A warehouse management system (WMS) is a type of software that organizations widely use to administer and control warehouse operations from the time goods or materials enter the warehouse until they move out. In basic terms, a WMS helps in the optimization of all your warehouse operations.
A WMS system is extremely important because it tracks all the materials in your warehouse and also creates systems to streamline how workers pick products and pack orders. It allows you to track merchandise entering the warehouse, being packed onto shelves and into various locations, and when it leaves the warehouse for order fulfillment.
A WMS also provides visibility into an organization’s inventory at any time and location, whether in a facility or in transit.
Why use warehouse management systems for your business?
A warehouse management system can help speed up your order fulfillment and keep track of what is selling well. You can also track raw materials when they come in and make sure they are in the right place for stocking and manufacturing.
Further, let us discuss in detail, the key warehouse management system benefits and why it matters for your business.
- Offers real-time inventory data
- Reduces operating expenses
- Accurate billing management
- Improves demand forecasts
- Enables continuous improvements
- Offers faster product delivery
- Enhances security
- Increases transparency
- Optimizes supply chain
- Improves employee morale
Types of warehouse management systems
There are mainly four types of warehouse management systems that are implemented by businesses to enhance operational efficiency and streamline their warehouse operations. Many of the features in these systems are similar but the delivery style is what differentiates them.
In order to choose the right management system for your business needs, it’s crucial to first understand the different types. So, let’s dive into each of them in detail.
Standalone warehouse management system
Standalone systems are the most basic and used only for their warehouse management features. These systems are sold without any extra supply chain functions and instead only include the best and most important features of WMS modules, such as inventory management and warehouse operations.
Supply chain modules
A warehouse management system is considered a subcategory of supply chain management (SCM). SCM software has a broad scope – it helps users manage everything from business processes to vendor relationships and risk assessment. It focuses on automating tasks like product cycles, inventory management, and material sourcing.
Integrated ERP systems
Enterprise Resource Planning (ERP) Module is considered one of the best options for businesses looking to improve warehouse operations. It is an excellent choice for 3PL businesses that are looking to organize their supply chain, accounting, HR, and even customer relationship platforms.
Cloud-based WMS
For added convenience and faster integration, a cloud-based platform is undoubtedly the best option. Cloud technology brings a load of benefits to warehouses such as less IT maintenance, increased security, and a lower cost.
Choosing the right warehouse management system
Choosing the right WMS will depend on what you want to achieve in the long run. The right WMS can help your organization achieve greater productivity and fulfill orders more accurately, resulting in lower costs. Here are some key criteria to selecting the right WMS for your business:
Budget/ROI
Review the gains you will receive from a warehouse management system to help you determine your budget. You should receive your return on the investment in the form of:
- Reduced costs from efficiency gains and better inventory management
- Improved processes
- Better customer service, resulting in increased customer retention and revenue
- Better space utilization
- Increased visibility and traceability
Functionality
Look for systems that will perform the functions most important to your organization. Some of the functionalities you’ll want are:
- Improved labor, equipment, and space utilization
- Better insights into operations
- Greater picking, packing, and dispatch accuracy
- Real-time inventory movement tracking
- Up-to-date technology that includes RFID, serialization, barcoding, mobility, etc.
Vendors
Shortlist vendors and solutions that will best suit your needs and budget. Consider the following:
- Do they have expertise in your industry?
- Is their WMS an add-on or fully integrated with their ERP solution?
- Are they responsive and helpful?
- Is customization needed in WMS?
- What is their training process?
Make an analysis of the software from different vendors, and tabulate all their features to support all your business requirements, besides cost, software licensing, training cost, support cost, and maintenance.
In case you are looking to implement a warehouse management system into your business, you can contact a reliable customized software development companies like Appinventiv. The highly-experienced team of professionals will help you implement the automated warehouse management software for your business and take care of all your needs.
