Blogpost
In ecommerce, speed, accuracy and efficiency is key to success. At the heart of this efficiency is a good ecommerce warehouse management system (WMS). A WMS will streamline processes from inventory control to order management and shipping systems so you can meet customer expectations while reducing operational costs.
This guide will cover the importance of ecommerce warehouse management systems, what to look for, how they integrate with other business software and a comparison of the top WMS solutions. We’ll also look at how these systems improve warehouse efficiency, customer satisfaction and shipping costs and WMS vs inventory management systems (IMS).
An ecommerce warehouse management system (WMS) is software that helps you manage inventory, automate workflows and optimise the order fulfillment process in your warehouse. It’s designed to handle the complexity of modern ecommerce platforms where orders come from multiple channels and stock needs to be managed across multiple locations including fulfillment centers.
A modern WMS uses native Apps for mobile handheld devices to guide employees and increase productivity.
Ecommerce businesses have high volume transactions and managing orders from multiple platforms like Shopify or WooCommerce requires precision. A warehouse management system integrates with these platforms, gives you real time visibility into inventory and ensures inventory levels are accurate. This improves warehouse operations and reduces errors.
With warehouse management software, ecommerce brands can:
Track and control warehouse inventory in real time.
Automate tasks like picking, packing and shipping.
Optimize order management and order fulfillment for faster delivery.
Integrate with enterprise resource planning (ERP) systems and shipping systems to reduce costs and improve efficiency.
A Warehouse Management System (WMS) plays a pivotal role in the supply chain by coordinating and optimizing warehouse operations, inventory management, and order fulfillment. Acting as a central hub, a WMS connects various stakeholders, including suppliers, manufacturers, distributors, and customers. By streamlining warehouse processes, a WMS helps reduce costs, improve efficiency, and increase customer satisfaction.
In the complex web of supply chain activities, a WMS ensures that inventory is accurately tracked and managed, orders are fulfilled promptly, and products are shipped efficiently. This level of coordination is crucial for maintaining a smooth flow of goods from suppliers to end customers. By providing real-time data and automation, a WMS enhances the overall performance of the supply chain, making it more responsive and agile.
Both warehouse management systems (WMS) and inventory management systems (IMS) are important for ecommerce businesses but they serve different purposes.
There is some ambiguity regarding this terms and some IMS providers might present themselves as having warehouse management features but in most cases they do not include truly optimized picking routes and other essential WMS functionalities.
Operational Focus:
Inventory Management System (IMS): Focuses mainly on tracking stock levels and managing orders. An IMS gives you visibility into available inventory and helps you plan restocking but doesn’t provide detailed warehouse automation.
Warehouse Management System (WMS): Optimises warehouse workflows like picking, packing, shipping and inventory tracking. A WMS automates tasks, tells warehouse staff how to handle orders within the warehouse.
Warehouse Automation:
A big advantage of a WMS over an IMS is the ability to automate warehouse operations and provide mobile solutions. For example many WMS platforms come with a mobile app that allows warehouse staff to scan barcodes, pick products and check order details in real time. This increases productivity and reduces errors.
An IMS doesn’t have a mobile app for warehouse employees. It focuses on tracking inventory levels without automating operational tasks.
In short, a WMS controls both inventory and warehouse operations whereas an IMS only tracks inventory without the operational efficiency of a WMS.
A good ecommerce warehouse management system has several features that help businesses run smoothly and meet supply chain operations goals. Here are the key ones:
Real time inventory control means businesses always have accurate stock data. A WMS tracks inventory across multiple warehouses, reduces the risk of overselling, stockouts or excess inventory. With real time data, warehouse managers can make informed decisions on restocking and storing inventory.
If you are selling online you want the stock availability to be updated as fast as possible to avoid overselling (selling more items than you actually have on hand) to your customers.
With a modern WMS you can track inventory levels on a bin or warehouse position level. Since items are scanned when they are put-away and stored in a given bin and when they are picked from that precise shelve you can see exactly where the inventory is inside your facility.
