Warehouse Management Systems: Features, Benefits, and When to Upgrade

Did you know that the number of SKUs in your warehouse can directly impact how smoothly your operations run? The more SKUs you manage, the harder it gets to keep inventory accurate. Plus, if you’re still relying on manual processes, the chances of errors only go up.

The simple solution? A reliable warehouse management system (WMS). It’s not exactly new, but it’s more important than ever. In fact, the warehouse automation market is expected to surpass $30 billion by 2026, which shows just how essential these systems have become in the eCommerce space.

In this article, we’ll walk you through what a WMS is, how it works, and why now’s the perfect time to start paying closer attention to the features that can make your warehouse more efficient.

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What Is a warehouse management system and how does it work?

Imagine a big space filled with your products, shelves stacked high, and team members moving around, ensuring everything’s in the right place. That’s what a typical warehouse looks like. But no matter how straightforward it is at first glance, managing all that can get overwhelming fast, especially if you don’t have a good system to keep things in order.

That’s where a warehouse management system, or WMS, comes in. It helps you stay on top of your warehouse operations. It tells you:

• What products do you have
• Where they’re located
• How much stock is left
• Where things need to go next

Basically, it takes the guesswork out of managing your inventory and helps your team work more efficiently. To give you a clearer picture of what a WMS can do for your business, here’s a breakdown of what to expect:

Inventory management

As you might’ve guessed, inventory management is one of the most important things a WMS does. It keeps an eye on every single product in your warehouse, from the moment it arrives to when it gets shipped out. That means you always know what you have in stock, where it’s located, and when it’s time to restock.

Having this kind of real-time visibility makes a big difference. It’s much easier to find what you need when your system knows exactly where it is. You don’t have to rely on memory or sticky notes.

For businesses with warehousing and inventory management issues, a WMS helps keep stock levels accurate and organized. That leads to fewer mistakes, faster service, and happier customers!

Order management

Once someone places an order, a WMS steps in to help get that order packed, shipped, and out the door as smoothly as possible. It handles the entire process from start to finish, which goes this way:

1. The system receives the customer’s order.
2. It automatically assigns someone or alerts a warehouse worker to pick the right items.
3. Once the items are picked, they’re double-checked against the order to ensure nothing’s missing or incorrect.
4. After that, the verified items are sent to the packing station, where they’re packed properly and shipping labels are added.
5. The packed boxes are weighed and measured to calculate accurate shipping costs and ensure compliance with carrier rules.
6. Then, the boxes are placed in a staging area and grouped by carrier, delivery route, or pickup time.
7. Finally, the carrier arrives, picks up the order, and it’s officially on its way to the customer.

Labor management

Consider this: labor is the biggest operational cost in a warehouse. It can take up anywhere from 50% to 70% of your entire warehousing budget. That’s why managing it well is so important.

A WMS doesn’t just help with inventory and orders; it also supports labor management. It gives managers a clear view of what each team member is working on and how things are getting done. Plus, it helps figure out how to use your workforce more efficiently.

That means tasks aren’t just handed out at random. The system can help match the right people to the right jobs based on their skills, workload, or location in the warehouse. It’s a smarter way to avoid bottlenecks and keep things moving without burning anyone out.

Space optimization

If your goods aren’t stored properly, things can get messy, unsafe, or just plain inefficient. A WMS prevents that by suggesting better ways to store your items. For example, it can recommend placing your fast-moving products in spots that are easier and quicker to reach. It can also organize items by size, type, or category to make everything more accessible.

With these smart storage strategies, you’re making the most out of every inch of your warehouse. It becomes easier for your team to move around, find what they need, and pick orders faster.

Reporting and analytics

A WMS gives you access to helpful reports and real-time data so you’re never left guessing. With this, you can quickly see:

• The inventory you have on hand
• Whether orders are being fulfilled accurately
• How fast are items being picked and packed
• Which parts of your operations might need some attention

It’s like having a dashboard for your entire warehouse. You can spot problems early, make smarter decisions, and keep things running smoothly end-to-end.

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

Already using a WMS but feel like it’s just not cutting it anymore? Perhaps it’s time for an upgrade. As your business grows and things get busier, your tools must keep up, especially those in your warehousing strategy.

