As your inventory-based business grows, QuickBooks inventory and accounting software alone is not enough. You need a system that’s designed to help you keep track of the movement of your goods throughout your supply chain.
And as your warehouse grows, you need a more sophisticated way of centralizing and overseeing your warehouse operations. In other words, you need a warehouse management system.
Logiwa is a software application integrated with QuickBooks inventory software to execute and support distribution center and warehouse operations. It supports warehouse managers with their day to day warehouse operations, including planning, organizing, staffing, directing employees or the movement and storage of inventory into, within, and out of a warehouse.
Don’t miss any order, see all of them in our “Order Processing” screen with their statuses
Create smart batches to group the orders for easy pick and pack
Don’t let wrong or missing products to be shipped to your customers
Save time by our smart order picking algorithms and mobile scanning functionality
Find the best rate with our “Rate Shopping” functionality
Easily print labels and packing lists by our “Batch Printing” functionality
Route your orders automatically across your warehouses with our smart “Order Routing Algorithm”
Manage your returns effectively
When your finance team uses Quickbooks for its year-end analysis, one of the most important numbers they’ll look at is the inventory turnover ratio. It indicates the “number of times a company sells and replaces its stock of goods during a period.” The inventory turnover ratio is a great indicator of how effective your company is at converting inventory into sold goods.
All your Quickbooks inventory management system can tell you is whether you’re doing well (you have a high inventory turnover ratio) or poorly (your inventory turnover ratio is low). What you need is a system that supports warehouse management, not just inventory reporting.
Sophisticated Order Picking Processes
Picking is one of the most vital processes within your warehouse. If you want to get orders to customers on time, you need workers who can quickly retrieve them so they can be packed and placed on your outbound trucks.
That said, even the most devoted worker has limits to how quickly they can walk or how many items they can carry in one trip. Throw in the complication of multi-item orders and a massive warehouse, and you’re looking at a recipe for constant warehouse waste.
Warehouse waste is any instance where your warehouse is using resources, including time, people, space, and materials, inefficiently. The warehouse waste most commonly associated with the picking process is motion waste, which is the unnecessary movement of people.
Most of the time, motion waste is unintentional. For instance, a worker with a pick list may work their way down a pick list, criss-crossing around the warehouse, only to realize after the fact that it would have been efficient to tackle the picks in batches. That said, the amount of time it would take to group items on the pick list based on their location within the warehouse would be significant, so employees simply grab items one by one.
On the other hand, a Logiwa WMS integrated with your Quickbooks software allows you to support sophisticated pick processes like batch picking, wave picking, and zone picking.
For example, batch picking groups individual items from several orders. If you’ve got several orders, and each item includes makeup brushes, mascara, eyeshadow, or eyeliner, you figure out how much of each item you need and collect them in batches: 47 makeup brushes, 22 mascara wands, 32 eyeshadow pallets, etc.
Once the correct number of each item is packed, they’re taken to a staging area and sorted. This ensures that workers aren’t criss-crossing the warehouse in an inefficient way.
Of course, it is incredibly difficult to facilitate this manually. A sophisticated warehouse software is required to create lists for batch picking. The same idea applies to wave picking. This method schedules picks in “waves” that are tied to a specific schedule, like the schedule of outbound trucks. Your WMS ensures items are picked in the correct order.
For example, if a customer requests and pays for next-day shipping, their order can be bumped up to the first wave to ensure it winds up on one of the day’s outbound trucks. Finding those orders and pushing them to the day’s pick list requires a warehouse management system.
Logiwa also supports directed putaway methods. A timely putaway process ensures items are physically entered into inventory in time for customer orders. Logiwa optimize the walking paths and provide the best routes for your workers to take either while putting items away or picking them for orders.
Logiwa allows you to streamline your shipping processes. It can assist with pack type selection, to ensure your workers choose an appropriately sized box. This doesn’t just mean finding a box that’s big enough. It means finding a box that isn’t too big, since using large boxes for small items is unnecessarily expensive in terms of material and shipping costs.
Logiwa helps your workers pack items into boxes correctly by barcode scanning. This reduces the amount of time workers spend manipulating and fitting items into packing boxes.
Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x increased shipments.
At the same time, our software allows you to execute advanced fulfillment strategies like wave-planning and cross-docking.
Learn more by downloading our warehouse management whitepaper.
Integrating a 3PL WMS with Quickbooks inventory and accounting software also allows you to optimize a number of important functions including purchase order management, billing statements if you’re a 3PL company, and invoice generation and distribution.
