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How 3PLs Use WMS to Improve Inventory Management

Improving Inventory Organization for Growing Brands

As your business grows, inventory management becomes more complicated. Disorganized stock can lead to errors like misplaced items, slow order processing, and inaccurate stock counts. These problems waste time and resources and can lead to poor customer experiences.

Warehouse management software (WMS) helps solve these problems by providing a clear system for organizing and tracking inventory. It allows you to track stock levels in real-time, reduce errors in order picking, and improve fulfillment speed. This makes it easier to manage inventory as your business scales.

WMS Can Identify Best Selling Products and Set Reorder Alerts

Warehouse management systems (WMS) help automate inventory tasks, including tracking stock and analyzing sales trends. By examining historical sales data, a WMS can highlight which products sell the most, how often theyโ€™re ordered, and when demand fluctuates due to seasonality.

Reorder alerts in a WMS support inventory planning by notifying you when stock levels drop below a set threshold. This helps prevent stockouts, avoid tying up capital in excess inventory, and keep your most popular products available. These tools are especially useful for eCommerce brands managing growth or expanding their product range.

WMS Can Categorize Inventory Based on Popularity

Managing inventory for growing businesses often involves prioritizing high-demand products. A WMS uses sales data to categorize items, making it easier to determine which products should be placed in the most accessible areas. This approach supports faster picking and packing for orders.

For instance, many businesses use an A, B, C classification system. Top-selling items (A) are stored in locations that are quicker to access, while slower-selling products (B and C) are placed in areas that require less frequent handling. This method reduces unnecessary movement, streamlines restocking, and helps avoid delays during peak periods.

By categorizing inventory based on demand, businesses can handle order fulfillment smoothly while avoiding wasted time and resources.

WMS Can Help You Do Weekly Inventory Reviews

Sales trends change over time, making it necessary to reassess how inventory is categorized. A WMS provides tools to review inventory data regularly, allowing you to adjust reorder pointsโ€”predefined stock levels that trigger restockingโ€”and storage priorities based on shifting demand.

Tracking slow-moving items is another key benefit. By identifying products with declining sales, you can refine ordering patterns and make better use of storage space. While weekly reviews are a good starting point, the right review frequency depends on your business needs and how quickly your inventory turnover changes.

Regular reviews also reveal patterns that might go unnoticed, such as recurring stockouts or overstocking of specific items. By addressing these trends proactively, businesses can fine-tune purchasing and storage strategies, reduce waste, and better allocate resources to support growth.

How a 3PL Can Provide WMS Benefits

Working with a third-party logistics (3PL) provider gives growing businesses access to tools like warehouse management systems (WMS). These systems let you see your inventory in real time, track orders as they move through the process, and spot patterns like which products sell the most or when youโ€™re running low on stock.

This kind of access helps you keep better control of your inventory without needing to set up a system on your own. For many businesses, a 3PL using WMS means fewer stock issues, quicker reordering, and easier planning for busy seasons.

At Warehousing and Fulfillment, we connect you with 3PL providers that can offer the tools and support you need to keep up with demand and grow your business.

author avatar
Will Schneider
Will Schneider is the Co-Founder and CEO of WarehousingAndFulfillment.com. Previously, he served as CEO of RMC Fulfillment and Clear Stream Fulfillment within the 3PL industry. In addition, Will served as VP of Finance at NetQuote, a leading lead generation company in the insurance vertical. Will has an MBA from the University of Colorado and an undergrad in Accounting, Economics, and Political Science.

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