Enter the Fulfillment Management System (FMS).
Powered by AI and delivering omnichannel fulfillment visibility, Logiwa IO is an FMS platform that is meeting tomorrow’s fulfillment challenges today. With Logiwa IO suppliers automate their inventory management operations, reduce human errors while elevating productivity, and scale to meet the pressures of high-volume DTC and B2B markets.
This guide will explore the shortcomings of legacy WMS technology and show how modern solutions elevate speed and accuracy in the inventory management pipeline. We’ll also look at the role that FMS solutions play in overcoming the challenges associated with high-volume order fulfillment, and how Logiwa IO can meet suppliers of all sizes where they are.
Legacy warehouse management systems can’t keep up
Shifting supply chain dynamics, limited omnichannel visibility, rising consumer demands — these are just a few challenges that today’s merchants face as they seek to keep up with the evolving world of order fulfillment. Relying on a legacy WMS solution with limited functionality can further hinder visibility into their warehousing processes, making the problem worse.
Here’s how conventional WMS technology could be slowing your business down.
The high cost of slow and inaccurate fulfillment
Influenced by the “Amazon effect,” the modern consumer expects rapid and flawless delivery, putting immense pressure on fulfillment operations. According to a study by McKinsey, consumers’ willingness to purchase a product dropped by roughly 60% across nearly all industries if the delivery time was greater than three days. While speed now takes a backseat to cost in their priorities, a rapid delivery is still essential for maintaining customer satisfaction.
Unfortunately, traditional WMS often lack the agility to handle high-volume, multi-channel DTC orders, leading to costly processing delays and errors. The result of such fulfillment inaccuracy is not only an increase in returns — further burdening reverse logistics processes — but also more negative customer experiences and a tarnished brand reputation.
When “close enough” isn’t good enough
Legacy tools often lead to more errors in the order fulfillment process. These systems were built for a simpler fulfillment era, when business-to-business (B2B) shipments were sent in bulk and the focus was on storage rather than speed. The ecommerce-driven economy has forced suppliers to pivot towards direct-to-customer (DTC) fulfillment, where high-velocity individual orders are a leading revenue stream.
Conventional WMS tools also have limited automation capabilities, leading to more errors when picking and packing complex orders. The limited automation and greater human involvement often result in suboptimal order fulfillment processes, and a “close enough” approach that often falls short of customer standards.
Request a free demo to learn more about Logiwa WMS.
How modern WMS drive speed and accuracy
Modern warehouse management systems have evolved beyond their legacy versions, improving fulfillment speed and order accuracy. Here’s how.
Slashing order cycle times with warehouse automation
Today’s warehouse automation solutions rely on AI to help employees work smarter, not harder. They employ cutting-edge AI-driven algorithms to improve workers’ productivity by:
- Batching orders for faster picking and packing
- Performing pick path optimization, significantly reducing picker travel time
- Choosing between first-in first-out (FIFO), last-in first-out (LIFO), or first-expired first-out (FEFO) shipping methods to ensure inventory quality and maintain compliance
- Automating shipping rules, eliminating manual decision-making
By automating key inventory management system tasks and optimizing warehousing processes, advanced WMS tools ensure that orders are not only accurately processed but also dispatched with the greatest efficiency.
Achieving pinpoint accuracy and reducing human error
The main advantage of modern cloud-based WMS technology is the inventory synchronization it brings across all sales channels. Using predictive analytics warehouse owners and third-party logistics providers (3PLs) optimize inventory to prevent stockouts and overstocks. This prevents them from running out of their most in-demand products and keeps them from wasting valuable space on inventory that customers aren’t currently seeking.
Modern WMS solutions help reduce human error by offering a more user-friendly experience to employees. They’re easier to learn and come with an intuitive interface, which shortens onboarding time and allows for smoother implementation.
Beyond a WMS: Why high-volume operations need an FMS
WMS solutions help orchestrate the processes in warehouses’ four walls, but today’s complex order fulfillment environment requires merchants to have visibility into their entire supply network. FMS technology goes beyond the operations of an individual warehouse, giving warehouse owners and 3PLs full omnichannel visibility.
From warehouse management to fulfillment management
The headless architecture of FMS tools like Logiwa IO ensures seamless integration with other components of the fulfillment environment, such as:
- Enterprise resource planning (ERP)
- Order management system (OMS)
- Customer relationship management (CRM)
- Transportation management system (TMS)
- Omnichannel ecommerce platforms
- Shipping and billing solutions
The superior interoperability helps teams work through the complexities of the entire fulfillment journey more efficiently than disjointed legacy WMS solutions. The added efficiency is particularly helpful for high-volume third-party logistics suppliers (3PL) and brands that handle both DTC and B2B orders. These fulfillment channels require maximum efficiency to coordinate the timely delivery of their fast-moving inventory. Advanced FMS solutions give actionable insights on how to get each product to the consumer as quickly as possible, no matter how the order is placed.
The power of an AI core in your operations
Conventional WMS solutions may be able to offer recommendations on picking path, warehouse layout, and other inventory management tasks, but FMS solutions like Logiwa IO bake AI into every layer of the product. They move beyond simple automation and provide intelligent optimization for every task on the warehouse floor. This allows for advanced capabilities, such as dynamic slotting and predictive analytics, making the most of the warehouse space based on inventory levels from historical data. These capabilities exceed traditional WMS functionalities and achieve the next level of fulfillment efficiency.
Drive growth with a modern warehouse management system
The modern order fulfillment landscape has undergone numerous changes in recent years, and it needs an inventory management platform that can keep up with these shifts and improve with them. To truly boost fulfillment speed and accuracy in today’s market, suppliers must look beyond the capabilities of a traditional WMS and toward a solution that can do more.
