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Technology is improving daily, allowing us to do more with less effort. Smart Warehousing is not some sci-fi concept of the future but an urgent necessity.

This essentially means integrating Artificial Intelligence (AI), Robots, and the Internet of Things to automate and digitalize various fulfillment activities to make warehouses efficient and fast. These solutions are designed to work alongside human employees to reduce errors, improve warehouse efficiency, and save time.

Smart warehouse management systems offer many benefits, including better warehouse management, reduced human error, lower returns, greater visibility of assets, an improved customer experience, and faster shipping.

The associates on the floor can focus their attention on strategic, value-driven activities. They can also guide machines as they perform a particular task. Read on to learn more.

What is a Smart Warehouse?

The smart warehouse is a culmination of the warehouse automation process (automating different components of your warehouse operations).

A smart warehouse management system is similar to smart homes in that it incorporates several automated and connected technologies. Tech-driven, they allow you to automate your processes with technology like robot palletizing. AMRs. IoT. Digital twins. 5G.

These technologies are used together to improve the efficiency and productivity of the warehouse. They reduce the number of workers while reducing errors. You can make your storage facility even more intelligent by using real-time information to identify which sections need quick service.

Royce Digital explains, “In manual warehouses, we saw workers move around with lists, pick products, load them into carts, and then deliver them to the docks.”

But in smart warehousing “orders are automatically received, after which the system confirms if products are in stock. The pick-up list is then sent to robot carts that place ordered products in containers and deliver them back to workers.

Smart warehousing allows you to get real-time updates and automate manual tasks. This is not possible in traditional warehouses. This strategy allows workers to spend more time on tasks that are of high value. Automating a warehouse allows for greater operational scale while minimizing the need for human interaction.

What Does a Smart Warehouse Management System Do?


What Does a Smart Warehouse Management System Do?


The system controls and tracks the transfer and storage in a warehouse. The system integrates with other supply chain systems to perform several tasks, such as shipping, receiving, or putting away materials.

Transparency is ensured throughout the enterprise. The system’s functionality has grown tremendously over the years.

From heavy to sophisticated functionality, the program can manage all along with advanced material handling and yard management coordination.

The system allows the company to manage or eliminate errors while a variety of time errors occur during shipping. Rapid solutions help companies to fulfill orders faster and instantly trace the products in the warehouse.

Top 6 Smart Warehouse Benefits

Now that you know how smart warehouse software works, it is to know the benefits of smart warehouse management software development. So let’s begin.

1. Better Warehouse Optimization

Smart warehouse management system operations improve warehouse efficiency and streamline the workflow for various fulfillment operations. Machine learning algorithms and advanced analytics help warehouse operators manage inventory, maximize storage and reduce process chokepoints.

Data-driven warehouses can streamline their operations and provide better service to customers. These advanced technologies can detect potential problems and risks early on in the supply chain. Warehouse managers can be proactive by using data about inventory and risks from suppliers.

2. Reduced Operational Costs

A smart warehouse management system has the advantage that only certain tasks need constant human interaction. Robots, drones, and automated vehicles can make the process partially or completely autonomous.

3. Faster Picking and Shipping 

Smart warehouses also translate into faster processing of orders. In a warehouse that is not automated, employees spend most of the day searching for products and moving from one place to another.

It is not only time-consuming, but it can also lead to mistakes. Smart picking devices, such as wearable scanners and smart glasses, can reduce the amount of time it takes to search for, verify and select an item in the storage bin.

In the same way, adding conveyors and parcel sorters to your shipping workflow will eliminate incorrect packaging and misplacement of packages. So, faster picking and error-free shipping can reduce order lead times. The ability to ship same-day is gaining popularity in an increasingly competitive world.

4. Greater Accuracy in Warehouse Operations 

The typical warehouse operation is made up of multiple processes and steps that are prone to error. If these errors are not detected and corrected in a timely manner, they can cause a significant operational loss for the business.

Smart warehousing operations offer greater accuracy in every phase of order fulfillment. Inventory management can also reduce the amount of lost, damaged, or expired items.

5. Improved Customer Service

Each product that is stored in a warehouse eventually ends up with the consumer. Focusing on customer satisfaction, service, and experience is crucial.

Smart warehousing allows companies to improve their interaction with customers, meet their changing needs, offer support and enhance their overall experience.

Businesses can increase customer satisfaction by offering faster shipping, reducing costs, and providing prompt responses. It will also improve customer satisfaction and experience.

