What is a Warehouse Management System (WMS)
BlogWhat is warehouse management system software? It’s a powerful tool that helps businesses organize and streamline everything in their warehouse.
Quick and accurate order fulfillment is essential, so having a WMS is more than helpful—it’s crucial.
Want to know how a WMS can save you time, reduce costs, and improve customer satisfaction? Keep reading to find out how this game-changing software can transform your operations.
Defining What is a Warehouse Management System
The company’s Warehouse Management System (WMS) streamlines warehouse operations by automating tasks like inventory tracking, order fulfillment, and shipping. It uses real-time data for accurate stock management and integrates with systems like ERP and TMS for smoother operations.
The cloud-based WMS supports remote access and scalability, reducing costs and improving accuracy and customer satisfaction.
Why You Need to Understand What is a Warehouse Management System?
With the relentless growth of e-commerce, businesses face increasing pressure to deliver orders faster than ever. Wholesalers, third-party logistics providers (3PLs), and retailers are racing to match the speed and efficiency of giants like Amazon.
In 2019, U.S. online retail sales hit $657 billion, reflecting a 12.6% growth from 2018. E-commerce has surged since, with projections showing that online U.S. sales could reach $1.657 trillion by 2025.
However, the COVID-19 pandemic drastically reshaped the logistics landscape. The surge in e-commerce demand during the pandemic exposed weaknesses in supply chains, creating labor shortages, shipping delays, and capacity constraints.
Additionally, the workforce pool has shrunk post-COVID, with many warehouses operating with fewer staff due to shifts in worker preferences, health concerns, and labor market trends. This makes the need for faster, more efficient operations critical.
As a result, the demand for advanced warehouse management systems (WMS) has skyrocketed, with companies increasingly relying on automation, AI, and robotics to handle inventory, speed up processes, and reduce errors without an entire workforce.
How a WMS Can Help Your Warehouse
A solid WMS can streamline everything – from receiving inventory to packing and shipping. It integrates with other tools, like barcoding, RFID, and even robotics. It keeps everything organized through a single platform, making life easier for warehouse managers.
Benefits of a Warehouse Management System
Here are five top reasons why a warehouse management system can transform your business:
- Better Efficiency: Automating warehouse tasks like receiving, picking, and shipping reduces errors and speeds up operations. You’ll handle more volume with fewer mistakes.
- Lower Costs: A WMS helps reduce waste by identifying which perishable items must be moved first and ensuring optimal storage space use. Some systems even allow you to create warehouse floor plans for peak efficiency.
- Real-Time Inventory Insights: Barcoding and RFID allow you to track your inventory as it moves into, through, and out of your warehouse in real-time. This helps with demand forecasting and inventory accuracy.
- Improved Labor Management: A WMS can forecast labor needs and assign tasks to workers based on skills and proximity, helping to optimize workflow and boost employee satisfaction.
- Better Customer and Supplier Relationships: Faster deliveries, fewer errors, and improved order fulfillment keep customers happy. Suppliers benefit from shorter wait times and smoother loading processes.
What Does a Warehouse Management System Do?
A WMS makes every warehouse task more efficient. Here’s a breakdown of the core functions it supports:
Receiving and Put-Away
A WMS helps you receive goods quickly and correctly. By scanning barcodes or using RFID, items are automatically logged, validated, and stored efficiently. Say goodbye to pen-and-paper methods, which are still surprisingly common in some warehouses!
Inventory Management
With a WMS, you get a real-time view of inventory across all locations. If it’s in transit or sitting on a shelf, you’ll know exactly what’s in stock. This visibility allows for more innovative demand forecasting and ensures accurate order fulfillment.
Picking, Packing, and Fulfillment
Order picking accounts for 55% of total warehousing costs. A WMS can help you cut these costs by optimizing how products are picked, packed, and shipped. It can also guide workers on the best paths for faster retrieval and support technologies like pick-to-light, robotics, and voice picking.
Shipping
A WMS can integrate with logistics software to automate shipping tasks. You can generate invoices, packing lists, and shipment notifications automatically. It even tracks shipments in real-time, so you know exactly when and where your orders are delivered.
Labor Management
A WMS helps streamline operations and reduce unnecessary tasks like “deadheading” (wasted travel time) by tracking worker performance and labor costs in real time. It can also help with scheduling and task prioritization to keep everything running smoothly.
Yard and Dock Management
A WMS ensures that incoming trucks find the proper loading docks fast. It even supports cross-docking, where goods bypass storage and go directly into outgoing shipments. This is particularly useful for fresh grocery items that need to move quickly.
Warehouse Analytics
With a WMS, real-time data is automatically collected, eliminating errors from manual data entry. You can track important metrics like order accuracy, shipping times, and distribution costs, then generate visual reports to share with stakeholders.
Types of Warehouse Management Systems
There are three main types of warehouse management systems to choose from:
Standalone WMS
This type of WMS is often installed on your hardware. While it can be customized, it requires a more considerable upfront investment and ongoing maintenance costs. Plus, integration with other systems becomes more complex over time.
Cloud-Based WMS
Cloud-based WMS offers flexibility and scalability at a lower upfront cost. As a SaaS product, it’s easier to update and maintain. The cloud also makes it easier to integrate with other tools and handle seasonal spikes in demand.
Integrated ERP and SCM-Based WMS
Some warehouse management systems are part of more extensive ERP (Enterprise Resource Planning) or SCM (Supply Chain Management) systems. These integrate seamlessly with other business functions like accounting and logistics, offering an all-in-one solution.
How TouchPath Can Transform Your Warehouse Management
TouchPath creates bespoke warehouse management systems that evolve with your business as it grows, ensuring your operations stay efficient and flexible.
By leveraging cutting-edge technology, TouchPath’s WMS Services helps companies improve productivity, reduce costs, and enhance customer satisfaction.
Ready to transform your warehouse management? Get in touch with us to see how we can tailor a solution to your unique needs.
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