction

The modern customer is anything but patient. To make your target audience fall in love with your brand, you need to make sure that they get the right products at the right time.

Your order fulfilment rate depends on the responsiveness of your partners and the level of understanding between you two. Warehouse management systems help improve shipping visibility and accuracy by reducing short ships and shipping errors. Because your managers get a bird’s eye view of the entire process, the number of missed deliveries comes down drastically. Your WMS can enable inventory transparency across the wider supply chain network, helping ensure that all the parties are on the same page.


4. Reduced wear and tear

WMS contribute immensely towards maintaining warehouse equipment such as forklifts, pallet jacks and man-up trucks. Your managers can use the system to route activities efficiently throughout the warehouse. WMS helps managers associate equipment to appropriate areas of the warehouse.

Many WMS come with warehouse simulators that help identify the best storage areas for equipment.

To keep a tab on maintenance costs and extend the useful life of equipment, managers must look for detailed warehouse and material flow modeling that focuses on optimizing the movement of materials and control. Your manager must also take steps to minimize unauthorized personnel on the floor.


5. Better space management

Managing available space is necessary to avoid accidents and improve productivity. Advanced WMS can help visualise, create and manage an effective warehouse layout. Many systems help define storage areas and bin locations. WMS use predefined rules to manage product storage.

Better space management help reduce instances of overstocking and understocking, ensuring that you hold the optimum level of inventory at any given point. Also, you can use data generated by your WMS to identify items that are not doing well and replace them with products that are in demand.


6. Improved employee morale  

WMS simplify processes, helping your employees save time and efforts. Every employee knows what is expected of them, which helps avoid confusion. When operations flow seamlessly, employees are able to focus on areas that matter the most. Improved productivity promotes a sense of satisfaction, helping reduce stress and elevate mood.

Your WMS can help create a relaxed working environment. Your employees will have enough time to deliberate the result of their every action, which helps avoid accidents and boost productivity.


Now that you’re aware of the ways WMS is able to deliver ROI, learn about the Advantages of Cloud-Based Warehouse Management System.