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6. Better Tracking of Assets and Inventory 

Most warehouses are concerned about keeping track of inventory efficiently. Knowing where a product is located in the supply chain will help you to gain insight into the orders that were processed, improve your supply chain planning, and estimate when a new batch of products may be required.

RFID tags, barcodes, and sensors integrated into the warehouse are some of the latest technologies that provide a unique view of inventory and product movement.

Popular Smart Warehouse Management System Technology

While smart warehouse management systems are becoming more and more popular, some companies still need to take caution before investing in digital transformation. Most often, the existing automation infrastructure is time-consuming and prohibitively expensive.

Smart warehousing encompasses a wide range of technologies, from automating operations without paper to deploying autonomous robots. Here are some of today’s most popular smart warehouse solutions technologies.

1. Collaborative Robots

The humanoid robots of science fiction are still far away, but other types are just as cool. Cobots (collaborative robots) are improving efficiency in modern warehouses.

Cobots are growing because of technological advancements like 5G and IoT. Cobots are predicted to grow by 30.7% CAGR between 2022 and 2020.

These robots are capable of working alongside humans in multiple warehouse operations. These robots can perform complex tasks such as picking or installing while workers remain at their desks. Cobots are capable of running nonstop and minimizing repetitive logistic activities.

2. Automated Guided Vehicles (AGVs)

Business Fortune Insights predicts the global market for automated guided vehicles (AGVs) will reach $4.11 Billion by 2029, up from $2.17 Billion in 2022. This market’s growth is due to the increasing demand for automation across various industries.

AGVs optimize warehouse space and reduce the need for newer fulfillment centers. Mobile robots have become the norm, with AGVs increasing at a rate between 24% and 43%. They are essential to the operation of warehouses and their surroundings. AGVs can reduce material damage and increase accuracy in inventory while handling hazardous situations.

3. Radio-Frequency Identification

RFID helps to organize and control inventory. RFID replaces the old analog paper tracking method in favor of digital tags. Radio waves are used to transfer data between a digital tag and a scanning system.

RFID scanners replace the old barcode scanners that required the barcode to be perfectly aligned to the scanner in order to identify it. These scanners can be pointed in any direction to scan the package.

What is the benefit of this for inventory management? You can use automated machines that scan packages automatically, counting and identifying the number of each kind of good as they arrive. These scanners also detect items as they leave your warehouse, which ensures that you always have an accurate inventory count.

4. 5G

With speeds up to 100 times faster than those of 4G, 5G will take the world by storm when it comes to warehouse smart connectivity. By providing an infrastructure for IoT, 5G networks reduce latency while improving computing. The more sensors that can be accommodated in a square kilometer, the faster it will move.

Many warehouses want to use IoT in order to improve their performance, but they lack the infrastructure. With a 5G network, companies can now build smart warehouses.

There are many benefits to integrating 5G into smart warehouses, including:

  • Improved Tracking: Monitor and track moving objects, with updated location information to ensure full visibility. Integrating 5 G-enabled sensors with asset tracking systems provides continuous tracking and tracing to speed up order filling and picking.
  • Reduce labor costs: Use navigation tools and sensors built into AMRs for efficient movement around the warehouse. It increases worker safety, improves the transportation of equipment and materials, and reduces labor costs.
  • Optimize Complex Operation: Achieve accuracy through a network of interconnected sensors and machines that work together.

5. Automated Storage and Retrieval Systems

ASRSs are widely used in many industries for storage and fulfillment. These systems can be used for a variety of warehouse operations, including kitting and order picking and storage, as well as production, assembly, assembly, and other activities. ASRS allows warehouses to increase accuracy and throughput at the same.

Research and Markets predict the ASRS market could reach $10.55 billion in 2027, up from $ 7.45 billion in 2022. ASRS could be an option for warehouses that want to integrate ERP systems and increase their throughput.

6. The Internet of Things

You’ve heard about the Internet of Things (IoT) by now. You’ll need it if you want to make sure your smart warehouse works correctly. IoT is a group of internet-enabled gadgets that communicate with each other, sharing data. Robots in smart warehouse systems can communicate with the technology they need, such as warehouse management software (WMS).

A warehouse receives a product. The RFID scanner reads the tag on the package and sends information to the WMS. The WMS communicates with the robots to tell them where those goods should be stored on the warehouse floor.

