Cloud WMS – How it Works and Benefits Your Warehouse or 3PL

Everywhere you turn today, you hear about ‘the cloud’ and how it can help you efficiently organize your business and personal life. From storing photos to running software, it is hard to escape the term itself, let alone operating in the cloud in some form.

In a market full of software options for supply chain management, it can be hard to find the right types of warehouse management system software (WMS) for your warehouse or 3PL. However, cloud-based warehouse software solutions have some notable advantages for inventory management that make them worth considering for your business.

In this blog post, we’ll explore some of the top benefits of implementing cloud-based WMS supply chain software into your company’s operations.

What is Cloud-Based WMS?

Cloud-based WMS is a warehouse management system software solution that utilizes various online technologies such as virtualization and distributed computing to provide users with an easy, secure, and reliable way to access web-based services for inventory, order, and logistics management. Cloud WMS eliminates the need for local physical hardware or software that traditional WMS systems require.

How Does Cloud-Based Software Work?

Cloud-based hosting works by providing an organization with access to online computing resources while saving money on in-house capital investments. This type of hosting makes use of off-site infrastructures such as computers, storage devices, and other services hosted in the cloud, instead of relying on local hardware, software, and dedicated IT personnel.

Breaking Down Cloud-Based WMS Software Solutions

Most often, when warehouses or manufacturers think of a cloud-based warehouse management system software solution, they think of Software As A Service (SaaS) WMS. SaaS operates solely online, over a public connection with a subscription to the software provider’s service.

There are other cloud-based warehouse management systems than SaaS, however. Warehouse operation managers also have the option of utilizing a WMS system through a privately-hosted secured server for inventory tracking and storage rather than on the ‘public internet’.

Rather than running WMS applications on-premises, this warehouse order management solution eliminates the need for on-site IT department and server management. Instead, it only requires secure online access with multi-factor login authorization for real-time visibility and inventory management while offering the best system flexibility and scalability in the cloud.

Benefits of a Cloud Warehouse Management Software Solution

The key benefit of cloud hosting is the ability to deploy a scalable WMS solution. Not only does this provide a warehouse or 3PL with greater flexibility, but it also allows the ability to securely manage inventory for multiple warehouses or just one! It pretty much comes down to deployment, cost, and security.

There are certain deployment methods that you will want to compare for your mission-critical supply chain software solution. It’s important to closely consider your warehouse’s required features, how much experience the software vendor has in your industry, and future benefits that the provider can offer.

6 Benefits Cloud-Based Warehouse Management System Software Scalability

1. It strengthens the supply chain.

Remember the whole supply chain catastrophe of 2020 and 2021? Who could forget it? During that time, many logistics and distribution companies either did not have an inventory control software solution or had subpar order management tracking. This means that they did not have access to real-time data for tracking inventory, receiving, forecasting, or shipping. Oh, and what a mess it did create!

While nobody could have ever imagined how a worldwide pandemic would have crippled the supply chain, those that utilized warehouse management software with access to real-time data and reporting tools had the upper hand on those supply chain companies that did not.

2. Data protection and security are better.

If your traditional WMS is hosted on a public internet network, it is an easy target for cyber-attacks or shutdowns due to hackers. With cloud-based WMS, your data is housed in a safe environment, stored on a secure server, and managed by a third-party provider that has more resources available to manage and thwart possible attacks.

Cloud WMS software also provides customer, supplier, and warehouse data that is stored remotely rather than at your facility. Systems are typically backed up regularly for quick recovery should there be a system failure or outage. It is also safe from physical damage and unauthorized access through the use of firewalls and antivirus protection to further safeguard users and company operations. This provides your warehouse or 3PL with an additional layer of security and peace of mind.

3. The initial investment is less.

In terms of cost, a cloud-based WMS system eliminates the need for expending capital or money upfront for hardware and a dedicated IT team since the provider takes care of these expenses directly. This allows businesses to save money while still having access to the same quality of service they would receive with a traditional server setup.

Cloud WMS also gives you more control over your warehouse management system software pricing. A cloud-based WMS offers your business a financially flexible solution allowing you to scale up or down as needed without having to purchase additional software. This helps your warehouse reduce costs and get more bang for your buck.

4. Integration with customer and supplier data is easier.

Cloud-based WMS provides a way to easily integrate your warehouse management systems with customer and supplier data. This allows you to quickly access their information when needed, or even provide real-time information regarding specific third-party logistics or warehouse operations like tracking.

For example, if a customer needs to know what’s in stock, what’s arriving soon, what’s in transit, and what’s on backorder, you can easily retrieve this information with a cloud-based WMS. This data can also be shared with customers or suppliers as needed.

5. It is easy to use, integrate, and manage.

Seamless integration is a key advantage to hosting your warehouse management software in the cloud since there is no need for new or upgraded hardware. The online interface makes it easier for your warehouse staff to work efficiently and productively after proper training. By accessing the WMS software remotely, they can have the best supply chain and inventory tracking right at their fingertips!

Cloud WMS also allows for easy integration with other programs, such as an enterprise resource planning (ERP) solution or client/supplier systems, which can help streamline warehouse operations. This makes it easier for your staff to obtain real-time inventory tracking information, receive and ship orders, and update clients for increased customer satisfaction.

6. It is scalable.

Ultimately, a cloud-based system provides warehouses and 3PLs with a great deal of flexibility when it comes to their supply chain management needs. Clients can change their resource usage when using cloud-based systems, allowing them better inventory control when they need to quickly respond to changing market demands.

Users have access to an array of features that enable them to scale up or down based on their specific requirements at any given time. With this type of platform, businesses can ensure their operations remain reliable and secure while reducing operational costs significantly compared to other solutions in the market today.

Plus, WMS providers can also easily supply users with the latest versions of applications and software updates without incurring additional costs.

Logimax Is Your Solution for Cloud-Based Warehouse Management

Logimax is proud to have continually provided our customers with the most reliable, market-ready, and affordable cloud WMS solution since 1995, covering a spectrum of industry types, both single and multi-warehouse.

Logimax reaps the rewards of IBM research and development’s continual $1 billion a year financial investment in IBM i servers. Plus, with an expert team of professionals from planning to support, Logimax works with warehouses and 3PLs to operate more efficiently with scalable software that is easy to use and simple to implement.

In the end, utilizing a cloud-based warehouse management system is a great choice when it comes to warehouse management tracking and data storage solutions. For more details on how Logimax can assist your distribution center with your cloud-based system for WMS and more, contact us today!

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