We’re entering the second wave of cloud adoption as large-scale enterprises and “slow adopters” catch up. And we’re seeing more and more merchants adopting what some have deemed, a paperless warehouse.

Before we begin, here are some key stats you should remember:

• Cloud computing spending has been growing at 4.5 times the rate of IT spending since 2009. [Source: Forbes]
• 6.5% of WMS users are currently in the cloud. That number will jump to 35.4% by 2020. [Source: Supply Chain Digest]
• 60 - 70% of all software, services and technology spending will be cloud-based by 2020. [Source: Forbes]

In order to reduce costs in the warehouse, increased efficiency, data-driven strategic decisions and correctly packed orders must be at the heart of your processes. And a reliable cloud-based warehouse management system will enable you to do that as the infographic below shows:

Pros of Using a Cloud-Based Warehouse Management System

1. Cloud-Based Connectivity

Cloud-based systems by their very nature have been designed to work in unison with other systems. Why should your warehouse be any different? By ensuring you’re working in the cloud, your sales channels, inventory reports and financials will be updated with every shipment, incoming delivery, manual inventory adjustment or warehouse transfer.

2. Data-Driven Decisions

Cloud-based connectivity, combined with real-time updates mean you can make informed, data-driven business decisions at any time. Quickly identify issues with high risk or high value goods, report on the productivity of your warehouse team and what their time is spent most on. Use all of this data to make improvements where needed and focus on revenue growth.

3. Cost Effective

Reduced infrastructure, hardware, software and licensing costs mean that cloud-based systems offer a lower total cost of ownership and eliminate the need for large capital outlays compared with on-premise solutions. These costs can then be reallocated towards the growth and scalability of your business, moving your focus from the back-office to the front-office.

4. Slick & Speedy

As configuration, hosting, setup and implementation are all managed by the vendor selling the cloud WMS, these systems take mere weeks to setup, rather than months or even years for a traditional on-premise solution. In fact, at Brightpearl, we get businesses launched with our complete back-office software in a third of the time of other ERP systems on average.

5. Continuous Improvement

Cloud WMS users receive regular and routine updates as part of a continuous improvement model, and can avoid the dreaded experience on-premise solutions bring with their large version upgrades. This ensures you always benefit from the latest features, with no need to work with developers to help you update your system.

6. Business Integrations

With your warehouse operating from a cloud-based solution, you can ensure your entire business is integrated with your WMS. For example, think about inventory updates, which should update both your accounting and warehouse records. How these types of processes all integrate with one another greatly influence just how powerful your WMS can be.

Conclusion

But don’t just take our word for it. Listen to what sporting goods retailer, Herbert Sports, have to say about their cloud WMS solution:

“Brightpearl is the heart, arteries and veins that give our business its lifeblood. When the rapid growth of our business created a need for increased accuracy and productivity in our processes, Brightpearl’s warehouse management system came along and saved us £16,000 a year in warehouse operating costs and a further 12 hours each month in administration effort.” - Angie Sole, Managing Director, Herbert Sports

And if that wasn’t all, Supply Chain Digest claim:

“The on-premise model that has dominated the supply chain software industry since its inception is poised to become something of a relic over the next five years.”

What all of this means is that the future of warehouse management is very much in the cloud.

So we ask again - are you ready to join the paperless warehouse revolution?