The Unignorable Benefits Of Cloud-based Warehouse Management System
Legacy systems are getting outdated. With the constantly evolving market demands, it is challenging to keep up the data up-to-date and function manually.
Consequently, businesses are making the transition to cloud technology. Cloud-based management has swiftly taken over the market, driven by the urgent need to leverage its unparalleled advantages, particularly in the realm of warehouse management.
This blog aims to throw light on why eCommerce businesses are embracing cloud-based warehouse management systems. To begin with, let’s delve into the concept of cloud-based management systems.
What is a cloud-based warehouse management system?
A cloud-based warehouse management system is a solution that stores all data on a remote server, making it accessible from anywhere with an internet connection. It operates on a Software-as-a-Service (SaaS) model, where users pay a monthly fee to gain access to the system’s features.
The monthly license fee is valid for the period of the contract, and you do not have to worry about the cost of installation and maintenance of the servers. The service provider company is responsible to host the installation at the decided location.
There is no storage of data in any hardware at the premises, which means even if the location faces any calamity, the data is protected no matter what.
Why do you need a warehouse management system?
There are numerous types of warehouse management systems. However, none of them have enough compelling reasons to transition compared to a cloud-based warehouse management system. Firstly, it eliminates the need for manual paperwork, which is susceptible to errors. By automating various tasks and processes, the cloud-based system minimizes the likelihood of mistakes, ensuring more accurate and reliable data management.
Secondly, during peak seasons or high-demand periods, traditional warehouse management processes may struggle to deliver optimal results. In contrast, a cloud-based monitoring system consolidates all relevant information in one centralized location.
This comprehensive overview enables businesses to operate more efficiently, take greater responsibility for their operations, and provide faster and more streamlined services to their customers.
Moreover, the adoption of a cloud-based warehouse management system can lead to a significant improvement in both quality and productivity. Studies have shown that organizations utilizing cloud-based solutions experience an approximate 50% increase in efficiency and output compared to traditional methods.
This boost in performance can be attributed to the system’s ability to streamline and optimize various warehouse processes, such as goods receipt, storage, picking, and dispatch.
This definitely clears the air of why such bespoke warehouse management systems are so much in demand.
More reasons to implement a cloud-based WMS:
Limitless Scalability:
Cloud systems allow easy scaling of the workforce based on the growing needs of the businesses. The workstations can be quickly arranged during any up or down in the business. The cloud-based WMS takes care of the scaling and effectively handles the projected traffic. Which means the scalability capabilities are limitless.
However, with traditional methods, this seemed to be quite difficult. The required hardware and software had to be competent enough to handle the rising number of SKUs. Also, during the expansion, you also need to invest a hefty amount in installing workstations and servers to manage the number of orders.
Enhanced cybersecurity:
The security of sensitive data is extremely critical. The amount of data a warehouse collects requires an unmatched level of cybersecurity. A cloud-based WMS provides organizations with sophisticated cybersecurity measures.
The data is stored in an encrypted manner on the cloud allowing access to only authorized people. Which means no one other than the authority can penetrate into the system. This reduces the data breaches extremely.
Cloud-based WMS employ encryption and regular backups and disaster recovery mechanisms to ensure data integrity.
Interoperability, Offers functions of multiple warehouse systems:
A cloud-based WMS will bring everything under one roof, from controlling, and management to execution. Traditional WMS will have to be interoperable with other systems, smart tools, and other multiple integrations. This leads to complexities and difficulties in management.
A cloud-based WMS will handle all of these separated systems and merge them together. The entire setup gives more control and ensures better cohesion.
Availability of SaaS-based payment model with cloud WMS:
A cloud-based WMS operates with SaaS as a service model. Implementing a cloud-based Warehouse Management System (WMS) entails adopting a Software-as-a-Service (SaaS) model, which revolutionizes the payment structure associated with WMS.
Shifting to the cloud not only brings about a host of benefits but also updates the payment models, saving businesses a fortune in implementation costs.
By embracing a cloud-based WMS, businesses can leverage modern and advanced WMS solutions and platforms that utilize cutting-edge technologies and sophisticated algorithms. This transition opens doors to a plethora of possibilities, empowering businesses to enhance their operational efficiency to a significant degree.
E-commerce and Omnichannel benefit from the Cloud WMS:
eCommerce functions over a 24/7 schedule. Relying on manual methods can impose limitations on a company’s ability to provide round-the-clock customer service. However, with the implementation of a cloud-based Warehouse Management System (WMS), businesses can ensure uninterrupted operations without any adverse effects. This, in turn, guarantees a seamless customer experience and the timely fulfillment of customer demands.
Here’s how a cloud-based WMS facilitates uninterrupted eCommerce operations and enables businesses to meet customer demands effectively:
Continuous availability: Cloud-based WMS operates on robust infrastructure that ensures high availability and uptime.
Timely order fulfillment: With a cloud-based WMS, businesses can efficiently manage and process incoming orders in real time.
Seamless customer service: Cloud-based WMS empowers businesses to provide uninterrupted customer service. With real-time inventory visibility, customer service representatives can quickly access accurate information about product availability, order status, and delivery updates.
Efficient scaling of product selection: Cloud-based WMS offers the flexibility to scale product selection rapidly and efficiently.
Automated processes and workflows: Cloud-based WMS leverages automation to streamline processes and workflows.
You need not worry about the updates and maintenance of WMS:
When it comes to hosting a cloud-based Warehouse Management System (WMS), the complete responsibility lies with the service provider. They are accountable for maintaining and updating the system, ensuring it remains up-to-date and functioning optimally. As part of the implementation costs, the service provider covers the expenses associated with system upgrades and maintenance.
This approach relieves businesses from the burden of hiring additional experts or engineers to handle system maintenance. Instead, the service provider takes care of these responsibilities, allowing companies to focus their resources and efforts on core business operations.
Challenges In the Implementation of Cloud-based WMS:
The WMS is extremely easy to use and upgrades the entire operating system of the warehouse. It can reduce the operating cost by almost 40%, which is an attractive figure to think about the implementation.
The implementation is a whole lot quicker and saves a lot of time and effort, and the entrepreneurs can concentrate on the core activities.
However, you may encounter challenges like training the staff to use the WMS effectively. The service provider also ensures that each of the responsible staff is sufficiently trained to make the entire system manageable.
Also, you should check the server’s reliability. Does it function efficiently, or has it ever crashed? In addition, ask the company how quick is their turnaround time during any kind of breakdown.
It’s time to upgrade your system:
The hype surrounding cloud-based solutions is not without merit. It has proven to be a game-changer, offering a multitude of benefits and a significant reduction in overall costs. One of the key advantages is the enhanced security it provides, freeing businesses from the fear of fraudulent activities and data breaches.
Considering the extensive advantages, why not take the leap and initiate the move to a cloud-based warehouse management system right away? There are some awesome logistics software development companies that can create customized cloud-based WMS solutions for you.
By embracing this modern approach, businesses can achieve holistic management of their warehouse system, giving them a competitive edge in the market.
