Warehouse Management Systems (WMS) are typically software solutions whose primary purpose are to co-ordinate and administer the storage and movement of products and materials within a company’s warehouse and related processes.
What does a Warehouse Management System (WMS) do?
Whilst most WMS will have a broad range of related functionality this typically includes tools that help with:
Stock picking,
Inventory control,
Label printing,
Returns,
Cycle counting,
Some WMS systems will go beyond the physical warehouse and extend functionality to
Yard management,
Transport,
Labor (i.e. Timecards)
Key Benefits of Warehouse Management Systems
WMS can provide numerous benefits including
Faster goods movement,
Better management information,
Reducing errors
Reduced levels of data entry
Optimization of storage locations,
Improved planning
WMS can help facilitate automation and are often coupled with other solutions such as RFID and warehouse control systems that manage materials-handling.
For the businesses that utilize products incorporating shelf life (of life expiry dates) WMS can help in prioritizing dispatch of appropriate goods, eliminating errors and reducing material scrappage due to life expiry.
WMS Solution Providers
Though there is a wide variety of Warehouse Management Solutions which predominantly come from 3rd party companies that specialize in WMS, there are some packages, provided by ERP vendors, that come as a bolt on to ERP software (SAP for example). Most systems will offer some level of integration into other software including existing legacy products).
While bolt on ERP software modules are popular well known providers like RedPrairie and Infor have competed well with the large ERP vendors and have been successful in sectors such as FMCG and 3PL organizations with their products commonplace in many companies around the globe.
Many WMS systems do not rely solely on traditional use of desktop computers with systems available through PDA’s or other mobile devices. This can offer various benefits both in management information (real time tracking for example) and of course in the nature of warehouse tasks which are not typically desk bound.
WMS in SME’s
Whilst WMS are often prominent in large organizations Small businesses have been slow to implement the solutions. High volume (high number of SKU’s) and complex warehouse operations tend to benefit most from WMS where smaller organizations cannot capitalize on the benefits (due to scale) and also typically experience issues in interfacing (or funding the implementation) with other software packages such as Finance and procurement packages.
Many SME’s have looked at the cost of such systems and compared that to typically cheap labor rates coupled with relatively simple process and cannot justify the capital expenditure.
WMS costs are typically a mixture of software ,WMS hardware and implementation. As with any software deployment, ROI is realized over time. How much time will typically depend on the size of the organization and its complexity of operations prior to the WMS being deployed.
One WMS fits all
Many warehouse systems are customizable and can be tailored to suit the business sector they are deployed in and its common to find WMS in many industries from manufacturing, pharmaceuticals through to distribution and retail organizations.