“Good management is the art of making problems interesting and their solutions constructive, that everyone wants to get to work and deal with them.” – Paul Hawken
Similarly, a Warehouse Management System (WMS alias WCS) are one of those good software management techniques specifically designed to efficiently manage and optimise many operations within warehouses or distribution centres.
They comprise a significant variety of functions, from tracking their precious inventories and order fulfilment to managing labour and generating reports. Warehouse Management System (WMS) play a vital role in sparking productivity and overall operational efficiency levels, all while easing the burdens off your wearied employees’ shoulders.
Let’s explore more aspects in detail and go through some examples to better understand their impact.
6 Main Functions of Warehouse Management System (WMS)
Management of Inventory
This system is proficient at tracking inventory in real-time, making sure stock levels are accurate, and eliminating the horrors of understocking or overstocking.
Imagine a fancy boutique that relies on WCS (Warehouse control system) to supervise its luxury wallet collection. When the new batch of products arrives, the system automatically updates inventory counts, allowing the boutique to keep track of each valuable item.
When a loyal consumer places an order, (WMS) detect it, ensure the item’s availability and check whether immediate shipment is feasible to avoid any delays or worries.
Fulfilment of Orders
This system is engineered to process orders by carefully optimising each product’s picking and packing. Picture yourself as a supervisor at a massive e-commerce warehouse serving customers worldwide.
Now, if you have implemented a Warehouse control system when the orders come in, the system generates an optimised picking route for warehouse workers, directing them efficiently through the aisles. It also guides packers on how to best package items for safe transit. This results in quicker order processing and reduced shipping errors, leading to higher customer satisfaction.
Optimisation of Slotting
- Slotting – The strategic placement of items within a warehouse to minimise picking and restocking times.
Warehouse Management System (WMS) can analyse product demand patterns. It can help you place the most frequently ordered items in easily accessible locations while slow-moving items in less accessible areas. This is an intellectual way to diminish labour costs that frequently hold your company’s budget and speed up the process during peak seasons.
Supervision of Labour
If you are a labour manager or in charge of governing the humans working inside your warehouse complex, without a doubt, this system can be heaven-sent! The WCS monitors the performance of each worker, tracking their productivity.
It can also generate incentive-based reports, motivating employees to meet or exceed their targets. This ensures that the warehouse can handle increased demand without overburdening the workforce.
Processing of Returns
Handling returns is not only complex but also bothersome. However, that can be streamlined with proper Warehouse Management System (WMS).
Consider an online phone accessories retailer that receives a returned pair of earbuds. The WCS automatically assesses the condition of the returned item and decides whether it can be restocked or needs restoration. It then guides workers on the appropriate disposition, ensuring that returned items are efficiently processed and returned to inventory if possible.
Reporting of Analytics
Warehouse Management System (WMS) are great business companions because they are capable of generating very detailed reports and analyses. In addition, they offer insights into current market trends. This information can be used for performance evaluations and also to make data-driven decisions, such as optimising warehouse layouts or expanding storage capacity.
In general, these functions are vital for businesses that rely on efficient warehousing to meet customer demands, reduce operational costs, and stay competitive in today’s fast-paced world of logistics and e-commerce.
Now, it’s time for us to take a quick glance at how efficacious Warehouse Management System (WMS) really are!
How Effective Are Warehouse Management System (WMS)?
You might wonder why looking into the effectiveness of Warehouse Management System (WMS) is deemed essential. This is precisely because it determines their impact on warehouse operations. Here are some general statistics and key performance indicators (KPIs) that highlight the efficacy of WCS.
- A properly implemented system can achieve an order accuracy rate of 99% or higher, eliminating the agitating costs of errors and returns.
- These automated operations are capable of optimising order-picking routes. This results in leading to faster order fulfilment times, with a 30% reduction in order processing times.
- According to Westernacher Consulting, a warehouse that contains at least 100 workers requires approximately $3.5 million per year in terms of labour expenses, excluding compulsory health insurance and overtime expenditures.
Now, if you’re spending a humongous amount as such to maintain your workforce, you do need to get something in return, don’t you? Here’s where Warehouse Management System (WMS) can come into the limelight!
