Welp MagazineA warehouse management system (WMS) is software that is designed and built to optimize the warehouse, distribution, supply chain and fulfillment departments and processes within a business.
Typically, a WMS will provide functionality to help streamline and improve these warehouse processes, right from when goods first enter the warehouse, until they leave (and if they are returned!)
What is a WMS?
A warehouse management system is a software application designed to support and optimize warehouse functionality and distribution center management.
Why do you need a WMS system for fulfilment?
Changes and developments in technology mean that many companies need to conform to new regulations when identifying with and selling their products. A WMS can help with this.
Through the use of WMS, you can operate in a paperless environment. This is particularly advantageous to workers in the eCommerce world, as it helps you to avoid paper-based workflow processes.
For example, 15% of orders may contain mistakes. However, the companies that do not have a WMS system will likely have to do a lot of extra work to locate and fix these mistakes. However, the companies that employ a WMS system can help to maintain the error-free level of the order and therefore avoid some of these mistakes completely.
In addition, a WMS can help you by avoiding an inconvenient check out process. Many WMS systems can eliminate the checkout step during online shopping. This is beneficial, as it removes mistakes from the ordering process and also allows for a better customer experience.
Finally, a WMS can help reduce the search time a customer has to do while trying to order products or services. As the starting point, all the necessary details of the shopping cart can be viewed within the WMS system, which allows a customer to not have to search for it elsewhere.
What is an Advanced WMS?
An advanced WMS system is essentially a software tool that allows a business to operate in a more efficient manner.
It optimizes storage, distribution and fulfilment, which can in turn boost the overall efficiency of a company.
Why do you need an advanced WMS system for fulfilment?
An advanced WMS allows you to manage your stock more efficiently. This means that you can reduce your overall cost to stock, in addition to quickly responding to an order.
It can also help to maximize sales by preventing lost time or accidents caused by misplacing items.
Advanced WMS systems have an increased ability to handle complex inventory management and improve productivity.
They also allow for better control of your product information and more accurate data tracking.
How does WMS work?
A WMS will work by having a suite of software applications allow a company to manage its distribution and operational functions.
It will link into the different business functions and databases, and can automatically assign movements of goods and information between different stages of the supply chain.
What are the types of WMS systems?
There are four main types of WMS systems, which are classified based on their features and functionalities.
These are described below:
FIFO – First in, first out system (also known as the traditional WMS system). This system helps a company to control the stocking of goods inventories. Customers can also manage the flow of stocks that are brought into the warehouse or distribution center.
This system is mostly used in the manufacturing industry.
LIFO – Last in, first out system. A LIFO uses stock control by tracking all of the products that have entered a company’s stock.
It only works when there is a high turnover rate. It can be used in the construction or engineering industries.
Variable LIFO – This system allows for the management of products that have varying turnover rates.
With a variable LIFO system, one can track the products and require them to flow through the system in order of when they entered the stock.
Variable FIFO – Similar to a FIFO, this system is also used to track the products in a certain order.
However, unlike a FIFO, the products are not ordered by the order in which they were brought into a company’s stock. Instead, variable FIFO orders are ordered according to several criteria, such as size, weight and quantity.
What should you look for in a WMS system?
- Portfolio and platform – You have to decide which is the WMS system that works best for you.
- Portfolio and platform – You have to decide which is the WMS system that works best for you.
- Flexibility – Make sure that the system can be easily and flexibly adapted to your specific requirements.
- Ease of use – This is quite important, as you want the system to be easy to use so that your staff do not have too much difficulty trying to learn how to use it.
- Customer support – Is your WMS system supported by excellent customer care?
- Training and consulting – How good is your customer support?
- Automation – Do you need your WMS system to be automated? How much automation do you need?
- ERP integration – If you do need your WMS system to be automated, then make sure that it can be integrated with your ERP system.
- Latest features and tools – Make sure that the WMS system you use is updated with the latest features, so that it can work with the most up to date technologies in your industry.
- Service & support – Is the support that your WMS system is given by the vendor adequate?
- Up keep – How often will your WMS system need to be updated? Is it updated frequently?
- Security – Make sure that your WMS system is safe.
- Scalability – Choose a system that is designed to grow along with your business.
- Security – Make sure that the WMS system works through a secure network with a firewall.
- Cloud awareness – If you decide to use a WMS system that is cloud-based, make sure that it suits your business.
- Integration – How easily can you integrate the WMS system into your company’s operations?
- Backup – Is the WMS system backed up? Does it be backed up on a regular basis?
- Support – If or when your WMS system fails to work properly, what support systems are in place?
- Warranty – What kind of warranty is available if your WMS system fails?
a WMS has been integrated into a company’s operations, there will still be a need for training of staff members.
Once your company has chosen its WMS system and it has been integrated into your company’s operations, there will still be a need for training of staff members.
Training your staff is very essential in the successful utilization of the WMS system.
