30 June 2023

Advantages of the WMS System for Retail Sales

30 June 2023

There are multiple benefits that the WMS system can generate for the retail network. Discover 7 of the key features of the software that have accelerated results in your warehouse.

In recent years, companies from various sectors have witnessed a true revolution in traditional logistics models, primarily driven by the growth and adoption of omnichannel. Streamlining and integrating logistics processes, as well as increasing the positive consumer experience with the brand, have become important challenges for supply chains.

The use of hybrid sales channels, with the possibility offered to the customer to move between them, requires retail logistics to adapt to new challenges. Traditional distribution centers need to find dynamic strategies capable of efficiently integrating customer service, as well as product distribution.

But, after all, how to tackle the current complexity of retail, ensuring efficiency in logistics and profit margins for the company? The answer lies in technological investments to optimize logistics processes. The greater the efficiency and the consequent reduction of costs in the supply chain, the greater the gains.

It is essential to prioritize smart storage strategies, reverse logistics, inventory control, traceability, and, above all, the unification of omnichannel service. To achieve a high level of excellence in all these operations, the big bet is the use of the WMS system. In this article, we will share some of the main advantages of retail software.

The WMS system: a differentiating element for retail logistics

Which manager has never wanted to have a broad view of stocks, real-time data, forecasting possibilities, demand planning, recognition, and anticipation of actions along the entire operational flow in an assertive way? It seems like a real dream, especially when managing retail logistics, right?

With the WMS system applied to retail, it is possible to obtain visibility of the entire supply chain, allowing the management, in one place, of the entire product flow, from the entry of a product at the dock, through storage of goods, distribution, and delivery to the customer.

The software provides the essential intelligence to optimize, plan, and control all intralogistics, applying greater agility and operational performance to the warehouse. Discover in detail the main advantages of WMS for retail in the following topic.

Advantages of the WMS system for retail

The WMS system offers advantages at all levels of the supply chain, including:

Inventory monitoring and control

Today in your warehouse, is it possible to quickly monitor the extent of inventory losses and what these numbers represent in your business results?

It may not be easy to answer this question exactly, especially if your warehouse involves manual conferences and processes that have a high rate of errors and failures in inventory counting. It is important to emphasize that discrepancies have a significant impact on your warehouse’s operational flow, as well as on the quality of service to the final customer, because if the offered products are not available in stock, the buyer will have a negative experience and, consequently, will seek the competition. Therefore, the losses can be immeasurable.

When it comes to retail, therefore, inventory control is essential to achieve excellent results. With the WMS system, it is possible to monitor in real-time the entry and exit of goods, as well as their movement within the warehouse. The software offers logistics managers greater veracity of information and the best part: it alerts in case of discrepancies so that errors are corrected in time, avoiding harmful consequences for the company.

With the data offered by WMS, managers and their teams are also able to carry out assertive actions, such as placing new orders with the supplier to replenish stocks; launching offers and promotions for products in stock for a long time; monitoring seasonal periods and preparing in advance to increase sales; among other important decisions.

Real-time inventory information monitoring ensures that the right products are on the shelves of sales points and are on their way to the omnichannel consumer at the right time, without delays and without losses.

It is worth adding that the system offers multiple options for cycle inventory, ensuring high stock accuracy and strict quality control.

Reverse logistics monitoring

Reverse logistics can be observed quite frequently in retail distribution centers. When quality control is performed manually, some products may go unnoticed and end up being shipped in unsellable conditions, i.e., expired or damaged. Another recurring action that increases reverse logistics within warehouses is sending excess goods to a specific sales point and subsequently transferring them to another store to increase the chances of selling these items.

Both situations occur due to a series of failures in communication and action planning. With the WMS system applied to retail, the costs allocated to these operations are reduced, as the software optimizes the replacement of products in the picking area, or even reallocates them in dynamic picking areas (without fixed positions), thus avoiding replacement efforts.

