What is a Warehouse Management System (WMS)?

What is a Warehouse Management System (WMS) - OPLOG

In the warehousing world, systems make tracking and operations more streamlined. WMS, or warehouse management system, covers many functions with different types of setups. Read this guide to learn about key features and choose the right one for your needs.

Understanding WMS Basics

Warehouse management systems are very handy software applications that support and optimize warehousing. With the scale that warehouses operate, they need a lot of admin to maintain and keep activities in order. Having a WMS in place makes processes and checks more trackable and efficient.

Definition of a Warehouse Management System

A warehouse management system (WMS) is software that aids in managing and controlling facility operations. It helps the movement of goods and materials to distribution or fulfillment centers. Well-adapted companies rely on having a WMS to keep productivity well-organized.

Key Features of a WMS

WMS features include real-time inventory tracking, efficient order processing, and optimized storage organization. These integrate without interruption using ERP (enterprise resource planning) and eCommerce platforms. This leverages automation technologies for enhanced accuracy and speed.

How Does a WMS Work?

They can coordinate receiving, put away, picking, packing, and make shipping processes much more structured. The software also integrates with other system platforms for seamless data flow. Users receive data analytics and performance metrics for improved operations and customer service.

Integration with Other Systems

One of the perks of using a WMS in your warehousing workflow is that it integrates with ease into your systems. A warehouse system management simplifies, not complicates, the warehouse web of work. These systems can include everything from accounting to POS systems, to transportation.

Benefits of Implementing a WMS

Having a system for warehouse management will ease your general workflow. You will notice differences like accurate inventory, adept operations, and enhanced customer service. It's an all-around business boost – from the ground floor workers to client-facing operations.

Improved Inventory Accuracy

The immensity of keeping a warehouse in order requires a well-oiled system. Human errors during manual entry are inevitable and lessened with the help of a WMS. Introducing a WMS provides great benefits like real-time tracking and automated data entry. This reduces errors and inconsistencies in inventory levels.

Enhanced Operational Efficiency

A WMS can aid workers as a tool to supplement and elevate their quality of work. It optimizes processes such as picking, packing, and shipping. Plus, it streamlines operations and reduces handling times. It introduces advanced algorithms that: 

  • Determine the most efficient picking routes 
  • Minimizes travel time within the warehouse 
  • Accelerates order fulfillment 

Better Customer Service

Live tracking, stock counts, and predicting are easier with a dependable system. Your customers will appreciate precise order fulfillment and tracking with reliable delivery times. These experiences will lead to higher customer satisfaction, better reviews, and repeat business.

Types of Warehouse Management Systems

Within the scope of warehouse management systems, there are three main categories. These include standalone, ERP-integrated, and cloud-based technologies. Depending on your needs, scale, and budget, a type may be more appealing to certain business models.

Standalone WMS

This type of system exists on the company property and utilizes its own hardware. 

types of warehouse management systems - pros and cons of standalone WMS 

ERP-Integrated WMS

These systems are integrable applications for supply chain and ERP platforms. 

types of warehouse management systems - pros and cons of ERP-Integrated WMS

Cloud-Based WMS

Cloud-based refers to a system hosted via the internet. They are delivered as software-as-a-service (SaaS). 

types of warehouse management systems - pros and cons of cloud-based WMS

Choosing the Right WMS for Your Business

Now, you must consider your needs, available time, and budget. It may help to approach teams for quotes and demos to assess workable options. Once presented with options, your team can then start a warehouse needs assessment.  

Assessing Your Warehouse Needs 

Use this checklist to begin your warehouse evaluation process. 

Observe Current Operations 

Start by noticing how your workplace and processes function. Focus on noting your inventory management processes (such as receiving, storing, and picking goods). Also, consider if the workflow is coherent, the warehouse is best laid out, and how your team uses technology.    

Define Business Requirements 

Determining your WMS needs focuses on highlighting your business’s essentials. Brainstorm the types of features, functions, and any customizations needed to boost operations. Also think long-term if the WMS can scale as needed, within regulations to stay compliant. 

Set Goals And Objectives 

Outline what you want to achieve with your WMS to set a focused, actionable list.  
Common goals you may wish to include: 

  • Improving the accuracy of inventory counts 
  • Smoothening out processes 
  • Making the most use of your warehouse layout 
  • Meeting customer satisfaction 

Consider Integration Needs 

Seamless operations need to integrate well with your existing systems. Consider the systems, from enterprise resource planning (ERP) to customer relationship management (CRP). Synchronizing all software allows for real-time data updates and a better overview of operations.  

