Warehouse Space Optimization with Cloud-based WMS

While it’s no secret that the online retail segment is rich with opportunity, it may surprise you to know exactly how much. In the 2023 holiday shopping season (Nov. 1 to Nov. 27), consumers spent $109.3 billion USD online, up 7.3% YoY. In the peak hour (10:00 to 11:00pm EST) of Cyber Monday, consumers spent $15.7 million USD every minute.

Given the scale of ecommerce, logistics success would be impossible without effective inventory management. That includes the ability to optimize warehouse space, adapt to fluctuating demand, and scale inventory in real time.

That’s where Cloud-based WMS and Fulfillment Management Systems (FMS) come in. Driven by Artificial Intelligence, Logiwa IO offers online-only retailers unparalleled advantages in leveraging real-time data. Keep reading to learn how to optimize warehouse space and streamline workflows.

Key Takeaways

• Cloud-based WMS and AI-driven Fulfillment Management Systems (FMS), like Logiwa IO, provide real-time insights that enable data-driven inventory management, warehouse space optimization, and agile decision-making.
• AI tailored workflows that constantly adapt to match demand and storage conditions improve picking processes and operational efficiency, boosting order fulfillment speed and reducing storage costs.
• The agility of a cloud-based WMS or FMS facilitates real-time adjustments to inventory levels and demands, ensuring optimal space utilization.
• Employing a cloud-based FMS that utilizes AI enables scalable, efficient, and highly competitive fulfillment operations.

Real-time Data: The Heartbeat of Modern Warehousing

At the core of any successful online retail operation is the ability to quickly make informed, data-driven decisions. Logiwa IO empowers businesses by providing real-time data insights into every aspect of warehouse operations.

According to research, 43% of small businesses do not track their inventory. Half of small businesses may need help accurately serving their customers.

Having instant access to accurate, timely operational data enables you to respond swiftly to market changes and customer demands. Without accurate inventory tracking, you’re at risk for overstocking, which can lead to increased storage cost and waste, and stockouts that can result in lost sales and dissatisfied customers.

Inaccurate forecasting can lead to poor decision-making and inefficient use of resources. The real-time visibility a Cloud-based FMS offers is what enables retailers to maximize storage capacity, reduce excess stock and minimize the risks of stockouts.

Another advantage of real-time data is the ability to optimize physical warehouse space. Traditional WMS technology relies on batch processing, leading to delays in updating inventory levels and inefficient space utilization. In contrast, a Cloud-native FMS ensures that the data is continuously updated, allowing for dynamic and adaptive warehouse layouts that increase worker efficiency and turnaround times.

Related Content: Leveraging Supply Chain Visibility for DTC Fulfillment Success

Tailored Workflows: Precision in Every Operation

The ability to tailor workflows according to specific business needs is another compelling feature offered by cloud-based WMS and FMS. Online-only retailers deal with a wide range of products, each with unique storage and handling requirements. A one-size-fits-all approach no longer suffices in this era of diverse inventories and consumer expectations.

Cloud-based FMS enables retailers to customize workflows to suit the characteristics of different products, ensuring optimal storage conditions and efficient picking processes.

For instance, high-demand products can be strategically placed in easily accessible areas, reducing picking time and improving order fulfillment speed. Simultaneously, slower-moving items can be stored in less accessible locations, optimizing overall warehouse efficiency.

Tailored workflows enhance storage and contribute to a seamless and streamlined operational process, from receiving goods to dispatching orders. For example, in combination with features like smart putaway and AI job optimization, Logiwa IO users are able to:

• Increase productivity by 38%
• Improve task efficiency by 58%
• Ship 93% of orders in 24 hours

Related Content: 9 Ways AI Streamlines High-Volume Fulfillment

Maximizing Warehouse Space: The Key to Scaling Success

Efficient space utilization is a constant challenge for online-only retailers, especially as their inventories grow. In the U.S. alone, a mere 5% increase in business inventories would require companies to add another 700 million – 1 billion square feet of warehouse space.

Better than a  cloud-based WMS, Logiwa’s AI-driven FMS  provides the agility needed to adapt in the moment to changing inventory sizes and demands. The dynamic nature of Logiwa IO ensures that inventory is continuously monitored and adjusted in real time, preventing overstocking or understocking issues. This level of precision in inventory management also translates into:

• Reduced holding costs by lowering expenses associated with rent,  utilities and maintenance.
• Zone optimization to allocate storage zones based on accessibility for in-demand products.
• Optimized picking paths through tailored workflows that minimize   congestion and maximize operational efficiency.

By harnessing real-time data and employing tailored workflows, retailers can unlock the full potential of their warehouse space. This has applications not only for products and shelving but also for walkways, offices, and employee break rooms.

In essence, the cloud-based FMS is a strategic ally, not just in future-proofing warehouses against the uncertainties of the market, but also in managing space effectively.

Adapt, Evolve, and Stay Ahead with Logiwa IO

Embracing the power of Cloud-based FMS is not just a strategic choice—it’s a transformative move away from traditional WMS towards a more agile, responsive, and successful online retail business.

With its emphasis on real-time data and tailored workflows, Logiwa IO is the not-so-secret weapon for achieving operational excellence. By maximizing warehouse space, optimizing product organization, and enhancing order processing, online-only retailers can create a scalable, high-efficiency infrastructure for warehouses with one simple change.

The future belongs to those who can harness the advantages of real-time data and optimized workflows. The time to make that shift is now. To learn how Logiwa IO can future-proof your warehouse, request a demo today.

FAQs Related to Warehouse Space Optimization

Can cloud-based WMS or FMS help with optimizing warehouse space?

Yes, a cloud-based WMS (Warehouse Management System) plays a crucial role in optimizing warehouse space. By leveraging advanced algorithms to efficiently allocate resources and manage inventory placement, Fulfillment Management Systems (FMS) enable dynamic adjustments and scalability, ensuring that warehouse space is utilized to its maximum potential while maintaining accessibility and order accuracy.

How does real-time data warehouse management change warehouse space?

Real-time data warehouse management significantly transforms warehouse space by providing instant insights into inventory levels, demand forecasting, and logistical operations. This allows for immediate decision-making and adjustments to storage strategies, ensuring that warehouse space is optimized for efficiency and can adapt to changing market demands or operational challenges.

How does artificial intelligence help with inventory management?

Artificial intelligence (AI) enhances inventory management by analyzing patterns, predicting demand, and automating restocking processes. AI algorithms can identify trends and optimize stock levels, reducing overstock and understock situations. This leads to more efficient use of warehouse space, improved order fulfillment rates, and reduced holding costs, making inventory management more precise and cost-effective.