E-commerce is a highly competitive space for most of the products. They have to focus on sales and marketing and they should spend. If they don’t have enough capital to spend on sales and marketing, they stay behind the competition and they are for sure having hard times growing and selling more. The other option would be to support sales and marketing through high margins. However, the competition won’t allow them to set high product prices to gain high margins. E-commerce businesses have a few main cost components. One of them is inventory holding and operations costs. By cutting their operations costs, they achieve price elasticity and higher margins. Through higher margins, they have more funds to spend on sales and marketing and they start growing in e-commerce at a steady level.
Accurate Warehouse Management is the Key to Success
Warehouse management system for e-commerce helps companies firstly to have access to real-time and accurate data such as inventory, order, shipment. When the accurate inventory data is pushed back to marketplaces and shopping carts, the companies start avoiding overselling and missing sales opportunities. With the accurate inventory and order data, the companies can create the base for demand forecasting and optimize their inventory. They can hold the right inventory mix and quantity by minimizing their inventory holding costs.
Also, the customers are provided with on-time and accurate data of their orders and shipments. So the customer service level is improved drastically and customers become returning customers.
Lastly, the e-commerce businesses start saving costs from their operational resources and manpower that they use for warehousing and order fulfillment. This is one of the real gains of a warehouse management system for an e-commerce business. The businesses should not be satisfied with only scanning barcodes and monitoring inventory in and out. The warehouse management system should add value to the business by the real means of automation.
What Makes A Good Warehouse Management System?
Choosing a good warehouse management system is not easy, especially if you don’t know your options for picking the warehouse system that is right for you. How do you know what to look for in a warehouse software, or how to tell the difference between one or the other? The answer does not necessarily lie in the price of the product; just because the warehouse management system is more expensive, it doesn’t mean it is the best for you. However, there ARE ways of finding the perfect system for you. Here are a few key traits to look for in a good warehouse management system:
A warehouse system that works accurately from start to finish with the minimal amount of errors per order line is a good warehouse management system for retailers. This ensures that your inventory transactions will be recorded properly, with the smallest amount of mishaps. By checking this key component, you will save yourself damage-control time in the long run.
You can ensure that a good warehouse management system is cost-effective by checking whether you will have to make an investment in an on-premise system or subscribe to a cloud-based system. Cloud-based warehouse systems are much more cost-effective than licensing an on-premise system because the investment and implementation is far cheaper, and often you have more tools at your disposal without worrying about the hardware costs. Cloud warehouse management system can also be constantly updated with the latest and greatest tools, giving you a more recent version of the system with no reinstallation hassle.
Whether you are a retailer or supplier, a good warehouse system should be adaptable to any customer need and be ready to integrate with various shipping platforms, such as UPS, USPS, DHL and FedEx. Every online retailer has a different shipping carrier, so make sure that your warehouse management system is flexible enough to integrate with that, as well as your inventory, purchase order and order processing systems.
Finally, the most important thing to look for in a good warehouse management system is one that is transparent and provides information on-demand. It should allow you to see what is going on with your inventory in real time. Look for a warehouse system that provides real-time reporting, as well as a clear view of the date and time of warehouse and fulfillment activities. This ensures that if there is a problem, you can easily find the source of the issue.
The ultimate purpose of a good warehouse management system is to make warehouse management worry-free—does your system do that for you? Logiwa’s multi-channel inventory management system checks all these boxes and more. Our B2B and B2C cloud warehouse management system is one of the most advanced systems around. Check out what we can do for you here.
Increase Your Margins with Warehouse Management System
E-commerce companies, by being agile and responsive to sales and marketing in their supply chains, are able to sell more products.
E-commerce is a very dynamic business environment. The sales and marketing policies and market conditions are changing fast. When the sales and marketing departments change their policies, the e-commerce supply chains should be responding to these changes very fast. Because most of the sales and marketing campaigns and policies show the real effect in supply chain and logistics transactions and eventually the products and services that are delivered to the customer. Most advanced warehouse management systems (WMS) that are flexible and agile enough, provide the agility and responsiveness to e-commerce supply chains.
E-commerce companies have 2 groups of costs that have the highest portion. Marketing costs and logistics costs. Their margins get directly affected by these costs. The competition for e-commerce companies is mostly based on pricing. The logistics management systems, especially warehouse management and order fulfillment systems are able to achieve 15-20% logistics cost savings in e-commerce operations. When an e-commerce company achieves these savings, there are 2 ways that they will go one step ahead in the competition.
Since their margins are increased by lowering logistics costs, either they can be more flexible with their pricing or they can spend more on marketing. Either way, they are able to sell more.
Scale up your Retail Business with the right Solution
Reduced operational costs increase your margins that end up either in price elasticity or increased marketing budget. Logiwa leverages retailers’ sales through optimized margins by harmonizing all sales channels within the same supply chain and allowing you to scale your supply chain.
Cycle time is the new KPI of retail and e-commerce. It represents the frequency of order shipment. The lower the cycle time, the faster the fulfillment operation is. Logiwa reduces your cycle time with adaptive and smart logistics systems.
Logiwa balances your supply chain by unblocking your bottlenecks and planning your resources. Logiwa offers “Bottleneck Solver” functionality, a state-of-the-art technology, to monitor, plan and manage your order fulfillment processes. By unblocking bottlenecks of the processes, reduce your cycle time. We allow you to ship more.
Seamless processes play a key role in fulfillment productivity. Logiwa also brings productivity to fulfillment. Although the workforce is crucial for accomplishing the customer experience, smart logistics systems play a key role to enhance customer service and reduce costs by guiding the workforce efficiently.
Logiwa‘s order fulfillment functionality is designed to improve retail and e-commerce operations. Logiwa provides smart process designs with cutting-edge technology to make it seamless. Logiwa helps you complete more transactions with fewer resources.
Inaccurate transactions end up in higher costs in supply chain operations. When an inventory transaction is completed inaccurately, it means that it will be done twice if noticed right away. If not noticed, it will have bigger losses for the company such as shipping a wrong item to the customer, locking down a location for counting. Doing transactions accurately in the first time definitely brings cost efficiency to the supply chain transactions and obviously increases margins.
Feel the power of control in your logistics operations. Logiwa can be configured to grant users the required privileges. Within these grants, the system won’t let users do mistakes. Logiwa benefits from various technologies to achieve accuracy such as a barcode, voice recognition, pick-to-light, automated material handling, conveyor and sorter systems.
Written by Erhan Musaoglu
Erhan Musaoglu is the CEO and Co-Founder of Logiwa.