Assess Technical Requirements 

Check whether your proposed system is compatible with the warehouse space and tools. The hardware and software need to work with all IT and existing infrastructure. Finally, review that the network and security are well-developed and secure. 

Gauge Budget and Costs 

Financing a WMS starts with planning for all costs, plus an allocation towards issues.  Basic costs include purchasing, implementing, maintaining, and supporting the system. Once you set an ROI estimate after projecting savings, this can go towards budgeting. 

Consult With Stakeholders 

Getting approval and feedback from the relevant team members is a must. Speak with your teams in the warehouse, IT department, and management to discuss the system's needs. Reach out to external figures like suppliers and customers to further improve operations. 

Research Vendors and Solutions 

Investigate available solutions and companies while choosing your WMS. Get a good sense of the offerings by reading reviews, and do some cross-checking on features, functionality, and reliability. I recommend making use of the demos that are offered by some companies.   

Conduct A Needs Analysis 

This measures the space for improvement between existing operations and targets. Lay out workflow maps to see what data is needed, where, for each step of decisions. Again, gather team input from those who will work in close contact with your system.  

Plan For Implementation and Training 

After all other assessments are complete, create a WMS roll-out timeline. This will need stages for testing, feedback, and staff training. Teams need to feel happy with their software understanding, while data needs prepping for data migration. 

Implementing a WMS 

When it comes to finally introducing a WMS into your warehousing set-up, there are a few key points to keep in mind. It is vital to have a sound plan to ensure a smooth transition for effective implementation. When in doubt, voice all your concerns with your chosen WMS team to clarify and address action points.  

Steps in the Implementation Process 

To prepare your process, review these 6 basic implementation steps you can expect. 

1. System Design and Customization 

It all starts with creating a system tailored to your needs. Your WMS software needs to fit with operational needs – from user interfaces and reporting to workflows. Work with the company building your WMS to nail your processes and requirements. 
 

2. Data Preparation and Migration 

Smooth data migration makes for a better implementation experience. Data preparation includes: 

  • Cleaning up data 
  • Sorting and organizing data 
  • Ensuring data is accurate and complete (with past and present inventory details)  

The more correct the information, the less conflict and confusion later on. 
 

3. Training and Testing 

A thorough trial period helps teams to feel prepared and ready. Training sessions need to cover all content and concerns, whereas testing helps spot existing issues. This is the chance to iron out any functionality flaws, without the pressure of disappointing a customer.  

4. Go-Live Preparation 

This stage is the last rehearsal before the system goes live. Check set-up tasks, roles, and timelines. These points range from gathering the latest data for migration and readying both system settings and users for the WMS launch.  

5. Go-Live and Post-Implementation 

Once the WMS is up and operating, keep an eye out if any issues develop. This is where potential troubleshooting or system adjustments may need attention. As for staff, see if any further training would assist circumstantial issues.  

6. Post-Implementation Review and Continuous Improvement 

Once the system has been running for a set period, schedule some time for a performance review. This is a key phase to measure if the WMS met your goals and objectives. Speak with system users, create a report, and see where the next set of improvements can start. 
 
​​​​Upgrade your facility experience and output with our warehousing services for enhanced management. 

WMS and Emerging Technologies 

Emerging technologies optimize operations. This keeps WMS at the peak of innovation.  
These exciting new technologies include: 

  • Artificial Intelligence (AI) and Machine Learning 
  • Augmented Reality (AR) 
  • Blockchain 
  • Cloud Computing 
  • Drones 
  • Internet of Things (IoT) 
  • Robotics and Automation 
  • Wearable Technology 

Our very own warehouse automation robot, TARQAN, is one of the examples of how technology is enabling fast order fulfilment.  

Artificial Intelligence in WMS 

Artificial intelligence is a great addition to any WMS framework. It adds a level of intuitive support to your staff. I believe having AI enhances inventory management as well as impacting decision-making positively. Companies experience finer-tuned, intelligent data analysis.  

Internet of Things (IoT) Integration 

IoT is a smart internet network of interconnected, communicating, and data-sharing devices. They often are special appliances, wearables, and sensors with software and connectivity. Together, they fast-track data sharing for expedited workflows and informed insights. 

Warehouse Management System FAQs

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