It can improve labour efficiency by optimising task assignments. Some warehouses have reported up to a 25% increase in labour productivity after implementing a WCS.
- Accurate and faster order fulfilment, along with reduced errors, can lead to higher customer satisfaction levels. Who does not fancy receiving their most awaited packages a few days earlier than expected?
On the other hand, satisfied customers are more likely to return for repeat business and spread word of mouth successfully. This is how you catch two birds in one stone!
However, keep in mind that specific benefits and statistics associated with Warehouse Management System (WMS) implementation will depend on the unique characteristics and challenges of each warehouse.
Since we have already dedicated two sections in order to go through the functions of Warehouse Management System (WMS) as well as how effective they are, let’s move to our most awaited topic!
How Does a Warehouse Management System (WMS) Transform Operations?
As the world is nowadays driven by the conqueror named e-commerce, warehouses are demanded to play a vital role in ensuring the seamless flow of goods from manufacturers to consumers. Thus, the steady operation of a warehouse is essential to ensuring all the subsequent activities go smoothly as red velvet while staying ahead of your enemies.
As we have explained so far, one of the key technologies reshaping the warehousing landscape is, indeed, Warehouse Management System (WMS). These systems revolutionise how warehouses operate, and now we’ll delve into six transformative ways WCS is making its mark!
Enriched Merchandise Visibility & Accuracy
This system facilitates an incredible level of visibility. You can track every item in real time, down to the last unit.
In a bustling e-commerce warehouse, where every single human being is busy with their own work, Warehouse Management System (WMS) can lessen the burdens on their crowns by automatically updating inventory levels as items are received, picked, and shipped.
For instance, when a customer places an order for a limited-edition collectable, WCS ensures the system immediately recognises the reduced stock count and updates the product’s availability on the website. This not only prevents overselling but also fosters customer trust.
Simplified Order Fulfilment
Efficient order fulfilment is the oxygen of an e-commerce business. It’s the lifeblood that keeps a warehouse alive, and Warehouse Management System (WMS) can be utilised to optimise this process.
Imagine an online store that experiences a sudden explosion in sales thanks to a new mechanical wireless keyboard model. In this case, the automated control systems direct warehouse workers to retrieve the goods from storage, orchestrate pick-and-pack operations, and guarantee timely delivery to the shipping area.
Gradually, customers receive their orders faster, and the warehouse achieves higher throughput without compromising accuracy.
Dynamic Work Allocation & Routing
Did you know control systems can divide tasks and optimise route calculations on behalf of both human workers as well as robotic systems?
For instance, consider a warehouse that handles a wide variety of goods, starting from delicate glassware to bulky furniture. WCS can intelligently assign tasks, directing workers equipped with smart glasses to fragile items and automated guided vehicles to heavier furniture. This adaptive approach maximises efficiency and minimises the risk of damage.
Monitoring Performance In Real-Time
In the past, when novel innovations or automated processes weren’t dominating the world, warehouse managers had to rely on manual tracking and paper-based reports to measure operational efficiency. However, Warehouse Management System (WMS) turned the tables by offering real-time performance monitoring.
WCS is capable of providing a live dashboard displaying metrics like order pick rates, system downtime, and order backlogs. This visibility empowers administrators to make instant decisions, such as reallocating resources to expedite the most urgent orders and ensure the sale runs effortlessly.
Mitigating Errors & Controlled Quality
Mistakes in order fulfilment can lead to costly returns and customer dissatisfaction. WCS cuts down the probability of error emergence by enforcing strict quality control measures.
Imagine a grocery warehouse with an automated conveyor system handling perishable goods. Control systems incorporate plans to inspect every item, identifying and diverting products with defects before they reach the packing area. This not only saves money but also confirms customers receive only the highest-quality products.
A Small Note Before We Wrap It All Up!
In conclusion, Warehouse Management Systems (WMS) are revolutionising the way warehouses operate, enhancing inventory visibility, streamlining order fulfilment, optimising work allocation, providing real-time performance monitoring, and reducing errors.
This systematic automation is ascertained to be a transformative technology, pushing businesses toward greater lengths and encouraging them to be competitive in the ever-evolving world of e-commerce. Embracing WCS can be fruitful for those looking to thrive in the field of digital commerce.