Finally, in any activity related to reverse logistics, the WMS will be present, helping to quickly identify reusable stocks so they can be reallocated for order picking; in the complete traceability of the entire process, monitoring the levels and types of returns; and exchanging data with the ERP to ensure timely credits and replacements, maintaining customer satisfaction levels.

Unlike manual operations, with WMS all reverse logistics is system-driven, ensuring safety, quality, and high productivity.

Traceability and lot control

Part of a warehouse’s vitality is the control of lots within the inventory. With the WMS system, it is possible to identify, inspect, and verify products in inventory at any time, based on lots, serial numbers, and IMEI.

In practice, managers and their teams are able to monitor the entry and exit of each product and not only that: quickly identify, in case of errors, on which route an item is located, avoiding inconveniences and bad experiences with customers.

Another important advantage is the ability to organize according to FIFO and FEFO criteria. The WMS system defines and prioritizes product outputs considering storage time, to always provide a quality product and prevent items from being lost in the warehouse, due to, for example, factors like time.

Loss management

Among the biggest challenges in the retail sector is the management and control of large quantities and variations of SKUs. Products enter and exit distribution centers and physical stores daily and in high volumes. Since it is administered and managed by numerous people, this path control requires greater organization to avoid losses, damages, and even theft of items during the product journey.

With the WMS system, quality control is more rigorous, reducing errors and mistakes in manual inspection and ensuring that products reach consumers in ideal sales conditions. The software blocks violated or damaged items, allowing effective actions such as new negotiations with suppliers or even timely disposal.

Shipping speed

The volume of orders within the warehouse is high. Every day, retail chains receive extensive lists of products to be sent to physical sales points or even to end consumers. Whatever the destination, the shipping volume is high, and for this reason, the organization and control of goods must be rigorous and ensure that data during receipts and shipments are correct.

To optimize times, reduce movements within the warehouse, and ensure the accuracy of information, the WMS system has strategic solutions that facilitate the picking process. The software generates pick orders and guides pickers through the lines, aiming for the shortest route and reducing excessive movement of items.

The system also organizes and prioritizes orders and can even divide them into multiple volumes based on industrial packaging multiples or fractionation. When using this strategy, items are separated in parallel, arriving faster for shipment.

Information at your fingertips

In everyday retail, having information at your fingertips is decisive for business success. After all, what you can’t measure, you can’t improve, and to have quick answers, there’s nothing better than real-time monitoring of what happens inside the warehouse.

The WMS system was developed with the exact purpose of offering end-to-end visibility of the operation, providing reliable data at the speed necessary to monitor and make assertive decisions. Therefore, the logistics manager always has information at hand about all processes taking place in the warehouse in question, including the main performance parameters of the team, order history, and consumption behavior, as well as reports that gather valuable information, showing how activities are performed and what actions can be taken to improve performance.

Furthermore, the system identifies deviations, such as possible delays, order interruptions if there is inadequate stock supply, as well as other communication errors that can compromise the operational flow. We can say that WMS does not tolerate errors, bringing greater efficiency and quality to processes.

High performance in multichannel sales

With the WMS system, the retail distribution center operates at high performance, primarily following the new growing scenario: omnichannel. In addition to improving the customer experience, optimizing the last mile, and enabling same-day deliveries, the software follows the main market changes, offering features that minimize the complexities of a multichannel operation.

The software allows reconciling within the same operation both store supply (large orders, with many volumes) and e-commerce orders, which, in most cases, have few items, ensuring agility in picking and assertive conferences on exit. It is, therefore, an ally of the retailer to conquer a solid space in the multichannel market!

Find the best WMS for your retail

Successfully implementing a WMS system for warehouse management is the first step to improving the performance of operational processes and increasing business results.

With WMS, you can simplify activities, optimize operational and financial resources, avoid errors, identify higher and more consistent levels of efficiency and productivity, and better collaboration along the entire supply chain. If you want to take advantage of all the opportunities the retail market offers, relying on the solution is definitely the first step to making your business stand out!

For more information, to concretely understand the advantages of WMS and how the system can help your company, contact us.


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