Another important feature of ecommerce warehouse management software is the ability to integrate with leading ecommerce platforms like Shopify, Magento and WooCommerce. By syncing inventory across all channels this feature ensures businesses have order accuracy and no fulfillment errors.
Also some WMS systems can integrate with existing tech stacks including point-of-sale (POS) systems. For example Shopify’s POS system can integrate with PULPO WMS so businesses can sync store inventory with their ecommerce operations and have real time visibility of stock both online and in physical stores.
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Automating tasks like picking, packing and shipping is key to scaling operations efficiently. Automation reduces manual intervention, minimizes human error and speeds up the fulfillment process, resulting in faster delivery and better customer satisfaction. This is especially important for ecommerce and direct-to-consumer businesses.
In returns handling, the WMS Software can help you update inventory management data faster by processing returned goods faster and with accuracy. This helps you speed up refunds to increase customer loyalty, and if the items are in a good state you can make them available for sales online faster.
A good WMS gives you full visibility into the order management process including real time order tracking. This means timely delivery, no delays and better customer experience.
As ecommerce businesses grow they need a WMS that can grow with them. A warehouse management system must be flexible enough to handle growing order volumes, additional fulfillment centers and new sales channels without disrupting business operations.
Using a warehouse management system has many benefits from improving warehouse efficiency to better customer satisfaction. Here are the key ones:
A WMS gives you real time inventory tracking so you always know your exact inventory levels. This reduces the risk of stockouts or overstocking and helps you avoid losses from excess inventory while ensuring products are available to customers.
Automation in the fulfillment process means businesses can fulfill orders faster and more accurately. This means faster shipping times, fewer errors and better customer satisfaction. Small businesses and large enterprises alike benefit from reduced fulfillment times.
Integration with shipping systems helps businesses reduce shipping costs by selecting the best shipping routes and carriers. Also automating label generation and shipping process saves time and reduces errors which directly impacts profitability.
A common integration for multi-carrier shipping labels is Shipstation.
A WMS helps businesses use their warehouse space more efficiently by organizing products better. This means better productivity and a smoother running warehouse especially in large distribution centers.
A big advantage of WMS over other tools like ERP or accounting systems is that it can deliver a measurable return on investment (ROI). With a WMS the impact on labor productivity and error reduction is immediate and quantifiable. Warehouse management services that automate manual tasks reduce overtime, improve accuracy and minimize training requirements all of which means lower operational costs.
WMS software benefits:
Overtime reduced: Automation means tasks are completed faster with fewer errors so no need for extended hours.
Less dependence on specific employees: With processes automated businesses are less fragile to employee turnover as new employees require less training.
Labor productivity increased: With less manual intervention warehouse staff can focus on high value tasks and overall efficiency is improved.
For ecommerce businesses this means WMS is one of the fastest and measurable ROI.
Choosing the right WMS for your business. There are many types of WMS out there, each with features suited for different operations.
Standalone WMS solutions focus only on warehouse management. These systems are great at managing inventory levels, streamlining warehouse tasks and optimizing order fulfillment process. While they have robust functionality they may need to be integrated with other systems like ERP for a full solution.
For: Small businesses or ecommerce companies looking for a dedicated solution for warehouse operations without full business software integration.
An integrated WMS is part of a full enterprise resource planning (ERP) system. This type of WMS manages warehouse operations and integrates with other business functions like accounting, procurement and sales.
For: Larger businesses that need management across multiple departments including the warehouse.
Cloud WMS means flexibility and scalability with lower upfront costs. These are accessible from any device with internet access so perfect for businesses with remote or multi-location operations. A cloud WMS can grow with your business and offers flexibility as you scale.
For: Growing ecommerce businesses that need flexibility and scalability.
Some WMS platforms are designed for ecommerce businesses, integrating with major ecommerce platforms directly, automating warehouse tasks and advanced order management features. These are for high volume ecommerce operations and seamless integration with fulfillment centers.
