Warehouse Management Software Helps Retailers Build Resilient Supply Chains Amid Disruptions

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Retailers have been battling a tsunami of retail supply chain issues, from a global health crisis to geopolitical conflicts. The COVID-19 pandemic made “supply chain management” a mainstream term and changed the way business leaders looked at risk management. This, as the looming threat of new COVID variants continues to be a challenge to the global supply chain.

Meanwhile, Russia’s ongoing invasion of Ukraine has been sending shockwaves to the world in the form of food supply insecurity, limited access to energy, and surging inflation. Additionally, in the United States, businesses need to brace for hurricane season. Hurricane Ian in September, for instance, has disrupted business operations. While economists would need some time to assess the overall economic damage of Ian, previous reports had already indicated how the category four storm devastated Florida’s agriculture, manufacturing, and distribution sectors.

Amid all these disruptions, it’s not surprising to know that retailers are concerned about the resilience of their supply chains. One report revealed that “99% of retail and ecommerce business leaders believe improving supply chain resilience is ‘essential’ to growth; however, 15% believe they do not currently have a resilient supply chain.” Moreover, mid-market retailers also believe that improving the resilience of their supply chain increases their ability to proactively address market disruptions.

Warehouse Management’s Role in Supply Chain Resilience

Retailers can look into warehouse management to build more resilient supply chains. Since the warehouse is where valuable business data merge like inventory, schedules, and distribution, improving warehouse management will also improve supply chain resilience. On the other hand, if warehouse operations fail, they can cause delays and prevent the supply chain from running smoothly.

For example, with the help of a warehouse management system (WMS), managers can have real-time inventory and transaction visibility into their stocks. Smart inventory features in a WMS enable stock syncing, inventory tracking, re-ordering, and even upselling of products with nearing expiry dates. This allows managers to make adjustments to purchasing based on changes in demand.

Other warehouse management software benefits include standardizing processes and providing alerts. Retailers can streamline processes like inbound and outbound fulfillment so they’re easier to adjust when disruptions in the market happen. Managers can define putaway, pick, pack, and ship guides so the company can have better control over their receiving process and how and when inventory is used to fulfill outbound orders.

AI and ML in WMS for a Resilient Supply Chain

Advanced technologies like artificial intelligence (AI) and machine learning (ML) help make warehouse management systems perform their smart functions.

AI, for one, is behind the data crunching generated in the supply chain. Using big data analytics, AI in WMS can predict patterns in warehouse operations that impact the supply chain. This can include weather conditions, transportation and logistics bottlenecks, geopolitical issues, and supply disruptions.

By analyzing operational data, AI in warehouse management software takes into consideration up-to-date information when predicting disruptions. Managers can use this data to improve warehouse management through data-driven demand forecasting. Warehouse staff can place advanced orders for seasonal products or track and prioritize sudden changes in demand for different items.

AI features in a WMS can also analyze customer behavior. Since managers can have a better understanding of the buying patterns of customers, they can improve customer and supplier management and warehousing and logistics.

On the other hand, ML, coupled with AI, can identify possible disruptions and recommend the most efficient way to deal with them. As a result, retailers can reduce overheads and increase warehouse efficiency.

ML is also used in automating many processes in warehouse operations. For example, ML can automate the checking of defects or damages to stocks. This can help warehouse staff in quality control and reduce incidents of sending damaged goods to customers. Integrating AI and ML into cloud-based WMS and IoT devices creates an intelligent warehouse management system. These are all important aspects that contribute to a resilient supply chain.