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Unicommerce Wins 2023 SaaS Awards for Best SaaS Product For Supply Chain/Warehouse Management

In a world where efficient warehouse management is paramount to success, Unicommerce proudly stands as the recipient of the esteemed “Best SaaS Product for Supply Chain/Warehouse Management” award at the 2023 SaaS Awards. 

Now celebrating its 8th year, The SaaS Awards continues to recognize and honor outstanding SaaS innovations from all corners of the world. Entries from hundreds of companies spanning North America, Canada, Europe, the Middle East, and Australasia were received. Yet, Unicommerce’s victory is a testament to our unwavering commitment to innovation and excellence.

Unicommerce believes in providing multichannel retail businesses with dynamic and scalable warehouse management solutions that help them power their growth. Standing out in this landscape is no small feat, but we’re proud to have earned this distinction. Managing 8000+ warehouses, we ensure that our solution offers unprecedented flexibility and scalability with a commitment to elevating the post-purchase experience. 

On this win, James Williams, Head of Operations at The SaaS Awards, said, “Unicommerce is a deserving winner in a highly competitive category. Each year, we’re impressed by the innovative solutions and achievements of our entrants. Submissions continue to improve, reflecting positive progress. With every awards program of this business software ‘Oscars,’ we see even more captivating innovations that adapt to the evolving challenges of today.”

Kapil Makhija, CEO of Unicommerce, enthused, “Winning an award in the international SaaS fraternity is a great achievement and demonstrates our commitment to producing excellent work, especially in a competitive area like e-commerce and retail tech. This recognition is a testimony of our robust product and our committed efforts to power leading brands across multiple geographies. We are thrilled that the SaaS Awards have acknowledged our work on a global scale. This victory motivates us to continue stretching the bounds of what is conceivable in the SaaS world as we work towards better standards for both our industry and our customers.”

WMS Features That Contributed to Our Success

Trusted by 20,000+ businesses globally, Unicommerce’s success can be attributed to the remarkable features and capabilities of its Warehouse Management System (WMS). Some of the key features that contributed to our success include:

• Bulk Order Processing: Quick order dispatch with minimal stock-picking time
• Cost-Saving Automation: Automates crucial day-to-day warehouse operations 
• Effortless 200+ Stable Integrations: Easy expansion across multiple channels
• Efficient Logistics Management: Reduced shipping times and error-free deliveries

How Can Unicommerce WMS Help Your Business Achieve Higher Operational Efficiency

Unicommerce’s Warehouse Management System (WMS) is designed to help businesses achieve higher operational efficiency in their supply chain and warehouse management processes. Here is how our WMS can benefit your business:

• Gain insights using handheld devices, improving accuracy, reducing waste, and boosting efficiency.
• Enable cautious and quick handling of inventory with location allocation across multiple warehouses.
• Perform smooth inbound operations, including SKU scanning, cycle counts, and more. 
• Execute smooth AI-based outbound QC and manage manifests and invoices.
• Capture detailed inventory information with precision using a superior barcoding system.
• Mitigate stock losses with systematic batching and rotation.
• Accurately map inventories with minimal downtime using an efficient inventory cycle counting feature.
• Enhance your product portfolio by selling your products in combo packs with systematized bundle management.
• Solve the biggest pain points in online returns with 100% product traceability.

About Unicommerce

Unicommerce is one of the leading e-commerce enablement SaaS platforms in India that powers post-purchase experience for retail companies, D2C brands, marketplaces, and e-commerce companies. The company’s integrated suite of products empowers brands to manage every aspect of the post-purchase journey, from managing orders and inventory to warehouse and store operations.

Unicommerce is becoming a preferred choice of brands going Omnichannel. So far, the company has powered warehouse operations across 8000+ warehouses and 3000+ stores across the country and is consistently growing its presence across the international markets. The solutions are currently powering businesses across the Middle East (which includes UAE and Kingdom of Saudi Arabia) and Southeast Asia (Singapore, Malaysia, Indonesia, and the Philippines).

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The e-commerce industry in the UAE is growing like never before. Businesses are increasingly shifting from offline to online. And do you know why? Because the seismic shift has fundamentally transformed the human mindset and the way business is being conducted. Not only are the consumers’ buying patterns changed, but their thinking patterns are also replaced by the convenience of online shopping. 

Amid such transformation, especially within the younger cohorts, e-commerce players have been reinventing ideas to expand their trade over multiple sales channels. Right from expanding their brand reach over multiple sales channels to redesigning the strategy for consumer retention, e-commerce businesses are broadening their horizons. But you know when the problem arises? When they have the plan to sell over marketplaces but their backend operations are not capable enough to manage it. 

Imagine this; you are planning to expand your customer base, for which you have started selling on multiple sales channels, which has eventually increased your warehouse management workload capacity (to manage inventory & orders efficiently). But due to manual labor, you are not able to manage the operational workflows seamlessly, right from managing the cycle count to updating the warehouse inventory in real-time. Maybe you don’t have a centralized view of your inventory. Or maybe you don’t have proper stock visibility of your inventory and order data. This is when the need for a robust warehouse stock management system arises.

In a nutshell, with the surge in the opportunities for e-commerce and the need to sell over multiple sales channels, it has become difficult to align your inventory & order operations across multiple warehouses. But what can you do to solve it? Well, you need to automate your functionalities on a centralized interface system so that you don’t disappoint your customers and fulfill orders on time. 

Still, confused? 

Well, let us first walk you through the challenges in warehouse management that the businesses like yours are facing in the UAE & Saudi Arabia amid the multifaceted e-commerce ecosystem along with their solutions. 

Challenges Faced by E-commerce Businesses of UAE in Managing Multiple Warehouses & Their Solutions

Some of the common pitfalls of managing multiple warehouses are poor visibility of inventory, problems in analyzing unique demands, and messing up the warehouse structure. 

Looking at the e-commerce industry in the UAE from the warehouse perspective, it’s one of the toughest markets to crack. Why? Because the e-commerce industry is continuously evolving in the countries, right from the adoption of new technology tools to selling over diversified sales channels. 

Don’t you want to understand what these challenges are and how can you overcome them to boost your business in the UAE? Come on, let’s have a look at them!

1. Difficulty in managing inventory

Managing the inventory across multiple sales channels is itself a crucial task. But it goes hand-in-hand with warehouse management. And when you add multiple warehouses, the level of complexity also increases. Now you not only have to manage the inventories of one warehouse but you also have to accumulate the incoming & outgoing inventory of multiple warehouses. If you fail to manage it optimally, you will have to bear the consequences of inventory stockouts and overstocking — the occurrence of which can be both dangerous and heinous to your business.  

How to solve it? 

With a centralized and integrated warehouse inventory management system, you can have full control and visibility over your inventory operations. While the centralized system updates all the inventory from multiple warehouses in real-time, uneventful situations of overstock or stockouts — if they happen — can also be tracked almost immediately. Additionally, it’s the best way to manage inventory as the automatic stock synchronization ensures accurate stock visibility and helps improve sales and controls order cancellations.

2. Varied consumer demands in different areas

Which item should you have more in your warehouse and which product do you need to slow down on manufacturing? Maybe chamomile tea leaves could be appreciated in the northern part of your country but don’t hold any significance when sold in the southern part.

Thus, it is fairly difficult to fulfill the demand of multiple markets simultaneously over a short period of time. And when you are planning to expand your horizons by adding multiple warehouses, you can definitely come across these types of situations. While the complexity behind equating the demand & supply can challenge your backend capabilities, the seasonal trends add another layer of difficulty. 

How to solve it? 

If your warehouse management system has the functionality of reports & dashboards, most of your efforts get centralized, easing out your distress. From checking the inventory availability of fast-moving SKUs to analyzing the products with zero orders last month, you can actually get the real-time insights that can allow you to track your sales, stock, and revenue proportion and forecast apt plans for the markets. 

3. Managing shipping across multiple warehouses

When you have warehouses spread across the country, you can easily ship orders from one place to another and fulfill them timely. But it becomes challenging to establish real-time coordination between warehouses. Information can be distorted and the lack of sync can also restrict the ability to manage various functions such as picking/packing, sorting of inventory, and placing in shelves. But if you are not integrated with multiple logistics providers, you might end up shutting your operations in one or more warehouses due to high costs (capital cost & logistics cost).

How to solve it? 

