Warehouse Management System (WMS)

Warehouse Management System (WMS) is used in effectively managing warehouse business processes and direct warehouse activities, including receiving, put away, picking, shipping, and inventory cycle counts. Also includes support of radio frequency communications, allowing real-time data transfer between the system and warehouse personnel. It also maximize space and minimize material handling by automating put away processes.

Warehouse Management Systems (WMS) help growing distribution companies streamline the movement of inventory in and out of the warehouse more efficiently than possible with outdated manual processes. A robust WMS helps with warehouse management improvements which results in significant savings from having increase accuracy, fewer errors and reduce labor cost.

Benefits of Warehouse Management Systems (WMS)

1. Increased Accuracy:  If the physical inventory “on the books” and the physical inventory in a warehouse do not match, the situation is often chaotic. When a warehouse picker goes to retrieve a part and it is not there (or not enough is there), a series of manual checks and back tracking must be completed to fix the problem and get the order out the door. Inaccurate inventory results can have broad consequences including:

• Poor buying practices and excess safety stock associated to buyers lack of confidence in record accuracy
• Delays in order fulfillment associated to lost or misplaced product
• Lost sales due to stock outs and over commitments
• Costs associated to placing and managing back orders
• Lower labor productivity associated to searching for lost product
• Potentially higher freight costs resulting from expediting shipments to customers

2. Fewer Errors:  A real-time Radio Frequency (RF), i.e. Hand Held Bar Code Scanning driven WMS is self-checking. As transactions occur, the system verifies the activity and may even prompt the user with a question if the system detects a potential problem. In a paper-based environment, errors are common across all functional areas. The impact of an error in one function is amplified throughout the overall operation. An error in receiving (wrong product number, wrong quantity, etc.) will create potential delays across many operations.

3. Automation Reduces Errors:  In a paper based manual data entry environment, there is also an increased chance of data entry error. Humans make mistakes; WMS doesn’t. Studies have shown, on average, one out of every 300 keystrokes is an error. The cost of even one such error can be significant.

4. Reduced Labor Cost:  By eliminating manual data entry, associated fixed labor costs are immediately reduced. These reductions alone can justify an investment in automated data collection which is a key component of WMS. But other labor costs are reduced as well.
Example: Administrative labor is reduced as less time is spent correcting errors. Fewer errors and timelier, accurate information also mean fewer, more productive meetings for managers and executives. In general, automated data collection lowers labor costs by reducing overall setups, idle time, cost of expediting, and time spent correcting errors.

5. Increased Productivity:  The more manual processes are replaced with WMS, the more you can focus on streamlining additional factors that help boost productivity such as the movement of inventory in the warehouse.

Types of Warehouse Management Systems (WBS)

1. Standalone

Standalone systems are bought for their warehouse management features and nothing else. These types of warehousing systems can be combined with existing or future solutions, but it’s sold as a specialized product without further supply chain functions. Some vendors offer a handful of basic transportation management tools, however, the focus is on best-of-breed WMS.

Best-of-breed can be thought of as selective breeding – it only includes the best, most important features of all the potential warehouse management system modules. As warehousing management systems go, standalone WMS is the most basic. It’s often included as one of the types of inventory management systems as it can be applied to many industries beyond warehouse management. 

2. Supply Chain Modules

When considering different types of WMS systems, we might think about them as a subcategory of supply chain management (SCM). Supply chain management software has a broad scope – it helps users manage everything from vendor relationships to business processes to risk assessment. It focuses on automating tasks like inventory management, material sourcing and product cycles.

Choosing this type of warehouse management system requires investing in supply chain planning applications that also offer warehousing features.

3. Integrated with ERP

ERP is a powerful software solution that combines the capabilities of many other systems. It offers most of the core applications that make 3PL processes go smoothly: from supply chain planning, accounting, customer relationship management, human resources and more. ERP is a good option for businesses looking to upgrade their software solutions on a larger scale. This is an excellent move for enterprises looking to get a competitive edge and improve their ROI. They are specialized systems that offer robust supply chain execution and scalability.

Examples of Warehouse Management Systems (WBS)

1.      Oracle Warehouse Management Cloud

Oracle’s WMS offering works with businesses of all sizes and gives users full visibility into their inventory. It contains a robust suite of features that serve industries including e-commerce, logistics, distribution, wholesale, logistics and more. Some of its supported features are multichannel selling, warehouse intelligence, labor productivity management and materials handling.

2.      Infor Cloud Suite WMS

Infor Cloud Suite WMS supports medium and large-sized businesses in a variety of industries, including consumer electronics, retail, healthcare, food and beverage, high-tech, distribution, industrial, hospitality and more. It gives users visibility into equipment, people and orders to manage product velocity and service levels.

3. Fishbowl Warehouse

Fishbowl Warehouse is a cloud-based solution suited for small to medium-sized businesses. This business automation platform helps users streamline and optimize their warehouses with features like order management and purchase tracking.

This system also supports parts tracking, inventory management, shipping, sales, purchasing and more. Fishbowl Warehouse serves multiple industries, including cannabis, e-commerce, professional services, manufacturing, distribution and more. It also provides a mobile app for boosted accessibility.

Conclusion

A WMS is often used alongside or integrated with other related systems, including ERP, transportation management systems (TMS) and inventory management systems which offers visibility into a business’ entire inventory and manages supply chain fulfillment operations from the distribution center to the store shelf.

Penned By

Ms. GARIMA SONI
Club Kaizen