A cloud-based Warehouse Management System (WMS) stores all the information on a remote server and provides you the access through an active internet connection. The server is maintained by your service provider, for which you’re charged monthly or annually depending on the terms and conditions of the agreement with the vendor.
With internet speeds becoming mind-numbingly quicker by the day, cloud-based applications are becoming more and more popular among organizations, no matter what their size and where they’re located.
Cloud-based WMS comes with multiple modules that can be tweaked as per the requirements of the company. Thanks to the remote servers connected, enhancements to the existing system can be made far more easily, without having to physically visit the individual premises. This makes the lives of the clients as well as the vendor a lot easier.
Advantages of Cloud-Based WMS
An on-premise WMS drains the companies’ coffers with installation and maintenance costs. Since this isn’t a core activity for them, they usually end up hiring additional support staff to take care of the servers, which only adds to the costs. All of this can be avoided by simply choosing a cloud-based WMS.
Cloud-based services require minimum participation from the client’s end as most of the installation and management is done remotely by the service provider.
Companies have to bear tall upfront installation charges and software costs for installing a warehouse management system at their premises. All of these costs are mitigated or can be paid monthly or yearly by preferring a cloud-based WMS system.
Companies, especially startups and MSME’s can benefit from these expenditure cuts and can keep their operations smooth and lean.
Compared to an on-premise WMS, cloud-based WMS can be implemented a whole lot quicker. The service provider takes care of all the onboarding activities and configures the entire system for the client. This saves a lot of valuable time and effort on the part of the client which they can spend performing their core activities like sales and marketing, thereby increasing their efficiency.
On average, a cloud-based WMS can be implemented in a matter of days or weeks. However, an on-premise WMS may take months or in some cases even a year or two to get fully implemented.
The scalability of a WMS refers to the ability to increase or decrease the number of workstations and how quickly it can be done.
With traditional, on-premise WMS, the process of scaling up or down is hugely cumbersome and costly. While scaling up, you need to ensure that you have the necessary hardware and software resources to handle the number of SKUs that are to be processed. When you expand to multiple warehouses, you need to install expensive workstations and servers on-site to process the increased traffic. And for when you need to scale down, you are left with unwanted, costly electronic devices that you now have to dispose off.
However, all of it can be easily avoided in the case of a cloud-based WMS. The vendor takes care of all your scaling requirements and adjusts the resources as per the projected traffic. If you need additional licenses or require more storage space, all of it can be done almost instantly.
Cloud computing is system agnostic, in that it doesn’t have specific hardware or software requirements. Your WMS can be run via any decent computer with a stable internet connection. This means you can simply set up multiple workstations across all your warehouse as per your needs.
Ease of use
All things considered, a cloud-based WMS is much more user friendly as compared to the on-premise one. There are multiple reasons for this. The primary reason is that it rids the end-user of all the technicalities of installation and maintenance. The end-user in most cases possesses limited know-how and would much rather leave it to the experts. All you have to do, to get the system up and running, is to simply register with a vendor, pay the subscription fees, and have a steady internet connection.
Most cloud-based WMS today also have mobile applications for all the leading mobile OS, and hence can be accessed from anywhere in the world. This has completely changed warehouse management as we know it and revolutionized it in sync with the changing times.
These systems also come with thousands of possibilities to automate your warehouse operations. We at Orderhive have powered our customers to fully leverage the true potential of automation and have created seamless backend management solutions for hundreds of businesses.
One of the greatest fears that organizations have is data theft and breach of privacy. Setting up an on-premise WMS requires the company to take the necessary steps to protect the data and ensure that no threat can penetrate the system. Since this isn’t something that most companies are natural experts of, they have to hire resources with expertise in cybersecurity. Even so, most companies cannot afford the best cybersecurity experts and hence their servers are prone to data breaches.
However, a vendor who provides cloud-based WMS has multiple clients using the service. Hence, he can easily afford far more sophisticated cybersecurity measures compared to an individual company. As a user, you benefit from superior cybersecurity mechanisms put in place by your vendor, without having to invest tons of money for the resources required for the same.
A cloud-based warehouse management system empowers a business to efficiently ad holistically manage the inventory operations. It frees them from having to install physical, huge servers and all the costs and intricacies associated with them. This allows them to focus on their core activities like manufacturing, sales, and marketing. This is why most companies, right from the very beginning, choose to go for cloud-based WMS for their warehouses.
'There are no boring topics, only boring content. There also are no interesting topics, only interesting content' - is the gist of why I write. A politics buff and a music aficionado, passionate about all things tech. Perpetually adding places to his travel bucket list and checking them off- a trip at a time.
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