Warehouses are one of the most important parts of the modern supply chain. Customer demands are forever changing and they require similar delivery performance from every industry. While having a warehouse management system helps warehouses in serving their customers efficiently, choosing a cloud-based or on-premise WMS solution can be a crucial decision. Cloud based WMS solutions store information on a remote server and liberate warehouses from housing expensive physical infrastructures like servers and computers in-house.
Here are a few reasons why you should adopt a cloud WMS solution rather than an on-premise WMS solution.
Advantages of a Cloud-Based WMS Solution
Lower start-up costs
The initial investment required for a good-quality cloud-based WMS system is constantly decreasing than that of on-premise versions having the same functionalities and features. This makes it a good investment for smaller companies that don’t have their own servers, database, IT resources, and other infrastructure. SaaS WMS providers can help cut down on business costs to a great extent.
Scalability
One of the biggest advantages of having a cloud WMS solution is that it can be scaled easily as compared to a rigid on-premise solution. The workforce capacity of a warehouse can change as per the season and this could lead to problems if your WMS system can’t adapt accordingly. With the help of a cloud-based solution, warehouses can buy licenses for the number of seasonal employees working at the moment and then revoke those licenses when the employees are no longer needed. This SaaS model further helps in keeping warehouse expenses in check as you’ll only pay for the employees that are working and won’t have to pay for its functionalities in an off-season.
Beneficial for E-Commerce and Omnichannel supply chain
An E-commerce business with an omnichannel supply chain works round the clock and requires a WMS solution that can keep up with it. A non-permit solution that requires updates or needs to be shut down for repairs can hold up your business, ruin customer experiences, and adversely affect your revenue. A could-based WMS solution can be easily scaled for product selection and allows for the change in demands as well.
Enhances Cybersecurity
Any business that leverages the internet in any way needs to have robust cybersecurity measures in place. If your warehouse deals with customers online, you need to safeguard your customers personal and financial data and prevent any cyberattacks from affecting your business. Since cloud-based WMS vendors have to protect their own business from cyberattacks, they employ advanced methods to help prevent any phishing or hacking activity. This not only gives you peace of mind regarding security but also takes away the burden of hosting an in-house cybersecurity team as security measures are taken care of by the vendor.
Seamless Maintenance
If your local WMS installation fails or shows an error, it can be difficult to point out whether it is happening due to the WMS software, the server, database, internet connectivity, faulty cables, or any other reason. In the case of a cloud-based WMS solution, the WMS provider is your one point of contact and it is their responsibility to figure out what’s causing the issue and how to fix it. This makes it easier to maintain your WMS solution.
Improved Control over growth and usage
A cloud-based WMS solution not only provides you with a detailed report about your inventory, incoming and outgoing stocks, warehouse issues, packing challenges, and more but also provides this information in real-time. This insight helps you and other stakeholders of the organization to take important decisions quickly and accurately. Detailed analysis of every warehouse process also allows you to keep an eye on growth opportunities within the warehouse and know which process is working properly.
Multiple warehouse systems in one
Apart from the capabilities of a warehouse management system, a cloud-based WMS solution also provides certain functionalities of a warehouse execution system, warehouse control system, inventory management system, and other such systems that are used to manage the supply chain functions. They can be easily integrated with existing warehouse systems and technologies as well to provide superior management capabilities.
Flexibility
With the rapid advancement in technologies and the rise of multiple vendors providing a WMS solution, your local WMS solution can get outdated in just a couple of years. While certain vendors provide an upgrade feature by charging an additional license fee or maintenance fee, it might not be feasible for everyone. Cloud-based WMS systems on the other hand are quite flexible when it comes to software ageing. You don’t have to worry about updating or maintaining the WMS as it is taken care of by the vendor itself. If your business is evolving, you can add or remove certain functionalities from your existing WMS subscription without any difficulty.
Managing a supply chain can be a tough task, especially with the help of outdated and inefficient solutions. The world is going through a technological revolution and warehouses adopting a cloud-based WMS solution are better equipped to stay in line with the advancement. There are several more benefits of opting for a cloud-based solution rather than going for an on-premise solution or sticking to your own manual processes.