All of this is done automatically and without any loss of information. A human would need to complete each step manually without the IoT. This strategy is highly error-prone, especially when you consider the amount of data about products that flow through these systems. IoT has virtually eliminated humans from the equation. This speeds up the process and reduces errors.

7. Digital Twins

Digital twins are also growing rapidly as the industry 4.0 market grows. The next step in supply chain management is digital twins. This technology allows companies to virtually recreate the actual supply chain in order to test modes, scenarios, model nodes, and more.

Markets and Markets report predicts that the size of the digital twins market will grow at a 60.6% CAGR from 2022-2027. Digital twins are used to improving supply chain operations and reduce software development cost through predictive maintenance. This technology is not only being used in manufacturing but also in the healthcare sector.

Digital twins allow warehouse managers to examine layouts and make decisions in real time. Managers and supervisors can input data into a digital system that combines IoT devices in order to monitor the physical setup. The system provides a real-life setup that allows companies to reimagine layouts and operations.

Companies can use this information to perform cost-benefit analyses and throughput tests. This analysis is used to test operational inefficiencies without causing any downtime. This analysis improves resource allocation, strengthens decisions, alters workloads, and reduces congestion.

8. Warehouse Management Systems

The cherry on top is a WMS. These solutions are useful for many things, such as gathering valuable data or helping users manage warehouse processes. These solutions track the efficiency and effectiveness of daily operations while improving specific tasks. Thus, if you want to invest and develop a smart warehouse management system, then you must hire dedicated developers.

Most WMS solutions are able to collect data in real time and produce visual reports. This helps reveal any deficiencies within your processes. You can fix problems and restore your business to normal after viewing a WMS Report.

9. Automated Inventory Control Systems

A system of automated inventory control eliminates the need to manually count items. Inventory control allows for multiple operations such as tracking inventory, fulfilling orders, maintaining order points, and monitoring real-time information.

A WMS is a great tool for managing inventory in distribution centers. However, an automated inventory system can be a huge advantage. It maximizes operational efficiency, encourages scalability, and minimizes human errors.

Best Practices For Smart Warehouse Management System

Smart warehouse technology can help prevent empty shelves and unnecessary bottlenecks. This list of smart warehouse practices will help supply chain decision-makers get the most from automation and smart warehouse technologies.

1. Re-Consider Your Warehouse Structure 

Smart warehousing requires more space and well-organized areas to achieve the best results. It is important to start with a warehouse that is ready for smart technology.

The first step to optimizing your storage space is to identify the areas of your operation that need technical assistance. WMSs may not affect the layout of your warehouse directly, but they may influence how you organize your equipment and workstations.

Before investing in warehouse technology, take the time to plan your warehouse layout. You can save money by accelerating the fulfillment process and reducing storage costs without using technology.

2. Smart Warehouse Optimization

Warehouses need to be equipped with the latest technologies and procedures, as the eCommerce industry is very demanding. It is essential to optimize warehouse layouts, slots, and inventory movements in order to meet the dynamic supply chain and the constantly changing demands of consumers. Smart warehouse optimization requires regular warehouse audits, and then implementing the results.

3. Practice Demand Forecasting

WareIQ’s fully integrated fulfillment system offers data and analytics to help you forecast demand for products at different times of the year.

Intelligent inventory forecasting based on previous orders and information regarding impending events will help you reduce shrinkage and save money in storage while maintaining satisfied customers.

You can use the information to decide when to run flash sales, to stop selling products that aren’t performing well, and to determine how much stock to order according to seasonality.


It is vital to software product development in order to remain competitive, given the rapid changes in consumer expectations and the disruptions brought about by the current pandemic. Smart warehousing is slowly, but surely, becoming a reality for forward-thinking companies. Many enterprises are replacing spreadsheets, legacy software, and other rudimentary procedures with smart warehousing elements.


Frequently Asked Questions


Q1. What is the Main Function of the Warehouse Management System?

Some of the main functions of a warehouse management system include tracking merchandise, entering the warehouse, providing visibility into inventory levels, and speeding up order fulfillment.


Q2. What Features Should a Warehouse Management System Have?

The various features of a robust WMS includes inventory receiving and putaway, order picking and packing, inventory control, shipment tracking, warehouse navigation, logistics processing, shipping management, etc.


Q3. How Much Does it Cost to Develop a Smart Warehouse Management System?

The cost to develop a smart warehouse management system depends on various factors, such as the scope of the project, the complexity of the software, the features and functionalities required, and the custom software development team’s location and expertise. It can range from $25000-$50000.