7 Reasons to Consider a Cloud-Based WMS

With the advent of online shopping, customers have come to expect convenient, cost-effective, and personalized shopping experiences from retailers - regardless of a business’s shape or size. One way to meet these increasingly complex needs is by optimizing warehousing and inventory management practices. This is where a cloud WMS comes in. 

A cloud Warehouse Management System (WMS) is a powerful tool businesses can leverage to help satisfy their customers' evolving needs and expectations. It allows for better inventory accuracy and visibility, order transparency, and expedited shipping solutions - all of which contribute to higher customer satisfaction rates.

And, customer satisfaction is crucial to a business’s bottom line. 

  • 44% of customers will become repeat buyers after personalized experiences.
  • 86% of buyers are willing to pay more for a great customer experience.
  • Inventory accuracy mistakes can range from $10 to $250 per error.

In this blog, we’re going to discuss the features of a cloud-based WMS and how they are helping businesses connect with customers more easily and reach new levels of success.

What Is A Cloud WMS?

A cloud-based WMS is a software solution that helps businesses efficiently manage their inventory and streamline their warehouse operations using the power of cloud computing. 

Unlike traditional on-premises WMS, a cloud WMS is hosted on remote servers that are accessible through the internet. Unlike on-premise WMS solutions, cloud servers are often owned and operated by a 3PL provider. However, businesses with unique security or privacy needs can opt for privately-owned cloud servers.

The cloud-based nature of the system offers scalability, flexibility, and seamless integration with other systems, empowering businesses to adapt and meet customer’s on their level in today's fast-paced, ever-evolving retail environment.


Did you know good fulfillment practices can boost customer satisfaction? Read our blog and learn how to take fulfillment to the next level:


How is a Cloud-Based WMS Different From Other WMS Solutions?

A cloud-based WMS solution differs from on-premise WMS solutions in numerous ways. While both perform key warehousing management functions, such as inventory tracking, data analysis, and resource management, they have distinct differences and capabilities.

Four notable differences include:

  • Data accessibility. A cloud WMS setup allows teams access to the platform from anywhere, as long as a stable internet connection is available.
  • Real-time information. Cloud solutions give businesses up-to-the second data on inventory levels, incoming purchases, and shipping estimates. Advanced cloud WMS platforms can also notify business owners when it’s time to order more stock to prevent back orders.
  • Cost-effective. Traditional WMS solutions require a heavy investment in hardware, maintenance labor, and licensing fees. Cloud-based solutions are more cost-effective as server hardware, operation, and maintenance is the responsibility of the 3PL server provider. 
  • Scalable. Increasing the capacity of a traditional WMS is no small feat. However, with a cloud-based WMS product, businesses can scale and expand their warehousing management easily and with little-to-no investment costs.

Top Features of a Cloud-Based WMS

Cloud technology is helping companies to optimize operations, serve clients across geographic distances, and accomplish all this with fewer resources. 

For warehousing services, this translates to greater inventory accuracy, easier communication across departments, and better customer experience deliveries. The top features of a cloud WMS that enable such advantages include:

Real-Time Inventory Visibility 

A cloud WMS provides real-time visibility into inventory levels across multiple locations, sales channels, and fulfillment centers. This feature allows businesses to track inventory accurately, avoid stockouts, and make more accurate decisions about replenishment and stock allocations.

Order Management

Cloud WMS platforms offer comprehensive order management functionalities. 

This can include:

  • Order processing
  • Package customizations
  • Order routing
  • Order prioritization. 

This cloud WMS capability helps streamline the order fulfillment process, automating tasks such as picking, packing, and shipping, to ensure efficient and accurate order processing.

Inventory Control

Cloud WMS platforms enable businesses to have granular control over their inventory. Features like cycle counting, stock tracking, lot and serial number management, and expiration date tracking help maintain accurate inventory records and ensure product quality control.

Integration Capabilities 

A cloud WMS is designed to integrate seamlessly with business-critical systems, including e-commerce platforms, enterprise resource planning (ERP) systems, shipping carriers, and CMS software. 

This integration allows for better data synchronization, eliminating data silos from developing and disrupting internal efficiencies.



Reporting and Analytics

With cloud-based WMS software, businesses gain robust and highly accurate reporting and analytics capabilities. 

For instance, businesses can generate customized reports and access key performance indicators (KPIs) related to inventory levels, order fulfillment, warehouse productivity, and more. These insights are invaluable to help identify areas for improvements and to make better data-driven decisions.

Mobile Accessibility

Businesses are increasingly mobile. A recent study has found that 66% of small-business owners use mobile devices and  mobile solutions as part of their operations. 

Cloud WMS solutions enable users to access, monitor, and manage their WMS from mobile devices. This feature facilitates real-time inventory updates, order processing, and task management, giving businesses greater operational agility and responsiveness.

Scalability and Flexibility

Cloud WMS platforms are built to accommodate business growth and adapt to changing needs. With cloud infrastructure, businesses can easily scale their operations, add new sales channels, and handle increased order volumes without worrying about infrastructure limitations. 

Cloud WMS solutions also offer flexible pricing models, allowing businesses to pay for the resources they need and adjust them as their requirements change.

7 Reasons to Choose a WMS Cloud-Based System

Knowing what a cloud WMS solution is capable of is important to business owners. However, understanding how these capabilities can translate into increased customer engagement and satisfaction rates is even more valuable.

The table below summarizes seven ways cloud warehouse management systems help improve customer relationships and boost a company's bottom line for the better.

Table 1: How Cloud-Based WMS Solutions Boost the Customer Experience

Cloud WMS Feature

Customer Experience Benefit

Real-Time Inventory Visibility

Accurate stock information reduces stockouts, enabling prompt order fulfillment and informed purchasing decisions, enhancing customer satisfaction.

Accurate Order Fulfillment

Automated processes minimize errors, ensuring customers receive correct products on time, building trust and reducing returns, increasing customer satisfaction.

Timely Delivery and Reduced Lead Times

Streamlined operations result in faster order processing and delivery, meeting customer expectations and enhancing satisfaction.

Enhanced Order Tracking and Transparency

Order tracking and updates keep customers informed, reducing uncertainty, and providing a positive shopping experience.

Efficient Returns and Exchanges Handling

Smooth and hassle-free returns and exchanges demonstrate commitment to customer service, building trust and improving satisfaction.

Improved Communication with Customers

Automated notifications and personalized messages enhance communication, keeping customers informed and creating a positive customer experience.

Personalized Customer Experiences

Tailored recommendations and offers based on customer data create a unique and relevant shopping experience, increasing customer satisfaction and loyalty.


Leverage the Cloud to Fulfill Customer Expectations

Now more than ever, customer satisfaction is paramount for businesses to thrive. A cloud-based Warehouse Management System (WMS) offers online retailers a range of powerful tools to meet and exceed their customers' expectations. 

By harnessing the capabilities of a cloud WMS, businesses can optimize their operations, deliver exceptional customer experiences, and stay ahead in the ever-evolving world of online retail.

At The Fulfillment Lab, we can show you how a cloud WMS platform will help you understand your business better, identify your customers’ needs, and ultimately take your business to the next level. Don't hesitate to reach out to us. We're here to help you succeed.

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