Going beyond legacy WMS tools, FMS platforms are powered by advanced AI algorithms that let you navigate the complexities of the entire order fulfillment lifecycle. Logiwa IO is at the forefront of FMS technology, offering leading-edge functionalities that allow you to tackle the future of order fulfillment head-on.
Automate your warehousing processes, oversee order fulfillment operations across every channel, and optimize every layer of your inventory management pipeline. Experience greater accuracy, higher profits, and improved efficiency with a resilient fulfillment infrastructure that can scale alongside your business and give you a competitive edge.
Ready to see how Logiwa IO can transform your order fulfillment environment? Request a live demo today to find out.
FAQs on modern warehouse management systems
What is a Warehouse Management System (WMS) and why is it crucial for a 3PL?
A modern WMS is the central command center for a 3PL, providing real-time inventory tracking, automating tasks to improve efficiency, and ensuring fulfillment accuracy. By automating processes like order fulfillment, billing, and inventory counts, a WMS reduces human error, lowers labor costs, and provides the scalability needed to grow your business by easily handling increased order volumes and new clients.
How does a modern WMS increase fulfillment speed and accuracy?
A modern WMS increases fulfillment speed and accuracy by leveraging warehouse automation and artificial intelligence (AI) to optimize nearly every task in the fulfillment pipeline.
Key ways a modern WMS boosts performance include:
- AI-Driven Automation: Employs AI algorithms to make employees more productive. This includes automatically batching orders for faster picking and packing and automating shipping rules to eliminate manual decision-making.
- Pick Path Optimization: Uses intelligent algorithms to calculate the most efficient routes for pickers to travel, significantly reducing travel time within the warehouse.
- Inventory Synchronization: A key advantage of cloud-based WMS solutions is the real-time inventory synchronization across all sales channels, which prevents stockouts and overstocks.
- Reduced Human Error: By automating key tasks and providing a user-friendly, intuitive interface, a modern WMS reduces the chances of human error during complex order fulfillment and shortens employee training time.
What are the limitations of a legacy WMS for a growing 3PL?
Legacy WMS solutions were built for a simpler era of B2B bulk shipments and are ill-equipped for the complexities of modern e-commerce, which can slow a 3PL’s business down.
Common limitations include:
- Inability to Handle High-Volume DTC: Traditional WMS systems often lack the agility required for high-volume, multi-channel direct-to-consumer (DTC) fulfillment, leading to processing delays and costly errors.
- Limited Automation: Older systems have minimal automation capabilities, resulting in more manual work, suboptimal processes, and a higher rate of errors in picking and packing.
- Lack of Omnichannel Visibility: Legacy platforms often hinder visibility into warehousing processes and do not provide a clear view across the entire supply network, which is critical for today’s complex fulfillment environment.
- Poor Integration Capabilities: Outdated systems often struggle to integrate with modern e-commerce platforms, ERPs, and transportation management systems, creating disjointed and inefficient workflows.
What is the difference between a WMS and a Fulfillment Management System (FMS)?
An FMS incorporates the core functions of a WMS but adds a broader layer of intelligent, AI-driven capabilities to manage the complete fulfillment lifecycle. FMS platforms like Logiwa IO are built with a “headless architecture,” allowing for seamless integration with other business systems like ERPs, OMS, and e-commerce platforms. This is especially beneficial for 3PLs managing high-volume B2B and DTC orders across multiple channels, as it provides the end-to-end visibility and efficiency needed to coordinate timely deliveries.
How do AI and automation in a modern WMS reduce costs for a 3PL?
AI and warehouse automation in a modern WMS reduce costs by increasing operational efficiency, minimizing expensive mistakes, and optimizing the use of resources like labor and space.
- Lowers Labor Costs: Automation reduces the need for manual labor in repetitive tasks like data entry and inventory updates. AI-driven tools help employees work “smarter, not harder” by optimizing their tasks, such as creating efficient pick paths, which means higher volumes can be handled without increasing staff.
- Reduces Fulfillment Errors: Incorrect shipments lead to costly returns and damage brand reputation. Automation and user-friendly system interfaces dramatically reduce human error in the picking, packing, and shipping processes.
- Optimizes Inventory and Space: Modern WMS solutions use predictive analytics to prevent costly stockouts and overstocking, freeing up capital and ensuring warehouse space is used efficiently. Advanced features like dynamic slotting make the most of warehouse space by analyzing historical data to place inventory optimally.
What key features should a 3PL look for in a modern WMS solution?
A 3PL should look for a WMS that is flexible, scalable, and built to handle the complexities of multi-client, multi-channel fulfillment.
Essential features include:
- Cloud-Based Architecture: A cloud-based or SaaS WMS offers scalability, lower upfront costs, remote accessibility, and easier integration with other systems.
- AI and Predictive Analytics: The system should have an AI core to intelligently automate and optimize everything from picking paths and shipping rules to demand forecasting.
- Seamless, Headless Integrations: A robust API and headless architecture are critical for easily connecting with e-commerce platforms, ERPs, shipping carriers, and other technologies your clients use.
- Multi-Client Management: The WMS must be able to support multiple clients, each with unique workflows, billing requirements, and reporting needs, from a single, centralized platform.
- Advanced Automation Capabilities: Look for features that automate the entire fulfillment process, from batching orders and optimizing pick paths to automating billing and shipping decisions.
- User-Friendly Interface: An intuitive and easy-to-use system reduces onboarding time for employees and helps ensure smoother, error-free operations.