Outsourcing a sound logistics & warehouse management system software that is pre-integrated with multiple logistics players and shipping aggregators can solve your problem. This way you can also tie hands with the local logistics providers who are aware of narrowed nooks & crannies of your region — which is again one of the crucial problems in the UAE, due to the absence of postal codes. 

4. Problems in utilizing warehouse space

Another problem associated with warehouse management is when you fail to utilize the warehouse space adequately. A small warehouse can still be managed easily, but the main problem arises when you have to manage multiple spaces with a large set of inventory. It’s not just about keeping a hygienic structure, but it’s rather about wisely placing inventory so that the fast-moving goods can be picked easily when required. But the presence of multiple warehouses negates it as you need to hire more staff to manage the same that will eventually increase your manpower cost. 

How to solve it?

If you have a robust warehouse management system in place, you can wisely plan & structure your warehouse components. You also get a virtual warehouse feature that gives you a unified view of operations so that you can place and position your products wisely. Moreover, you can also manage shelves with the virtual system while streamlining the identification of product placement.

5. Failing to minimize the Product damages

One of the many reasons to increase your warehouses is the rise in consumer demand. But in order to fulfill the demand on time, you often compromise with the quality check processes. While that could directly pose a risk to your bottom line, you might witness a huge rate of order returns. 

How to solve it? 

Preferably, your company needs a barcode inventory system where you can conduct a seamless quality check of the products at various stages to be sure before it gets delivered to the final user. You can use handheld devices such as barcode scanners. This way you can capture an array of detail regarding the item, facilitating smooth order processing and returns management.

6. Managing Order Returns/Exchanges

Another warehouse challenge that e-commerce businesses face is dealing with the issues of returns. Order Returns often challenge the operational efficiency of the business, especially when you have more than one warehouse to manage. And when you receive the returned item in another warehouse, making space for it is a whole new challenge. Additionally, transporting it to its original destination could be costly and might damage the product. So the question is what can you do to avoid such circumstances? 

How to solve it? 

You can’t obviously avoid the problem of returns from your business but a seamless backend system can definitely enable you to minimize it. Moreover, a robust e-commerce system with robust returns management feature can answer all sorts of order returns queries. With returns management aligned to your operations you can:

• Organize the warehouse space
• Allocate a dedicated area for returned products
• Segregate returns items based on their nature and type
• Enable smooth & efficient order replacement
• Hasten up Return Inventory Turnaround

With the change in customer behavior, we need to clearly buck up our current operating system so that it doesn’t get bogged down while adding multiple warehouses. Thus, the warehouse managers must design a full-proof action plan to maximize the performance index while leveling the trade-offs for improved profitability. Also, one thing’s for sure, you definitely need a centralized warehouse management system that can support all your warehouses all while giving a centralized view of operations. An agile warehouse management system can assist you in centralizing the crucial tasks such as maintaining healthy stock levels automatically and location-allocation in multiple warehouse sites along with real-time e-commerce inventory management, automated purchase management, routing and tracking of shipments, order management from multiple POS, etc.

Related read –

• Top E-commerce Marketplaces in the United Arab Emirates (UAE)
• Order, Inventory, and Logistics Management in the UAE – Challenges & Solutions
• Retail & Fashion Industry in UAE – Growth, Challenges & Solutions
• Beauty and Personal Care Industry in UAE – Challenges & Solutions
• How to Sell on Amazon Marketplace in UAE?
• How does Warehouse Management System Works?
• UniShip – Advanced Shipping Tracking Platform
• UniReco – E-commerce Marketplace Payment Reconciliation
• Key Challenges & Benefits of Marketplace Payment Reconciliation
• Benefits of Shipping Notifications
• E-commerce Shopify Integration with Unicommerce
• Why Pick List is Important for Warehouse Operations?
• What is Inventory Cycle Counting?

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FMCG Industry in India

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector. Consumer-oriented growth and increased prices, particularly for essential products, fueled the growth of the Fast-Moving Consumer Goods (FMCG) industry in India. 

• The FMCG sector achieved a milestone of US$ 56.8 billion by December 2022. 
• Forecasts indicate that the total revenue of the FMCG market is expected to experience a Compound Annual Growth Rate (CAGR) of 27.9% from 2021 to 2027, eventually reaching a value of approximately US$ 615.87 billion. 
• In 2022, the urban sector accounted for 65% of the overall annual FMCG sales, while rural India contributed over 35%.

Household and personal care products make up 50% of the industry’s sales, healthcare claims 31-32%, and food and beverage products account for the remaining 18-19%, which makes it evident that these sectors play a pivotal role in shaping the nation’s economic landscape. 

Within this ever-expanding and dynamic industry, the warehouse serves as the beating heart that connects manufacturers, distributors, retailers, and, ultimately, the end consumers, ensuring seamless e-commerce operations. 

So let’s uncover the true significance of warehouse management in propelling the FMCG sector toward success!

FMCG Industry in India – Major Challenges

• Limited Storage Space
• Seasonality and Demand Variability
• Product Shelf Life and Fragility
• Regulatory Compliance and Quality Control

Operating a warehouse for fast-moving consumer goods brands or FMCG products comes with its fair share of challenges. Let’s explore some of the significant warehouse challenges faced by FMCG brands :

1. Limited Storage Space

One of the primary challenges faced by these brands is the constraint of limited storage space in warehouses. With an ever-expanding product range and increasing consumer demands, finding sufficient space to store inventory becomes a critical concern. Inadequate storage capacity can lead to overcrowding, disorganized stock, and inefficient picking and packing processes. Also, it restricts the ability to maintain optimum stock levels, resulting in stock outs or overstock situations.

2. Seasonality and Demand Variability

FMCG brands often face fluctuating demand due to seasonal variations and ever-changing consumer preferences. This poses a significant challenge when it comes to forecasting and managing inventory levels. During peak seasons, brands must ensure they have enough stock to meet the heightened demand while avoiding excessive inventory that may lead to waste and additional storage costs. 

3. Product Shelf Life and Fragility

Many FMCG products, particularly perishable goods, and fragile items, have limited shelf life or are sensitive to handling and storage conditions. Maintaining product quality and reducing waste are essential for businesses. Inadequate temperature control, improper handling, and suboptimal packaging can result in spoilage, damage, or expiration of goods. 

4. Regulatory Compliance and Quality Control

FMCG brands operate in a highly regulated environment, subject to various industry standards, safety regulations, and quality control measures. Compliance with these regulations is crucial for maintaining consumer trust and avoiding legal consequences. For example, brands selling food products must effectively manage product expiry dates to ensure consumer safety and satisfaction.

Evolving Practices as a Solution to Challenges in the FMCG Industry

• Efficient Stock Control and Optimization
• Space Utilization and Layout Planning
• Quality Control Measures for Ensured Excellence
• Order Fulfillment with Precision and Speed
• Data-Driven Demand Forecasting for Success
• Efficient Handling of Returns and Refunds

Warehouse management plays a crucial role in the fast-moving consumer goods industry. Let’s explore the key aspects and significance of warehouse management in these industries:

1. Efficient Stock Control and Optimization

Maintaining accurate inventory levels is important for FMCG companies. A robust warehouse management system (WMS) uses advanced technologies such as barcode scanning at batch, SKU (Stock Keeping Unit), and item levels to monitor inventory levels accurately. 

These technologies enable real-time visibility into stock levels, helping companies identify and address any discrepancies or shortages promptly. By maintaining accurate inventory records, your business can avoid stockouts, reduce excess inventory, and minimize the risk of product expiration.

Suggested reading: What is a Warehouse Management System and How Does It Work?

2. Space Utilization and Layout Planning

Efficient space utilization within the warehouse is very important for FMCG brands, as they often deal with a large volume of products. Warehouse management systems help optimize the allocation of space by providing features like shelf management. 

This feature enables brands to strategically organize products and implement efficient storage techniques. By doing so, e-commerce businesses can maximize their storage capacity, minimize waste, and streamline their picking and packing processes.

3. Quality Control Measures for Ensured Excellence

The satisfaction of customers is closely tied to the quality of a product. To achieve excellence, a robust WMS incorporates several quality control measures such as cycle counting, expiry management, batch management, and more. Cycle counting involves periodic inventory level checks to identify discrepancies. Expiry management is another critical aspect of warehouse management that prevents selling expired goods, monitoring dates, and following the FIFO or FEFO approach.

With sophisticated WMS using batch management, brands can identify which goods are suitable for sending to B2B (retail stores) and which are more suitable for marketplaces or direct-to-consumer (D2C) channels. For example, B2B retailers need products with 70%+ shelf life, while D2C customers accept shorter shelf life (30-40%) for quick consumption. By sorting products into batches, brands send appropriate batches to each channel. 

