7 Signs it’s time to upgrade your warehouse management system

High-volume fulfillment centers rely on a warehouse management system (WMS) to track orders, shipments, and productivity in the warehouse. The WMS is essentially the brain behind everything happening on the warehouse floor—from picking to packing to shipping. However, legacy WMS may not be able to keep up and fail to provide the tools needed to meet increasing customer demands, which can harm a fulfillment center’s ability to maintain its edge over competitors.

Logiwa surveyed our network of third-party logistic providers (3PLs) and warehouse networks dealing with direct-to-consumer (DTC) and business-to-business (B2B) clients to find out what led them to upgrade their warehouse management systems. Here are seven of the top reasons we heard.

1. Too much reliance on manual processes

It’s easy to fall into bad habits that rely on manual, error-prone processes, especially in warehousing. Employees may become accustomed to handling their jobs according to a status quo that hasn’t changed in years. Or, the fulfillment center’s WMS may not contain supportive features to handle modern warehouse functions. While it may be challenging to introduce change, especially among workers who are quite comfortable in their roles, doing so can significantly reduce costs and mistakes that negatively impact overhead and the customer experience.

Today’s technology capabilities are far more advanced than they were just five or 10 years ago. Modern fulfillment management systems (FMS), like Logiwa IO, can speed up warehouse operations with the help of artificial intelligence (AI) and automation. Using Logiwa IO, fulfillment centers can configure workflows efficiently by optimizing for product specifications and picking locations. For instance, AI can group picking tasks by location, reducing travel time by warehouse associates.

Learn about the benefits of Logiwa IO workflows in the short video above.

2. Lack of real-time inventory visibility

Inventory management forms the heart and soul of any product-oriented business, from ecommerce companies to retail stores. Too much or too little inventory control hampers the supply chain. For instance, if there’s not enough inventory to fill orders, it results in unhappy customers. On the other hand, slow-moving stock leads to higher carrying costs. The solution is real-time inventory tracking, which provides clear insight into incoming orders and current inventory levels.  Today’s fulfillment management systems incorporate cloud-based technology to track customer orders and available inventory in real-time. They provide predictive analytics tools to forecast customer demand and avoid stockouts or oversupply issues. If the current WMS doesn’t support real-time inventory visibility, fulfillment centers are missing out on significant benefits that can improve supply chain management.

3. Few integrations with ecommerce platforms

Online sellers and retailers rely on third-party logistics providers for quick turnaround on customer orders. However, if a WMS doesn’t integrate with popular platforms such as Shopify and Magento, it’s nearly impossible to keep up with a retailer’s demands. Warehouses won’t receive new orders immediately, which delays how quickly customers receive the items they buy.

4. Poor scalability and flexibility

Predicting market changes and consumer demands is notoriously tricky, especially among fulfillment centers with outdated warehouse management systems. In the worst cases, managers may rely on manual processes and unwieldy spreadsheets to predict demand fluctuations, which rarely leads to optimal results.

By introducing AI into the logistics process, warehouses can anticipate changes in consumer trends and the overall market. AI-driven fulfillment management systems use analytics to help spot early trends that can help warehouse managers augment staff schedules and inventory levels.

5. Too many order fulfillment and shipment mistakes

Most fulfillment centers aim to pick, pack, and ship orders perfectly every time. Failing to meet customer expectations by sending the wrong item, damaging items during the shipping process, or sending items past the expected delivery date creates a bad experience that leads to customer complaints. While a one-off mistake might not lead to reputational harm, regular errors can — hurting the relationship between the fulfillment center and its clients.

While employee mistakes may be partly to blame for shipping errors, an outdated WMS system can be the root cause. Newly designed fulfillment management systems (FMS), like Logiwa IO, powered by AI offer significant benefits that can improve order fulfillment accuracy. With Logiwa IO, fulfillment centers benefit from AI job optimization that relies on operational data to instruct packing procedures and reduce manual mistakes. On average, Logiwa IO boosts efficiency by 58% and leads to increased fulfillment accuracy.

6. Inadequate reporting and analytics

Older WMS systems rely on outdated dashboards with limited functions, making it exceedingly difficult to stay on top of warehouse activities, order status, and inventory. Some warehouses revert to spreadsheets to manage their data, making informed decisions nearly impossible.

Upgrading to a newer FMS system with powerful analytics features, including business intelligence and fully customizable reports, streamlines warehouse processes and makes pulling the proverbial data needle from the haystack easier.

7. High operational costs and limited ROI

Over time, older WMS systems can grow exceedingly costly to maintain. With an in-house system, warehouse managers may struggle to find software technicians with the skill sets to maintain it and keep up with upgrades. Fulfillment centers that rely on older off-the-shelf WMS systems may stop receiving upgrades and features. That makes it hard to keep up with market trends and may lead to security vulnerabilities. The solution is to upgrade the system to one that embraces all the technological advancements available today, including AI, machine learning, and automation. Today’s forward-thinking FMS systems use a cloud-based platform to provide immediate updates, so the system is consistently upgraded with the latest features and tools.

While investing in an entirely new warehouse management system may involve some upfront cost and time, the ROI can be significant. The cost savings gained, including reduced time spent maintaining an older system and increased efficiency in the warehouse, can pay for the system quickly. Over the long term, the ROI gained from an efficient FMS system can be measured by time-to-value, scalability, and process improvement.

To estimate anticipated ROI, take an honest look at your current WMS system’s limitations and understand the features gained from an upgrade. For instance, users of Logiwa may see greater workflow optimization, improved inventory accuracy, lower carrying costs, and enhanced labor efficiency.

Time to upgrade to a new warehouse management system? Think Logiwa.

The signs that a fulfillment center has outgrown a warehouse management system may be pretty clear, especially if there is an uptick in customer complaints, slower order turnaround, and less-than-stellar pick-and-pack times. There’s no reason to stick with an inefficient system that impedes productivity and doesn’t provide the right support to meet customer demands.

Logiwa provides warehouse management systems for high-volume DTC and B2B organizations. Logwia IO easily integrates with leading ecommerce, shipping, and marketplace platforms, including Amazon, USPS, UPS, FedEx, and Shopify, making it easy to streamline orders and track fulfillment in real-time.

To explore Logiwa IO’s benefits for high-volume warehouses, schedule a demo with a Logiwa fulfillment expert.

FAQs about upgrading your WMS