A warehouse management solution offers visibility into the entire inventory of the business while managing supply chain fulfillment operations from the distribution center to the store shelf. It also enables manufacturing companies to maximize the utilization of labor and space, and equipment investments by optimizing material flows and resource usage.
What are The Key Types of Warehouse Management Systems?
It is important to understand distinct types of the warehouse management system (WMS) to evaluate the best solution for your business based on your needs, IT infrastructure, and budget.
- Standalone – This type of system manages the warehouse but cannot integrate and connect well with existing or future solutions. It is the most basic solution and includes functionalities related to the movement of items in the warehouse.
- Supply chain module – This solution manages varied aspects of the supply chain and helps with business processes, vendor relationships, warehousing, and risk evaluation features.
- On-premise – This system requires internal resources to maintain and support warehouse management. It is installed on the hardware and network of the company and provides greater control.
- Cloud-based – This solution does not require hardware or any server and hardware synchronization. It is a completely web-based solution, quick to implement, simple to upgrade, easy to use, and can scale with your business.
- Integrated with ERP – This approach is the most powerful choice and provides a full-fledged business management solution. It integrates well with customer relationship management, accounting and financials, inventory management, and more. It helps in connecting all facets of business while streamlining end-to-end business processes. Many vendors offer an ERP with a built-in warehouse management solution without needing any add-on solution.
Why Warehouse Management System is Important?
Managing a warehouse is much easier with a WMS solution as it eliminates human errors and a paper-based approach to increase the speed of shipping and delivery, enhance operational efficiency, and improve the quality of customer service. It provides real-time insight into warehouse activities and historical information to understand future demand and trends.
- Inventory accuracy increases by 20% with a WMS system
- System-directed picks and put-away will reduce your forklifts travel time by 50%
- Inventory carrying cost is reduced by 27% in an automated environment
- Reduction in operating costs by 35% with a WMS solution
What are the Benefits of a Warehouse Management System?
Process Automation – Automate business processes like inventory tracking and labeling to create efficient warehouse routes and improve warehouse layout.
Reduce Expenses – Reduce labor costs by reducing floor space and increasing inventory visibility.
Improve Customer Experience – Enhance customer satisfaction with faster delivery times, improved order status, and better vendor relations with quick delivery approvals.
Optimize Supply Chain – Improved warehouse visibility, faster processes, and proper demand planning help in optimizing the supply chain.
Increase Inventory Visibility – Get real-time data and status of inventory through serial numbers, barcoding, and RFID tagging within the warehouse.
Improve Labor Management – Labor forecasting helps in identifying the staff requirement and optimizing the schedule and shifts more efficiently.
How to Choose the Right Warehouse Management System?
In today’s Omni-channel and dynamic environment, connected consumers want to purchase, fulfill, and return from anywhere at any time. To meet this demand, manufacturing companies need the ability to respond quickly and optimize fulfillment capacities with a warehouse management system built-in with an Enterprise Resource Planning (ERP) system. Explore the features and functionalities of a Warehouse Management System here.