4. Order Fulfillment with Precision and Speed

FMCG products are typically everyday items consumers rely on for daily needs. Timely and accurate order fulfillment ensures that customers receive their desired products. With the help of optimized picking strategies and strategic product bundling, companies can minimize the time and effort required to locate and retrieve products. 

Warehouse management systems integrated with logistic providers allow seamless order processing and accurate picking. These integrations facilitate precise and speedy order fulfillment, ensuring that customers receive their products timely.

An excellent illustration of the effectiveness of product assortments and picking can be seen in the success of The Man Company, which achieved a remarkable order fulfillment rate of 99.99%+ using the bundling feature of Unicommerce. 

5. Data-Driven Demand Forecasting for Success

FMCG businesses operate in a fast-paced environment where consumer demand fluctuates rapidly. Accurate forecasting helps companies understand consumer preferences, anticipate future demand, and plan production and inventory levels accordingly. 

A WMS with strong and dynamic reporting capabilities allows businesses to generate comprehensive reports highlighting key performance indicators (KPIs) and trends. These reports can include data on sales orders, stock levels, top-performing channels, categories, products, etc. By leveraging these reports, companies can make informed decisions about inventory replenishment and production planning. 

A notable example of the power of accurate reporting and analysis is exemplified by Marico Limited’s partnership with Unicommerce. Leveraging Unicommerce’s error-proof reports and analysis, Marico Limited achieved an astounding 100X growth in sales.

6. Efficient Handling of Returns and Refunds

Efficient handling of returns and refunds is a critical aspect for e-commerce businesses, especially when it comes to FMCGs brands. These businesses understand the importance of prioritizing product quality and safety, which should be reflected in their return policies.

A well-organized warehouse management system can streamline the return process and ensure quick resolution. It enables efficient tracking of returned products, accurate inventory management, and timely inspection of returned items for quality control. 

Let’s Make Warehousing Easier for Your FMCG Business!

The fast-moving consumer goods industry relies heavily on efficient warehousing to ensure seamless supply chain management and meet the demands of consumers. This industry encompasses a wide range of sectors, including food and beverages, personal care products, household goods, and pharmaceuticals, among others. 

By addressing the challenges, implementing effective strategies, and leveraging an all-in-one warehouse management system, you can streamline your e-commerce operations and propel your FMCG business toward growth and profitability!

Some FAQs related to FMCG Industry & Role of Warehouse Mangement –

Q: What is the FMCG industry in India?
A: The FMCG (Fast-moving consumer goods) industry in India comprises companies that produce and distribute consumer goods with a relatively short shelf life. These goods are typically consumed on a frequent basis and include products such as food and beverages, personal care items, household cleaning products, and toiletries.

Q: What are the roles of warehousing in the FMCG industry?
A: Warehousing plays crucial roles in the FMCG industry, including: Storage and inventory management, Order processing, Distribution support, Supply chain efficiency, etc.

Q: What is an FMCG warehouse?
A: An FMCG warehouse is a specialized storage facility designed to accommodate fast-moving consumer goods. It is equipped with features and infrastructure tailored to meet the specific requirements of the FMCG industry, such as temperature-controlled areas, racking systems, and efficient handling equipment.

Q: What is the role of logistics management in the FMCG industry?
A: Logistics management in the FMCG industry involves planning, coordinating, and controlling the flow of goods from their point of origin to the final destination. It encompasses activities such as transportation, inventory management, order processing, and warehousing. The role of logistics management is to ensure the timely and cost-effective delivery of FMCG products while optimizing the overall supply chain.

Q: What are the four categories of FMCG?
A: The four categories of FMCG products are: Food and beverages, Personal care products, Household cleaning products,Tobacco and cigarettes.

Q: Which is India’s No. 1 FMCG?
A: As of September 2021, Hindustan Unilever Limited (HUL) is considered one of India’s leading FMCG companies and has been consistently recognized as a significant player in the FMCG industry.

Q: Which FMCG product is most profitable?
A: The profitability of FMCG products can vary based on various factors such as brand positioning, market demand, pricing strategies, and production costs. It is difficult to pinpoint a specific FMCG product as the most profitable as it can change over time. Some examples of FMCG products that have traditionally shown good profitability include personal care items like cosmetics, skincare products, and certain food and beverage items with high consumer demand.

Explore our platforms:

• NDR Management Platform
• E-commerce Payment Reconciliation

Related read –

• Healthcare Industry: Opportunities, Challenges & Solutions
• How does Warehouse Management System Works?
• Logistics vs Supply Chain Management
• Apparel Industry in India: Trends, Challenges, Opportunities & Solutions
• Footwear Industry in India – Trends, Challenges & Solutions

Uncover Leading Brands Success with Unicommerce! –

• Mamaearth Attained 99.99% Order Fulfillment Rate
• Upscalio Achieved a 99%+ Order Fulfillment Rate with 100%+ Order Growth
• Dhani Healthcare Streamlined Operations Across 166 Facilities
• Urban Company Achieved 8X Growth in Sales Volume
• Plum Goodness Streamlined Inventory Operations with 69% Growth Rate in Sales
• Bulbul Simplified Selling Across 200+ Vendors
• Chumbak Lifestyle Boost Sales Across 58+ Retail Stores
• TCNS Achieved 9X Growth in Sales
• Hamilton Housewares Attained 96%+ Pick Accuracy Rate

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One of the biggest challenges faced by e-commerce businesses is the management of their warehouses. A mismanaged warehouse can slow down operations, reduce efficiency, and hurt overall productivity. It can even stop the whole process chain. A report published by McKinsey & Company in 2019 estimated that around £300 billion is spent on warehousing costs alone, without considering the cost of correcting errors.

Managing a warehouse can be tedious and redundant if done manually. There are many challenges that can arise and cause problems later on. Here are some to watch out for and ways to overcome them!

5 Warehouse Management Operational Challenges

Managing a warehouse can be full of challenges, but we’ve shortlisted five of the most common ones your business should be aware of:

Challenge 1: Poor Inventory Management

A warehouse may contain tons of SKUs and a variety of products. Right placement plays a vital role in not just making it easier to pick but having lesser room for errors. Bad placement or lacking a systemized approach to inventory management can make a business face the following situations:

• Difficulty in locating products when an order needs to be fulfilled. This can result in employees wasting time searching for the product and can lead to marketplace SLA breaches and, ultimately, delayed deliveries.
• Accepting orders without knowing the current stock levels, and later missing out on the deliverables causing delayed deliveries, loss of customer trust, and negative reviews, damaging the brand’s reputation.
• Denying orders on the assumption of lesser stock but later finding a few pieces left, leading to order loss and stock expiry.

Keeping a real-time record of the inventory is crucial to avoiding these problems and maintaining accuracy in fulfilling orders on time.

Challenge 2: Accidental Redundancy

One of the common challenges faced by larger warehouses is redundant operations. This refers to when the same operation is performed multiple times on the same item due to an improperly organized workflow. The operations in a warehouse are typically organized as workflows to streamline the process, but if these workflows are not systematically arranged, redundancies can occur.
These redundancies significantly shoot the labor costs and increase the order-to-ship time for a business. If the inefficiencies persist, it can result in more SLA breaches, where the promised delivery date is not met, which can ultimately lead to dissatisfied customers and a poor customer experience.

Challenge 3: Inefficient Space Utilization

Many warehouses are not being utilized to their full potential, with usage often only reaching 68% of capacity. This results in an inefficient use of space and a cluttered layout, which can make it difficult to store and manage inventory.
A messy and cluttered layout can also make it difficult for workers to find and access the needed products, leading to more time spent searching for items and potential delays in order fulfillment. To ensure an efficient and cost-effective warehouse operation, it’s important to make the most of the available space.

Challenge 4: No Preparation for Seasonal Demands

Staying attuned to market trends and customer demand is crucial for business like fashion, beauty and personal care, FMCG, particularly when it comes to product inventory. Some products may only have increased demand during a specific season, while others may be hot sellers year-round.
Proper inventory placement and management can help businesses keep up with demand and ensure that their most popular products are readily available. Staying informed about market trends and customer needs can help businesses keep their hot sellers in stock and within reach.

