How Your WMS Increases Revenue by Billing Accurately
By Jim Laverty
Capture Every Cent of Revenue Using a Warehouse Management System with Built-in Billing Functionality
If you can’t bill effectively, you won’t be able to stay in business. This is especially true for third party logistics providers, who generate their revenue by charging customers for services incurred and storage space used. If you can’t record and analyze everything going on in your warehouse, how do you know how much revenue you should be making? A cloud-based WMS captures and tracks every transaction throughout your operations so you can accurately bill your clients.
Automate a Complicated Process
Too many warehouses track every transaction manually and then spend an exorbitant amount of time compiling bills at the end of the month. It doesn’t have to be that way. Having advanced billing functionality in your cloud warehouse management system opens up a real-time and holistic view of your operations.
Since every movement in your warehouse is tracked by the cloud-based WMS using a smartphone or RF gun, each transaction is accounted for and available for reporting whenever you need it. You’ll have an invoice up and ready to go that 100% represents the activity on your floor. The data can automatically flow from your WMS into QuickBooks or any other accounting software your warehouse may utilize, so you can literally have a bill ready for a client within a few seconds. This means you can invoice on your or your client’s schedule without any extra hassle. You could even invoice your clients weekly so that you are bringing in revenue faster.
Billing Specific to Each Client
You may have hundreds of different clients and each may have a different contracted rate. Another great benefit of the cloud-based WMS is that you can individually track a client’s specific rules. Discounts, monthly minimums, special rates, and any other unique detail can be applied instantly right within your WMS.
100% Accurate Billing
With a cloud-based WMS there is no longer any doubt that you are accurately billing your clients. Paper receipts can get lost, manual bills can have errors, but your WMS will always track billing data accurately. No revenue will slip between the cracks anymore. It can also help build trust in your client relationships. If your client asks for a detailed breakdown of the costs they’ve incurred, or are arguing a charge, you can immediately address their concern with verifiable proof from your warehouse management system.
Uncover Hidden Revenue
Having a completely transparent supply chain could potentially reveal all types of inefficient areas around your warehouse. You cannot prove what you cannot track. A cloud-based WMS allows you to improve profitability with real-time monitoring of the cost of services provided for each client, accurately charging assessorial fees, and ensuring that the space on your floor is being utilized in an optimal way. Not so hidden inefficiencies such as having long service-to-invoice and service-to-revenue time can also be greatly improved. Bills are easier to create, so you can send them out earlier and (hopefully) get paid earlier too.
Blazing Fast ROI
All of this means that you are invoicing for 100% of your costs and capturing all potential revenue. Billing for everything and almost eliminating the labor costs associated with billing can often times justify the cost of a new warehouse management system by itself. The return on your investment into the WMS is lightning quick.
Be sure to stop by soon when we discuss how the billing functionality built into our cloud-based warehouse management system not only helps you, but helps you win new clients and has a tangible effect on your clients’ bottom lines as well.
Read more about our cloud-based warehouse management system powered by the advanced irms|360 Enterprise cloud platform, and schedule a demo to see how easy it can be for 3PLs to bill right from their WMS.