Modern consumer shopping behaviors and expectations have raised fulfillment standards to new heights. Dealing with the new customer expectations of fast one- to two-day deliveries, real-time order tracking updates, and seamless omnichannel experiences is driving online stores to move beyond legacy warehouse management systems (WMS).
To satisfy today’s lofty fulfillment standards, warehouse managers must transform their warehouses into dynamic fulfillment hubs. This transformation calls for an evolution in warehouse use from its traditional role of a storage facility to an integrated facility supporting end-to-end fulfillment. This is where a fulfillment management system (FMS) like Logiwa IO comes in.
The move from WMS to Fulfillment Management Systems
FMS represent a significant advancement over legacy WMS, particularly in handling omni-channel orders. FMS easily integrates with various ecommerce platforms like Amazon, Shopify, and other fulfillment platforms for order management, shipping, and billing.
The rich integration capacity of an FMS enables real-time synchronization of inventory and order operations data across all channels you and your customers use. This enhances efficiency, helping you consistently uphold high fulfillment standards and satisfy your customers.
In this article, we’ll explore the benefits of implementing an FMS and the strategies for successful implementation. But before we dig in, let’s take a trip down memory lane and understand the evolution of WMS.
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The best WMS can’t keep up with a modern FMS
A traditional WMS offers basic inventory tracking and management, such as receiving and picking inventory. Such legacy WMS were more process focused than customer focused. They prioritized improving daily warehouse operations, such as counting inventory, which previously was done manually. That was back in 1975 when J.C. Penney, a retail clothing store, started using the first computer-based WMS.
As computer processing power evolved in the 21st century, WMS supported more pivotal roles, such as collecting inventory data, barcode scanning, and inventory control. Since then, consumer behavior, order volume, and the amount of data involved in fulfillment has evolved to demand the power of new technologies such as artificial intelligence (AI) and machine learning (ML).
Today, AI-driven fulfillment management systems seamlessly integrate with more automation systems, including automated storage and retrieval systems (ASRS), laser-guided vehicles (LGVs), and automated guided vehicles (AGVs).
These improvements have made the need for fulfillment management systems more pronounced, and many businesses today are looking to FMS to future proof their fulfillment operations. Key features of modern FMS include:
- Labor optimization
- Inventory management
- Warehouse automation
- Order processing
However, only advanced fulfillment management systems can boost such substantive features. The legacy WMS comes up short, mainly because of limited or highly complex integration needs. And that’s why modern customer-centric ecommerce operations embrace FMS and enjoy unique benefits, as discussed below.
Check out the video above to see how Logiwa IO’s architecture makes integration easy.
Key benefits of implementing FMS
Using a reliable fulfillment management system like Logiwa IO has the following advantages:
Enhance efficiency and accuracy
Logiwa IO provides real-time inventory data across all your sales channels. Knowing your exact inventory levels helps you match products with expected demand so you avoid overselling. This ensures you can process all customer orders accurately.
FMS leverages advanced warehouse automation systems like picking bots, autonomous mobile robots (AMRs), and drones to automate routine fulfillment roles like picking and packing. This means you can process more orders in less time and with zero errors to achieve optimum operational efficiency.
Boost labor productivity
Warehouse pickers can spend up to 60% of their time walking around the warehouse to and from picks. That’s a lot of dead time, given the fast-paced nature of ecommerce fulfillment. But the good news is that FMS boosts productivity by:
- Automating routine tasks: Robots perform mechanical tasks like picking items. Doing so allows human workers to focus on more customer-centric tasks like handling customer complaints, making them more productive.
- Optimizing picking routes: FMS employs different pick path optimization strategies such as zone picking, batch picking, SKU affinity, and wave picking to find the shortest and quickest picking route. Efficient picking routes save time for both human and robot pickers.
- Performance tracking: FMS use labor management features to monitor workers’ live performance. Performance reports show warehouse managers the productivity bottlenecks they must solve to achieve optimum performance.
Improve space utilization
The warehouse layout influences space utility by dictating the flow of equipment, workers, and materials. Achieving warehouse operational efficiency begins with an efficient warehouse layout. Standard layout designs include L-shaped, I-shaped, and U-shaped.
Regardless of the layout design, Logiwa IO helps warehouse managers maximize space by streamlining operations through automation. FMS facilitate orderly operations that enhance space utilization by designing efficient picking routes, using assisted-picking solutions or voice-picking technology.
Foster a customer-centric approach
In today’s hyper-competitive ecommerce industry, brands compete more on customer-centric metrics like customer experience (CX). FMS focuses on the entire fulfillment process from order placement to delivery, ensuring fast, accurate deliveries and excellent customer service. This makes Logiwa IO the ideal solution to satisfy rising customer expectations.
Advanced FMS features driving warehouse efficiency
Tech advancements have augmented FMS capabilities, making it a must-have solution for brands seeking fulfillment efficiency. So far, AI and mobile technologies have impacted FMS the most. AI integration and mobile access in FMS promote operational flexibility, expedite order fulfillment, and enhance worker efficiency.
Practical strategies for FMS implementation
Consider these strategies FMS application:
- Configure for maximum agility: Logiwa IO uses a headless architecture that supports unlimited integrations and the ability to scale for seasonal fluctuations and market growth. This flexibility is a key advantage over traditional WMS, which may not scale as efficiently.
- Conduct employee training: Logiwa IO’s user-centric UI/UX makes onboarding workers quick and adapting to changes easy.
- Continually adapt to market changes: Leverage data analytics to improve ongoing and new warehouse processes.
Go beyond legacy WMS with a fulfillment management system
By integrating AI and machine learning, FMS are acquiring self-learning capabilities, meaning they will improve with time. Top FMS like Logiwa IO already boast dynamic features such as inventory management, warehouse automation, and order processing.
Leveraging Logiwa IO helps you improve warehouse fulfillment efficiency and keeps your customers satisfied. Logiwa champions continuous innovation and technological integration to help future proof your brand. Schedule a demo today and let our fulfillment experts help you make the move to an advanced fulfillment management system.
FAQs about WMS and FMS
What Is the Difference Between FMS and WMS?
A warehouse management system focuses more on optimizing warehouse operations, while a fulfillment management system covers all fulfillment operations, from inventory storage and management to order processing and managing product returns.
