Month: November 2021

If you’re managing your warehouse using Excel spreadsheets, or even worse, with pen and paper, and you’re constantly dealing with inventory nightmares or missing items, it’s time to explore WMS solutions.

A Warehouse Management System (WMS) is a software tool designed to automate and track all warehouse processes. With a goal of achieving 97% inventory accuracy, a robust WMS manages everything from receiving goods, put-away, picking, packing, and shipping. By implementing a software solution that monitors, automates, and optimizes all warehouse processes, you can enjoy numerous benefits, some of which we’ll discuss below.

What are the essential features of WMS?

Picture a well-organized warehouse with no paperwork, where items are neatly sorted and stored. Everything is automatically placed on shelves in the right order and tracked using barcode scanners. Say goodbye to lost items and confusion, as the entire company can now access real-time inventory information.

A Warehouse Management System (WMS) monitors the flow of items within the warehouse. While it shares some features with ERP software, WMS typically integrates with external ERP solutions. As a result, departments like sales, marketing, procurement, and others can access real-time inventory information, streamlining their tasks and enabling more precise planning.

Main features of quality WMS:

– Streamlining all warehouse operations, including receiving, put-away, picking, packing, shipping, inventory checks, and more.

– Seamless documentation workflow, with automated integration into the organization’s business software (ERP).

– Enhanced workforce management through workflow optimization, improved goods flow, and error reduction.

– Utilizing barcode terminals for receiving, tagging, and picking items, while storing real-time information in a centralized database.

Types of WMS solutions

WMS is typically an independent software solution that can be connected to other business intelligence systems, such as ERP systems. For instance, if you use SAP ERP, it can be integrated with your chosen WMS system to facilitate seamless data exchange.

Another type of WMS is a module within an existing ERP system. The main drawback of such an add-on is that it lacks the advanced features and customization options available in standalone Warehouse Management Systems, potentially limiting its ability to meet all your operational requirements.

Although some smaller organizations still rely on spreadsheets, WMS has become an essential component of modern warehouses for SMBs and corporations alike. WMS solutions are scalable and modular, designed to be customized for each company’s needs, making standalone WMS software the preferred choice for many businesses.

Standalone WMS can adapt to the company size, warehouse complexity and specific warehouse processes, which can help you grow your business and scale more easily.

Main benefits of WMS

Warehouse workflow and process automatization bring numerous benefits you might miss at first sight. To give you a better overview of how WMS can help your company, we made a list of such solutions’ top advantages.

a) Reducing costs and optimizing space

WMS is a smart system that monitors all warehouse processes and offers the best solution for maximizing storage space efficiency. By analyzing item movements and storage locations, you can make informed decisions on the optimal placement of goods for efficient movement. This saves valuable storage space and minimizes the time spent on warehouses tasks.

Other areas of optimization

– Improved warehouse space utilization,

– Timely and accurate item delivery, resulting in fewer shortages or excesses of goods,

– Reduced time spent on employee training and onboarding,

– Quicker picking and packing, and no more searching for misplaced items.

These improvements lead to decreased operating costs and a smoother flow of goods through the warehouse.

WMS can also enhance item movement by implementing standard protocols such as first-in-first-out (FIFO), last-in-first-out (LIFO), and first expires-first-out (FEFO).

No matter how complicated your processes are, WMS will help you with automation and therefore reduce your costs in the long run.

b) Real-time inventory visibility

WMS enhances the accuracy and visibility of your inventory, all in real-time. By generating various reports, you can know the exact quantity of each item in your warehouse. This level of precision and transparency is achieved through barcode scanning of every item and location within the warehouse. This reduces the number of lost items and improves inventory accuracy. Integrating these accurate metrics with your ERP boosts efficiency and decision-making across the entire company, not just within your department.

c) Labor efficiency

WMS automates task assignments to the appropriate warehouse workers. In addition, optimizing travel time within the warehouse is one of the most significant benefits WMS offers to improve labor utilization. By determining the best picking method, you shorten the path between points A and B, increasing your staff’s efficiency. You can even analyze your goods and rearrange your warehouse layout so that high-demand items are closer and quicker to pick and pack.

