The warehouse management system (WMS) brings computerized technology to track every action inside or outside the warehouse. Warehouse management involves managing and maintaining all processes that occur in the warehouse to run as smoothly and efficiently as possible.
However, every warehouse operation is prone to errors and challenges. Therefore, companies need automated solutions that can increase productivity in warehouses.
Key Takeaways
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Table of Content:
Table of Content
Also read: What is WMS and How It Differs from Supply Chain
Four Types of WMS
Warehouse Management Systems (WMS) come in various types, each designed to cater to different operational needs and complexities. Here are four types of WMS:
1. Standalone WMS
Standalone WMS are specialized software solutions focused solely on warehouse management functions. They handle inventory tracking, order picking, shipping, and receiving tasks. These systems are ideal for businesses looking for dedicated warehouse management tools without the need for broader enterprise resource planning (ERP) capabilities.
2. ERP-Integrated WMS
ERP-integrated WMS are part of a broader Enterprise Resource Planning system. These systems integrate warehouse management functionalities with other business processes such as accounting, HR, and supply chain management.
This integration provides a unified platform for managing all aspects of a business, enhancing data visibility and operational efficiency across departments. Companies looking for a comprehensive solution that connects various business functions often prefer ERP-integrated WMS.
3. Cloud-Based WMS
Cloud-based WMS are hosted on remote servers and accessed via the internet. These systems offer scalability, flexibility, and lower upfront costs than on-premise solutions.
Cloud-based WMS allows businesses to access warehouse management data from anywhere, providing real-time visibility and updates. They are particularly beneficial for companies with multiple locations or those looking to reduce IT infrastructure costs.
4. Supply Chain Execution (SCE) Suite
Supply Chain Execution suites encompass a range of functionalities beyond just warehouse management, including transportation management, labor management, and yard management.
These comprehensive systems are designed to optimize and streamline the entire supply chain from end to end. Businesses with complex supply chains or those seeking to integrate and optimize multiple logistics functions often choose SCE suites.
Voice Picking Technology in Warehouse Management Systems
Voice-picking technology in Warehouse Management Systems (WMS) offers several benefits. This technology allows workers to use voice commands to receive picking instructions, leaving their hands free to handle items.
Consequently, it improves efficiency and reduces errors. Furthermore, it enhances safety by enabling workers to focus on tasks without looking at screens or handling paperwork. Voice picking integrates seamlessly with existing WMS, making it a valuable tool for optimizing warehouse operations.
Essential Software Used in Warehousing
Several software systems are crucial for optimizing various operational aspects in modern warehousing. Each system serves a unique purpose, enhancing warehouse and supply chain management facets.
1. Warehouse Management System (WMS)
A Warehouse Management System (WMS) optimizes warehouse operations, including inventory tracking, order picking, and shipping. It provides real-time visibility into inventory levels and locations, streamlining processes, reducing errors, and increasing efficiency.
2. Transportation Management System (TMS)
A Transportation Management System (TMS) enhances the movement of goods by planning, executing, and optimizing transportation. TMS features include route planning, carrier selection, freight auditing, and shipment tracking, which help reduce costs and improve delivery times.
3. Material Requirements Planning (MRP)
Material Requirements Planning (MRP) manages manufacturing processes by ensuring materials and products are available for production and delivery. MRP systems integrate demand forecasting, inventory control, and production planning to ensure timely manufacturing.
4. Warehouse Control System (WCS)
A Warehouse Control System (WCS) manages real-time warehouse activities and coordinates material handling equipment like conveyors and sorters. WCS enhances the efficiency of material handling systems, optimizing the flow of goods within the warehouse.
5. Order Management System (OMS)
An Order Management System (OMS) handles order fulfilment from entry to delivery, integrating with sales channels, inventory systems, and customer service platforms. OMS functionalities include order processing, inventory visibility, and returns management, improving order accuracy and customer satisfaction.
These software systems collectively ensure efficient, responsive, and scalable warehouse and supply chain operations, from supplier to customer delivery.
Which Are the 3 Most Used Picking Systems in Warehousing?
There are several standard methods used in warehouses. Here are the three most used picking systems:
- Manual Picking: This is the traditional method where workers use paper lists or handheld devices to locate and pick items. It is straightforward but can be time-consuming and prone to errors.
- Automated Picking: This system uses robots and conveyors to handle the picking process. It increases efficiency and accuracy, though it requires a significant initial investment.
- Voice-Directed Picking: This method uses voice commands to guide workers through picking. It improves productivity and reduces errors by allowing workers to keep their hands free and focus on their tasks.
These systems offer different advantages and can be chosen based on a warehouse’s specific needs and resources.
10 Steps of Warehouse Management Processes
1. Receiving
The warehouse management process begins with receiving, which involves inspecting the quantity and quality of incoming goods against purchase orders, documenting any discrepancies, and safely unloading the goods from transport vehicles.
When goods arrive at the warehouse, RFID tags and AIDC systems can quickly scan and verify the items against purchase orders. This ensures all incoming goods are accounted for and meet the required specifications.
2. Putaway and Storage
Putaway includes assigning optimal storage locations for goods based on their type and warehouse layout, transporting them to these locations, and updating the warehouse management system (WMS). This step ensures systematic organization and secure storage of items.
3. Stocktaking
Regular inventory counts are performed to ensure records’ accuracy, identify discrepancies, and manage stock levels effectively. Stocktaking, or inventory counting, is a crucial step in which RFID and AIDC technologies provide significant advantages.
These technologies allow for real-time, accurate inventory counts without manual counting. RFID tags can be scanned remotely, even in large quantities, providing quick and precise inventory level and location data.
4. Replenishment
Replenishment involves monitoring stock levels and triggering reorders to maintain optimal inventory levels, preventing stockouts and overstock situations.
5. Picking
When orders are received, the picking process begins. This involves using strategies like batch, zone, or wave picking to collect items efficiently. A verification step ensures that the picked items match the order details, minimizing errors and ensuring customer satisfaction.
6. Packing
Once items are picked, they move to the packing stage. Here, suitable packing materials are selected to protect items during transit. Packages are labeled with shipping information and handling instructions, and a final accuracy check is performed before sealing the packages, ensuring they are ready for shipment.
7. Loading and Dispatch
Packed goods are prepared for dispatch by loading them onto transport vehicles. Dispatch involves coordinating with carriers, ensuring all documentation is in order, and tracking the shipment until delivery.
8. Returns Processing
Returns processing is essential for handling returned items. It includes receiving and inspecting returned goods to determine their condition, restocking saleable items, and appropriately managing unsellable or defective items. Inventory records are updated, and any necessary refunds or replacements are processed.
9. Reporting
Reporting involves generating detailed reports on various warehouse operations, including inventory levels, order fulfillment, and performance metrics, to provide valuable insights for decision-making.
10. Maintenance and Housekeeping
Maintenance and housekeeping are crucial for operational efficiency and safety. This involves regularly servicing warehouse equipment and maintaining a clean and organized environment. A well-maintained warehouse reduces the risk of accidents and equipment failures.
Conclusion
Manually managing the warehouse is a very inefficient action. A lot of time is wasted recording the movement of goods and the risk of loss due to inaccurate reports or late delivery of orders.
A Warehouse Management System (WMS) is a tool that can make it easier for you to monitor the entry and exit of goods. This application provides complete real-time information regarding essential data businesses need in the warehouse management process, such as inventory status and item allocation.
To experience the benefits of the system yourself, you can request a free demo here!