Challenge 5: Poor Damage Control

Damage is inevitable in a warehouse, though we can still take precautions to reduce it. When handling a large inventory and heavy-duty equipment, it’s important to take steps to minimize the risk of accidents such as slips, falls, breakage, and other incidents that can result in product loss. To help sail through, you must have all the safety measures taken in the warehouse and protect not just the products/inventory but keep your employees safe at the same time. By protecting both products and employees, businesses can help ensure a safe and efficient warehouse operation, minimize product loss, and maintain a positive working environment.

Sorting the Hassle: How to Overcome These Challenges

As poor inventory management is one of the significant challenges, the best way to overcome the challenge is to switch to inventory management software or overall warehouse management software. By using comprehensive warehouse management software, businesses can better manage their product stocks, streamline operations, and optimize inventory management.
Warehouse management is not an easy nut to crack; even well-established brands have been leveraging warehouse management systems to overcome the challenges on the way. For instance, Chumbak, a leading design-led home and lifestyle brand faced challenges in keeping up with rapidly increasing customer demands across online and offline channels.

The brand struggled to manage warehouse operations, leading to the following challenges:

• Unaligned inventory visibility across offline and online sales channels
• Difficulty in integrating their ERP system
• Delayed order processing and fulfillment
• Lack of full automation to manage warehouse operations for e-commerce
• Inaccurate business reports and analytics

Unicommerce provided the brand with omni-enabled solutions, including inventory management and order management, to synchronize their inventory across all offline stores and warehouses. This helped the brand improve customer experience by increasing the fulfillment rate and meeting service level agreements (SLA).

If you’re looking to streamline your warehouse operations and drive business profitability, consider implementing a warehouse management system. It can help you overcome common challenges and provide a more efficient, integrated solution for managing your inventory, orders, and overall warehouse operations.

Related read –

• What is a Warehouse Management System?
• E-commerce Apparel Industry – Trends, Challenges & Solutions
• Footwear Industry in India – Trends, Challenges & Solutions
• Healthcare Industry in India – Trends, Challenges, Opportunities & Solutions
• FMCG Industry in India: Trends, Challenges, Solutions

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From the sourcing of raw materials to the final delivery of the product, the supply chain is a continuous flow of goods and services. The storage of these items is critical to the process and plays a pivotal role in logistics. This is where a robust ERP warehouse management system (WMS) comes in, eliminating bottlenecks such as volatile supplies and delays.

However, before delving deeper into the intricacies of WMS, let’s establish a foundational understanding of the fundamental aspects of warehousing.

What is Warehouse Management?

Warehouse management refers to the efficient and systematic control of various operations within a warehouse. It involves overseeing and optimizing the processes related to inventory management, storage, picking, packing, and shipping of goods. The primary goal of warehouse management is to ensure that the right products are in the right place at the right time, minimizing costs and maximizing efficiency throughout the supply chain.

Benefits of Warehouse Management

Implementing a Warehouse Management System (WMS) offers numerous benefits that significantly enhance the efficiency, accuracy, and overall performance of warehouse operations. Some of the key benefits include:

• Enhanced inventory accuracy with real-time tracking 
• Increased efficiency and productivity
• Maximized warehouse space with intelligent storage strategies
• Accurate order fulfillment
• Improved visibility and control with real-time insights
• Lowered operational expenses related to labor, inventory, and fulfillment
• Prompt and accurate order deliveries that enhance customer experience

Principles of Warehouse Management

Effective warehouse management involves several principles to ensure smooth operations and optimized efficiency. Here are three key principles:

1. Organization and Layout Optimization

• Efficiently organizing the warehouse layout is crucial. Design the floor plan to minimize travel time for picking, packing, and storing goods. 
• Implement logical categorization and labeling systems for inventory items to facilitate easy identification and retrieval.
• Utilize space wisely by employing shelving, racking, or automated storage systems to maximize storage capacity.

2. Inventory Management and Control

• Maintain accurate inventory records through the use of a robust inventory management software.
• Conduct regular cycle counts and reconcile inventory to prevent discrepancies and avoid stockouts or overstock situations.
• Implement inventory forecasting techniques to anticipate demand and adjust stock levels accordingly.

3. Optimize Operational Processes

• Streamline warehouse workflows by establishing efficient receiving, storing, picking, and shipping procedures.
• Implement lean management techniques to reduce waste, minimize errors, and improve overall operational efficiency.
• Use technology such as barcode scanners, RFID (Radio-Frequency Identification), or WMS (Warehouse Management Systems) to automate and optimize processes.

What is a Warehouse Management System (WMS)?

A Warehouse Management System, or simply e-commerce WMS, is a software application that helps manage and optimize the operations of a warehouse by providing real-time visibility into inventory levels. From the moment a shipment enters the warehouse to the moment it leaves, the WMS tracks every step and keeps everything running smoothly.

But the WMS is more than just a tracking system. It’s a mastermind of efficiency that maximizes labor and space utilization while coordinating and optimizing resource usage and material flows. In short, it’s the secret weapon that allows companies to operate warehouses like a well-oiled machine. With a fully integrated cloud-based WMS, you can easily achieve 100% inventory data accuracy, allowing you to process orders and replenish goods more efficiently. 

Inventory Management vs Warehouse Management

Inventory management and warehouse management are interconnected but distinct aspects of e-commerce operations. Inventory management involves overseeing the quantity, location, and movement of goods throughout the supply chain to meet customer demand efficiently, minimizing costs, and optimizing stock levels. 

Warehouse management, on the other hand, focuses on the physical storage, organization, and handling of inventory within a warehouse facility, ensuring streamlined operations, efficient picking, packing, and shipping processes, and the utilization of space and resources to facilitate smooth logistics operations.

While inventory management deals with the broader supply chain, warehouse management specifically concentrates on the activities within the warehouse premises to ensure effective handling and movement of inventory. Both are integral parts of logistics and supply chain management, working together to ensure timely and accurate delivery of products to customers.

Types of Warehouse Management Systems

Warehouse Management Systems (WMS) come in various types, each catering to specific needs and operational requirements within the warehouse. Here are some common types of Warehouse Management Systems:

• Standalone WMS: A standalone WMS operates independently and is not integrated with other systems like ERP (Enterprise Resource Planning). It focuses solely on warehouse operations, offering functionalities such as inventory tracking, order picking, packing, and shipping.

• ERP-Integrated WMS: Many WMS are integrated within broader ERP systems. These systems combine WMS functionalities with other business processes like accounting, human resources, and customer relationship management. This integration ensures seamless data flow between different departments within an organization.

• Cloud-Based WMS: Cloud-based WMS solutions are hosted on remote servers and accessed through the Internet. They offer scalability, flexibility, and accessibility from any location with an internet connection. Cloud-based systems often come with subscription models, reducing the need for upfront infrastructure investments.

Understanding the Workflow of a Warehouse Management System (WMS)

Process of Warehouse Management System are:

• Step #1: Receiving
• Step #2: Putaway
• Step #3: Storage
• Step #4: Picking and Packing
• Step #5: Shipping and Quality Control
• Step #6: Reporting

It’s important to understand the workflow of a warehouse management system (WMS) in order to optimize operations and improve efficiency. The typical workflow of a WMS includes the following core functionalities:

Step #1: Receiving

Receiving Workflow in Warehouse Management System –

• Pre-receiving
• Receiving & Unloading Stocks
• Inspection of received inventory
• Putaway

The first step in a warehouse management system is “Receiving.” This step ensures that the right product has been received in the right quantity, quality, and location and at the right time. To make this process even more efficient, a powerful warehouse management system allows businesses to input key purchase order details such as delivery and expiry dates, as well as vendor information. Once everything has been received and verified, a Goods Received Note (GRN) is created to confirm that all the goods have indeed been received.

Step #2:Putaway

Putaway Workflow in Warehouse Management System –                              

• Operator to scan barcode
• Transfer goods to location
• Scan and puts away in location
• Putaway confirmed

After the receiving process is complete, the goods need to be moved from the receiving area to their designated storage locations. This process is called putaway, and it is critical to ensure that products are handled correctly during this process to avoid costly damages. 

Fortunately, a well-designed warehouse management system (WMS) can help businesses avoid these issues by facilitating the creation of efficient putaway processes that optimize operational productivity.

Step #3: Storage

Storage is a vital aspect of any business that ensures the proper placement of goods in the warehouse. The goal is to maximize storage efficiency while minimizing errors and damage to goods. But how can this be achieved? That’s where Shelf Management comes into play. 

It involves the strategic arrangement of goods on shelves to optimize space utilization, minimize errors, and prevent damage to products. By properly executing this process, businesses can maximize their available storage area and increase productivity. 