Elimination of paperwork and introduction of barcode terminals enables employees to work efficiently and to focus only on their core tasks, and at the same time decreasing errors in picking and packing.

d) Serialization and item tracking

Items in the warehouse can be easily tracked using their serial number and their batch, for example, their LOT number. In this way, if you manufacture from raw materials, you can track the entire process, from raw materials to the finished product, and the serial or LOT number will indicate which items the finished product is made of.

WMS can assist with tracking and connecting items to incoming orders, providing you with a better overview of the flow. It also contributes to planning and resource allocation. You can reduce costs with real-time, detailed inventory insights, avoiding unnecessary orders or lost items.

e) Enhancing the supply chain

The Warehouse Management System impacts the entire supply chain through its automation capabilities. Processes in the warehouse, from incoming goods and paperwork to delivery, are streamlined and automated. Precise and speedy shipping, combined with the elimination of unnecessary steps, boosts efficiency and reduces costs. Implementing WMS can also strengthen partner relationships by enhancing supply chain performance and providing better service to your clients.

f) Reducing operational costs for warehouse equipment

A warehouse utilizing WMS experiences significant automation, which lowers the burden on both the workforce and equipment. This leads to cost savings on equipment depreciation, reduced electricity and gas bills, and a decrease in the use of materials like paper.

Additional benefits of WMS include an improved user experience through accelerated workflows from order placement to delivery, as well as ongoing optimization of warehouse processes based on insights gathered from reports.

Who is using WMS?

If you’re curious about which industries utilize WMS, the answer isn’t tied to a specific industry but rather the size and complexity of the warehouse.

Distribution companies, 3PLs, retailers, manufacturers, and other trading businesses employ WMS. Warehouse Management Systems are highly beneficial in industries such as food, electronics, textiles, tobacco, and any other sector that manages large inventories.

The need for a WMS arises when you struggle with managing your inventory effectively and have outgrown the use of paper or Excel spreadsheets.

WMS scalability enables even smaller businesses to adopt high-quality solutions and streamline their operations, preparing them in advance for business growth and enhancing their ability to scale.

Conclusion

The Warehouse Management System offers a multitude of advantages. A top-notch solution assists in automating standard processes within the warehouse, providing real-time insights into workflows and inventory management.

Improved equipment and workforce utilization, as well as enhanced space management, are among the key benefits.

WMS is a versatile business software that delivers comprehensive statistics and automates data exports for all departments, such as accounting and sales.

If you’re interested in learning more, please get in touch with us, and we’ll gladly provide our expert consultation.

What is a modern Warehouse Management System? If we consider the warehouse as the essential part of company logistics, WMS is its software necessity.

Historically, warehouses were managed via pen and paper. After that, the first computer upgrade included Excel spreadsheets, and digital transformation brought software solutions that manage processes and workflows in the warehouse, such as picking, order fulfillment, and delivery.

Increasing efficiency and cost-effectiveness are the main ideas behind Warehouse Management Systems. WMS has in-depth data analysis, reporting, voice control systems, connecting with other business intelligence systems, and some additional hardware components like RFID or barcode readers to achieve these improvements.

There are numerous benefits of the WMS solution, and we have five crucial reasons you should invest in a Warehouse Management System.

1. Real-time inventory control and management

If you need to check the inventory status manually when someone asks about it, maybe it is time to invest in a WMS.
Professional modern WMS improves inventory control – you will have less stock, improved order fulfillment, and reduced order cycle time.

You can achieve these benefits by tracking every unit in the warehouse to the tiniest details. Tracking inventory with barcode scanners, you will know the type, series, and correct item name for every item in your stock. All information is uploaded in real-time into the system, leading to much faster and more efficient inventory management. At every moment you are able to check which items are low in stock, and which ones are overstocked, so you can make better business decisions.

The entire company has an overview of the current warehouse stock inventory because WMS is connected with other business intelligence software like ERP.

2. Better employee efficiency

Staff salary is among the most significant costs in the warehouse. With all automation, your employees are still a crucial piece of warehouse operations, and with WMS, you can optimize and utilize their efforts.

