What Exactly is a Cloud Based WMS?

Unlike traditional systems that rely on expensive servers and IT setups, a cloud based WMS is hosted online, meaning you can access it anywhere with an internet connection. 

 

Businesses can reduce operating expenses by up to 30% and increase inventory accuracy by 25% thanks to this upgrade.

Companies from all over the globe need real-time insights into their inventory and warehouse operations. That’s why over half of warehouses globally have already switched to cloud based systems. 

 

Cloud based WMS offers benefits like easy multi-location support, integration with other business tools, and advanced security. Plus, the cloud makes it simple to scale up operations as your business grows. 

 

But how to use cloud based WMS and what are the benefits? 

What is a Cloud Based WMS?

A cloud based warehouse management system (WMS) is a software solution that uses cloud technology to streamline and automate warehouse operations such as inventory management, order processing, and logistics coordination. 

Cloud based WMS provides real-time access to a centralized data repository, ensuring that information is always up-to-date and accessible from anywhere. 

This feature is particularly beneficial for companies with multiple warehouse locations, as it allows managers to monitor inventory, track shipments, and adjust labor allocations remotely and in real-time. 

Beyond operational efficiency, transitioning to a cloud based WMS opens the door to innovation. The cloud environment allows businesses to more easily adopt cutting-edge technologies like artificial intelligence (AI), the Internet of Things (IoT), and automation, driving smarter and more responsive warehouse operations. 

In this way, a cloud based WMS is not just useful for managing logistics but a strategic asset for future-proofing a business.

 

Features of cloud based Warehouse Management System (WMS)

Warehouse Management Systems (WMS) that are hosted in the cloud have powerful features that improve productivity, optimize workflows, and have a substantial effect on the entire supply chain. 

Below are the six most important features of cloud based WMS and their business impacts:

1. Real-Time Inventory Tracking 

Real-time inventory tracking allows businesses to monitor stock levels instantaneously. As products move through the supply chain, stock levels are updated in real-time, which reduces the risk of overstocking or stockouts. 

For example, during unexpected demand surges, the system can alert managers to inventory shortfalls, enabling faster restocking or rerouting of products from other locations. 

This ensures that businesses can meet customer demand promptly, optimizing stock replenishment and preventing delays.

1. Automated Order Fulfillment

A fundamental component of cloud-based WMS, especially for order picking, is automation. 

The system generates the most efficient picking routes, reducing travel time for workers and speeding up order fulfillment. This minimizes manual errors, cuts labor costs, and accelerates workflows. 

Automating routine tasks like order picking, shipment processing, and inventory updates frees up business resources for higher-value endeavors like strategic planning and customer satisfaction enhancement.

1. Centralized Data Management 

A cloud based WMS consolidates data from all operations into a single platform, providing a comprehensive overview of warehouse activities. This centralized data management is important for generating accurate reports and analytics, particularly for demand forecasting and inventory planning. 

Businesses that have access to real-time data are better able to manage their carrying costs, optimize their inventory, and react to changes in the market.

1. Multi-Location Support 

Cloud-based WMS systems facilitate smooth inventory transfers between locations, which is helpful for businesses that run multiple warehouses. 

For instance, if one warehouse is running low on a high-demand item, the system can automatically initiate a transfer from another location to meet customer orders, ensuring better inventory availability and resource allocation.

1. Advanced Security Protocols 

Advanced security features in cloud based WMS ensure the protection of sensitive data, such as customer information and proprietary product details. These systems often comply with industry standards and regulations, providing an additional layer of security and reducing the risk of data breaches. 

For businesses, this means safeguarding both operational data and customer trust while maintaining regulatory compliance.

1. Seamless Integration with Other Systems 

Integration capabilities are a major advantage of cloud based WMS solutions. These systems can integrate seamlessly with other platforms, such as Transportation Management Systems (TMS), Enterprise Resource Planning (ERP) systems, and e-commerce platforms. 

For example, integration with an ERP system ensures that inventory levels are updated automatically when an order is placed, while TMS integration allows for real-time tracking of inbound and outbound shipments. 

In addition to decreasing manual data entry and enhancing overall operational coordination, this results in an organized and productive supply chain.

Benefits of cloud based Warehouse Management System (WMS)

Numerous benefits provided by cloud-based WMS solutions can greatly improve supply chain management, warehouse operations, and general business efficiency. 

Here are its top benefits:

1. Improved Data Security

When it comes to data protection, cloud-based WMS systems outperform traditional configurations. Data is securely stored on offsite servers, managed by third-party providers with robust cybersecurity measures, including firewalls and antivirus protection. 

Regular backups make sure that the data is safe from both cyber threats and physical damage, providing peace of mind for distribution and 3PL operations.

2. Smooth Integration with Customer and Supplier Data

A cloud based WMS simplifies integration with external systems like customer and supplier databases, making it easy to retrieve real-time information on stock levels, shipping statuses, and order updates. 

Through improved transparency and cooperation with outside logistics partners, this integration facilitates communication and raises supply chain efficiency overall.

3. Scalability for Growth

One of the standout features of cloud based WMS platforms is their ability to scale effortlessly with your business. 

Cloud WMS can adapt to your changing needs without requiring expensive software upgrades or infrastructure investments, regardless of how your business grows and needs to operate across multiple distribution centers or increase inventory. 

As your company expands, this guarantees that your system will change to keep operations current and effective.

