Effective inventory management is crucial for any e-commerce business to stay competitive. Yet many entrepreneurs choose a Warehouse Management System (WMS) first and only add inventory optimisation software later, missing valuable opportunities. In this blog, we explain why it’s smarter to implement both systems at the same time, so you can make your logistics more efficient, save time, boost revenue, and increase customer satisfaction.

Why implementing a WMS and inventory optimisation software together is the right choice

Here are the 3 main reasons to implement a WMS and Optiply at the same time:

• Use real-time data instead of static min/max values, so you always purchase based on the most current demand.
• Save time and money by avoiding double work and working with the same up-to-date data from day one.
• Start purchasing strategically and focus on a profitable, balanced inventory with the help of smart purchasing advice.

Curious about all the details and what a WMS offers with, and without, an inventory optimisation connection? Keep reading.

What is a WMS exactly?

A Warehouse Management System (WMS) is software specifically designed to streamline and optimise the logistics tasks of your online business. A WMS is a system in which you can manage all aspects of inventory, including receiving, storage, order picking, packaging and shipping. 

Functions such as inventory location management, automatic data collection, inventory control, order processing, inventory rotation, and real-time reporting and analysis are available in a WMS. With a WMS you can reduce operational costs, improve inventory accuracy and maximise the efficiency of your warehouse management.

Why do e-commerce businesses often first choose a WMS to improve inventory management?

Why do many growing e-commerce companies that want to improve their inventory management often choose a WMS before deciding to implement purchasing and inventory management software?

1. Improving warehouse processes

A WMS automates and optimises warehouse activities. It ensures that you gain better insight into the physical storage and movements of your inventory to increase efficiency and reduce errors. However, it won’t predict which products you need to purchase and when.

2. More accurate inventory management

In a WMS you can keep track of all inventory data, to keep your stock up to date and to prevent shortages or surpluses. The drawback is that without advanced demand forecasting, you’ll remain largely reactive.

3. Optimisation of order processing

A WMS streamlines the order processing process, resulting in faster lead times and improved customer satisfaction. But if products aren’t purchased on time, that speed has little impact.

4. Scalability

WMS systems add scalability and can grow with your company, the inventory, the orders that are processed and the logistics team that carries out the warehouse tasks.

A WMS offers many advantages for the logistics processes of your e-commerce company. Yet, in the field of purchasing and inventory optimisation, the functionalities in most WMS systems are limited. However: without inventory optimisation, purchasing mistakes can scale up too.

3 reasons to implement a WMS alongside purchasing and inventory management software

Purchasing and inventory optimisation software is a valuable addition to a WMS and makes it possible to take your inventory management to the next level. Smart software such as the Optiply app can forecast future demand based on historical sales data and external factors, such as trends and seasonality. 

Together with the functionalities in the WMS, you make better decisions about purchase orders and inventory levels; and avoid that you build up overstock or experience stockouts that result in lost sales.

The simultaneous implementation of a WMS and Optiply offers several concrete advantages:

1. Use real-time data

Most WMS systems use static min/max order quantities to manage purchasing. The main drawback is that you have to set these minimum and maximum values for each product yourself. It’s time-consuming, can be subjective, and doesn’t account for factors such as changing demand, seasonal trends, or supplier conditions, often leading to overstock or stockouts.

By starting purchasing via Optiply, you order based on real-time data. This allows you to immediately improve purchasing, inventory management, and logistics processes.

2. Save time and money

Avoid double work by first manually entering product, inventory, and order data into your WMS, only to adjust it again once Optiply is connected. By implementing a WMS and Optiply at the same time, you work from day one with the same up-to-date data and prevent unnecessary hours and costs.

3. Start with strategic purchasing

Focus on building a healthy, profitable inventory and make your role as a purchaser more strategic. By connecting a WMS and Optiply from day one, you immediately benefit from smart purchasing advice. This means spending less time on corrections and more on optimising your bestsellers and keeping your inventory in balance.

The combination of a WMS and Optiply leads to improved efficiency in your purchasing and inventory management process. By combining real-time inventory data and accurate demand forecasts, your company can quickly respond to changing market conditions and better meet customer needs. This results in a balanced inventory, higher customer satisfaction and more revenue.

Travelbags has automated 96% of its purchasing process by integrating Picqer with Optiply, resulting in 95% availability of A-products and 10% more revenue with less inventory. Tygo Bril, Buyer and Process Improvement Specialist at Travelbags:

“Optiply clearly shows which brands are up next, which SKUs are needed, and the quantity required for the upcoming period. The best part is that I no longer have to think about what needs to be ordered. The suggestions are so accurate that I can rely on them almost entirely.”

Maximise your growth potential with the combination of a WMS and Optiply

Accurate inventory management is crucial to be competitive in the e-commerce market. The efficiency and accuracy of inventory management can make the difference between successfully fulfilling orders and losing customers to your competitors. The importance of automated systems such as a WMS and inventory management optimisation software such as Optiply cannot be underestimated.

By implementing a WMS and Optiply simultaneously, your company can benefit from optimised inventory levels and improved order processing speed. This ensures that you improve operational efficiency and strengthen your competitive position in the market. Additionally, it has a positive influence on customer satisfaction.

Invest in smart inventory management solutions if you want to fully utilise your growth potential as an e-commerce business. Give your customers the best possible experience by ensuring you always have your most popular products in stock and can process and ship them as quickly as possible.

Make your purchasing process easier than ever while never overstocking or having to say no to a customer again? Request a free demo and we’ll show you how it works.