Whether you running an ecommerce site, retail chain or are a manufacturer or distributor, these systems can bring increased controls to labor, inventory and transportation. But based on the platform, companies can outgrow the capabilities offered for their warehousing and distribution functionality.
For many years, small to mid-sized businesses wanted the increased functionality a WMS could provide, but the entry level costs were too high to cost justify. This article will help identify the warehouse management system benefits that will support your growing company. For those companies who have multiple distribution centers, the traditional OMS or ERP solution often becomes obsolete because they may not be able to manage multiple warehouse inventories.
The same is true when retail companies need small parcel shipping for omnichannel commerce like ship from store or in managing inventory in stockrooms as well as the main warehouse. Most warehouse management systems are built from the ground up with multiple distribution centers or shipping locations in mind. In addition to managing the activities and functions throughout the warehouse, it will also bring about greater control over managing the labor to gain the highest levels of efficiency.
One of the benefits of being barcoded throughout the DC processes, or using voice technologies, is the capture of work performed by employee by job function. This is one of the greatest warehouse management system benefits that companies gain as the cost of labor increases. Most OMS or ERP solutions are selected and implemented for the benefits they can deliver to the other departments such as contact center, marketing, accounting, etc.
Selecting and implementing a warehouse management system will allow the fulfillment or distribution center organization to grow, control costs, gain efficiency, improve customer service and prolong the useful life of the OMS or ERP. As previously discussed, a WMS controls various departmental warehouse functions such as receiving and quality assurance, put away, replenishment of forward pick storage, picking, packing, shipping, returns and inventory control.
We typically see a full-featured warehouse management system benefit companies in the following eight ways :. There are hundreds of warehouse management systems on the market with a wide variety of price tags. Yet, not all of them are created equal.
To help narrow down your search it is important to think about what problems or challenges, you are looking for a warehouse management system to address. The results of an objective and thorough search, along with proper due diligence, will determine the benefits a WMS brings to your company. Many warehouse management systems deliver warehouse functions such as Advance Shipping Notices ASN and EDI transactions, allowing carrier scheduling of dock appointments, and better scheduling of receiving and put away personnel.
Additional functions typically include :. Once inventory is received, products need to either be cross docked to packing stations, or shipping, to fill back orders or put away.
A WMS automates replenishment of primary or forward pick storage from bulk before the next wave of orders is sent to the floor for picking. It also eliminates warehouse back order costs and lost time. Sales velocity data in a warehouse management system will help plan the size of the forward pick storage by item to reduce the number of replenishment tasks.
One of the major warehouse management system benefits is the ability of some WMS to assist in slotting product—the process of assigning SKUs to picking locations based on various criteria, such as sales velocity, size, weight and category, among others. Process changes are crucial to driving improvement, and a good WMS helps facilitate them.
Run "what if" scenarios to determine what you can expect from big changes, and use your WMS itself to implement and track smaller moves. You should be able to rely on your WMS vendor to keep abreast of trends in the industry. They should support new ideas with a continuous stream of new functionality, one that helps you to reduce costs, improve operations, and optimize processes with each new release.
And eventually, you should be able to use the data from your WMS to become a proactive, predictive leader in your company——not simply reactive. If you're in the consideration stage of selecting a WMS, make sure that the system you are considering has the right capabilities for your needs - one size definitely does not fit all where a WMS is concerned.
The right selection should fit your business model and culture, providing you with the innovation, functionality, and versatility you need to grow and thrive. Our free white paper can give you valuable guidance when it comes to making the most out of your WMS: Lean Warehousing.
Beyond helping you find the best 3PL and management systems for your company, you'll discover how to apply lean principles to your most basic workflows, building a culture of smart efficiency from the inside out.
Steve has a record as a leader and business partner who collaborates with other executives to use technology to transform and simplify business processes while delivering bottom line measurable benefit.
We'd like to hear about your supply chain and discuss ways Kenco can help address your business needs. Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management, and information technology—all engineered for Operational Excellence. Back to Kenco. Request Quote. Never miss a post!
Receive new, weekly blog notifications in your inbox. Material Handling Equipment. Today is a different story: configuration rules the day. Optimized Processes Choosing the correct WMS for your business will allow you to seamlessly optimize your processes within the warehouse. Efficient Labor Allocation With variables such as the size of your facility and special material handling requirements, you need to approach efficiency differently at each stage of the workflow.
Improved Supplier and Customer Relationships An efficiently run warehouse helps reduce delivery lead times and order accuracy errors, and that means more customers are satisfied with their orders, which in turn means more sales. Efficiency helps on the supplier side as well: When your team is ready and waiting to accept incoming materials and supply chain orders, it means your partners can move on to their next task or delivery that much faster.
Reduced Operational Expenses If you have perishables or other date-restricted stock in your warehouse, a good WMS can help reduce waste by identifying which units need to be picked first, and which may need a sales push. The more effective you can make your people: 1. The more volume you can push out 2.
The fewer people you need to be allocated to each part of the supply chain Either one reduces cost and allows you to invest in other areas of your business. In a nutshell: The more effective you can make your team and inventory oversight, the higher the volume you can achieve.
ERP Integration When your outgoing orders are accurate, your demand history isn't bogged down with repeat shipments, replacements, or shipping issues, which gives you a clearer view of overall operations.
The right WMS should scale with your business without breaking a sweat. Improved Security and Safety A modern WMS system should require workers to enter transactions using their own unique user account. Transparency and Visibility When suppliers have access to their own inventory use and on-hand SKUs, they gain the ability to plan and implement their own production. Continuous Improvement In your company, improvement rests on many different aspects.
To Sum It Up If you're in the consideration stage of selecting a WMS, make sure that the system you are considering has the right capabilities for your needs - one size definitely does not fit all where a WMS is concerned.
Topics: Distribution and Fulfillment. Get the guide straight to your inbox to read any time. There is ability to plan both receiving dock doors as well as outbound shipping docks with WMS solutions.
Some WMS solutions also connect to transportation management solutions TMS to further optimize the supply chain processes. Warehouse management systems can also pick and pack products more effectively, as managers can choose between zone, batch, or wave picking in a way that lowers any holdup or issues caused by traffic or ineffective employee locations.
These picking efficiency options provide faster customer order cycle time and thus improve customer relations. Additionally, due to the inventory tracking and packing options, customers can receive early notification of shipments and how the materials are coming. The connection of customers with advanced shipping notices is better enabled with the WMS solution. Benefit 8: Ongoing Improvement As a valuable technological tool, warehouse management systems are designed to enable continuous improvements.
The system can be implemented in phases to allow ongoing updates with newly developed features consistently, keeping warehouses efficient as they keep up with current changes.
This also allows for the warehouse to incorporate new processes and innovations over time. And, if the warehouse management system is based in the cloud, it can update instantly, which can help reduce the need for large, expensive IT teams.
Warehouse management can help companies maximize profitability and alleviate error. However, the potential obstacles to getting started with a new management system can be daunting. Clarkston can help you navigate any challenges to obtain these benefits by using our industry expertise to best assist with your implementation of a warehouse management system. The holiday season this year will be longer than ever before. Retailers across the globe face uncertainty and risk Sales, Inventory, Operations Plan SIOP is a process within many successful supply chain organizations that recognizes the integral relationship between all Dave Treadaway.
Partner Email LinkedIn. Benefits of a warehouse management system Benefit 1: Optimized Space and Lower Operating Expenses Warehouse management systems optimize warehouse flow by analyzing the best use of floor space based on the task and material characteristics.
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