Step #4: Picking and Packing

Picking & Packing Workflow in Warehouse Management System – 

• Receive
• Process
• Pick
• Pack
• Inventory
• Ship

Picking and packing are integral components of order fulfillment, and optimizing these processes can significantly reduce costs. When order details are received, they can be passed on to warehouse staff through a picklist generated using WMS. This list provides essential details to the picker, including order information, item details, shelf locations, barcode scanning, and batch/lot numbers. 

Suggested reading – What is order picking in a warehouse?

The products are selected from the warehouse using handheld devices that scan each item’s barcode. Once the items have been picked, they are packed in a way that minimizes the risk of damage during transportation. Shipping labels are generated, and an invoice is created to accompany the order.

Suggested reading – What is the packing and dispatch process in a warehouse?

Step #5: Shipping and Quality Control

Shipping and Quality Control in Warehouse Management System – 

• Receiving
• Shelving Putaway
• Picking Kitting
• Packing
• Shipping

The shipping and quality control (QC) process marks the end of the journey for goods. This step is particularly important, as it has a direct impact on the customer experience. Incorrectly shipping products to the wrong customers can result in negative feedback. 

To avoid such scenarios, it is important to have robust QC measures in place, such as order verification, packing inspection, barcode scanning, weighing checks, etc. With automated WMS software, this process also gets automated, simplifying the order routing process. 

What are the Benefits of Deploying a Centralized Warehouse Management System?

Let us walk you through the benefits of WMS so that you can understand its significance in streamlining your e-commerce operations! Top Benefits of Deploying a Centralized Warehouse Management System – 

• Better Inventory Control with Quick Dispatch Time
• Reduced Manpower Costs and Errors
• Improved Auditing and Security
• Simplified Billing and Taxation Management
• Enhanced Customer Experience
• Increased Scalability and Flexibility

1. Better Inventory Control with Quick Dispatch Time

Inventory management is critical to the success of any business, particularly in the retail industry. For this, you need an efficient WMS that can consolidate and sort inventory quickly. This allows for bulk order processing and reduces order preparation time, resulting in quick dispatch of orders. 

Implementing a WMS also provides access to detailed information on the location and status of each Stock Keeping Unit (SKU), including which batch it belongs to and its location within the warehouse. Barcoding is a commonly used identification method whereby each item is assigned a unique code that can be scanned or tracked as it moves through the warehouse.

With this information readily available, businesses can make informed decisions about inventory levels and restocking, which can help prevent stockouts and overstocking.

Read: E-commerce Warehouse Management System Case Study – 35% Increase in Order Flow for the Largest E-commerce Footwear Brand in India

2. Reduced Manpower Costs and Errors

A powerful warehouse management system (WMS) can significantly reduce manpower costs and minimize errors in your warehouse operations. This is achieved through the automation of various functions, including inventory tracking, sorting, picking, and order processing. 

With a WMS in place, your warehouse can also benefit from systematic inventory placement and quality checks, which can further reduce the risk of manual errors while enhancing overall efficiency. One of the key advantages of using a WMS is that it allows you to optimize both inward and outward warehouse operations. 

This ensures that only high-quality, accurate products are delivered to end customers, preventing the delivery of defective products and ultimately reducing customer complaints.

3. Improved Auditing and Security

Auditing and security are crucial components of any warehouse management system. The sheer amount of inventory and transactions taking place on a daily basis can make it difficult to keep track of everything, let alone prevent theft or loss of goods. That’s why most warehouse management systems enable multiple employees to use the software while also linking specific users to specific transactions.

This creates a level of transparency and accountability that is essential for maintaining a secure and efficient warehouse. With each transaction tied to a specific employee, it becomes much easier to pinpoint any issues that may arise. 

4. Simplified Billing and Taxation Management

A warehouse management system (WMS) is more than just a tool for inventory management. With a reliable WMS in place, you can streamline your billing process, which is a critical aspect of any business. Failure to manage your bills correctly can result in significant losses.

Fortunately, most WMS solutions come with pre-integrated third-party apps that can improve your ability to manage bills from a single screen. In addition to simplifying the billing process, an advanced WMS can also help you comply with government taxation standards by streamlining the tax calculation process for invoices.

5. Enhanced Customer Experience

Customers are the lifeblood of any business, and a centralized warehouse management system can help you focus on improving your customer’s buying journey and enhance their overall experience. 

Businesses can quickly and accurately process customer orders and track the progress of each order from start to finish. This allows for timely and accurate communication with customers regarding order status, shipment tracking, and delivery times, which can greatly enhance the customer experience.

6. Increased Scalability and Flexibility

As your business grows, so will your warehouse management needs. With a centralized WMS in place, you can easily scale your operations to accommodate changes in demand, seasonality, or expansion into new markets.

A WMS can also provide flexibility in managing different types of products and order fulfillment models, such as dropshipping or third-party logistics, allowing businesses to adapt to changing customer demands and preferences.

What are the Features of a Warehouse Management System (WMS)?

A well-organized and structured warehouse with reliable and efficient performance is a huge asset for retail business. Here are the essential WMS features that can help you attain operational capabilities:

• Batch Management
• Cycle Count
• Shelf Management
• Bundle Management
• Barcode Scanning
• Returns Management

1. Batch Management

Batch management is an important feature of a warehouse management system that helps to manage and track inventory based on batches or groups. Batches represent distinct collections of products that share common characteristics such as manufacturing dates, expiration dates, or production lots. This feature is particularly useful in industries where products have a limited shelf life, such as the food, pharmaceutical, and cosmetics industries.

By grouping inventory into batches, businesses can minimize the amount of waste produced from expired or spoiled inventory. Additionally, batch management allows for the implementation of expiry management methods like FIFO (first in, first out) and FEFO (first expiry, first out). These methods enable stock rotation based on manufacturing and expiry dates, which helps to prevent the buildup of old inventory and avoid any potential damage from prolonged storage.

2. Cycle Count

Do you remember the days of the dreaded annual inventory count that would take forever? Well, thanks to the cycle count feature in Warehouse Management Systems (WMS), those days are long gone! 

With regular inventory counts on a daily, weekly, or monthly basis, businesses can now maintain accurate records, avoid stockouts, and optimize their warehouse operations. And the best part? Businesses can now have real-time updates on their day-to-day operations, making their supply chain management more efficient than ever before.

3. Shelf Management

Shelf management is an essential component of effective warehouse operations. It refers to the process of organizing and arranging products on shelves in a way that maximizes space and ensures efficient picking and restocking. Proper shelf management can significantly improve the overall productivity of a warehouse.

One way to achieve optimal shelf management is by using a robust Warehouse Management System (WMS). A WMS can assist in identifying the most suitable storage location for each product based on its attributes, such as size, weight, and demand frequency. This helps to ensure that products are arranged in a logical order, minimizing the time taken to locate them during picking and reducing errors.

4. Bundle Management

Product bundling is a popular sales strategy in which multiple SKUs are packaged together and sold as a combo pack to customers. While bundling offers benefits such as increased sales and customer satisfaction, it can be challenging to manage the various processes involved, from monitoring product availability to managing inventory for multiple sales channels.

The Bundle Management feature of a WMS can help to streamline these processes by allowing businesses to define bundle products as a group of individual SKUs, with each SKU being tracked individually. This enables businesses to monitor the availability of each SKU, ensuring that bundles are only created when all the SKUs are in stock.

5. Barcode Scanning

Barcodes are machine-readable representations of numeric and alphanumeric characters, typically consisting of bars and spaces. Barcodes offer several benefits in warehouse management, including improved accuracy, efficiency, and productivity.

The advanced barcoding feature provided by the WMS allows for the capture of accurate and intricate details of inventory at the item, SKU, and batch levels. This ensures that each item is uniquely identifiable and traceable, making it easier for businesses to track inventory movements, identify stock levels, and ensure timely replenishment.

6. Returns Management

With the rise of online shopping, customers have come to expect an easy and hassle-free returns process, which puts pressure on retailers to provide a seamless experience. To meet this demand, businesses require a robust Warehouse Management System (WMS) that can efficiently handle returns by simplifying the entire process, from authorizing returns to processing refunds or replacements.

Furthermore, the WMS returns feature allows businesses to manage e-commerce returns from various channels to multiple warehouses using a single system. For instance, if an order was processed from warehouse A, the return can be directed to warehouse B, which may be closer to the customer. This functionality simplifies the returns process, and minimizes potential errors and delays associated with handling returns across multiple platforms.

