Warehouse – is a place or facility where a large quantity of products, including finished goods and materials, are stored until they are ready for future distribution or dispatch!
So, what is the warehouse management system?
As per the definition of Warehouse – a warehouse management system is a software application designed and developed to manage and optimize all aspects of warehouse operations!
Have you ever thought why there is even a need to make an entire software for a simple section of a company?
Is warehouse management that important for a company?
The answer is Yes!
It is important for a company to manage the place responsible for the maintenance of the materials that will drive the sales!
According to ZOHO – Poorly organized warehouse layouts result in underutilized space. Despite rising storage costs, many warehouses operate at only around 68% capacity. Inefficient space usage can lead to higher costs and reduced productivity
Now one can imagine how important it is for the companies to measure, monitor and manage these valuable spaces efficiently!
And to maintain that all a system named as – Warehouse Management System is used all over the world!
Now let’s get to know the WMS –
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What aspects are controlled, monitored and managed by the Warehouse Management System?
There are multiple sections of warehouse that are managed with the help of WMS such as –
1. Inventory Management –
- Real-time Inventory Tracking – The WMS constantly monitors the position inventories such as; item location, quantity and status (available, allocated, on order). This makes a firm avoid having to conduct manual stock counts and gives accurate information for orders and business planning.
- Stock Control and Replenishment – The WMS is also used in setting reorder points that alert the system to restock when the quantity of the stock on hand reaches a certain level. This helps to reduce occasions where there is no stock or little stock of goods, and this keeps the flow of the goods smooth.
- Inventory Optimization – Still, the WMS can get the data of inventory demand for past periods and make delicate calculations for anticipating the real demand. This enables firms to avoid the vice of stock retention (wasting space and capital) and stock out which is a common vice.
2. Warehousing Operations –
- Warehouse Layout and Slotting – The WMS can help identify the appropriate location of static storage and pick locations. It may also prescribe the placement of products to some specific area (slotting) which would be helpful in cutting down the movement of pickers.
- Picking and Packing Operations – It can relate to the WMS and is the pick lists and the chosen picking ways for the picking procedure definition. Other systems for instance have add-ons like the pick to light technology to enhance the picking process.
- Packing and Shipping – It can also create packing slips, which are basically used like the packing slip used in packing; it can also generate shipping labels with options of integration with the shipping carriers for an automatic shipment.
3. Labor Management –
- Labor Allocation and Scheduling – The WMS can also be used to help coordinate the distribution of the manpower based on the workloads and specific capability of the people on the ground available. Some of them can even capture parameters of the workers’ performance indicators.
- Task Management – The WMS can also define which pickers and packers must be working on and this will eliminate occasions whereby the personnel have no work to do.
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4. Reporting and Analytics –
- Performance Dashboards – The WMS enables real-time reporting, which has the necessary dashboards; you may track the inventory, order fulfillment rate, and the picking accuracy there. This data helps in evaluating the accomplishments and thinking processes on areas that want improvement on.
- Reporting and Analysis – The systems incorporated in the WMS may produce reports on various aspects of the warehouse management, and the managers can use the results to analyze the trends and scopes of the problem, which influences the efficiency of the warehousing processes and the efficiency of the variety of processes used in the given WS.
5. Other functionalities –
- Integration with Other Systems – Currently, WMS can be integrated with other business applications, for instance ERP or even accounting that help eradicate the problem of data disparity in the business system.
- Security and Access Control – Finally, the control aspect of the WMS can enable the concrete customization of the users and the grant/revoke authorization to some storage inventory or other items/operations stored in the warehouse, thus isolating them from possible unauthorized meddling.
Therefore, with the support of these aspects, a WMS helps manage the warehouse processes, cutting down costs, accelerating the warehouse procedures and optimizing the processes of the warehouse.
What are the different types of Warehouse Management System?
There is major 4 types of WMS used in the world by different industries, and they are as follows –
Standalone WMS
Narrowly specialized in handling only the functionalities related to warehouses.
These systems are quite useful for small companies or operations where particular types of storehouses are essential.
They can deliver many functionalities while ensuring that they are easy to manage and use and do not present many interfaces for integration with other software.
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Cloud-Based WMS
Located on servers different from the local ones and available through the World Wide Web.
Cloud based systems provoke flexibility and scalability and generally have lower initial costs.
They are most suitable for organizations that want to steer clear of the costs that come with installing and maintaining local systems.
ERP-Integrated WMS
As a standalone application which can be linked with the ERP system as a module to coordinate with the various organizations within the company, it includes the WM with the accounting, procurement and sales departments of the business.
Such integration also saliently avoids a situation where different segments of the business employ different information sources.
Supply Chain Modules
As a part of supply chain management software involving transportation, orders, and inventory.
These modules also provide all-round solutions for the firms who wish to conduct their entire supply chain through one system.
Apart from these some of the companies also develop a WMS based on the unique requirement they have with the help of custom software development companies!
What are the Benefits that WMS can actually provide?
Increased Efficiency
Reduces human intervention in the warehouse hence increases efficiency of processes in the warehouse. Using materials such as Bar code and RFID lead to shorter processing time and less mistake, making it possible to attend to many orders in a shorter duration.
Improved Inventory Accuracy
Closely monitors the data in store, thus reducing significant differences between the actual and book stock. This accuracy assists in the right planning of the inventory and minimizes the possibility of stock-outs or overstocking.
Enhanced Customer Satisfaction
Better processing of the orders implies that the customers are happier with the services that the restaurants are delivering. Consumers get their orders on time and of the right quality this creates loyal customers and a good rapport.
Cost Savings
Minimizes holding costs and need for extra space for storing the products thus making efficient use of the available space. The enhancement of the productive rate and decrease of typical mistake also endorsed the cost saving.
Scalability and Flexibility
High flexibility allows us to work with different sizes of businesses and different kinds of warehousing activity. An integrated WMS can expand with the business demands by adding new products, extra distribution centers, and high order numbers.
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Conclusion
Having a Warehouse Management System can ease your company’s workload by up to 70% and increases chances of better management leading to less loss and space that can be used efficiently and effectively!
But there are some things that you need to take care before investing in WMS, for example –
- Identify your Company’s Actual Needs
- Do thorough research of all the available options
- Based on research decide to go for an Off-the-Shelf Software or develop one from scratch
- Evaluate the budget and time constraint
- Check for how secure these systems are
- Evaluate how easy is the management
It is better to do proper research and analysis before you decide, as the system that you will be using must have the ability to serve your business the longest while scaling accordingly!
So, this is it. Here we come to the end of our guide to what a warehouse management system is and how it can help you manage your warehouse effectively and efficiently!
