What is a Warehouse Management System (WMS)?
The success of a business largely depends on effective supply chain management. From receipt to delivery, goods in the warehouse need to be managed using modern solutions that automate and digitize operations across the logistics chain.
More and more companies are using WMS (Warehouse Management System) software solutions to optimize picking activities, deliver orders faster, with minimal resources, reduce the returns volume, and have access to real-time updated data regarding the available stocks.
What does WMS mean?
Warehouse Management System, or WMS for short, is a software tool for managing activities in warehouses owned or managed by distribution companies, 3PL (Third Party Logistics) or fulfilment service providers, manufacturing facilities, companies that have either physical stores or online stores or both.
The application is part of a wide range of applications aimed at managing key components of the supply chain, such as MES (Manufacturing Execution System) for manufacturing or TMS (Transport Management System) for transport.
WMS is not just a “software component” of the supply chain, which has been designed to control the movement of goods in warehouses. This software solution is a strategic resource for automating and optimizing the activities of receiving, storing, picking and even shipping goods. It also provides real-time information on stock status and warehouse space.
What activities and resources in the warehouse are covered by WMS systems?
By definition, through the workflows it digitizes, a WMS application manages all activities in a warehouse as well as some activities outside the warehouse. And if the application is tailored to the specific needs of the customer company’s business, implementation clearly leads to a significant increase in the efficiency of logistics activities.
Goods management
Managing goods at the warehouse level is an essential feature of a Warehouse Management System. By implementing WMS solutions, the information falow is ensured to correlate the existing stock data in the ERP (Enterprise Resource Planning) with the actual stocks in the warehouse, reaching an optimal balance between the book inventory and the available stocks.
The management of items through a WMS application starts from the basic operations (stages) in a warehouse that are part of the inbound and outbound flows of goods and extends to other operations, such as: inventory taking, stock movement within the warehouse (putaway and replenishment), VAS – Value Added Services (kitting, bundling, customization, repackaging etc.) and others.
Any given flow may have several operations (stages) depending on the approach of each WMS application. A simple example would be the flow of inbound products into a warehouse, where we can talk about the following main steps:
- actual receipt, whereby items are identified, quantities are counted and data on batch and expiry dates are recorded;
- quantity checks , especially if discrepancies are found;
- putaway – placing items on shelves/racks.
The same can be said for outbound goods flows where we have at least operations such as :
- picking (taking goods from the shelves),
- verification and packing,
- handover to carriers.
Each operation within any flow can be approached from different angles. The most complex from this point of view is the stage of taking stored goods from the warehouse shelves (picking). Picking can be done in various ways: for instance, by grouping several orders together (Batch Picking), in separate boxes (Wave Picking), or by assigning one order to several people and putting the items together afterwards.
Each warehouse has its own functions and features, so correctly digitizing the right flows via a WMS leads to further, and in some cases, even substantial, efficiencies.
Human resource management in the warehouse
Qualified human resources are becoming more expensive and harder to find. This is the reality of our times in Europe. That’s why employees need to work efficiently and a well-chosen WMS software solution can significantly contribute to an increase in productivity.
Here are some key requirements that the WMS software application you choose for your warehouses must meet:
- Short staff training period. When staff turnover is high, especially among warehouse operators, the training period should be very short (a few hours, or a few days at most). The graphical user interfaces of the application should be intuitive and in line with other mobile app interfaces, as these apps are used by everyone who has a smartphone.
- Clear rules for identifying warehouse locations. The logic behind naming the warehouse rows and locations must be easy for operators to understand and remember. All the shelves or storage locations should also be visibly marked. Establishing such rules is a matter of organization. However, it is important that an WMS application can also easily make use of these identification rules.
- Transfer of decision-making from warehouse operators to the WMS application. This is the most important condition. There is no need for warehouse operators to be taught all the rules that might appear or change from one day to the next. The rules need to be built into the WMS application so that every worker may be naturally guided, step by step, to carry out their activities in the warehouse.