Factors to Consider When Selecting the Right Warehouse Management System for Your Business

Now that you know why a WMS is important, here are the key factors to consider when selecting the right WMS for your business:– 

• Centralization of Multi Warehouse Inventory Management
• Real-Time and Customizable Reporting
• Third-party Integrations
• Virtual Multiple Warehouse Inventory Management

1. Centralization of Multi Warehouse Inventory Management

As customer demands continue to grow, businesses are exploring new ways to manage their operations in multiple warehouses simultaneously while maintaining a centralized view. Therefore, first and foremost, the WMS of your choice should centralize key tasks, such as automated stock level management, location allocation across multiple warehouse sites, real-time e-commerce inventory management, automated purchase management, shipment routing and tracking, and order management from multiple points of sale. 

2. Real-Time and Customizable Reporting

Next, you need real-time information access about what’s going on in your warehouse to manage stock inventory effectively. You require a bird’s eye view of which stock units are in demand and which haven’t moved at all, geographic market-specific demand variations, and seasonal trends. 

You should also be able to generate customizable reports to analyze inventory status and strategize warehouse utilization. An online multi-warehouse management system can enable you to achieve this, as the information remains remotely accessible and available in real-time. 

3. Third-party Integrations

By integrating the WMS with other third-party applications, businesses can streamline various processes such as logistics, marketplace management, accounting, sales and CRM, and more. 

A smart WMS should provide sophisticated tech stack solutions that seamlessly integrate with other software systems used in your business. Not only can this save time and resources, but it can also provide a more complete picture of your business operations.

4. Virtual Multiple Warehouse Inventory Management

Unutilized or under-utilized warehouse space increases your inventory carrying cost and burdens your value chain, even when you have a network of multiple warehouses to match market demand. To address this issue, you need a multi-warehouse management system that gives you a complete virtual view of warehouse space.

A virtual multiple warehouse management system allows you to manage your inventory across multiple warehouses as if they were one. You can view all your warehouses’ inventory levels in real-time and manage them from a centralized location.

Future-Proof your Business with Advance WMS!

An effective warehouse management system (WMS) enables you to perform plenty of tasks with utmost efficiency and accuracy. It also helps you ensure that your business is equipped to handle the challenges of tomorrow. 

From optimizing inventory management to enhancing order fulfillment, a WMS can help you achieve operational excellence and drive growth. So what are you waiting for? Go ahead and deploy a robust WMS technology in your system today and reap the benefits of automation.

See how to improve Inventory Visibility & accuracy with E-commerce focused Warehouse Management System –

Frequently Asked Questions (FAQs)

Q1. How long does it take to implement a Warehouse Management System?

Ans: The time it takes to implement a Warehouse Management System can vary depending on the size and complexity of the warehouse, as well as the specific needs of the business. However, implementation can typically take six to eight months. 

Q2. Can a Warehouse Management System be customized to meet specific business needs?

Ans: Yes, many Warehouse Management Systems can be customized to meet the specific needs of a business. This can include adding new features, modifying existing workflows, or integrating with other software.

Q3. What types of businesses can benefit from using a Warehouse Management System?

Ans: Any business that has a warehouse or distribution center can benefit from using a Warehouse Management System. This includes businesses in industries such as retail, manufacturing, wholesale distribution, and logistics.

Explore our platforms:

• Integrated logistics management system
• Automated payment reconciliation system

Related read – 

• FMCG Industry Challenges & Solutions in India
• Top 6 Essential WMS Features for Unleashing Operational Capabilities
• Why Warehouse Management System is important for Supply Chain?
• Logistics vs Supply Chain Management
• What is Order Picking?
• E-commerce Apparel Industry – Trends, Challenges & Solutions
• Footwear Industry in India – Trends, Challenges & Solutions
• Healthcare Industry in India – Trends, Challenges, Opportunities & Solutions
• Why Should you Deploy a Warehouse Management System?

The post What is a Warehouse Management System (WMS) – Process, Features, Benefits, Key Factors to Consider appeared first on unicommerce.com.

The e-commerce industry in the Philippines is no exception, as its rapid growth demands efficient and effective inventory management solutions. While business owners in the Philippines are well aware of the benefits of automation, budget constraints can sometimes hold them back from making the switch. However, failing to address these inventory management challenges can limit a company’s ability to stay competitive in a rapidly growing industry

So, let’s unveil some of the most common inventory management challenges faced by companies in the e-commerce industry in the Philippines and solutions to overcome them.

Top Inventory Management Challenges in the Philippines

• Inconsistent Tracking
• Inefficient Warehouse Management
• Data Inaccuracy
• Limited Inventory Process Visibility
• Manual Documentation
• Overstocking and Understocking Issues
• Insufficient Order Management
• Expanding Product Portfolios
• Inventory Loss

Though every company can have its set of holdbacks, here are a few challenges that might be the common ones among all:

Challenge #1: Inconsistent Tracking

When you have tons of inventory to manage, it’s quite natural that the tracking can become tough, and there’s a huge room for errors in tracking products in the warehouse. Talking about the holdbacks, there are high chances of late and wrong product deliveries due to inconsistent inventory tracking, which can be responsible for depleting the brand value and gaining low ratings on social media as well, ultimately resulting in tarnished brand value. 

Challenge #2: Inefficient Warehouse Management

As said earlier, inventory management isn’t ever a piece of cake; thus, managing warehouses to accommodate new stocks can be a cumbersome process. In case you’re operating on a manual process, there can be a few steps, including scratching a plan, allocating spaces, and then heading to management. The process will take generous time and resources, which can increase your budget. Without an automated inventory system, it’s nearly impossible to have efficient warehouse management.

Challenge #3: Data Inaccuracy

Managing large amounts of data associated with a vast inventory can be extremely challenging without automation. Manual data management becomes even more complex and prone to errors. Having a system to back up your process and incorporating the right tracking to have the data in sync can be done only through an e-commerce solution. This can later avoid data inaccuracy and keeps stuff ready to use for further purposes.

Challenge #4: Limited Inventory Process Visibility

Customers have come to expect transparency and accuracy in their e-commerce experiences, including real-time tracking information. Inadequate inventory tracking can result in delayed deliveries, which can lead to customer frustration and a switch to competitor products. Inaccurate inventory management can severely impact customer satisfaction and loyalty. 

Challenge #5: Manual Documentation

Manual inventory management can be a difficult task, especially when it comes to tracking inventory, managing reports, processing purchase orders, and handling invoices. Inaccurate documentation can result in incorrect order allocation, causing missed or delayed deliveries that can have a significant impact on operations and customer satisfaction. 

Challenge #6: Overstocking and Understocking Issues

Overstocking and understocking are two significant issues that businesses face when managing their inventory. In a general supply chain process, new stocks are ordered once the old/existing ones go bleak or maybe about to finish. In the case of inefficient inventory management, there are huge changes in overstocking or understocking materials, which can cut your profit margins, while manual management can lead to inaccurate records, missing items, and higher budget allocation for re-ordering.

Challenge #7: Insufficient Order Management

With tons of orders pouring in, you must have a strong order management system to help you fight the insufficiency of products. For instance, if the customer has ordered five pieces of a particular order and post-purchase you find lesser pieces available, ordering more will take time, and thus your order delivery duration will extend, leading to insufficient order management. Additionally, incorrect SKU mapping can also cause problems with order management. An incorrect SKU mapped to a product can result in inaccurate inventory tracking and fulfillment errors, leading to delays and, ultimately, unsatisfied customers.

Challenge #8: Expanding Product Portfolios

Expanding a product line or setting up a new warehouse requires strong and effective management of inventory stocks. Having it done manually can surely lead to mismanagement; why so? This is because the inventory managers are required to have order tracking, maintain shipping details, and have an eye on the currently available stocks to allocate the same for rising customer demands. Having an automated system can be the right way to expand product portfolios.

Challenge #9: Inventory Loss

Wastage in inventory is often overlooked until it shows up as losses on the balance sheet. Poor inventory management can result in damage or defects during the product life cycle. Inefficient tracking can lead to missing inventory, causing further losses if not noticed. These inefficiencies can significantly impact the bottom line.

Read how brands like Ellana and Edamama solved their inventory management challenges in the Philippines.

As a business owner, you require robust software to manage complex logistics and seamlessly integrate with your existing business processes. However, choosing the right inventory management solution from the hundreds available can be challenging, particularly with the need to master a range of features that require training and ongoing support.

