Are You Getting the Maximum Value from Your Warehouse Investments?

Warehousing and Distribution is a big business. In 2023, the global market for warehousing and storage was valued at $488.42 billon — and it’s expected to grow to over $725 billion by 2032. Warehousing operations represent an enormous cost center for companies, and it’s essential to maximize the productivity, speed, and accuracy of those operations to fully capitalize on that investment.  

But operational costs keep increasing — in fact, leasing rates grew by over 20% in 2023. Labor shortages persist, with 73% of companies struggling to find employees and the demanding business of e-commerce fulfillment continues to grow by about 14% per year, placing pressure on warehouse operations to profitably fill omni-channel orders. 

Addressing these challenges requires automating warehouse operations by leveraging a warehouse management system (WMS). Across all company sizes and industries, WMS software solutions have proven their value by acting as “digital conductors” that orchestrate everything from receiving goods, to optimizing storage locations, to improving the speed and efficiency of picking and shipping. An advanced WMS tracks inventory with precision, guides employees through optimized workflows, and squeezes maximum efficiency from space and resources, and provides valuable analytics data to ensure that every aspect of warehouse operation runs smoothly and cost-effectively.  

Leading WMS solutions can integrate seamlessly with material handling equipment (MHE) and warehouse robotics, while leveraging artificial intelligence and machine learning to automate many routine daily decisions. WMS solutions have demonstrated their ability to dramatically slash costs while significantly improving service levels via decision automation — ingesting data, analyzing it and choosing the best resolution. But a surprising 80% of companies are not using any form of automation in their warehouses today. 

If your company is not leveraging the benefits of WMS automation, it is almost certainly hindering your operational performance and throughput, while at the same time incurring greater operational costs because of those sub-optimal processes. Leveraging a WMS to optimize your warehousing and distribution operations should be a high priority item, and an initiative to consider acquiring and implementing a WMS should begin ASAP. Also, if your company is currently using a WMS that has been in place for a few years you should consider: Does my current WMS have the core functionality required for my operations, and is it configured to optimize those operations? Are you getting the maximum return on our overall warehousing investment? 

Wherever You Are in the WMS Journey, Redwood Can Help 

Whether you’re exploring the benefits of a WMS, upgrading your solution, facing integration issues, or trying to leverage more features and functionality, Redwood is the one-stop resource you need.  

Not only does Redwood enjoy close partnerships with leading WMS software providers, but Redwood utilizes advanced WMS capabilities every day in its own operations as it provides managed warehousing and distribution services to customers at five internal warehouses. Based on this hands-on experience — combined with hundreds of successful WMS implementations and WMS optimization projects — Redwood can deliver configured, integrated, robust solutions that meet your specific needs. With Redwood’s help, you can also adopt best practices and optimized workflows that capitalize on modern WMS capabilities. 

Redwood provides three types of services designed to help you realize the full benefits and value of an advanced WMS solution:

• Implementation services. Based on your unique warehousing footprint, the details of your daily operations, and your cost and service improvement targets, Redwood can help you choose the right WMS solution for your needs. Then Redwood will help you launch the solution quickly and cost-effectively based on its deep implementation experience. From employee training and mobility to cloud delivery, Redwood understands the practical challenges associated with achieving a rapid, successful WMS launch. 
• Integration services. Your warehouses don’t exist in isolation; they’re part of the dynamic, end-to-end supply chain. Your WMS won’t deliver maximum value unless it’s tightly connected to the transportation management system (TMS), order management system (OMS), enterprise resource planning (ERP) system, material handling software, warehouse robotics and other technologies. RedwoodConnect is a proprietary, purpose-built integration platform that creates a digital ecosystem across your logistics network. All functions share the same visibility, awareness, data and priorities, transforming your WMS into an engine for end-to-end supply chain excellence. 
• Optimization services. For customers with special challenges — such as cross-border distribution or high parcel shipping volumes — Redwood can recommend a customized solution. That might mean capitalizing on untapped capabilities in your current WMS, creating a custom WMS configuration, or adding a complementary solution like Redwood Parcel Audit Services. 

Also, if you are considering outsourcing your warehouse operations to an external partner, Redwood also offers fully managed service solutions. Redwood can maximize your warehousing operations to meet seasonal demand, master a short-term space or staffing challenge, or assume permanent responsibility for your distribution operations as a modern, full-service 4PL provider.  

Why Wait? Start Maximizing Your ROI Today

The demands placed on your warehousing operations — rising costs, labor shortages, growing customer expectations — aren’t going away, and will only increase in scale and intensity. That’s why you not only need an advanced WMS, but one that’s configured and operated to meet your specific challenges. Addressing these issues now means you’re that much closer to maximizing the return on your warehousing investments and improving your operational performance. Contact the Redwood team today and get started on the road to warehouse optimization.