Training can help to reduce errors, improve proficiency, and also create a standard operating procedure for your warehouse employees.
Read on to learn more about WMS, Warehouse Management Software.
Who uses WMS and why?
Due to the competitive nature of the business world today, the pressure is on to produce more, faster and more efficiently.
With a WMS, a company can create these efficient processes and practices.
A WMS will also help to predict and respond to changes in demand quickly, as it can easily be altered.
It can make a company more agile and give a company a competitive edge.
Using a WMS system also helps to reduce costs. By having a WMS in place, a company can reduce costs related to information gathering, planning, scheduling, demand management, and execution.
A WMS can also help to reduce the cost of not having enough staff to complete tasks, and can thereby boost the growth of a business.
Other implications of having a WMS are increased accountability and better visibility of performance.
So, as you can see, a WMS can indeed produce positive returns on the money invested into it. Investing in the right WMS can certainly boost the efficiency of your business.
What are the benefits of a Warehouse Management System (WMS)?
There are a number of different benefits to adding a WMS system to your operations.
Some of these benefits are described below:
Increases the efficiency and effectiveness of a company’s process, as it is the most appropriate way to incorporate automation, accountability, efficiency and visibility into a company’s operations.
Increases the efficiency and effectiveness of a company’s process, as it is the most appropriate way to incorporate automation, accountability, efficiency and visibility into a company’s operations, Incorporates the latest technologies and systems, meaning that it will have the highest levels of security in your company’s workings and therefore be less likely to be hacked.
Incorporates the latest technologies and systems, meaning that it will have the highest levels of security in your company’s workings and therefore be less likely to be hacked, Can easily adapt to the changing needs of a business, as it can be integrated into just about any operation or business.
Can easily adapt to the changing needs of a business, as it can be integrated into just about any operation or business, Will help to reduce customer service and delivery time, as a WMS helps to streamline its process, and will therefore make a company more efficient and effective in its operations, which will help to produce a better service for customers and result in a faster turnaround of orders.
Will help to reduce customer service and delivery time, as a WMS helps to streamline its process, and will therefore make a company more efficient and effective in its operations, which will help to produce a better service for customers and result in a faster turnaround of orders, Is a cost-effective solution for a business.
A WMS will also help to reduce the cost of not having enough staff, as tasks can be tracked in real time, and can help to create schedules and directly route them to the most appropriate person.
Though it will put a barrier up between the warehouse staff and the customers, there will still be a need for communication between both of them.
This barrier must be constructed in order to protect, both the customers and the warehouse staff.
A WMS will not only increase efficiency in a company’s operations, but will also decrease the cost of not having enough staff, as tasks will be automated.
Tracking all of a company’s deliveries will not be an issue, as the WMS will also be responsible for the delivery of orders.
Because of this added responsibility, staff members will not have to go through the delivery of goods with their hands.
A WMS will also help to eliminate theft, as employees will no longer be required to handle goods.
By having a WMS in place, a company can reduce costs related to information gathering, planning, scheduling, demand management, and execution.
These reductions will enable the company to reduce costs while maintaining greater productivity and efficiency.
Because of its accessibility and flexibility, a WMS system will help a company to reduce these costs without impacting the quality of the services they provide to their customers.
A WMS can also help to reduce the cost of not having enough staff to complete tasks, and can thereby boost the growth of a business.
By having a WMS, a company can communicate directly with customers, giving them the opportunity to quickly see the status of an order, and the opportunity for them to make necessary changes.
This helps to keep customers happy and prevents the order from being processed if any mistakes have been made.
If a WMS is integrated into a company’s operations, there will still be a need for training of staff members.
A WMS will have a direct impact on the performance of the employees, as it will be creating the best and most efficient work environment for them,
and will make their jobs easier.
Training can help to reduce errors, improve proficiency, and will create a standard operating procedure for the warehouse employees.
How do you procure WMS?
Purchasing a WMS isn’t as simple as going into a store and picking it up off the shelf.
There are many factors that need to be considered prior to buying a WMS.
Some of these factors are:
- Choosing the right kind of WMS
- Choosing the right kind of WMS, Identifying the requirements of the chosen WMS
- Identifying the requirements of the chosen WMS, Understanding the limitations of the system
- Understanding the limitations of the system, Integration pricing and costs
- Integration pricing and costs, Funding and budget
- Funding and budget, Technology used
- Technology used, Product support
- Product support, Required training
In choosing the right kind of WMS, an organization can decide whether to fit the existing business needs or use the WMS to fill the gaps of the other software systems being used.
It can also help to identify the functionality of the WMS system that is needed by the organization.
Identifying the requirements of the WMS system will help the organization to gather information to aid them in deciding whether or not the WMS can help the organization achieve their business goals.
Though reading case studies could help an organization to understand the limitations of WMS systems, it would be better to actually implement one and check the limitations out.
WMS costs and an organization’s budget must also be considered.