4. Cost Savings and Flexibility

Because the system is managed by the provider, cloud WMS eliminates the need for an upfront capital investment in hardware and IT infrastructure. 

Cloud WMS solutions are financially flexible and operate on a subscription basis, enabling businesses to scale their services as needed. This lowers expenses while offering high-quality services that are similar to those of traditional systems.

5. Ease of Use and Management

Cloud based WMS platforms are designed for ease of use and integration, allowing warehouse staff to access inventory management systems from anywhere with an internet connection. 

The systems require no complex hardware setup, and training is straightforward, enabling teams to quickly adopt new processes. Integration with other enterprise tools, such as ERP systems, ensures that operations remain streamlined and productive.

6. Strengthened Supply Chain Resilience

The global supply chain disruptions in 2020 and 2021 showed the importance of real-time inventory tracking and reporting. Businesses that implemented cloud based WMS systems had an advantage, as they were able to track and manage their inventory, shipping, and demand more accurately. 

This real-time visibility helps improve forecasting and decision-making, reducing delays and enhancing overall supply chain performance.

Challenges You Might Face with Cloud Based WMS

 

Transitioning to a cloud based warehouse management system brings numerous benefits but also presents some challenges. 

 

Here are some ways your company can deal with 3 common challenges and guarantee a smooth transition and successful operation:

1. Data Migration

Challenge: 

Migrating data from an existing system to a cloud based WMS can be complex, raising concerns about data loss, integrity, and potential downtime.

 

Solution: 

Choose a cloud WMS provider that provides thorough migration support, including tasks like data cleansing, testing, and mapping. A phased migration approach can help safeguard data integrity and minimize operational disruptions. 

 

Additionally, utilizing the provider’s technical support team can facilitate a smoother transition.

2. Training and Adoption

Challenge: 

It can be challenging to guarantee that every user is comfortable with the new system, especially when there are differences in the tech skills of a diverse workforce.

 

Solution: 

Implement a structured training program that caters to different learning styles and paces. Most cloud WMS providers offer training materials such as tutorials, webinars, and documentation.

 

Designating a group of “super users” as in-house experts can also help support broader user adoption and proficiency.

3. Internet Dependency

Challenge: 

Cloud based WMS depends on a reliable internet connection, which raises concerns about what happens during outages or connectivity issues.

 

Solution: 

While internet dependency is a valid concern, most cloud WMS providers design their systems to be highly resilient, with continuous data syncing to prevent loss. 

 

Use redundant internet service providers (ISPs) or a backup connectivity option, such as a 4G/5G network, to prevent disruptions. 

 

Additionally, some cloud WMS platforms offer offline modes that automatically sync data once connectivity is restored, minimizing the impact of temporary outages.

How to Implement a Cloud Based WMS?

Making the switch to a cloud-based warehouse management system is a decision that can have a big impact on business operations.

Follow these steps to ensure a smooth implementation and the full potential of the system:

1. Planning and Preparation

Start by thoroughly evaluating your current and future operational needs. Consider factors such as inventory volume, the complexity of your operations, integration requirements, and scalability. 

Once you have a clear set of requirements, research and compare providers. Selecting the right system is essential, so focus on one that meets your immediate needs and offers room for growth. 

After selecting a system, develop a detailed project plan. This should include key milestones, timelines, assigned responsibilities, and potential risks along with strategies to mitigate them. 

Involving stakeholders from across your organization during this planning phase will ensure alignment and help facilitate a smoother implementation process.

2. Migration Strategy

Switching to a cloud-based WMS requires first preparing your data. Prepare your current data for migration by cleaning and organizing it. 

This entails eliminating information that is superfluous or out-of-date and making sure that the data that is left over is correct and organized correctly to work with the new system.

A phased rollout can help ease the transition. Rather than implementing the new system all at once, start with less critical areas of your operation and expand gradually. This phased approach allows for troubleshooting and minimizing disruptions as you integrate the WMS into your more complex operations.

Equally important is conducting thorough testing before going live. Test the system with real-world scenarios to ensure it functions properly and that all integrations with other systems work seamlessly.

Training and Support

Making sure your team is comfortable and proficient with the new WMS requires proper training. Make use of the tutorials, webinars, and documentation that your WMS provider offers as training materials. 

You may also want to offer additional training tailored to your specific operations and workflows. Keep in mind that ongoing training might be needed as the system evolves or new features are added.

At last, confirm that the support provided by your WMS provider is dependable. Be aware of the response times, support levels, and issue-resolution procedures. Strong vendor support can make a significant difference during both the transition phase and daily operations. 

Furthermore, establish a feedback loop with your team to gather insights on system performance and any challenges they face. This feedback will be invaluable for making adjustments and improvements after the system is fully implemented.

Improve Your Warehouse Inventory Management with Touchpath’s Cloud or On-Prem Based WMS

Enhancing the warehouse inventory with Touchpath’s cloud or on-premise based WMS brings big improvements to the way businesses manage their inventory, logistics, and overall supply chain. 

 

Users can manage their inventory and processes more effectively thanks to Touchpath’s cloud or on-premise based WMS features, which include automated workflows, real-time data collection, and mobile-friendly interfaces. 

 

As a result, there are lower operating expenses, quicker order fulfillment, and overall higher accuracy. 

Reach out to us and let’s work together to improve your warehouse operations.

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