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One of the biggest areas of any company is usually the warehouse. This is where products and finished goods are received, stored, picked, shipped, and much more. However just like many businesses, warehouses come in different sizes. This detail is an important one to consider before selecting a WMS. Just like many of the products in the storage area, software needs to be sized correctly to make sure it is the right fit for the business.

Inventory shrinkage refers to the loss of stock between the time it is purchased from a supplier to when it is sold to your customers. Simply stated, you paid for the items but they become unavailable for selling to your customers. While businesses often pass on the cost of lost inventory to their customers, the practice makes their prices less competitive which adversely affects future sales.

Fast delivery times are the new norm thanks in part to big distributors like Amazon.com. Businesses that fail to adapt to rising customer expectations of fast delivery, risk losing their competitiveness.

The bullwhip effect is real and enormously wasteful especially for those furthest up the supply chain. This excess inventory ties up money, warehouse space, and other resources and has a depressing effect on the businesses' abilities to respond to demand from other customers. Manufacturers and suppliers of basic commodities are at the apex of the supply chains of many industries and are highly vulnerable to huge demand swings.