Why Your Business Needs a Warehouse Management System

A Warehouse Management System Could Benefit Your Business

If you’re in the warehousing or supply chain management industry today, then you can most likely list the more obvious benefits of using a warehouse management system (WMS) such as increased order accuracy, faster picking and receiving times, improved inventory control, and better customer service to name a few. However, there are other less obvious, but equally important reasons why you might want to invest in a WMS if you haven’t already.

  1. Reduced Employee Theft
    As the logistics industry grows, so does the incidence of employee theft. Warehouse-related theft costs the industry as much as $80 billion each year. In fact, employee theft is a particularly serious problem for distributors carrying high-value items that are easy to re-sell such as copper pipe, electronics, and jewelry. Nobody wants to accuse employees without having evidence, but a WMS can help management isolate exactly what’s gone missing to provide an early warning that employee theft may be occurring right under your nose.
  2. Enhanced Employee Metrics
    A WMS takes the guesswork out of understanding how well (or poorly) employees do their jobs. Managers can use this information to reward high performers, and identify those who not performing up to par. Employees feel validated knowing that their managers are judging their performances based on objective data and not subjective feedback or flawed perceptions from others. These metrics can also be used to foster team building by publically displaying team or individual performance in a central location. This may encourage friendly competition between workers and increase overall productivity.
  3. Improved Competitiveness
    At times, many companies will resist installing a WMS until all of their competitors do, which frankly is too late. Purchasing a WMS sooner rather than later will only put you in a better competitive position now and in the future. It may be a large expenditure now, but you’ll see a return on investment for years down the line. Remember, a WMS can evolve to fit your needs, so you won’t be making large investments to keep it current once it’s installed.
  4. Increased Supplier Confidence
    Like it or not, a messy, disorganized warehouse makes a bad impression. If a supplier doing a walkthrough sees that your warehouse is a cluttered mess, they’re not likely to trust you to meet their strict requirements or fulfill orders accurately. A WMS can bring organization to your warehouse and reduce clutter, which will go a long way toward impressing suppliers and making sure they continue to put their faith in you.
  5. Continued Compliance with Customer Requirements
    Many large retail customers (think Amazon, Walmart, or Target) are now requiring distributors to meet increasingly specific criteria, such as guaranteeing super-fast delivery or supplying detailed inventory data reports. Plus, we all know that customer expectations are only going to continue to increase. A WMS can help you meet these specific customer requirements now and in the future.

These five examples just begin to scratch the surface of how a WMS brings discipline and efficiency to your warehouse operations. If you’re in the supply chain management industry and you haven’t looked into selecting a WMS, then it’s definitely time you did.
If you’re looking for a partner for your warehouse and fulfillment needs, then speak to the experts at Taylored Services. Taylored Services is a fully integrated third-party logistics provider specializing in wholesale, retail, and direct-to-consumer unit fulfillment. Headquartered in Iselin, New Jersey, they operate 1.5 million square feet of warehouse and distribution space strategically located near the nation’s busiest ports, including Los Angeles, Long Beach, and New York. Since its humble beginnings in 1992, Taylored Services has grown to become a national leader in distribution, fulfillment, and warehousing.


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