Warehouse Management System
Estimated reading time: 14 minutes
Having a well-organized company warehouse and keeping it that way seems simple; however, it can become a very tedious task, especially for a big company that receives large volumes of merchandise and multiple orders. Many processes are executed within a warehouse, such as receiving activities, coding, picking, dispatch, and many other activities that are carried out within the warehouse.
Luckily, a Warehouse Management System can help companies save themselves from warehouse complications or want to expand or venture into e-commerce.
What is a Warehouse Management System?
A Warehouse Management System (WMS) is a tool that helps companies coordinate and optimize a warehouse’s daily movements and operations in an automatized, profitable way while meeting the objectives set.
A Warehouse Management System collects and synchronizes information on what, how much, and where each product is located within the company, helping to simplify the management of a company’s supply chain operations, from the center of the warehouse to the shelf of a store.
As a whole, a WMS allows for better control and workflow of warehouse functions with more transparent and up-to-date visibility.
This flow of information helps decision-making, both in preventing shortages of material or stock and in cases of sporadic events or last-minute changes.
A WMS ranges from the coordination of the entry and receipt of materials and merchandise for the first time, its storage in a strategic location for greater fluidity of transportation, selection of packaging or shipment until the moment it leaves the warehouse for delivery and inventory replacement. These synchronized activities allow the Warehouse Management System software to have better visibility of all the processes being carried out in the warehouse in real-time, having greater control of them.
This software can be used in the manufacturing industry and large retail stores, especially if they are venturing into e-commerce seeking growth. Buying online is becoming widespread nowadays, which is another reason why adding a Warehouse Management System can significantly help fulfill customer demand.
Supply Chain Management can be a crucial tool for Warehouse Management System. It helps WMS plan optimal inventory levels, determine the excellent space location based on product flow, and have up-to-date product tracking information to avoid overstock or stock-outs.
The Importance of a Warehouse Management System
A warehouse is not only a physical place where goods are stored; a company needs to have control of the stock, manage the area where everything is located and record the entry and exit of each material or the goods from the company. Businesses using the Just-in-Time method can gain significant advantages from a WMS.
Not only companies benefit from this information. In today’s world, customer demands have changed due to the use of technology, and now they demand to know the status of their order in an updated way, see where it is, and have an estimated time of when it will arrive. Sharing this information can improve customer relationships, creating greater loyalty.
A Warehouse Management System simplifies the activities within the warehouse, such as:
- Reception: Before, Warehouse Management was done by hand with paper and pencil or utilizing spreadsheets prone to errors and later processes. When receiving or sending merchandise in a warehouse, it must be validated and reconciled with purchase orders and receipts. With WMS software, the receipt, processing, and storage of articles these functions become a simple task. Material Requirements Planning Software enhances WMS by streamlining the arrival of new goods.
- Coding: Item coding, as its name indicates, is a unique code assigned to a product for its identification, greatly facilitating the processes carried out in the warehouse. These codes, which are placed on labels, are generated by the Warehouse Management System and contain information such as the type of material, whether it can be dangerous and the care to be taken, expiration day, date of arrival at the warehouse, location within of the warehouse among other types of information. The most common types of tags are barcodes, QR, and RFID tags.
- Inventory management: A Warehouse Management System accurately tracks inventory, even with orders in shipping transit. This software also offers visibility about the company’s location and the number of goods available. Hence, it helps companies prevent stock shortages according to demand, fulfill orders, and prevent production bottlenecks.
- Packaging and shipping processes: A client’s order arriving on time begins with a good organization of the departure from a company’s dock, good packaging so that the product comes without damage, and supervising the transit to the correct destination. A WMS helps speed up these functions by processing shipping information, packaging, and invoices and assisting with logistics and transportation.
- Use of personnel: A Warehouse Management System helps plan the activities of workers within the warehouse so that they can be more efficient and save time, effort, and money in these processes. With a WMS, you can also improve the response time of the workforce in case of last-minute changes, priorities, and any sporadic event.
Advanced production planning with AI – SkyPlanner APS
Read more about our approach to production planning and optimization leveraging the power of AI.