Businesses process 7 documents, on average, during each purchase cycle, which extends the purchase cycle. This in turns delays order fulfillment and invoicing which isn’t good for a company’s cash flow. On the other hand, if information could automatically flow from a customer to the company and to the relevant departments within, the entire process could be sped up.
Once a purchase order is recorded in Quickbooks software, that information can be fed to warehouse managers who know what they need to work on to fulfill that order in time. The alternative is waiting for someone to manually enter that order into Logiwa.
If you’re a 3PL, integrating Logiwa 3PL Software with Quickbooks takes the guesswork out of billing. Oftentimes, it’s difficult to capture all of the revenue to which you’re entitled. The sheer complexity of the billing, which includes variables like storage space and warehousing activities, leads 3PLs to simply bill for what they think they’re owed so they can get an invoice out the door.
In other words, they’re leaving money on the table, because it’s difficult to track and record what they’re owed for specific services.
On the other hand, integrating Logiwa with Quickbooks helps solve this problem. Instead of providing the service and retracing their steps later, You can create customer categories and billing contracts within Logiwa.
This way, every warehouse activity that’s initiated - inbound logistics, putaway, picking, packing, shipping - for a specific customer is tracked. And once it’s tracked it can flow directly to the Quickbooks accounting system for easy invoicing.
And these are only the basics. Tracking warehouse space and warehouse activity should be the starting point for any fulfillment business. Integration allows business leaders to enhance their processes further by making it easy for the company to offer and track different rates for customers, varying contract requirements and service level agreements, rebates, volume-based discounts, and more.
In addition, you can back up your billing with proof. If a customer inquires about their bill, you have the systems in place to find the specific activity or request that led to a specific line item on their invoice.
Finally, Logiwa integrated with Quickbooks inventory and accounting ensures you’re billing customers the right amount at the right time. You may have different billing arrangements with your clients, and keeping on top of the billing periods is an incredibly difficult task to conduct manually, especially as your business scales up. You can track when specific activities took place for each customer through Logiwa and use billing codes to transfer them to your Quickbooks system, where invoices will be generated on the agreed schedule.
"Easy-to-configure WMS, in-depth functionality, capable of responding to various industries, top notch in retail and e-commerce, very knowledgeable team of supply chain engineers.."
"We are using Logiwa WMS for 5 years in multi-client and multi-warehouse environment. It is easy to use and there are a lot of built-in functions. I recommend it for all in 3PL fulfillment operations in online and retail."
"Focus on your business processes, Logiwa WMS handles the rest. The project was a good opportunity for us to redesign our inventory processes."
"One of the absolute best support teams I've ever worked with. They can build or fix anything you need very easily."
There’s no understating the importance of warehouse and inventory management. When you’re running a product-based business, getting the right products to the right customers at the right time in the most cost-effective manner possible is a mission-critical goal. But once that’s done, it’s important to take things a step further by pursuing integration.
If you’re a relatively new business, a warehouse management system probably isn’t the first software you invested in. Chances are, the first software system you invested in is an accounting tool like Quickbooks. Quickbooks dominates the accounting software marketplace. It has about 80% market share and supports the accounting and finance of about 29 million businesses in the United States.
As you add more systems to your suite of enterprise resources, one of two things happen. You either:
While the first option is easiest, the second is the most effective. Integrated systems within a warehouse lead to:
While the overall purpose of inventory management is to ensure the viability of your company, there are two sub-purposes that inventory management serves:
For instance, your Chief Financial Officer wants visibility over inventory because it’s a critical component on a company’s balance sheet. It’s also scrutinized by investors.
On the other hand, your Chief Supply Chain Officer or Warehouse Manager is concerned about inventory management from a customer service point of view. They want to ensure that there are enough goods in the warehouse to get to customers on time, without tying up capital in carrying costs.
Typically, these two parties conduct their inventory management separately and when needed, they reconcile their numbers which is an incredibly arduous process.
On the other hand, with a warehouse management system that’s integrated with Quickbooks inventory, this happens quickly and easily.
But what about if your accounting system already tracks your inventory? Do you even need a dedicated WMS with its own inventory management system?
While Quickbooks helps you put your inventory into context to complete accounting and finance tasks, such as creating financial statements, it does not allow you to manage that inventory and the larger warehouse. A WMS that integrates with Quickbooks allows your business to achieve productivity and profitability.
Integrating your warehouse operations with your Quickbooks software is an ideal place to start to reap the rewards of data sharing across your organization.