Investments in responsible supply chain management are rising and for good reason. A WMS for CPG companies creates a platform for growth by tapping into what consumers want most: reliable and transparent deliveries that address their thirst for personalized and environmentally responsible options.

To achieve this, the 2023 MHI Annual Industry Report found:

  • 74% of supply chain leaders are increasing their supply chain software and innovation investments
  • 90% are planning to spend over $1 million, an increase of 24% over last year
  • 36% plan to spend over $10 million, up 19% year-over-year

A WMS (warehouse management system) for CPG helps to break into new markets like Direct-to-Consumer (DTC), a rapidly growing market where they can connect with customers. It also helps CPGs alleviate the ongoing workforce shortage.

These technologies offer more control over brand promise through new opportunities and unique customer experiences. But, there’s a catch. Trying to do this in your legacy fulfillment solution or ERP is irresponsible — and brands are starting to realize this.

Why CPG companies need a WMS

You can’t improve your CPG brand’s supply chain resiliency, transparency, sustainability, or labor challenges if you don’t give your warehouse teams reliable tools that make their lives easy. This has always been true, but now we’re also seeing alignment with an appreciation for the need and willingness to invest. 

Think about it. A wide variety of complex factors affect your CPG brand’s supply chain. So why even bother saying you have a “responsible supply chain” if you don’t have all the information quickly accessible to walk the talk?

Today, let’s examine how flexible, easy-to-use WMS systems provide the most efficient way to do this, and how they outperform rigid, paper-based inventory fulfillment in your ERP or legacy supply chain management software.

ERPs can’t tell the whole story

In a recent report of order fulfillment strategies and trends, at least 12% of supply chain leaders said they’ve over-invested in legacy ERP platforms, leaving little to spend on more advanced WMS solutions. According to the report:

“Clinging to outdated or manual processes and systems only limits a brand’s capabilities and holds them hostage to stagnation. Brands without up-to-date technology can’t roll out new services, track inventory efficiently, or scale quickly to meet demand as it changes”. 

Additionally, legacy supply chain management software doesn’t always integrate well with other critical solutions. This creates a domino effect for CPGs. One legacy system must rely on another legacy system to function”. 

👉  What technologies do your warehouse teams rely on to see new opportunities, adapt, and communicate those improvements to your customers? 

👉  What serious problems occur when they have to locate that information on their own [and it’s usually incorrect anyway]? 

👉  Are those problems getting easier as you grow, or harder? 

It’s worth doing a quick warehouse assessment, or financial analysis, to quantify what your CPG is spending in the long run with an ERP.

Many of these systems were born from M&A activity, which means they cannot be supported (well) without expensive consultants. Maintenance costs, upgrades, and transaction fees are unpredictable. 

Because development is a huge undertaking, the functionality of these suites is only updated once in a blue moon. Plus, most of those efforts are focused on Accounting needs.

On the other hand, a modern WMS for CPG is purpose-built to handle the chaos of today, tomorrow, and beyond. It can be updated as often as needed, with little technical knowledge or time. Which means an overall more responsible choice for managing today’s dynamic supply chains.

WMS for CPG – what’s best?

End-to-end, cloud-native warehouse management software brings all performance factors together into one platform for CPGs to see the whole picture. The real picture, at any given time. No ERP or legacy solution can do this!

Inventory fulfillment in these systems requires manual workflows and paper chasing. This never moves the needle like you need to in today’s cost-conscious consumer market.

Now that brands are ramping up their supply chain software investments, maybe you should, too.

Deposco’s WMS for CPG extends your throughput, mitigates human errors, solves tough labor challenges, and quickly reduces overhead.

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DTC and new competitive spaces

Competing in new arenas like DTC will require a new breed of instant, accurate, and accessible knowledge, along with automated decision-making in response to shifting consumer preferences. It’ll require highly efficient workflows and traceability. That’s very hard to do with ERPs or legacy supply chain management software – If not impossible!

Take a look at your supply chain fulfillment solution:

👉  Is it bogging down your staff with paper-heavy processes?

👉  Is it laden with slow, incorrect, or hard-to-locate information about available inventory quantities and locations, causing irresponsible customer experiences?

👉  Does new functionality require custom coding, heavy IT resources, and tons of time to implement? Is this causing you to delay projects or upgrades vital to your progress? 

If you answered ‘yes’ to any of these, innovation probably isn’t getting done when it needs to.

End-to-end, dedicated WMS for CPG excellence

In the next year, we’ll see “responsible supply chains” emerge, excel, and win for both incumbents and new challengers.

We bet that ONLY the winners will get there supported by cloud-native CPG WMS systems that bring everything into one spot.

Built for adaptability and resilience no matter how consumer preferences evolve, these WMS solutions help CPGs drive rapid value while building a scalable platform for growth. Could your brand benefit from end-to-end features such as these?

  • Rich analytics and reporting to show how to ship optimally every time
  • Real-time auto-sync of inventory and order information across all locations or channels
  • Ability to manage the business’s most important KPIs in a simple-to-use dashboard
  • Automated workflows that free up staff to work on high-value priorities
  • Pre-built supply chain software integrations that accelerate new projects and reduce IT dependencies
  • Fast, easy onboarding for new and seasonal hires
  • An easy path to DTC, advanced order management, and DOM capabilities

Escape the growing pains of inventory fulfillment in your ERP. A dedicated WMS system keeps supply chain management simple, fast, and always forward. 

READ: What is the difference between ERP and WMS for inventory fulfillment?