Warehouse operators need to adopt modern, scalable methods to improve their traditional direct-to-consumer (DTC) and business-to-business (B2B) fulfillment operations. A warehouse management system (WMS) or fulfillment management system (FMS) can be the best option for this.
A WMS automates various fulfillment processes, including inventory management, order picking, and shipping. It reduces human errors and improves overall efficiency by enabling the workforce to do more with less input.
Let’s explore how technology-driven solutions like a WMS/FMS are ideal for scaling ecommerce fulfillment operations.
- The evolving role of WMS in scaling fulfillment operations
- Enhancing operational efficiency
- Scaling to meet DTC and B2B demands
- Leveraging AI and machine learning in warehouse management
- The strategic importance of cloud-based WMS
- The impact on customer satisfaction
- Taking advantage of technology is crucial for scaling fulfillment operations
- FAQs about technology’s role in fulfillment
The evolving role of WMS in scaling fulfillment operations
The rapid growth in ecommerce has made warehouse owners shift from manual warehouse operations to advanced, technology-driven solutions. It makes sense. Most traditional methods and tools weren’t designed to accommodate the large volume online orders. Fortunately, warehouse owners have an opportunity.
A recent study indicated retailers making large investments in warehouse automation will likely increase their expenditure by 8% to 22%. This shows businesses are turning to tech solutions like a WMS to meet their fulfillment-related challenges.
WMS platforms streamline warehouse operations with critical features like:
- Inventory management: WMS enables real-time tracking of inventory levels, statuses, and locations within the warehouse. This allows warehouse owners to maintain optimal stock levels.
- Order processing: WMS automates order processing by providing warehouse staff with detailed picking lists and instructions. This reduces errors and enhances productivity.
- Shipping optimization: With a WMS, warehouse owners can automate shipping-related tasks like label generation and shipment tracking for quick order fulfillment.
Watch the video to see how Logiwa IO’s pioneering architecture makes it easy to operate as your business scales.
The next step: Logiwa IO
WMS are often limited compared with fulfillment management systems (FMS). A WMS typically focuses on single-warehouse operations and inventory management. On the other hand, a FMS supports omnichannel order and inventory optimization across multiple fulfillment centers. Logiwa’s FMS, Logiwa IO, fulfillment focus and AI-driven automation make it more suitable for today’s ecommerce B2B and direct-to-consumer (DTC) fulfillment needs. Logiwa IO includes the core WMS functionalities along with the following:
Enhancing operational efficiency
WMS help warehouse owners boost operational efficiency by automating inventory management and order fulfillment. Here’s how:
Real-time inventory visibility
Real-time inventory visibility allows businesses to track stock levels and locations across the warehouse continuously. By providing up-to-date information, warehouses avoid overstocking or stockouts — both of which can lead to lost sales or high holding costs. For example, an online electronics retailer can use a FMS to automatically scan product barcodes on arrival and update warehouse managers about quantity and location.
Automatic replenishment alerts
A WMS also automates replenishment alerts to proactively notify warehouse managers when the stock levels are about to fall below predefined thresholds. This approach ensures the availability of popular items to customers at all times. For example, a supermarket chain can use a WMS to monitor inventory levels of perishable items and send replenishment alerts when stock gets low.
Logiwa IO’s dynamic replenishment is a game changer for warehouse efficiency.
Optimized picking processes
WMS enhance order fulfillment by supporting optimized picking processes, including:
- Batch picking: Requires warehouse managers to pick up multiple orders simultaneously and minimize travel time.
- Zone picking: Involves assigning specific warehouse areas to individual pickers for parallel processing of orders.
With both methods, warehouse operators can minimize errors, expedite order-picking, and reduce operational downtime.
Scaling to meet DTC and B2B demands
The needs for DTC and B2B operations differ significantly. DTC businesses require quick, individualized fulfillment to satisfy consumer demand for fast delivery and customization. On the other hand, B2B typically involves fulfilling high-volume bulk shipments while ensuring consistent service levels and reliability. But with today’s growing demand for fulfillment service, we are seeing the rise of hybrid fulfillment operations that need to handle both.
Logiwa’s solution can be configured for scaling fulfillment operations for both DTC and B2B demands. Logiwa supports:
- Customizable workflows for both DTC and B2B needs
- Omnichannel fulfillment strategies for real-time inventory management order processing automation across multiple sales platforms
- Support for multiple carriers and automatic rate shopping to ensure the best rate every time
Leveraging AI and machine learning in warehouse management
Most modern WMS are able to use the huge amounts of data available to smoothly integrate with advanced AI, ML, and predictive analytics technology to optimize fulfillment operations.
Optimizing labor and forecasting demand
An AI-driven WMS can analyze historical labor data to help adjust staffing needs based on upcoming demand. For instance, with labor standards the WMS can help determine if hiring additional temporary staff or reallocating existing employees to high-demand areas during the holiday seasons is the best option.
Minimizing fulfillment bottlenecks
AI-powered WMS also help ecommerce retailers quickly identify potential bottlenecks in the fulfillment process. The system provides real-time insights into inventory levels and order statuses across multiple channels.
This keeps managers informed about any unexpected delays or materials shortages during the fulfillment process.
Automated putaway and picking
AI can automate decision-making when scaling fulfillment operations. For example, an AI-powered WMS can determine optimal picking routes or shipping methods based on specific situations. This frees team members from repetitive tasks, allowing them to focus on more important work tasks.
The strategic importance of cloud-based WMS
A cloud-based solution promotes flexibility, so operations can adapt as needed, stay ahead of supply/demand changes and maintain budgets effectively. Here are a few advantages a cloud-based WMS provides:
- Remote accessibility: Cloud-based WMSs allow warehouse teams to access the system from any location with a stable internet connection. This supports retailers in managing multiple distribution centers with real-time updates.
- 24/7 operations: A cloud-based WMS offers round-the-clock warehouse monitoring and management.
- Integration with other supply chain tools: These systems seamlessly integrate with other logistics tools, such as transportation management systems (TMS), to facilitate better coordination across the supply chain.
- Scalability: A cloud-based WMS is easier to scale. This allows businesses to adjust their system capabilities during sudden increases in order volume without needing substantial infrastructure investments.
The impact on customer satisfaction
A WMS helps maximize customer satisfaction by streamlining and automating the order fulfillment process. But how does it do that? Let’s explore briefly:
- On-time delivery: Timely delivery is one of the top priorities for customers. A WMS automates and optimizes the delivery process, reducing order processing times to ensure it reaches customers quickly.
- Real-time tracking: A WMS provides real-time tracking information so that customers can monitor their orders until they reach their doorstep.
- Reducing fulfillment errors: Sending customers the wrong item or incorrect quantities can lead to frustration and dissatisfaction. A WMS minimizes these errors.
These WMS approaches directly correlate with customer retention and brand loyalty. When people are satisfied with an order fulfillment process, they will likely become repeat customers.
Taking advantage of technology is crucial for scaling fulfillment operations
If you want to improve your business efficiency while fulfilling ecommerce demands, Logiwa is here to help. Schedule a call with a Logiwa fulfillment specialist today to discuss your unique operational needs and tips on remaining competitive in this digital marketplace.