Let’s go over some clear signs it’s time to make that move:

Outdated interface or lack of support

If using your WMS feels like stepping back in time, that’s a red flag. Maybe the screen looks old, buttons are confusing, or it’s just not user-friendly. Even worse, you may not get any support when things go wrong.

An outdated system can slow your team down and lead to mistakes. If it’s hard to train new workers or your support team always says, “We don’t offer updates for that version anymore,” then it’s time to consider an upgrade.

Manual processes still dominate

The main reason for using WMS is to automate tasks. But if you still find your team writing things down on paper, updating spreadsheets, or doing lots of repetitive tasks by hand, then your system isn’t doing its job. A good WMS should handle most of that for you, so your team can focus on more important things.

Frequent inventory inaccuracies or order delays

Your WMS should help you keep track of what’s in your warehouse. If it’s not, that’s a major sign that it’s not working properly. Upgrading to a better system can help you get real-time inventory updates and ensure orders are picked, packed, and shipped correctly and on time.

Poor integration with other systems

Your WMS should be able to work with other tools, such as your eCommerce platform and shipping software. When your systems don’t integrate well, important information can slip through the cracks.

You might miss orders, see stock levels that aren’t up to date, or waste time entering the same info in multiple places. If this sounds familiar, it’s a clear sign that it’s time to upgrade to a better WMS.

Lack of visibility or real-time data

The whole point of having a WMS is to give you visibility into your warehouse. If it’s not doing that, then it’s not really doing its job.

Inventory management is one of the most important features a WMS should offer, not just the basic kind. You need real-time visibility. That means it updates as they happen, not minutes or hours later, and definitely not the next day.

Limited scalability or inability to support multi-warehouse operations

As your business grows, your needs grow too, and your WMS should be able to catch up. If your current system can’t handle:

• The volume of products you’re bringing in
• Surge of new orders
• Additional warehouses you’re planning to manage

Then it’s not just falling behind. It’s holding you back. You need a system that grows with you, not one that forces your business to shrink or slow down just to make things work. After all, you shouldn’t have to limit your business just to fit the tools you’re using.

Overlooked WMS features that could boost your warehouse efficiency

Now that you’re familiar with the core WMS features, it’s worth looking at some lesser-known features that can still make a big impact. These are often overlooked, but they can seriously boost your warehouse efficiency.

Don’t forget to check if your WMS includes any of these:

Returns handling

Easy returns have become a standard part of excellent customer service. If your return process is confusing or frustrating, it can hurt your customer relationship.

In fact, four out of five American consumers say they’d stop buying from an online retailer they shop at regularly if the return policy became harder to use. They’d simply switch to someone with a better one.

That’s why businesses turn to a good WMS. With proper returns handling built right into the system, you can simplify the process, avoid costly mistakes, and keep your customers happy.

Mobile device compatibility

Everything’s gone mobile these days, and your WMS should, too! A modern warehouse management system must work smoothly across devices. Besides convenience, it gives your team the freedom to move around the warehouse while staying connected to the system. That flexibility can make a big difference in how efficiently they work.

Real-time alerts and exception management

Whether it’s time to update your system or you’re running low on inventory, real-time alerts help you stay on top of things. They make sure you’re not missing important updates that could affect how your operations run.

A good WMS with real-time alerts acts like a safety net. It gives your team a heads-up when something needs attention, so they can act quickly and prevent small issues from turning into bigger problems.

Compliance and audit trail features

A WMS with built-in compliance tools and audit trails is a big plus if your products are subject to regulations. These features keep a detailed record of everything in your warehouse, from what was done to when and by whom.

It’s worth checking if your WMS includes this. With it, you’ll know exactly when inventory was updated, who processed a return, and how each order was fulfilled. This kind of transparency helps you stay compliant, avoid legal issues, and show proof that everything’s been handled correctly when needed.

Unlock faster, smarter warehousing solutions with iDrive

A reliable warehouse management system helps keep your operations running smoothly, accurately, and ready to grow. From tracking inventory in real time to making the most of your warehouse space, the right WMS takes a lot of pressure off your team. More than keeping things in order, it makes everyone’s job easier!

If you’re ready to level up your warehousing operations, iDrive is here to help. With a network of strategically located fulfillment centers and a team that knows warehouse operations inside and out, we can help you implement the right WMS and solutions to boost efficiency and keep things moving.

Want to see how it works for your business? Connect with our team today!