But what should be kept in mind while finding the right solutions to overcome the above-listed challenges? Here’s what you need to know!

Choosing the Right Inventory Management Solutions in the Philippines

• Integrations
• Multi-location Sync
• Extensive Dashboard for Reporting
• Product Barcoding
• Product Bundling

A comprehensive inventory management system is crucial for any business. The right solution can provide valuable insights into your stock, enabling effective management and identification of any potential obstacles to success. This can help ensure timely deliveries and maintain customer satisfaction.

When choosing an inventory management solution, it’s important to consider the following essential features:

Integrations

Having an inventory management system in place is not enough for a successful business. It’s important to ensure that all necessary integrations are in place, including an ERP solution, a comprehensive point-of-sale system, accounting software, and strong logistics.

This should also include integration with leading marketplaces, websites, and carts such as Lazada, Shopee, Shopify, and Magento, and with logistics providers such as J&T and Ninjavan, and with ERP systems like SAP, Infor, and Microsoft.

Multi-location Sync

Having your presence on a single channel isn’t enough to grab the eyeballs; make sure you have omnichannel visibility with a marketplace sync. This includes a strong presence on both digital and offline channels.

An inventory management system can facilitate efficient omnichannel operations, such as centralizing inventory across online and offline channels, optimizing inventory allocation for a higher return on investment, and improving inventory turnover while reducing working capital. The system can also allow for effective order routing based on inventory availability.

Extensive Dashboard for Reporting

An all-encompassing report dashboard is crucial for monitoring and analyzing business performance, including metrics such as growth, profitability, loss, holdbacks, customer feedback, data usage, and more. These dashboards also provide real-time data synchronization and inventory updates on marketplaces.

Not only do these updates help you avoid loss of sales and delays in delivery, but they also lead to improved customer satisfaction. Ensure that you have access to a comprehensive dashboard that presents all of this information in a single, easily-readable view.

Product Barcoding

Barcoding software is an essential tool for reducing data entry errors, automating internal processes, and ensuring accuracy and efficiency in inventory management. The use of barcode software often integrates with digital documentation and reporting features, allowing for a more streamlined and efficient workflow.

Integrating a mobile barcoding device can significantly enhance inventory accuracy and speed up back-end processes, reducing manual labor and shifting towards a more paperless documentation process.

Explore our platforms:

• Integrated logistics management system
• Automated payment reconciliation system

Recommended read:

• Inventory Management challenges & solutions
• What is Warehouse Management System
• Logistics Vs Supply Chain Management
• What is Order Management

The post Maximizing Efficiency in Manual Inventory Management in Philippines: Challenges and Their Solutions appeared first on unicommerce.com.

Understanding the Role of ERP in E-commerce

The strategic alignment of your online sales platform with an Enterprise Resource Planning (ERP) system is important. This alignment establishes a seamless, two-way information exchange, ensuring that data entered into one system effortlessly synchronizes with the other systems, eliminating the need for redundant data entry.

However, the pursuit of e-commerce excellence doesn’t conclude there. Warehouse Management Systems (WMS) play a vital role in this ecosystem. Collaborating seamlessly with ERP systems, they enhance the overall efficiency and effectiveness of your e-commerce operations, ultimately optimizing your business processes. 

Key Differences Between WMS and ERP

Enterprise Resource Planning (ERP) and Warehouse Management Systems (WMS) are both critical systems used in the e-commerce ecosystem, especially in industries that rely on supply chains and inventory management. While they have some overlapping functionalities, they serve different primary purposes.

Here’s a comparison between ERP and WMS:

• ERP: An ERP system integrates various business processes across an organization into a unified system. It may encompass a broad range of functions like finance, human resources, procurement, sales, production, and, yes, even some basic inventory management. 
• WMS: A WMS is designed specifically to manage and optimize warehouse operations. This includes tracking inventory levels, order fulfillment, receiving, picking, and shipping goods. Moreover, a robust WMS is a hub for strong and adaptive integrations. Strong integrations mean a responsive and optimized warehouse ecosystem.

How Integrating ERP with WMS Can Improve Your E-commerce Business Operations

Integrating ERP with WMS can significantly enhance the efficiency, responsiveness, and scalability of e-commerce business operations. Here’s how this e-commerce integration can benefit e-commerce operations:

• Streamlined Inventory Management
• Consistent Data Across Platforms
• Enhanced Customer Satisfaction
• Efficient Returns Management

1. Streamlined Inventory Management

ERP typically contains sales and procurement data, while WMS tracks the real-time movement of inventory in the warehouse. By seamlessly integrating these two vital components, businesses can achieve near real-time inventory visibility.

Consider the case of WOW Skin Science, a brand with numerous SKUs. To streamline inventory management and fulfill orders promptly, they used a customized API solution of WMS integrated with Odoo, a US-based ERP software. 

What WOW Skin Science achieved?

• 99.99%+ Order Fulfillment Rate
• 112% Order Growth Rate in 7 Months
• Maintained Average O2S Time of 26.8 hours
• 141% Increase in Catalog Size
• Over 8 Lakh Live Inventory Count

This integration allowed Odoo to fetch inventory data daily. When inventory levels dipped below a certain threshold, Odoo automatically generated purchase orders to WOW’s vendors and product manufacturers. This created a positive impact on unit economics by ensuring consistent product availability, minimizing stockouts and overstock issues for the brand, and enabling prompt order fulfillment. 

2. Consistent Data Across Platforms

With a robust ERP solution, any update in one system is mirrored in the other. For instance, if a batch of products is found defective and labeled as bad inventory in the WMS, the ERP will instantly adjust financial projections based on this data. A real-world example is the House of Rare, which employs the Ginesys ERP system that pushes the inventory details (store-wise SKU detail) from the brand’s 51 stores into its WMS. 

What House of Rare achieved?

• 178K+ dispatches per month
• 710K+ live inventory count
• 34% drop in order returns
• 51+ stores and marketplaces managed
• Maintained Average O2S Time of 27.4 hours
• 12 hrs average dispatch time

The inventory management system then compiles the details of the entire inventory and passes it to the brand’s own website (Shopify) along with multiple marketplaces, providing 360-degree visibility of inventory to the brand and customers across all stores. If a product is unavailable in one store, the system identifies its availability in another, enabling the product to be ordered and delivered to the customer from an alternative location. This ensures that potential sales are never missed due to stockouts at individual locations.

3. Enhanced Customer Satisfaction

The crux of a satisfactory e-commerce experience lies in how promptly orders are processed and delivered. With an ERP integration in place, the data exchange doesn’t just stay confined between the manufacturer and the warehouse. It becomes a seamless flow across the whole supply chain ecosystem, from suppliers to end customers. 

This ensures that when a customer places an order, it’s quickly received by the warehouse, minimizing any delay. As a result, processes such as picking, packing, and shipping commence almost immediately. Quicker dispatch means quicker deliveries, making customers happy. Leading brands, such as Mamaearth, recognized these advantages. They rely on the robust capabilities of SAP ERP to elevate their order management. 

What Mamaearth achieved?

• Automated order operations resulted in a 99.99%+ fulfillment rate
• Real-time inventory management ensured 3M+ order dispatches/month
• Optimized operations management led to 144% order growth in a short span of 8 months
• Multichannel order management enabled to handle 10,110,393 live inventory count
• Having a live catalog count of 2080, experiencing an increase of 176% growth
• The average order-to-ship time decreased to 17 hours
• Marketplaces increased from 1 to 8

4. Efficient Returns Management

Returns are an inevitable part of the e-commerce business. However, how efficiently a business manages these returns can significantly impact customer satisfaction. Leveraging the power of an integrated ERP-WMS setup can revolutionize the way businesses handle product returns.

Upon a customer initiating a return, the WMS swiftly alerts the warehouse, prepping them for the incoming product and providing precise directives on whether to restock, repair, or dispose of the item.

Parallelly, the ERP handles the financial intricacies, calculating and initiating the necessary refunds or credits. This seamless operation improves operational efficiency by maintaining transparent communication with customers about return statuses. 

Commonly Used ERP Solutions for E-commerce Businesses

There are a lot of ERP solutions available for e-commerce businesses. Here are some commonly used options: 

• SAP 
• Oracle NetSuite 
• LogicERP
• ERPNext
• Microsoft Dynamics NAV
• Ginesys
• Odoo
• Wondersoft

See how Unicommerce’s E-commerce ERP Integration Platform helps e-commerce businesses manage their operations –

Final Takeaway!

