What is a WMS System?

Warehouse Management System

A WMS is a Warehouse Management System, an app that helps you manage operations in a busy warehouse. The app keeps a record of all the items stored in your warehouse and has processes for recording items coming in and going out. It helps your team be more efficient, by making it easier to know where incoming items should be stored, and where to find stock that’s due to leave.

It’s a software solution to the problem of managing inventory in what’s often a busy, fast-moving business environment. The efficiency of today’s supply chain relies on an organisation’s WMS being fast, accurate and easy to use.

The problems that a WMS helps to solve include:

• Dissatisfied customers – the WMS helps customers get what they need, when they need it.
• Uncertainty about what’s in stock – this information is available at a glance.
• Lost or incomplete records – being digital, there’s no paper to damage or misplace.
• Stock going out of date – items with a limited life aren’t overlooked.
• Staff wasting their time – your team knows what action to take and when.

Even before computers were introduced, efficient businesses operated a form of warehouse management. Today’s WMS solutions are integrated with other systems, such as warehouse robotics, finance applications and other logistics tools. They are increasingly using artificial intelligence (AI) to make decisions, giving a further boost to efficiency and productivity.

A WMS is part of the enterprise resource planning (ERP) system used by organisations to streamline their operation.

Key features of a WMS

Inventory tracking

The WMS records the number, condition and age of all the stock items in your warehouse, as well as recording where they are stored.

Order fulfilment

When integrated with handheld devices or virtual reality (VR) headsets, the WMS can show staff the most direct route to items. Even without these, it can tell them where to find items to be picked.

Receiving and Putaway

Information about incoming inventory is captured in the WMS, which can supply information on where it should be stored. This process also records the condition of inbound items, making it easier to monitor damaged items and incomplete deliveries.

Reporting and analytics

The WMS provides reports of warehouse operations, which can be used to analyse performance and make business decisions. Analytics allows for creation of benchmarks, against which actual performance can be measured.

Management of labour

The information provided by the WMS, along with the processes built into it, helps your warehouse team operate more efficiently. By assigning tasks and monitoring performance, it reduces the wastage of labour time, which is a valuable resource.

Integration with other systems

To maximise efficiency, a WMS should be connected to other business systems, such as shipping, sales order processing and purchasing. This allows information to flow freely between them, making it easier to have processes that flow seamlessly across the organisation. It also ensures that decision-makers have what they need.

Benefits of a WMS

Implementing a new WMS requires a considerable investment of both time and money, but there are significant benefits to be gained when the right system is put in and turned on.

Higher productivity in warehouse operations

A WMS helps you perform logistics processes like picking, packing and dispatch as efficiently as possible. The system optimises routes, so the time spent travelling between locations is minimised, which in turn means your team can process a higher volume of orders. This also applies to goods coming in, which are transported to the relevant locations as efficiently as possible.

More accurate inventory

Where stock numbers in your WMS are updated in real-time, you have up-to-date inventory numbers. These will be more accurate when systems like barcode scanning and RFID tracking are used to record item movements. Using automated systems reduces the risks that can arise from human error.

Improved customer experience

Delays, damage and poor communication in your warehouse operations can all have an impact on the service you provide to your customers. Where a WMS is helping you operate more efficiently, you’re more likely to achieve higher levels of customer satisfaction. This makes it more likely they will continue to use your service, and positive feedback from existing customers can help attract new ones.

A highly motivated warehouse team

Team morale is likely to be higher where your team has space to focus on delivering an excellent service, rather than trouble-shooting problems and navigating inefficiencies. Where your WMS takes the burden of routine tasks away from your team, it frees them up for more rewarding work, which they are more likely to find engaging.

Lower operating costs

All these other benefits will help reduce the cost of operating your warehouse. Improved accuracy in inventory helps reduce the volume of stock that becomes obsolete and can help reduce overstocking. More accuracy in order processing cuts the number of replacements required and the quantity of refunds. A more motivated team can help reduce staff turnover, which can be a significant overhead in a resource-intensive environment.

Different forms of WMS

A WMS is fundamentally an app. That is, it’s software that helps you run your warehouse more efficiently. There are several different ways in which this software can be set up and operated.

Standalone WMS

This is an app that’s dedicated to the management of your warehouse. Typically, it runs on computers hosted in your organisation. The benefit of a standalone WMS is that it can be customised to suit your business, and you have complete control over when and how the app is maintained and upgraded.

Cloud-based WMS

SAAS, or software as a service, is becoming increasingly common in the logistics sector. The apps still perform the same functions, providing a WMS solution. However, they are delivered via the cloud, rather than from servers on your site. This reduces the level of maintenance and support required, and means the app is being kept up-to-date with software fixes.

Integrated with an ERP system

Connecting your WMS with other systems gives you a more complete picture of your business operations. Data flows from one system to another, in the same way that inventory and other resources move around your warehouse. Integrated systems are more expensive and complex to implement, but they can provide more support for business planning and decision-making.

What to consider when choosing a WMS

Be clear about your requirements

Selecting any business system starts with a clear assessment of the problems you want it to solve, and the benefits you’re looking for. The list could be quite long, so it’s important to identify the top two or three that are critical to the business. Take your future business plans into account, because whatever WMS you choose is likely to be with you for several years.

Integration with warehouse automation

Robotics and AI are an increasingly important aspect of logistics across all industries. Automated systems, machine learning and the Internet of Things (IoT) are making warehouses increasingly efficient, along with bringing changes to warehouse design and processes. To take full advantage of the benefits on offer from new technologies, your WMS should be fully integrated into these systems. It should also be capable of adapting, as technology continues to change logistics setups and workflows.

How easy it is to customise

Every WMS has the same core functions around receiving, storing and dispatching goods. It has core processes that once implemented, may help you become more efficient. However, there will be aspects of how you work that you don’t want to change, and the system may need to be adapted to accommodate these.

In addition to assessing the flexibility of the WMS to adapt, you also need to consider how these adaptations will be handled when the system is upgraded.

User interfaces

Your team will interact with the WMS in various ways. It’s likely to be a blend of mobile devices, headsets including augmented reality, along with regular office computers. Usability is extremely important, as the interface between the system and humans is where errors can be made. Your team is also going to be more resistant to change if the system is not user-friendly.

Cost of the WMS

Besides the price of the apps, you need to consider the purchase of hardware, time spent implementing the system, and ongoing maintenance costs. Offset against these are the savings made by having a more efficient and productive warehouse, and the potential for your warehouse operation to manage a higher volume of business in the same space and with the same team.

Learn more about how a WMS can help your business

To discover how we can assist, reach out today. We specialise in helping a wide range of organisations implement smart warehouse technology, and our team is ready to discuss how we can support your needs.