WMS will enable better efficiency, quality control system and speed up the product warehouse lifecycle. The first step in increased efficiency is the reduction of paperwork and manual lists. For even the smallest warehouses, relying on pen and paper processes can slow down the picking process. When you put away inventory without a verification scan, you’re more likely to make an error in data recording – which then must be corrected during the picking process. As said before, automation will eventually lead to fewer human-made errors. Also, you must ensure your staff is working in the smartest possible way to fulfill every order.

Movement and individual employee’ efficiency analysis leads to better movement patterns. WMS will enable upfront ideal picking routes through the warehouse so each staff member can cover more ground more effectively. Also, after doing a proper analysis of the movement of your goods, you will be able to better set up your warehouse layout, meaning all goods that are spending a minimal amount of time in the warehouse, i.e. are fast-moving, should be stored closer to the exit zone. That way, your staff will spend less time walking and have more time to focus on their crucial tasks.

3. Better user experience for your clients

Too many complaints to the customer service can damage your or your clients’ company reputation. Even worse, it can cut your or their revenue. When sales don’t have accurate info about inventory, the company can experience a delivery backlog, or even worse, you can run out of stock. If you have a faulty system for order fulfillment, you can send items to the wrong address or send the incorrect quantities.

Quality Warehouse Management System will alleviate most human errors and enable inventory control best practices. Software solutions using scanners will lead to detailed real-time data and improvements in warehouse accuracy almost up to 100%. Every person in your company will be able to know the exact amount of inventory, which helps you with your orders.

Reliable inventory management will result in a better user experience, fewer customer service complaints about late, inaccurate, or missing deliveries. That way, your relationship with your customers or clients will be on a higher level.

4. Warehouse space optimization

WMS tracks item flow in the warehouse. You know the exact position of every item on the shelf, in which row they are, and in what part of the warehouse, all of that in real-time. All changes, including picking, transferring, or counting, are noted in WMS. Tracking improves picking and inventory accuracy and reduces possibilities for errors.

WMS has many unique features like intelligent picking, rotation of goods, commissioning, and automatic consolidation to maximize storage space. The most important of these is directed put-away. Whenever you are receiving some goods, WMS can tell how and where to put away every exact item. There are many different rules for put-away. For example, you can use fixed or dynamic locations. Fixed locations are used for a specific type of item, which benefits in better organization of your warehouse layout and speeds up the putaway process since staff knows in advance where those items should be placed.

Dynamic locations, on the other hand, involve storing items in the first available, temporary location that a warehouse can find. It’s quick and versatile and has to have a real-time WMS implemented. Real-time information and advanced software-managed methodologies for moving goods through the warehouse can utilize expensive storage space with more efficiency.

Simultaneously, management and other company departments will all have needed information about warehouse utilization as the changes happen.

5. ERP integration and ROI

Quality Warehouse Management System can easily connect and integrate with your Enterprise Resource Planning (ERP) solution or other business intelligence software your company uses. There is no need for extra steps for integrating data from WMS to other company systems outside of the warehouse. Once integrated, data flow is automated and documents are exchanged in real-time.

By investing in WMS, you will for sure witness a positive return on investment. WMS influences sales and increases profits in a simple way. You will sell faster and more accurately, and customers will be more satisfied. Simultaneously, warehouse workers can store goods more efficiently, spend less time on their job, and make fewer mistakes. All these factors lead to increased profit margins and lower costs.

Investing in the software warehouse system

WMS is a software solution with hardware components. It’s important to check whether your WMS provider can provide tailor-made solutions for your warehouse and your specific needs. Every warehouse is different, and you should be able to cover all your processes with your new software.

Warehouse management is an essential part of logistics for every serious company. It’s a missing piece that enables improved accuracy and efficiency. Better warehouse management leads to business improvement on a company level and in the supply chain from manufacturer to delivery.

An efficient warehouse directly influences customer satisfaction, and higher efficiency leads to cost-cutting, which are crucial keywords for company management.

If you’d like to find out more, don’t hesitate to contact us.