What is Warehouse Management System?
Warehouse management refers to organizing and controlling every operation within the warehouse. It is considered to be a cornerstone of the logistics ecosystem as it comprises activities such as inventory balance, managing materials, pickup process, staff productivity, monitoring the movement of goods, etc. A robust WMS is a software application designed to optimize the entire operational process which can be beneficial to the business as well as the customers.
It also comprises the policies, procedures, and organizational tools that are important to keep your warehouse operations running smoothly. The software tends to have different functionalities deployed depending on the business it serves. This has the ability to reduce manual errors and improve overall productivity.
Functions of Warehouse Management Process
Undoubtedly, technological advancements are paving their way into the logistics industries and redefining their functional aspects. WMS is one of the most essential core pillars of the transportation and logistics sector. There are myriad functionalities of a WMS, some of them are:
Inventory Tracking- The monitoring and tracking of stock inflows into the warehouse is the primary function of WMS. You can get deep insights that can help you to measure and know the availability of stock in real-time. It plays a pivotal role in warehouse space optimization and management.
Picking and Shipping- The core function of WMS is to ensure the smooth picking and shipping activities of a warehouse. Conventional warehouses usually have a lot of challenges such as missing data and inefficient inventory tracking. Whereas WMS can improve the supply chain’s productivity by stocking up the right order to the right customer.
Warehouse Design- It is essential that the warehouse should be designed for optimized inventory allocation. The layout design should ensure maximum storage space so the organization can also customize the workflow. Systematic layout design is a seamless way to manage and organize your inventory and products.
Tracking & Visibility- Inventory tracking is one of the essential functions of WMS. It allows businesses to efficiently track the inventory and order related information in real-time. Advanced tracking can solve inventory-related challenges that can provide a significant boost to the business.
Managerial information- A warehouse management system can provide businesses with data-driven and actionable insights in the form of reports and analytics. With the information, you can forecast and strategize business plans to enhance the overall supply chain activities. Adding more boons to, this can accelerate your transportation and logistics business.
Benefits of Warehouse Management System
Reduces Operating Costs
A well-implemented warehouse management system can be beneficial for your business to reduce its bottom line. Operational costs are reduced in a variety of ways, for instance, analyzing and choosing the best locations for products, materials and equipment is useful for optimal utilization of labor and space.
The solution can be seen as an architect consultant for your warehouse. It also keeps a balance between the demand and supply of the goods. Therefore, WMS can have a significant impact in reducing the overall operating cost of operations.
Inventory Visibility
You can get real-time and accurate visibility of the inventory levels. A WMS can read serial code location, quantity, lot, or batch of the inventory. This is extremely beneficial as it safely estimates supply and avoids backorders. The business model of a just-in-time inventory strategy can help your business to make informed decisions. Better stock control is useful to forecast future requirements and improve the running of your warehouse.
Increases Customer Satisfaction
It optimizes the order fulfillment process which promotes customer satisfaction. The software is useful for managing and organizing right from product orders to shipment. Streamlining the process tends to reduce errors and can help you provide more accurate delivery dates to the customers in the order fulfillment process. Moreover, the reduction of fluctuations in demand and supply, order accuracy errors as the customers will receive an undamaged product that can improve the customer relationship.
Boost Security
The activities within the warehouse can be monitored and tracked to reduce the possibility of mistakes or thefts. Implementing WMS can help you to have control over everyday operations. Thus providing the accountability and coaching opportunities of the employees. Also, it keeps meticulous records of inventory that reduce security vulnerabilities in warehouses.
Labour Management
Integrating a warehouse management system can be extremely beneficial for the workers as well. It helps to improve the staff productivity. In addition, WMS also provide necessary information about the products , employees assigned work, and duties. Thus, it tends to determine the optimal choice of the labor force for the specific tasks.
Controlling every process inside the warehouse ensures productivity as you can analyze and seek areas of improvement. In addition, automating manual, repetitive tasks allows you to get an overview of whether you may need more or less staff.
Increase Transparency
One of the major benefits of warehouse management is that it provides visibility and transparency. The data is accurate, reliable and easily accessed. Employees have the flexibility to gain real-time data insights which assist them to serve the customers more efficiently and provide them with all the relevant information. Furthermore, the transparency and visibility within the warehouse enable the businesses to track and trace every shipping, order fulfillment and tracking order that leads to an effective fleet management system.
Final Thoughts
Integrating an effective solution to managing warehouses is extremely beneficial for the growth of your business. It helps you optimize your supply chain by improving control over logistics operations which can play a significant role for your business to stay ahead of the curve. To sum up, you should choose adaptable software with maximum flexibility for an ever-changing business environment.