Understanding the core of ERP and its role in your e-commerce business is not just a matter of staying competitive; it’s about future-proofing your business in an ever-changing digital world. However, it’s essential that your tech stack is not only integrated with ERP but should also complement and support each system’s unique functionalities. With the right ERP strategy and implementation, e-commerce businesses can position themselves for sustained success and growth in the dynamic e-commerce ecosystem. 

Related read – 

• The Comprehensive Guide to E-commerce Integrations
• Why E-commerce Marketplace Integration is Important for Multichannel Sellers
• Revolutionizing Businesses: The Impact of ERP Integration with E-commerce
• Seamless Integrate any Application with Tally

The post Streamlining E-commerce Operations: The Power of Integrating ERP with WMS appeared first on unicommerce.com.

Currently, the trends are shifting towards organic and natural products, along with an increased demand for Men beauty essentials, which underscores the new customer’s need for more personalized products. However, opportunities come with a set of challenges. Many brands have trouble coordinating the inventory across offline stores and online channels, including batching the inventory and expiry circulation of products, which leads to ineffective customer return management.

In this blog, we’ll delve into the exciting world of the cosmetics industry in India, exploring its trends, challenges, and realistic solutions in detail that would shape the future of your brand.

Trends and Opportunities in the Indian Cosmetics Industry

1. Growth of Natural and Organic Products

One of the most prominent trends in the Indian cosmetics industry is the shift towards natural and organic products. Consumers are increasingly seeking products with fewer chemicals and more natural ingredients. Take Mamaearth, for instance, a brand of the parent company Honasa Consumer, which progressed after the COVID-19 pandemic with a mission to provide 100% natural and toxin-free products with a blend of natural ingredients. Mamaearth’s dedication to providing customers with what they want resulted in a 400% growth amid COVID-19.

This inclination towards natural beauty has paved the way for homegrown brands that emphasize the use of herbal and organic components, which also makes the trend ever-relevant in the cosmetic industry.

2. Digital Influence on Beauty Choices

The digital age has brought about a revolution in the way consumers discover and purchase cosmetics. Social media influencers and beauty bloggers play a pivotal role in shaping consumer preferences and many brands promote their products in this way. Can you guess some of these brands?

In the vibrant realm of cosmetics, titans like Nykaa and Lakmé have carved their mark, particularly in the dynamic world of social media. Here, beauty enthusiasts seek recommendations tailored to diverse skin types and tones. These brands have recognized the immense potential of social media and influencers and used this power to create beauty products that cater to customers’ individual needs.

3. Male Grooming on the Rise

 The male grooming segment is witnessing significant growth. The Man Company, among many brands, realized that men are now more conscious of their appearance and are willing to invest in grooming products. This shift in mindset has opened up a new avenue of men-centric cosmetic products that understand the difference between men’s and women’s skin types and cater to the specific needs of men. This specificity is what paved the way for The Man Company’s Success.

4. Personalization and Customization

In a market as diverse as India, consumers are seeking products tailored to their specific needs and preferences. Customized skincare and makeup solutions are gaining traction, allowing brands to offer unique, personalized experiences that cater to specific skin types, tones, and concerns, creating a unique experience for each consumer.

Challenges Faced by the Cosmetics Industry

1. Seasonal Demand Fluctuations

Seasons change drastically in India, ushering in a massive shopping spree with the holiday season arriving simultaneously. The cosmetics industry witnesses a substantial surge in product orders and delivers them to customers in the shortest possible time, and the challenge arises to keep the inventory streamlined. Lack of knowing your customer preferences may lead to overstocking and stockouts, which most brands experience during these times. This not only leads to unwanted inventory in the warehouse but also cuts down revenue and results in a bad customer shopping experience.

2. Inventory Expiry Management

Cosmetics are subject to strict regulatory standards. Mishandling products with an expiry date can lead to dire consequences for your brand, from losing products before they even leave the warehouse to compromising revenue and valuable storage space. Moreover, shipping expired products not only erodes customer trust but also complicates return issues. 

3. Returns Management

Managing returns in the cosmetics industry is crucial for customer satisfaction and brand reputation. Despite best efforts, returns are inevitable. However, if not managed efficiently, it can lead to significant product waste. Inadequate processing and quality check of returned products not only result in wastage but leaves a hole in your brand’s finances and leave customers dissatisfied.

4. Order Fulfillment across channels

 Cosmetic brands like Mamaearth and Suger Cosmetics operate through various channels, including e-commerce platforms, physical retail stores, and their own direct-to-consumer (D2C) websites. However, synchronizing inventory across these diverse platforms can pose a significant logistical challenge. This lack of inventory integration between offline stores and online marketplaces may lead to sudden stock outs or overstocking, leaving the customer hanging and losing potential sales.

5. SKU Proliferation

The cosmetics industry grapples with a diverse range of SKUs due to variations in shades, packaging, and formulations. Striking the right balance between offering a wide range of such products and maintaining a lean inventory can be quite a juggling act. This is especially challenging, considering the ever-changing trends and evolving customer preferences over time. Brands, unable to keep up with these changing trends in the industry, tend to get dissolved with the competition.

6. Limited Shelf Space

As the cosmetic industry continues to grow, warehouses may face constraints in terms of available space. Inefficiencies in storage space utilization can impede your brand’s ability to maximize its potential storage space. This limitation might be the very factor holding your brand back from reaching its full sales potential and accelerating business growth due to limited inventory in the warehouse.

Industry-based Solutions for Challenges

1. Detailed Report Snapshots to Track Demands

To achieve high efficiency during seasonal fluctuations, employing a warehouse inventory management system is crucial to map fluctuations and adjust inventory levels accordingly to maintain slim inventory. Utilize flexible storage solutions for your brand like consumer buying patterns and filter it from SKUs to geographical locations to track product success throughout the country and accommodate changes in product demand.

2. Implementing Batching

The strategic practice of ‘batching’ the inventory enables utilizing the first-expiry, first-out (FEFO) and first-in, first-out (FIFO) options to ensure that older products are used or sold before newer ones, minimizing waste and maximizing profits. 

The Man Company faced a similar challenge, batching 1,000+ SKUs across 11 warehouses. But with batch-level traceability, The Man Company is able to track inventory using important attributes, such as cost, expiry, manufacturing, vendor, etc. Additionally, the batching feature also allowed the brand to identify soon-to-expire inventory and liquidate them accordingly while achieving minimal expiry and spoilage.

3. Efficient Return Management

Returns management, being one of the most cumbersome tasks, requires rigorous visibility of stock and returns processes that include a thorough product inspection. Additionally, quality-checking the product after returns in order to appropriate disposal of damaged or expired items and restocking of acceptable returns. See how Mamaearth rose above this challenge and achieved a faster inventory turnaround while attaining a drop in returns by 300%.

4. Managing Inventory Across Multiple Channels

Implementing an omnichannel strategy would empower your brand by creating a unified inventory pool for all your sales channels, not only minimizing logistics costs but also saving precious time. Additionally, you gain access to detailed real-time reports, all from a single dashboard. So, the need to manually update inventory to online channels and physical stores would become obsolete, subsequently giving your clients a unified shopping experience.

5. SKU Management and Barcode Scanning

Implementing robust SKU categorization and management techniques can significantly enhance inventory control which includes barcode scanning and labeling technology, ensuring accurate and efficient tracking of products, making the process smoother and more streamlined. Many leading cosmetic brands, among Wow Skin Science, Sugar Cosmetics, etc., use SKU categorization and barcode scanning to manage their complex warehouse operations in an effortless manner.

6. Implementing WMS

To overcome limited shelf space challenges, implementing a comprehensive warehouse management system (WMS) would enable your warehouse’s optimal shelf capacity for specific inventory and let you efficiently store products in the warehouse. Additionally, make use of high shelves to maximize vertical space. Investing in efficient storage solutions like pallet racks and mezzanines can significantly increase your storage capacity. 

By strategically organizing your warehouse, you can unlock untapped potential for storing cosmetics and ensure seamless operations. Many leading brands among Plum Goodness have implemented a strategic warehouse management system that enables them to seamlessly track inventory and fulfill customer orders. With full visibility on the inventory, Plum Goodness was able to get detailed reports of their overall business operations and experience a 69% growth in sales.

By addressing these challenges, the cosmetics industry in India can ensure efficient warehouse and inventory management, ultimately contributing to business growth and customer satisfaction.

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