Material resources management in the warehouse
The WMS is very important in managing all the material resources in the warehouse: racks, pallets, trolleys, forklifts, etc. Material resources are easier to access than human resources, but they are just as expensive. That’s why there are also some aspects to consider when choosing a WMS solution:
- Storage systems (shelving). These are of several types, dedicated to different types of goods. The WMS application must help to manage logistics flows according to the types of racking or storage systems. Some have direct access to goods (classic racks), others have access to LIFO (Last In First Out) or FIFO (First In First Out) goods, others are specialized for items with variable lengths (e.g. pipes).
- Warehouse equipment moving goods. This is equipment that can handle several pallets simultaneously. There are racks that not all forklifts can reach (e.g. height) or where the features of the items do not allow them to be moved by just any machine. The WMS application needs to “know” these characteristics in order to make working with machines more efficient.
- Hardware equipment in a warehouse. Equipment of this type, such as label printers, are among the essential material resources. Label printers are very important because they help identify products, pallets or locations. In a complex warehouse there is a need to print labels at different times. Therefore, it is important that any warehouse user can simply select (by scanning a printer barcode) where the label they need should be printed.
RFID, Pick by Light, Pick by Voice – optional technologies
WMS systems need to be able to integrate certain technologies to increase efficiency at certain stages in the flows mentioned above. These apply depending on the characteristics of the items, the way they are stored or the type of delivery orders.
- RFID (Radio Frequency Identification) is recommended for receiving, verification before delivery and inventory operations where simultaneous identification of multiple items is useful. This technology requires a very high speed of item identification (hundreds of items per second), which can be a disadvantage in certain operations where identification is based on barcodes.
- Pick by Light is mainly used for picking operations because it provides a significant increase in efficiency – the pickers no longer read texts displayed on handheld terminal screens. This technology is successfully used in the sorting stages. The locations from which the goods are to be picked or placed for sorting are practically light-signaled (different colours). Pick by Light technology can be used in addition to barcode scanning
- Pick by Voice is most common in picking areas, but the same technology can also be used successfully in sorting areas. The higher the required number of information readings from the terminal, the more suitable Pick by Voice is. This technology is also used to complement barcode scanning, especially when confirming certain activities such as reaching the destination.
- Pick by Vision is a new technology whereby useful information is transmitted through a hologram onto the lens of special glasses. This technology contributes considerably to increased efficiency in certain cases and in combination with some of the technologies mentioned above, including barcode scanning.
What advantages and benefits does WMS offer for warehouse management?
Using a WMS offers multiple advantages and benefits for warehouse management:
- real-time information;
- reduction of receiving, picking, inventory errors;
- streamlined data flows between company departments;
- optimized stocks and storage spaces;
- rapid identification and adjustment tools for possible stock discrepancies;
- activity measurement (time and money).
How can Axes Software help you?
Set up in 2005, Axes Software is a Romanian company specialized in developing supply chain management software solutions.
The xTrack suite of applications contains solutions covering all the supply chain components.
The Axes Software WMS solution is the first application in our portfolio and brings significant innovations to the field. Our team’s experience and the flexibility of the application are the reasons why our customers have chosen us when they needed to implement complex WMS solution projects in different warehouses, regardless of the industry. We are happy, but also proud, that we have found original solutions to all our customers’ needs and come up with additional proposals for maximum efficiency.
We support the 100% digitization of supply chain flows, so that people intervene as little as possible in the decision-making process to allow scaling of the volume of goods traded. This is why we have also developed modules that are not directly related to warehousing, but which bring obvious benefits. One example is the Quality Control Module (CTC).
Our mission is to find the best solutions to optimize warehouse activities, tailored to each individual customer. It’s a challenge we welcome with enthusiasm every time!
Would you like to enjoy the benefits of xTrack WMS? Fill in the form below and our consultants will get back to you within 48 hours.