Benefits of a Warehouse Management System
There are many reasons why companies that are seeking or experiencing growth should consider having a WMS. Managing a greater volume of inventory and increasing orders and deliveries to be made will be simple tasks if you have a Warehouse Management System in addition to other significant advantages, among which you can find:
- Reduces costs and waste: A Warehouse Management System software analyzes which are the strategic places; it can optimize time by placing the stock in the ideal location, such as the most used goods in more accessible areas to make a smoother journey, helping to operate more efficiently and with less use of labor, reducing costs. It can also help to more accurately identify which items need to be sold or which must be withdrawn by expiration date, avoiding losses for the company. A good example is a supermarket or retail chain store that handles large storage volumes.
- Greater transparency of inventory in real-time: A Warehouse Management System creates a transparent and user-friendly flow of information for a company to reduce assortment errors, streamline activities within the warehouse, and reduce operating costs. A WMS uses inventory reports, picks and moves tickets, invoices, and packing in an automated and updated way by processing it digitally. This information acquired by the software eliminates bulky handwritten sheets that are difficult to organize or tedious spreadsheets that only slow down supply chain processes by needing up-to-date visibility.
- Good management of inventory documentation: Having a better record, whether using labeling, bar coding, or another method, a WMS allows the flow of information in real-time about the amount of material or goods that are in the warehouse; this makes it easier to locate them, know when it is time to order new material and not delay a purchase order or leave forgotten stock, making the company more efficient.
- Fewer shipping errors: Tracking where a product is within the warehouse allows deliveries to be more organized, and therefore fewer mistakes are made when dispatching an order. Warehouse Management System can simplify the packaging, transport, and shipping processes and allows fewer customer returns.
- Better use of space: A WMS analyzes how to use warehouse space to store more merchandise efficiently and organizationally. In addition to this, it can calculate the shortest destinations to reach the departure dock or shelf or make rules for precautions in where a product needs to be placed.
- Productivity increase: Warehouse Management System creates a more organized environment with more competent time use. Inbound and Outbound logistics will be tasks efficiently managed with a WMS. This tool can create schedules with more precise data for the arrival of stock or the departure of orders with the necessary personnel. This planning improves work performance when it comes to managing deliveries, packing, searching for material within the warehouse, and seeing the amount of stock available to avoid shortages in production with the help of the unique codes.
A company that counts on a WMS can also adjust times in case of delays or changes in receiving goods or dispatching orders. The advanced Planning and Scheduling system can significantly assist with this task and other functions. - Increases client satisfaction: With the use of a Warehouse Management System, a company obtains more controlled and streamlined warehouse processes, which allows on-time or faster delivery of an order, a more effective response to uncertainties in case the buyer requests information about where your order comes from, creating happy customers and greater loyalty to the company, increasing its good prestige.
Types of Warehouse Management Systems
There are several options in the warehouse management system market; understanding each will help a company choose the ideal one according to its needs and growth. The most popular WMS solutions are:
- Standalone: It is the most basic and accessible of the options since it has minimal features. It is a perfect option to manage the day-to-day warehouse operations of a small company that does not handle large volumes of stock. A Standalone WMS is an independent system that works inventory control and warehouse operations tasks. These two functions help improve the supply chain and keep processes in order.
In addition to being a rudimentary option, one of its disadvantages is that it can’t help in other logistics processes and hardly integrates with different types of software. - Integrated with ERP: Integrating a Warehouse Management System with Enterprise Resource Planning (ERP) unifies your warehouse processes with the company’s other functions in a single interface. This unification allows for more streamlined logistics, and the information is coordinated with the rest of the company.
It is an excellent investment for growing companies looking for more centralized control of their operations. For example, if there is a delay from a supplier, a WMS integrated with ERP can plan how to solve the problem on the spot and be able to finish an order on time. This option is perfect for big businesses and Third Party Logistics companies (3PL) which want to expand. - Cloud-based WMS: As its name indicates, it is a WMS that works through an online service (SaaS). Its advantages are comprehensive management of storage processes and greater real-time information transparency and within reach on various types of devices.
