5 ways a warehouse management system can reduce costs

5 ways a warehouse management system can reduce costs

A warehouse management system (WMS) is a powerful tool that companies can use to optimize warehouses and distribution centers. In addition to improving productivity and increasing accuracy, a well-designed WMS can help drive down overall costs. Therefore, in this article, we list 5 ways a WMS can help reduce costs.


Did you know that Amazon largely attributes its success to their efficient WMS? Amazon uses a very sophisticated WMS that is capable of handling huge amounts of data through multiple, automated warehouses.

Five ways a WMS can reduce costs

A Warehouse Management System (WMS) is a software application that helps companies manage warehouse operations, inventory, and hardware. The WMS provides control over the entire supply chain, including all logistics processes. Even when multiple warehouses are present.


Amazon gets this done by combining software that manages warehouses and enterprise resource planning (the ERP system). This enables them to accurately process orders quickly and provides real-time visibility into product inventories. The basis of a good WMS system? Automatic identification in the form of bar coding, RFID, and other tools. These are the five core ways in which a well-integrated WMS reduces costs within your company.


Standardization in the logistics supply chain

Standardization of manual work in warehouses is essential to achieve efficiency and cost savings. Manual processes often lead to delays, errors, and unnecessary, high costs. An effective solution to this problem is the automation of processes using a WMS, where the WMS controls the people in the warehouse.


By automating the receipt of products from suppliers, storage, order processing, and shipping, you reduce the likelihood of these errors. But automation is a tough job if you skip the standardization step. Getting started with automation leads to significantly lower costs in the long run. So if you are aiming for economies of scale, then standardizing manual work within your warehouses is the first step.


Improved inventory management

Coordinating inventory movements and managing the flow of goods are important activities within any business that deals with the storage and sale of products. When inventory is managed from a proper inventory management system, it often has a huge impact on a company’s profitability.


Without a WMS, inventory management can be a time-consuming and error-prone process. However, investing in a good WMS has several advantages for inventory management. For example, you can prevent unnecessary inventory from being left lying around, labor hours can be reduced and orders are handled more accurately.


Optimization of storage locations

We now know that you can run into a lot of problems if a good WMS is missing from your business. For example, the lack of visibility into inventory can lead to order processing delays and delivery errors. Fortunately, a WMS also provides the necessary solutions to optimize storage locations themselves.


To do this, a WMS uses barcodes and scanners, so you always have real-time visibility into the entire inventory. In addition, this smart technology can help with the efficient and safe arrangement of storage space. This leads to more storage capacity and less wasted space. The result is better throughput, clarity in warehouse management, and less frustration for warehouse workers.


More efficient order picking

More efficient order picking can provide significant cost savings for companies that rely on a necessary logistics system. Traditionally, order picking was done manually, which often led to errors in the logistics process. Getting started with the integration of an effective WMS helps streamline order picking.


The result is not only a lower chance of errors. The overall lead time in the supply chain is also reduced. This allows companies to save on labor costs, inventory management, and customer service. After all, the more efficient the order-picking process is, the higher the customer satisfaction.


Automatic reporting and analytics

Better analytics and reporting are essential for companies seeking to gain or maintain a competitive advantage. However, manually developing reports and analyzing them is time-consuming. In addition, there is once again a high probability that human warehouse staff will overlook important data.


With a link between existing systems and a WMS, you create the ability to automate the development and teasing out of reports. If the system recognizes how reports can be improved, you get real-time information about it. This, in turn, leads to better decision-making and increased efficiency. In addition, better analysis and reporting can generate cost savings by identifying inefficiencies and optimizing business processes.


Software as a service

Briefly, there are five ways a warehouse management system can bring down costs in a logistics environment:

  • efficient inventory and storage;
  • faster order processing;
  • less excess inventory;
  • better labor productivity;
  • fewer errors in the logistics process.


When it comes to efficiency and reducing necessary costs, a warehouse management system is the key to success. Using advanced technologies and the cloud, you reduce costs, optimize warehouse management and gain greater supply chain visibility. You also suffer less from regular updates that can cripple warehouse processes.


Are you about to integrate “software as a service” into your business and take back control of warehouse management? Makes sense! Contact us today and find out how our dedicated team of experts can help integrate a customized WMS.


Willem Ten Asbroek

Willem Ten Asbroek

CEO, Bizbloqs Management Solution B.V.

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Welcome to the BizBloqs product selector. This is a tool we designed to guide you to the right subscription for your business.

If you are not sure how to answer a question, or you are not comfortable with the recommendation, please simply contact us and discuss it with one of our experts. It is our duty and pleasure to guide you to the best of our ability, making sure you arrive at the right well-informed choice that suits your needs perfectly.


BizBloqs offers Business Processes as a Service (BPaaS) and has created a range of subscriptions that service the specific needs of customer profiles we have encountered often in the market.

Our solutions are designed in such a way that we can service the smallest businesses for their basic needs, while the same platform can service the most complex and elaborate logistic requirements as well. This level of scalability allows all our customers to make their subscription grow with their needs, no matter how rapidly they grow or increase the complexity.


I only need very basic features and care most about my outbound process.


Gambit is our entry-level solution that covers the basic needs for companies that are looking to digitize their order fulfilment processes.

The emphasis of this subscription is on the outbound processes, handling all common requirements with ease. Gambit includes the ability to integrate a web shop on the frontend or an ERP system in the backend.

Furthermore, you can connect your Gambit solution to a supported transporter of your choice. Your order fulfilment and stock management have never been easier.


I only need basic features, but inbound and outbound processes are both very relevant for my requirements.


Pawn is the second-tier subscription of BizBloqs. It offers all the capabilities of Gambit, but also adds full control over the purchasing process. If you are looking to take your business to the next level by digitizing all your warehouse processes altogether, Pawn is the right solution for you.

It offers location management out of the box, supporting one location per article as the standard. All basic processes any small or medium business might need are included, all based on the years of experience and elaborate expertise of BizBloqs. We have taken the best practices of implementations in the past so you can benefit from the best of our capabilities.


I need some advanced features; my situation requires location management and/or we need digital support for batch picking. You could say my needs resemble a wholesaler, reseller or large web shop.


Knight takes your digital logistic capabilities to the level you might see at large companies with a professional setup. In fact, BizBloqs services several companies at this level with its Knight solution. It offers the possibility to manage an article across multiple locations and offers digital management for your batch picking.

Knight is the right solution for you if you need to optimize fairly complex processes or large operations. If location management is a big part of your business, Knight is the right subscription level for you. This solution is popular amongst wholesalers, resellers and web shops in particular.


I want a standard solution, but with all the bells and whistles. I manage multiple locations and zoning across my warehouses and deal with a lot of orders.


Bishop is the ultimate standard subscription with a wide range of features beyond the capabilities of Knight. It allows for dynamic location management, which allows you to keep track of your stock on the move at all times.

You can manage multiple locations and assign various location zones as per your requirements. Bishop can handle a great number of orders without effort. If this ultimate subscription still doesn’t meet your needs, you would need to consider a custom solution that is tailored specifically to your requirements.


Clearly it will not be possible to make a straightforward recommendation for your needs. That’s perfectly fine, we have the expertise and experience to address your challenges. You will need to work with our experts to digitize your processes and define your workflow.

Our solutions are designed in such a way that we can service the smallest businesses for their basic needs, while the same platform can service the most complex and elaborate logistic requirements as well. We can do this without development in almost all cases, simply by configuring our solutions to reflect your situation perfectly.