Utilizing warehouse management systems to reduce costs
One of the biggest differences between best-in-class retailers and the rest is the effectiveness of their warehouse operations. Distribution centers have become pivotal in recent years, both as tools for storing stock, delivering inventory to physical stores and preparing deliveries for eCommerce orders. As such, warehouse management systems have become pivotal assets.
As one report from Aberdeen suggests, leading retailers have used warehouse management systems to reduce costs over the past decade. For most retailers, this is still a goal and is something they are working toward accomplishing, with six in ten respondents suggesting they have not been able to lower distribution costs in two years.
The benefits of these solutions are real. Retailers with warehouse management systems in place are able to reduce customer order cycle times. They can also maintain better control over their inventory, reduce operational costs and improve efficiencies. It should come as no surprise that many merchants are looking to invest in warehouse management systems and other types of eCommerce technology.
So, what should retailers look for in a warehouse management system? That depends on the types of customers they’re providing services to. As Multichannel Merchant noted, some retailers will look for functions such as paperless receiving while others want greater order picking flexibility.
With retailers increasingly relying on warehouses as the backbone of their omni channel initiatives, utilizing the best warehouse management system that fits their specific needs is pivotal to achieving future success.