A warehouse management system (WMS) optimizes the processes related to a warehouse. If you are an e-commerce company or any other business with inventory, you can benefit from a WMS.
Warehouse management has many dimensions, including product management, customer service, stock updates, and so on. By using a WMS, you can automate most of the tasks, mitigate your risks, and rapidly scale your business.
Key Benefits of a Warehouse Management System
The basic task of a WMS is to keep track of the goods as they arrive at the warehouse and then leave. This allows you to stay updated about the inventory, add new products before the previous stock runs out, and speed up order fulfillment.
A WMS also makes things easier and quicker for the warehouse staff. When implemented correctly, the warehouse management system helps workers pick and pack a target product without wasting any time.
Customer service is also often integrated into a WMS. Conventional warehouse management involves receiving a customer order and then manually checking the stock to see if the ordered merchandise is available. If stock is available, a person gets back to the customer that their order is ready to ship.
In contrast, a WMS performs all these tasks on its own. It can instantly confirm whether or not the ordered product is available. If it is, the WMS updates the customer that their order is available for shipping. This significantly speeds up order processing and fulfillment while also resulting in improved customer satisfaction.
Types of Warehouse Management Systems
You can choose from several types of WMSes depending on your business model and other requirements. WMSes are broadly categorized into four types. Here is a look at these.
Standalone WMS
A standalone WMS deals exclusively with warehouse operations. It is suitable for small and medium businesses (SMBs) since it offers a cost-effective solution. A standalone WMS typically offers support for the following:
- Receiving, picking, and packing
- Barcode scanning
- Slotting
- Cycle Counting
- Expiration date tracking
ERP-Integrated WMS
An integrated WMS is added to an existing Enterprise Resource Planning (ERP) solution that your business is using. This lets your manage multiple aspects of your business in one place. Together, ERP and WMS handle everything from order invoicing to shipping.
Many ERP solutions come with an integrated WMS functionality. However, integrated WMS typically don’t offer many core functions of a dedicated WMS.
WMS as a Supply Chain Module
A business supply chain includes inventory management, fleet management, warehouse management, material sourcing, vendor relationships, and more.
You can choose a warehouse management system that integrates with the supply chain management (SCM) of your business. This helps you streamline the broader supply chain as warehouse management is a part of it.
Cloud-Based WMS
A cloud-based WMS saves you the cost and hassle of installing and maintaining on-site infrastructure for your warehouse management system. You can also scale your WMS processes rapidly with the right provider. The downside to this option is that your data is stored elsewhere and connectivity issues may occasionally create problems.
When choosing the right warehouse management system for your business, it is important to first understand your business needs and requirements. This will help you choose a WMS that offers the best value for your business.
