A warehouse management system (WMS) consists of software and processes that allow organizations to control and administer warehouse operations from the time goods or materials enter a warehouse to the time they leave.
What is the role of a WMS?
In manufacturing and supply chain operations, warehouses are at the center of operations because they store all of the materials used or produced in those processes from raw materials to finished goods. In order to ensure that goods and materials are moved through warehouses in the most efficient and cost-effective manner possible, warehouse management systems are used.
In addition to inventory tracking, picking, receiving, and put away, a WMS performs many other functions that enable these movements. For example, In addition, a WMS allows for real-time visibility into an organization’s inventory, whether it is in a facility or on the road.
WMS’s role in the supply chain
As long as warehouse processes are fast, accurate, and efficient, the supply chain can run smoothly and quickly. With a WMS in place, you can be sure that orders are filled, from receiving raw materials to shipping finished goods.
In a warehouse or distribution center, the WMS is designed to assist users in fulfilling, shipping, and receiving tasks such as picking up goods from shelves for shipment or putting received goods away. Barcode readers and radio frequency identification (RFID) tags are used to collect inventory data, which is then used to update the ERP inventory management module so it has the most up-to-date information. Using an integration link, inventory data from the ERP system and the WMS is synchronized.
The ERP system, on the other hand, takes care of the accounting and most of the invoicing, order management, and inventory management. The shipping process is managed by the TMS. It is primarily a repository of detailed information about shipping carriers, but it is also a transactional and communication system for planning, executing, and tracking the shipments. In some cases, a TMS is integrated with the WMS to improve the efficiency of tasks such as palletizing goods, labor scheduling, yard management, load building, and cross-docking that occur at the interface of warehouses and freight shippers in the supply chain.
The TMS receives orders automatically from integrated ERP or order management systems. It also outputs the order information that is required for preparing and executing shipments by the Transportation Management System (TMS). To ensure that the right products are shipped, the ERP system includes basic information such as customer name and address, as well as detailed information about the items that will be shipped. Shipping details such as tracking numbers and carrier names are returned to the ERP system, which can then be used for accounting and order management functions in ERP. To keep customers informed about the status of their orders, the shipment information may be sent to a customer relationship management module (CRM).
Types of warehouse management systems
Types and implementation methods of warehouse management software vary depending on the organization’s size and needs. As standalone systems or as modules in a larger ERP or supply chain execution suite, they come in a variety of configurations. WMSs can also vary widely in complexity. Even though some small organization’s may rely on hard copy documents or spreadsheet files, most large organizations, from small to medium-sized businesses (SMBs) to enterprise companies, rely on the cloud Use complicated WMS software. Some WMS setups are tailored to the size of the organization, and many vendors offer versions of WMS products that can be scaled to different organizational sizes. It’s possible for an organization to build its own WMS from scratch, but it’s more common to use a WMS from an established vendor.
Also, a WMS can be designed or configured to meet a company’s unique needs. E-commerce vendors may use different WMS functions than brick-and-mortar retailers.
For example.
WMS’s can also be designed or configured specifically for the products that an organization sells.
Warehouse management systems have the following features:
WMS software products share a lot of common features with other software products, They include
Warehouse design
Organizations can adjust workflow and logic so that the warehouse is designed for optimal inventory allocation. Storage bins are set up by WMS to maximize storage space and take into account seasonal inventory fluctuations.
Tracking your inventory
The use of advanced tracking and AIDC systems, including RFID and barcode scanners, to ensure that goods can be found easily when they need to be moved.
Receive and store
Inventory can be stored and retrieved using pick-to-light or pick-to-voice technology, which aids warehouse workers in locating their inventory.
Selecting And Packing Goods
Picking in a zone or a wave, and picking in batches Lot zoning and task interleaving functions can also be used by warehouse workers to help them perform pick-and-pack tasks in the most efficient manner.
Shipping
In order to send out Bills of Lading (B/L) and packing lists in advance of the shipment, as well as notify recipients of upcoming shipments before they arrive.
Workforce Management
using key performance indicators (KPIs) to identify workers who perform above or below standards, which aids warehouse managers in monitoring workers’ performances.
Management of the yard and docks.
In order to help truck drivers find the right loading docks when they arrive at a storage facility Cross-docking and other functions of inbound and outbound logistics are enabled using yard and dock management in a more sophisticated manner
Reporting
which helps managers analyze the performance of warehouse operations and identify areas for improvement.
Cloud-based WMS
In the early days of warehouse management and other enterprise systems such as ERP organizations used their own servers to run the systems. Because of the benefits of running WMS systems in the cloud, this model is evolving and cloud-based WMSs are becoming more common. A cloud-based WMS differs from a traditional on-premises system in that the software is hosted and managed by the WMS vendor or a cloud service provider. This relieves the IT department of the burden of installing, managing, and upgrading the system.
SMBs(small to medium-sized businesses) prefer cloud-based WMSs because they are easier to install and less expensive to maintain. Larger companies often use on-premises WMS because they require highly customized systems that meet the needs of their specific industry, and they have the resources to manage the IT requirements.
These are some of the benefits of cloud-based WMS.
Faster implementation.
Traditional on-premises WMS implementations can take months, while cloud-based WMS deployments can be completed in a matter of weeks, depending on the complexity. Organizations can benefit from cloud WMS capabilities sooner, which is important in today’s fast-paced economy.
Upgrades are easier to manage.
In the SaaS deployment model, all updates and configurations are handled by the vendor. Consequently, companies always have the latest version of software and spend little time or money upgrading.
Costs are reduced.
These WMSs do not require IT administrators to manage them because they are cloud-based. The upfront and ongoing costs of these systems are lower than those of traditional systems. Moreover, they don’t require customizations or modifications, which can be expensive for on-premises systems. Reinstalling and reconfiguring the software, and in some cases upgrading the hardware, can be costly when upgrading on-premises systems.
Scalability.
As organizations grow and supply chains become more complex, cloud-based WMSs can be scaled quickly. As a result, they are more adaptable and can be reconfigured to meet changing business needs or market conditions.
Cons of cloud-based WMS include the following
Costs in the long run
If you’re paying monthly or annually for licenses, you may end up paying more in the long run with cloud-based WMSs. Companies may have to pay extra for new modules or premium support packages.
Customization.
WMS is less suitable for organizations that need the software to be customized to meet their specific processes or industry requirements.
Updates
Most cloud-based WMS are regularly updated for all customers. Since systems are always updated, customers may be required to change their processes frequently to keep up with the new software, and users may require retraining each time If there are changes the software is updated.
IBM, Microsoft, Oracle, and SAP are just a few of the major WMS vendors that offer cloud-based systems. Fishbowl, High-up, and Snap Fulfil are three WMS vendors that are primarily cloud-based or cloud-only.
Warehouse management system benefits
Despite the fact that a WMS is complex and expensive to implement and maintain, organizations reap numerous benefits that can justify the complexity and costs. In addition to reducing labor costs and improving inventory accuracy a WMS can help an organization increase flexibility and responsiveness, decrease errors in picking and shipping goods, and improve customer service. These systems use real-time data, allowing the organization to keep track of orders, shipments, receipts, and any other movement of goods in real time.