|
Warehouse management systems (WMS) are best described as the advanced
technology and operating processes that optimize all warehousing
functions. These functions typically begin with receipts from suppliers
and end with shipments to customers, and include all inventory movements
and information flows in between. Warehouse management systems have
typically been associated with larger, more complex distribution
operations. Small, non-complex distribution facilities have historically
not been viewed as candidates to significantly streamline operations and
reduce costs. However, even smaller and midsize companies are
increasingly recognizing the significance of warehouse management
systems in today's environment of integrated logistics, just-in-time
delivery, and e-commerce fulfillment.
In practice, successful WMS solutions are generally designed to merge
computer hardware, software, and peripheral equipment with improved
operating practices for managing inventory, space, labor, and capital
equipment in warehouses and distribution centers. Implementation of a
WMS allows a company to increase its competitive advantage by reducing
labor costs, improving customer service, increasing inventory accuracy,
and improving flexibility and responsiveness. A WMS enables a company to
manage inventory in real time, with information as current as the most
recent order, shipment, or receipt and any movement in between.
^Top
WMS
Benefits
- Faster
inventory turns.
A WMS can reduce lead times by limiting inventory movement and
improving the accuracy of inventory records, thereby supporting a
JIT environment. As a result, the need for safety stock is reduced,
which increases inventory turnover and working capital utilization.
- More
efficient use of available
warehouse space. In addition to reducing safety-stock
requirements, a WMS can often increase available warehouse space by
more efficiently locating items in relation to receiving, assembly,
packing, and shipping points. This increased efficiency can both
improve productivity and lower inventory holding costs
significantly.
- Reduction
in inventory paperwork.
Implementation of a real time WMS can significantly reduce the
paperwork traditionally associated with warehouse operations, as
well as ensure timely and accurate flow of inventory and
information. Receiving reports, pick tickets, move tickets, packing
lists, etc., which are typically maintained as hard copies, can all
be maintained electronically.
- Improved
cycle counting.
Companies can use WMS to capture relevant data (e.g., frequency of
movement, specific locations, etc.) to systematically schedule
personnel for cycle counts. Such cycle counts not only can improve
the accuracy of inventory records for planning purposes, but also
can eliminate or reduce the need for complete, costly physical
inventories.
- Reduced
dependency on warehouse personnel. Implementing a comprehensive WMS facilitates standardization of
inventory movements, picking methods, and inventory locations. This
standardization helps to minimize reliance on informal practices,
resulting in reduced training costs and lower error rates.
- Enhanced
customer service.
By streamlining processes from order to delivery, companies can more
accurately determine product availability and realistic delivery
dates. A WMS can automatically identify and release back-ordered
inventory and also can reduce returns as a result of increased
shipment accuracy.
-
Improved
labor productivity.
A WMS helps optimize material flow,
typically by incorporating several inventory picks into one or by
"cross docking". Cross docking is a process that routes
incoming shipments to the location closest to the outbound shipping
dock, thereby reducing warehouse handling.
^Top
Advantages
for WMS Users
For
Management: WMS
can help management to access an instant picture of
- How much
inventory exists in the warehouse
- How many
orders are currently being shipped
- What are the
stages of processing of pending orders
- Staff
productivity details
- Goods
shipped by the warehouse over any given period of time.
The warehouse
management can determine how much inventory exists in the various stages
of processing unlike in non-automated warehouse management.
Sales people can determine how much inventory is available and can
relate better to the warehouse staff thus bettering their Customer
Relationship levels. Customer Managers can reserve inventory for a
customer thereby ensuring that it will not be shipped to anyone else.
Inventory Managers can track transactions at a very fine detail to
diagnose unexpected sudden changes in inventory. For example, if we had
thousands of pieces of some SKU yesterday and today we don’t have any,
then where did they go? Were they shipped to some other customer? Were
they sent to some other warehouse of the company to be shipped from
there? Or did they get lost or were picked away? WMS helps answering
such problems. The reports generated during checking processes enable
policy decision to be taken about the reliability of the suppliers. WMS
is designed to be flexible i.e., the process flow of the DC/Warehouse
can now be modified easily as business needs change.
For
Warehouse Supervisors: Productivity reports for each operator can
now be generated and used to implement productivity based remuneration
schemes or to fire unproductive employees. For those warehouses that
have to cope up with Union problems these reports can help the company
tremendously. Efficient tracking of warehouses activities are possible
with WMS as it provides a comprehensive set of web-enabled reports
detailing all the activities happening in the warehouse and their effect
on the inventory management. WMS also helps to detect bottlenecks in
operations, which can increase the overall throughput of the warehouse.
For
Warehouse Operators:
WMS provides graphical user interfaces (GUIs) wherein most of the time
the operator has to just scans the barcodes. Default navigation of
cursor on the screen mimics the standard business rule. Thus WMS eases
the operator’s task and makes the data input process fast, increasing
the overall efficiency of the operator. Some programs like Locating and
Pulling are especially designed to run on hand-held radio frequency
terminals. These terminals make the task of pickers and locators easy,
as these are easy to carry. Modern WMS programs have been coded with
extra emphasis on scanner based data input to minimize the need for
keyboard or mouse input.
^Top
|
