2. • A warehouse management system (WMS) is a software
application used to monitor and control warehouse operations
and materials right from the point they are received into the
warehouse, when they are stored, and finally to when they
reach the end-customer.
• Whereas a warehouse primarily performs a storage function, a
warehouse management system goes a long way to ensure the
materials in the warehouse can also be accounted for
throughout the whole supply chain process. This ensures data
transparency in stock control management.
3. • Warehouse Management Systems Perform Core Functions
That Include;
• Receiving goods
• Tracking stock
• Ensuring efficiency in storage
• Picking and shipping
• Providing information to managers
• Despatching goods
4. • Tracking Stock
A WMS enables managers to know the amount of stock available and
when restocking is required. Together with the use of minimum and
maximum levels this helps the business order more stock at the right
time and in the right amount, so as to avoid shortages, and also avoid
overstocking the warehouse. This saves on space to allow other
materials to be stored in the warehouse.
5. • Layout Design
• A WMS allows the placement of products within the warehouse
layout to be ordered efficiently and logically, using criteria such as
accessibility, weight and demand. This ensures the smooth operation
of warehouse functions.
6. • Picking & Shipping
An efficient WMS ensures that the correct product is picked, using the
basic retrieval strategies, or business rules such as of FIFO (first- in- first
out).
Your WMS ensures that orders are shipped to the right clients on time.
Your transport system is made efficient and is less costly due to
avoiding mistakes made during the picking packing and dispatch stages.
7. • Reporting Information To Managers
• Warehouse management systems provide a wealth of useful business
information which can be gathered into reports and analysed to guide
future improvements. This includes customer order data, which helps
managers forecast, plan, consider alternatives and make decisions
concerning the whole supply chain process. This helps the business
meet its trading goals.
8. Benefits Of A Warehouse Management System
• It is important that warehouse owners invest in a suitable WMS with
the capabilities that match their business model, culture and
operational functional requirements.
• A WMS enables warehouse managers to carry out their managerial
functions efficiently, with greater productivity and reduced staff
resources. The following are the main benefits that come with having
a good WMS:
9. • - Labour Control
• Most warehouse processes – to a greater or lesser degree –
can be automated by the WMS. Therefore, staff resources can
be rationalised and assigned to the most necessary tasks, while
saving time spent on labour-intensive activities. This helps
businesses to cut down on unnecessary staff expenditures and
improve the productivity of the existing workforce.
10. • - Improved Customer Relationships
When orders are received and deliveries made “on time in full”,
customers are happy and they develop trust with the business. This
leads to improved customer retention.
11. • - Better Planning On Demand
A good WMS gives a full record of historic orders and shipping
movements. This can help managers forecast future requirements and
also improve on how demands are met. Coupled with better stock
control and accuracy stock write offs due to out of date stock can be
minimised.
12. - Improves Productivity
A WMS provides a rational structure that is easy to follow and
makes the working lives of your employees a whole lot easier! It
provides your team with clear KPIs and performance parameters,
and this in turn increases efficiency and accuracy.
13. - Reduced Admin
The WMS automates and centralises most of the administrative work
that formerly required reams of paperwork and data entry. Reports can
be collated and published in seconds, with data available at your
fingertips.
14. - Optimised Processes
A good WMS offers a broad range of picking options such as batch
picking, wave, and zone management. It also provides a variety of input
methods such as smart scales, bar codes and equipment automation.
15. - Ensures Transparency And Visibility
WMS data is accurate, transparent and can usually be accessed
remotely through any internet-enabled device. This helps suppliers to
plan their production, thus reducing lead time. This transparency also
lets businesses offer customers a better support service.
16. - Ensures Safety Of Stock
A WMS ensures stock is stored under optimum conditions for each
item. This is especially important for perishable products, such as
foods, medicines and cosmetics. Advanced order planning and layout
management helps reduce waste, damage and stock obsolescence,
thus eliminating a significant source of lost revenue.
17. • - Enhanced Security
• A good WMS creates an audit trail that links transactions to the individual
worker. This is because employees signed onto an individual user account, via
RF controlled devices with all activity recorded. This improves accountability
and provides coaching opportunities based on individual performance
targets.
• Implementing a warehouse management system can completely transform
your supply chain, regardless of your sector or the size of your business. For
more information about the savings you can make through logistics
planning, get in touch with one of our specialists today for an informal chat.
• You can also find out more about warehouse management in our
free Warehouse Productivity Guide. Click here to download your free copy
today.
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