The role of a warehouse management system in the logistics chain
Table of Contents
Warehouse management system and digitally disruptive platforms are paving their way into most industries and redefining their functional aspects. The transportation and logistics management industry is no exception, as it has witnessed a significant shift in day-to-day operations. One of the key innovations that have transformed the logistics industry is the launch of the WMS software.
Warehouse management system play a crucial strategic role in the supply chain by improving inventory distribution, sorting, and cross-docking procedures that aim to satisfy the market’s rising demand. Below are a few roles of warehousing in supply chain management.
Warehouse Management Processes
Six essential processes are part of warehouse management. Every step must be optimised for the warehouse operation to function as smoothly as possible because each procedure affects the effectiveness of the next:
- Receiving: Check-in and log items. Ensure you are getting the proper quantity, in the right condition, and at the right time.
- Put-away: Place the products that arrived at the receiving dock in the appropriate storage locations.
- Storage: Safely store and organise your inventory to ensure quick and precise selection.
- Picking: Collect the goods required to complete the sales orders.
- Packing: Prepare the selected items for shipping. They must be packed in the appropriate containers with a precise packing slip.
- Shipping: Send out the completed sales orders, ensuring they are on the appropriate vehicle, at the appropriate time, and with the necessary documentation to ensure that consumers receive their orders on time.
The role of WMS in supply chain and logistics management.
Inventory Visibility
You can see the inventory levels in real-time and with accuracy. A WMS can read serial codes from inventory to determine its location, quantity, lot, or batch. This is highly beneficial as it safely predicts supply and avoids backorders. Your company can make informed decisions by using the just-in-time inventory strategy’s business model. Better stock control helps you run your warehouse more efficiently and forecast future needs.
Robust Customer Satisfaction
WMS optimses the process of fulfilling orders, which increases client satisfaction. The software can manage and organise everything from product orders to shipping. The order fulfillment process can be made more efficient by streamlining the procedure, which eliminates errors and enables you to give consumers more precise delivery dates.
Additionally, the clients will receive an undamaged product, which can enhance the customer relationship, reducing fluctuations in supply and demand and order accuracy issues.
Paper-less Inventory Documentation
Gone are the days of inventory documentation that require plenty of paper with the help of a warehouse management system enabled by automated processing. A WMS provides a single window where all inventory procedures can be seen. WMS provides the warehouse staff with the necessary data and information at their fingertips so they carry out their tasks anytime, anywhere.
Accurate Billing Management
Warehouse management systems have third-party or in-built integrated billing management tools to offer this functionality. With this functionality, you can use activity-based billing, which keeps track of all supplier-related activities and calculates the appropriate costs accordingly. In addition, a warehouse management system can connect to major eCommerce platforms and process credit card payments.
Effective utilisation of warehouse space
A warehouse management system not only reduces the need for safety stock but also regularly increases the amount of available warehouse space by strategically placing the goods in respect to receiving, packaging, and shipping locations.
This enhances warehouse efficiency, boosts productivity, and reduces inventory holding costs significantly.
Reporting & Analytics
Data-driven and relevant insight is the foundation of an organisation’s strategic decision-making process. A WMS provides robust, accurate, and actionable information on activities linked to inventory and helps efficiently track inventory input and outflow. The KPIs enable the warehouse management team to effectively plan their future course of action.
Layout Planning
A warehouse needs to keep a well-organised layout design. A logical framework integrated into its system allows efficient inventory placement within the specified warehouse. The factors influencing the construction of this systematic pattern design include accessibility, demand, and weight. A warehouse management system helps you create the ideal layout for your warehouse.
Boost Security
To minimise the chance of errors or thefts, the operations taking place in the warehouse can be tracked and monitored. You can take control of daily operations by implementing a WMS. Thus giving the employees opportunity for mentoring and accountability. Additionally, it maintains detailed inventory records that minimise security problems in the warehouse.
Risk Management
Extensive planning and risk analysis are essential elements of a successful organisational development strategy. Modern WMS allows the creation of projections and analysis of operational data while considering any expected disruptions or threats.
The WMS’s demand planning function prevents stockouts, overstocking, and product waste. High-volume or seasonal products can be tracked and given more priority. Complete data visibility and structure allow for a deeper understanding and forecast of customer behaviour and demand.
Choosing Your Warehouse Management System
For small and medium-sized eCommerce enterprises who need to keep a close eye on their spending, it’s crucial to think about the expenditures you might need to have when implementing a WMS. The cost of these expenses consists of the following:
- Licensing fees
- Implementation
- Maintenance
- IT labour
- Software
- Infrastructure
- Hardware
Of course, it’s also crucial to remember that although a WMS may initially cost more, it will eventually pay for itself. Additionally, many vendors that sell cloud-based, Software-as-a-Service (SaaS), and integrable WMS systems will frequently pay for many of these expenses on their own, leaving you just responsible for the price of the software, licensing, and initial implementation.
Final thoughts
Integrating an efficient logistics management system is extremely beneficial for the success of your business. It enables you to optimise your supply chain by providing more control over logistic operations, which can play a crucial role for your organisation to stay ahead of the competition. To sum up, you should choose adaptable WMS software with maximum flexibility for a constantly changing business environment.