Cloud-based WMS is a perfect option for small businesses or start-ups. This service is done through a provider that reduces implementation and installation costs; a company only pays a monthly fee. One of its most notable disadvantages is that there needs to be more data security and that if there are connection problems, the information won’t be available to the company. - Supply Chain Module: This kind of Warehouse Management System is perfect for small and medium-sized companies with multiple supply chains. It facilitates supplier management, vendor management, and transportation. In addition to fulfilling the basic tasks carried out daily in a warehouse, such as shipping, picking, and dispatching, it helps improve customer service.
Streamline your Warehouse processes and performance
Adding a Warehouse Management System to Skyplanner’s Production Scheduling with AI is a wise investment that will significantly simplify the warehouse’s activities to meet your customers’ demands, making your company more competitive and productive.
Skyplanner’s APS can help you customize your WMS according to your company’s needs. Our professional team is ready to assist you and help your company grow with this software. Find out how Skyplanner APS can help you.
Frequently Asked Questions (FAQ)
In this part, you can find the answers to some frequent questions about the Warehouse Management System solution and the benefits of pairing it with SkyPlanner’s APS.
What is a Warehouse Management System?
A Warehouse Management System (WMS) is a tool that facilitates the organization, coordination, and optimization of daily movements and operations within a warehouse. It offers automation and profitability, synchronizes product information, and ensures processes align with set objectives. It aids in managing supply chain operations, providing real-time data for decision-making, and enhancing control of warehouse functions.
Why is a Warehouse Management System important?
A WMS is essential for controlling stock, managing product locations, and recording the entry and exit of goods. It meets modern customer demands for real-time order tracking and enhances customer relationships. It simplifies warehouse activities such as receipt, coding, inventory management, packaging and shipping processes, and personnel use.
What are the key benefits of a Warehouse Management System?
A WMS offers numerous benefits, including cost and waste reduction, real-time inventory transparency, improved inventory documentation, fewer shipping errors, better space utilization, productivity increase, and enhanced customer satisfaction.
What types of Warehouse Management Systems are available?
There are various types of WMS solutions, including standalone systems integrated with Enterprise Resource Planning (ERP), cloud-based WMS, and Supply Chain Modules. Each has its unique features suitable for different business needs and sizes.
How does a Warehouse Management System improve reception and coding processes?
A WMS streamlines the receipt, processing, and storage of articles, reducing errors common with manual systems. It also facilitates item coding, assigning unique codes to products for easy identification and management.
How does a Warehouse Management System aid inventory management?
A WMS accurately tracks inventory, even for orders in transit. It provides real-time visibility of goods available and their locations, helping prevent stock shortages and production bottlenecks.
Can a Warehouse Management System help in packaging and shipping processes?
Yes, a WMS aids in streamlining packaging, transport, and shipping processes. It processes shipping information, packaging details, and invoices and assists with logistics and transportation, ensuring timely and accurate deliveries.
How does a Warehouse Management System improve personnel efficiency?
A WMS facilitates efficient planning of workers’ activities within the warehouse. It improves response time in the face of changes, priorities, or unexpected events, saving time, effort, and money.
How can a Warehouse Management System help my business grow?
If your business is growing or wants to expand, a WMS can help manage an increased volume of inventory and orders. It provides several advantages:
- Reduced costs
- Real-time inventory transparency
- Improved inventory documentation
- Fewer shipping errors
- Better space utilization
- Increased productivity
Can a Warehouse Management System be customized to my company’s needs?
With Skyplanner’s APS, you can customize your WMS according to your company’s unique needs. Our professional team can assist you in implementing and using this software to enhance your company’s growth and competitiveness.
Skyrocket your production with SkyPlanner APS
Book a demo with our tech team to see how SkyPlanner APS works in real life.
Latest articles
Product
Just-In-Time Manufacturing
Request a meeting to see SkyPlanner APS in action
Request a meeting to see SkyPlanner APS in action
Companies and their processes are never a carbon copy of each other, and they shouldn’t be. That’s why SkyPlanner APS has endless customisation possibilities. Request a meeting to see how SkyPlanner APS would work specifically for your company.
