Why Startups Must Invest In Warehouse Management Software

In a rapidly evolving and competitive marketplace, startups that optimize and improve their warehouse management process are ahead of the game regarding saving expenses and acquiring new customers. On the flip side, poor warehouse management can increase work-related injuries and your operating costs. Also, it can decrease workplace productivity and worker morale. But, the good news is that your company can invest in advanced software that helps you improve your warehouse processes.

Why Startups Must Invest In Warehouse Management Software

Notably, warehouse management software (WMS) can help you manage most of the warehouse challenges that your company encounters. WMS is an application program that allows your business to handle its daily operations within the warehouse. It can help eliminate errors regarding tasks, like stock location and inventory tracking.

Accordingly, if your startup only has a single warehouse and you find it challenging to provide cost-efficient logistics and inventory management, here are some of the reasons why you must invest in warehouse management software:

  1. Reduced Operating Costs

One of the primary reasons startups should invest in warehouse management software is that it offers proven strategies to improve operational efficiency and cuts warehouse costs. WMS lets you automate manual processes and find opportunities to automate repeated and time-consuming tasks, especially those prone to human error, like picking and shipping tasks. Also, you can measure your company’s performance, from fulfillment speed to shipping accuracy.

Furthermore, workers today prefer the simplicity and convenience of consumer technologies, and hope to have the same capabilities when entering the warehouse. And, the good thing is that WMS can significantly impact the way your company hires, trains, and retains workers.

If your warehouse management software is easier to handle and streamlines the completion of tasks, you’ll likely improve your team’s satisfaction and morale. Note that retaining workers is one of the crucial steps for saving money, as well as increasing your revenue and ROI.

  1. Just-In-Time Inventory

Just-in-time (JIT) inventory is another reason startups must invest in WMS. It’s an inventory management method wherein suppliers receive goods only when needed. The primary purpose of JIT inventory practice is to minimize inventory holding costs and maximize inventory turnover. And, this method requires the usage of advanced software, like WMS, to carry out the whole process until delivery, which eliminates the potential for error and increases productivity.

Notably, regarding the critical impacts of the JIT strategy, one of the primary outcomes of this method is that it eliminates overproduction. In other words, you order only what your company needs, and there’s no risk of stockpiling unusable inventory. Due to the less amount of stock stored, you can expect to increase your company’s ROI.

Furthermore, the JIT strategy helps the manufacturer control the manufacturing process. They can respond to customers’ demands by quickly increasing the production of certain in-demand products and minimizing the output for slow-moving items. Consequently, this enables the JIT system to be flexible and fulfill the ever-changing market demands.

Moreover, since JIT requires you to manufacture only when there’s a placed order, you have to source raw materials locally as they’ll be delivered to your department well in advance.

  1. Improved Inventory Visibility

Improved Inventory Visibility

Inventory visibility means knowing what inventory you store and where it is at any given time. And, it’s one of the essential features that WMS provides to startups. Its primary purpose is to ensure that the inventory’s internal data reflects reality. Employing WMS with RFID, scanning, barcoding, and other location-tracking approaches provides visibility at the location and minimizes the non-automated circumstances wherein inventory becomes lost, misplaced, or forgotten within the warehouse.

Furthermore, WMS also operates together with the company’s enterprise resource planning to provide demand to forecasting procedures by sharing accurate data about how a particular product is performing. Consequently, with real-time data, you can make reliable and intelligent decisions about which products to change for your startup to increase profitability or reduce revenue losses.

  1. Enhanced Customer Service

Providing excellent customer service is crucial for your company to stand out from your competitors. And, by investing in WMS and optimizing your warehouse processes, it becomes easier for you to manage your warehouse space and know exactly where you store all of the items. When your team knows where to go to get the things they need, it enhances workplace productivity and customer service since items can be packed and shipped quickly.

Furthermore, there are instances wherein customers will return the items they bought from your company for several reasons. Perhaps, they’ve mistakenly placed an order for the incorrect item, or your company delivered the wrong product to them. In cases where the customers want a return or have the right items shipped to them, warehouse management software can help you check whether the items needed are still in-store and make the returns processing more manageable for the customers and your team.


Overall, warehouse management software gives startups the tools to be competitive in an ever-evolving business environment. If you don’t have WMS in place, take note that investing in software that works well for your warehouse processes is worth considering. Take the time to examine the features and options your startup needs, then find a software that’s most suitable for those needs. Eventually, investing in WMS will significantly increase your revenue and ROI.

Francis Nwokike

Francis Nwokike is a Social Entrepreneur and an experienced Disaster Manager. I love discussing new business trends and marketing tips. I share ideas and tips that will help you grow your business.

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