A modern Ecommerce Warehouse Solution should be able to integrate to your ecommerce platform but also to other systems like ERPs, Shipping and accounting tools. Some entry level WMS systems might be limited to a small number of integrations and can limit your business once you are growing and consider changing your tech stack.
An open, well defined API is a must-have for a warehouse software solution in online retail.
If you have both B2B and B2B sales, make sure that the WMS you are evaluating can handle different types of orders (high volume, low volume) and has flexible picking strategies like split picking and different types of multi-order picking.
For: Ecommerce retailers, fulfillers and direct-to-consumer brands that need specialized solutions for multi-channel sales and fulfillment.
Warehouse operations and logistics are critical components of a WMS. These involve the management of inventory, storage, and the shipping of products. A WMS optimizes warehouse operations by automating tasks such as receiving, storing, picking, packing, and shipping. This automation reduces manual intervention, minimizes errors, and speeds up the fulfillment process.
With real-time visibility into inventory levels, businesses can make informed decisions about inventory management and supply chain optimization. This visibility ensures that stock levels are accurate, reducing the risk of stockouts or overstocking. Additionally, a WMS helps in organizing the warehouse layout efficiently, which further enhances productivity and reduces operational costs.
Warehouse logistics and management involve the planning, organization, and control of warehouse operations. A WMS provides the necessary tools for effective inventory management, order fulfillment, and shipping. By optimizing warehouse layout and automating routine tasks, a WMS helps businesses reduce labor costs and improve productivity.
Effective warehouse management ensures that products are stored in the most efficient manner, making it easier for warehouse staff to locate and pick items quickly. This not only speeds up the order fulfillment process but also reduces the likelihood of errors. By streamlining these operations, a WMS contributes to a more efficient and cost-effective warehouse environment.
Returns and reverse logistics are essential parts of the supply chain that require careful management. A WMS helps businesses handle returns efficiently by providing tools for tracking and processing returned products. This includes updating inventory levels and product information to reflect the returns accurately.
By automating tasks such as inspecting and processing returned items, a WMS ensures that returns are handled swiftly and accurately. This not only improves customer satisfaction but also helps businesses recover value from returned products. Effective reverse logistics management can significantly reduce the costs associated with returns and improve overall supply chain efficiency.
Supply chain management modules are integral components of a WMS, encompassing various aspects of the supply chain, including inventory management, order fulfillment, and shipping. These modules enable businesses to optimize their supply chain operations, reduce costs, and improve efficiency.
Inventory Management: A WMS provides tools for managing inventory levels, tracking product movement, and optimizing inventory storage. This ensures that businesses always have accurate stock data and can make informed decisions about restocking and inventory placement.
Order Fulfillment: A WMS automates the order fulfillment process, including picking, packing, and shipping. This automation reduces manual errors and speeds up the fulfillment process, leading to faster delivery times and improved customer satisfaction.
Shipping: A WMS offers tools for managing shipping operations, including carrier selection, rate calculation, and label printing. This helps businesses reduce shipping costs and ensure timely delivery of products.
Supply Chain Visibility: A WMS provides real-time visibility into supply chain operations, enabling businesses to monitor and manage their supply chain more effectively. This visibility helps in identifying potential issues and making proactive decisions to optimize supply chain performance.
By providing these supply chain management modules, a WMS helps businesses streamline their operations, reduce costs, and enhance overall efficiency.
When choosing a WMS you need to consider performance, flexibility and integration. Below is a comparison of leading warehouse management software solutions, including PULPO WMS, the best for ecommerce.