It could be that an organization is still using an old WMS system and they can upgrade their system.
The trade-off here is that the old system will be more affordable than a new system, but will not be able to meet the current needs of the organization.
Getting funding for a new WMS system and the costs of integration must also be considered.
An organization can choose an outsourcing option that is more cost-effective, either by hiring a third party company that helps in integrating the system into the warehouse operations or by hiring a full-time technical individual that could be skilled enough to do the work.
The training cost will depend on the complexity of the logic being used in the WMS.
In order to ensure the smooth operation of a company’s operations, staff members need to be trained on how to use the system.
If the WMS system in used at a company is complex and difficult, a third party consulting firm will be more appropriate for training than a full-time trainer.
There are also different types of WMS systems in the market today, as they are built on different platforms and may require different levels of knowledge to operate adequately.
Choosing the right WMS
Although there are many WMS products in the market today, it is well known that no single WMS is perfect for all businesses, and it is up to a company to evaluate their business needs in order to decide which WMS to choose.
This is especially important because these systems are used in automated and complex warehouses that can greatly benefit from its efficiency and intelligence.
There are five main attributes that are examined when choosing a WMS.
These attributes are:
- Customizability
- Customizability, Integration
- Integration, Business process management (BPM) functionality
- Business process management (BPM) functionality, Web-based user interface design
- Web-based user interface design, On-premises software
When choosing a WMS, an organization must consider all of these attributes.
Customizability is one of the most important attributes that must be considered when choosing a WMS.
A WMS system must have a large number of options in order to be able to meet the needs of the business.
To satisfy the customized needs of the business, the WMS system must come with a stipulated number of transport user interface options, such as Internet browser-based and Web services interface control methods.
This customizable option must also be able to support multiple environment configurations.
Although a WMS can be used in just one environment, different environments within the warehouse would benefit from the flexibility that comes with this attribute.
Integration is also very important in choosing the right WMS, as a system that is built on a certain platform or with a specific architecture will not be able to integrate smoothly into one built on a different platform or architecture.
It should also be able to integrate with legacy systems, in order to use the warehouse platform to move e-commerce and professional services to legacy systems that are built using different technologies.
BPM functionality refers to the flexibility that a system provides in order to allow the managers, the operators, and the supervisors to design their processes in a way that will enable better performance of the organization’s operations.
There are three levels of BPM functionality:
Operational BPM: – Operational BPM refers to optimizing the current business processes and the development of the system.
Operational BPM refers to optimizing the current business processes and the development of the system.
Planning BPM: – It refers to designing business processes by identifying business goals and creating new processes to help achieve those goals.
– It refers to designing business processes by identifying business goals and creating new processes to help achieve those goals.
Strategic BPM: – Strategic BPM refers to redefining the business processes and the way the organization interacts with its customers.
When choosing a WMS, an organization must choose its business processes that are most suitable for BPM functionality.
Web-based interface design refers to the ability of the WMS system to generate reports via web technology.
With this functionality, users can access reports from any browser and deliver them in a single location, which can improve the efficiency of the organization.
On-premises software refers to the ability of the company to choose if they should use a system that they manage.
With an on-premise software, the company manages their server and a third party provides support for the WMS.
To personalize their WMS, the company is required to pay a monthly maintenance fee as well as an upfront fee for the software.
The company then saves the money that they would have paid for the software and pays for the maintenance fee instead.
Management systems
Many organizations are under the impression that implementing an advanced WMS system is very simple.
With the newest and most advanced systems, it is difficult for the company to properly and ethically implement it.
This is when management systems come in.
There are two management systems that are provided by a company that sells WMS systems.
Trial system
A trial system is one that actually allows a company to download a WMS system and test it under limited conditions without purchasing it.
This system provides a company with the opportunity to evaluate the WMS system without spending any money.
Over the years, companies have benefited from this system, as they are able to use it to evaluate the WMS system to see if it will fit their needs.
Subscription system
After a company selects a specific WMS system and they know that they want to use it, the company will need to purchase the system.
This WMS is also known as a “subscription system.”
The benefits of this system are that most subscription systems include updates and maintenance, which is very cost-effective.
This type of system also includes technical support, which is also very beneficial to a company as they are able to get help when they need it.
However, one disadvantage of this type of system is that if a company needs to buy more complex systems, their costs may end up being higher than what they would have paid for this system.
When it comes to managing a WMS system, it is not as simple as creating or implementing a system.
It is also about the control and the management of the systems that are being used in the warehouse.
Many people forget that the management of the WMS system that they use in the warehouse is very important to the smooth running of the warehouse.
This management must be performed by professionals in the field.
These professional, along with the management or the system design builder, must have a better understanding of the technology that supports the system and the process that is designed for the WMS in order to be able to effectively run the department.
The WMS system is very important; however, it is equally important to have a good team to manage it.
There are now various websites that provide information about the management, the use, and the installation of a WMS system.
