The current times force that in an industry the processes are optimized in each one of the aspects and processes. This is the only possible way for a company to be profitable in such a competitive market. Modern warehouses are experiencing an increased demand for supplying products at a good price to a market that expects a quick turnaround from order placement to delivery. Therefore, in order to be able to compete, it is necessary to manage warehouses according to the times.
The two main keys in today's supply chain are immediate product availability and cost competitiveness. Fortunately, the best warehouse management systems address both aspects and are designed to integrate all functions in a warehouse operation.
What is a warehouse management system
A
Warehouse management system (WMS) is nothing more than a software application that supports and optimizes warehouse and distribution center operations through automated management functions. It facilitates daily planning and control of warehouse resources to transport and store each part of an inventory process.
A WMS organizes inventory processes in a way that traditional manual systems cannot. A data-driven system optimizes product management in real time and with high accuracy. In addition, all types of warehouse management systems fulfill the following two tasks.
Intralogistics
These are processes that deal with the movement of products. Intralogistics in warehouse management involves all tasks from receiving to shipping. A proper warehouse management system takes into account all inventory, whether in motion or stationary. All logistical information regarding warehouse operations is stored, monitored and managed within an integrated software application.
Interlogistics
This task involves the internal management of a warehouse facility, such as inventory identification through individual stock keeping units and bar code identification. Interlogistics also takes into account the efficiency of workers and equipment.
In medium to large-scale warehouse operations, maximum efficiency cannot be achieved without a software-based management system. Likewise, the benefits of a WMS turn efficiency into profitability. Today, there is no doubt that a WMS improves warehouse operations at all levels. This includes activities such as ordering, receiving, storing or warehousing, replenishment, sorting, order picking, packing and shipping. The right warehouse management system significantly improves operational functions and optimizes the bottom line.
Why an EMS
A data-driven software application efficiently replaces warehouse managers' logistics monitoring and informs them in real time of what is happening anywhere within the facility and throughout the supply chain. It replaces human management, which is understandably prone to errors managing repetitive and reliable information.
But the benefits of a warehouse management system go beyond providing real-time information. A WMS also tracks and delivers historical information, which can help managers predict future needs that may arise. This database enables inventory management so that current needs are always met and customer service is optimized.
Regardless of the type or size of the WMS, the system must meet business needs. That includes future operations where limited warehouse management systems could impede growth management. The WMS must be integrated with processes. Part of a WMS concept is integration with the plant ERP system, which will tie the ERP business processes directly to warehouse management.
The ERP and its plant model is a key part of selecting and implementing a warehouse management system. It is just as important to fully analyze the big picture of a warehouse as it is to integrate a WMS with front-line operations. Most WMS software vendors include ERP support as part of their package. This consulting service is an essential part of acquiring any type of warehouse management system.
Operation of an EMS
Regardless of whether the inner workings of a warehouse management system are more or less complex, all WMSs provide an essential service. They are capable of creating a central database that returns useful information about the facility. Key data includes vital information about inventory flow processes.
WMSs work by informing facility operators with crucial data on best practices in receiving and shipping products, as well as making the best use of available space in the building. WMS software also works by breaking down this information into the following separate inventory flow processes.
Receiving and shipping
Effective warehouse management systems track and record all aspects of receiving and shipping products. WMS applications do this by managing data points linked to product identifiers such as SKU codes, bar codes or radio frequency identifiers (RFID). A management system continuously knows when goods arrive and when they are destined for release.
Inventory storage
A WMS monitors exactly what products are in a warehouse inventory and where they are located. This information takes place in real time, and the system works by monitoring storage conditions, including current capacity. The WMS software alerts workers when capacity increases or decreases. A fully integrated WMS will automatically compensate for fluctuations in over- or under-stocking.
Handling and order picking
An effectively functioning warehouse management system is an irreplaceable tool for picking and handling products in inventory. Advanced WMS software works on a per-order basis to plan handling and picking tasks that enable workers to achieve the greatest efficiency. An effective WMS works across all processes in the facility, including warehousing, production orders, internal movement, outbound activities and stock replenishment requests.
WMSs also operate on the principle of best practices. This means that the software recognizes and recommends the most efficient and effective way to manage inventory. Within the definition of best practices, efficient means using the least amount of effort and effective refers to getting the best result or way to accomplish a task. For the facility worker, a WMS works by providing results more quickly, easily and economically.