|
WMS |
Key Features |
Starting Price |
Best For |
|---|---|---|---|
|
PULPO WMS |
- Seamless integration with Shopify, WooCommerce, Magento |
Customized |
Ecommerce businesses needing flexible, cloud-based solutions |
|
|
- Mobile access via Android app for efficient warehouse staff |
|
|
|
|
- Multi-tenant architecture with real-time data |
|
|
|
- Barcode scanning and purchase order management |
Customized |
Large warehouses with high-volume orders, less suited for ecommerce |
|
|
- Inventory and sales order management |
From €39/month |
Small to medium-sized businesses |
|
|
- Full integration with SAP ERP |
Based on requirements |
Large enterprises with complex supply chains |
|
|
- Comprehensive solution with high transaction volume management |
Customized |
Enterprises needing integration with Oracle ERP, but less suited for smaller businesses |
|
|
- Advanced optimization for high-volume ecommerce operations |
Customized |
Well-suited for larger businesses |
|
|
- Real-time inventory management and multi-channel fulfillment |
Customized |
Flexible solutions but performance issues noted in high-volume ecommerce |
One of the key things to consider when choosing the best warehouse management software is that it can scale with your ecommerce business. A modern WMS software solution built on a flexible architecture with an open API means you can grow without having to switch to a new system.
This is best of breed. In this approach you don’t have to rip and replace your entire existing tech stack as your business changes. You can just use the best tool for each part of your business. For example if you change your ERP, shipping solution or ecommerce frontend platform a flexible WMS will integrate with the new tools. The ability to connect to many systems means your WMS remains at the centre of your business, providing continuity and efficiency no matter what is happening around it.
You future proof your warehouse by using this open modular architecture. No more WMS upgrades when you upgrade other parts of your business. Time and cost saving and minimal disruption.
An open API allows for seamless integration with multiple ecommerce platforms, third party tools and third party logistics providers. As you grow you can add new WMS modules, sales channels and fulfillment centers without having to change your entire tech stack. This means your WMS can grow with your business and you won’t have to switch systems as you scale.
Plus a modern WMS means your software will stay up to date with the latest technology trends so you can be more efficient and competitive in a fast changing market.
Choosing the right ecommerce warehouse management system is key to managing complex warehouse operations, optimizing inventory and reducing costs. PULPO WMS stands out for its integration, mobile and scalability so it’s perfect for ecommerce businesses of all sizes.
Whether you have one fulfillment center or multiple warehouses, investing in the right warehouse management software will help you optimize operations, improve order accuracy and meet the demands of modern ecommerce. A modern, scalable WMS with open APIs means as your ecommerce business grows your system will grow with you for long term efficiency and success.
An ecommerce WMS is a software that helps you manage your warehouse, inventory, order fulfillment and workflow automation.
A WMS makes things more efficient by automating processes, giving you real time inventory updates and accurate order fulfillment which is important for multi channel sales.
While a WMS manages warehouse workflows and inventory tracking, an IMS only tracks stock levels without automating warehouse tasks like picking or packing.
Real time inventory tracking, multi channel integration, warehouse automation, order management and scalability to grow with you.
Shopify doesn’t have its own WMS but integrates with many third party WMS solutions to enhance its inventory management and order fulfillment.
An ERP manages all business operations including finance, HR and procurement while a WMS manages warehouse and inventory.
A WCS manages material handling equipment like conveyors within the warehouse while a WMS manages broader tasks like inventory and order processing.
By speeding up the fulfillment process, reducing errors and ensuring accurate deliveries a WMS improves the overall customer experience.
Yes most WMS solutions integrate with popular ecommerce platforms like Shopify, WooCommerce, Prestashop, Magento etc.
Ecommerce businesses of all sizes including those with multiple warehouses or fulfillment centers can use a WMS to streamline and save.
Cloud based WMS offers more flexibility, scalability and lower upfront costs so it’s a good fit for growing ecommerce businesses.
Automation reduces manual tasks like picking and packing, minimizes errors, speeds up fulfillment and increases overall productivity.
Yes real time inventory tracking is a core feature of a WMS and provides visibility across multiple warehouses or locations.
A WMS saves you money by increasing labor productivity, improving order accuracy, optimizing shipping and reducing excess inventory.
Scale your WMS as you grow, add more fulfillment centers and new sales channels.
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A warehouse management system is software that helps organizations manage inventory, orders, and logistics in their warehouse operations.
