What is a WMS system?
Simply put, a WMS system is software used to manage the movement and storage of goods in a warehouse in real time.
It enables the optimization of processes related to the receipt, storage, picking and shipping of goods.
WMS integrates with other systems, such as ERP, allowing for seamless data exchange and coordination of activities across the enterprise.
Thanks to functionalities such as storage location management, automatic document generation and employee performance monitoring, WMS has a significant impact on operational efficiency and precision of warehouse management.
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What functions does WMS have?
Here are some things WMS systems do really well:
Location of goods in the warehouse and control of warehouse turnover
This function allows the WMS system to “issue orders” to warehouse workers and provide information regarding inventory levels, locations, and batches. The operator can generate appropriate labels and mark product units or packages with them.
This ensures full traceability of the batch. The operator can also load information from a label issued by another entity into the system upon receipt of the goods. These systems have built-in support for the GS1 logistics standard.
Quantitative and qualitative control of goods received into the warehouse to ensure that the delivery complies with the order.
This feature allows for increased warehousing efficiency, as operators work with barcodes and data collectors. Goods are received, released for production, and shipped to the customer simultaneously.
Coordinating the movement of goods requires the automation of operations within the system, with the ability to verify their accuracy at any time. This eliminates the need for tedious counting of batches of goods on warehouse racks.
Receipt and distribution of goods in the WMS system
This feature allows warehouse workers to record the receipt of goods into the warehouse using scanners. Scanner confirmation of receipt minimizes the risk of human error and speeds up the entry of product information into the system. This ensures up-to-date data and enables quick tracking of the goods’ location.Once registered, the WMS analyzes the defined parameters and decides where to place the goods. The WMS plans the product placement in a way that maximizes the use of available warehouse space and facilitates future picking and shipping processes.
WMS algorithms take into account various factors, such as product access frequency, size, weight, and specific storage requirements. This ensures that each item is stored efficiently and safely, significantly improving the speed and efficiency of warehouse operations.
Picking and shipping
The picking function in a WMS is the process of collecting individual products from the warehouse to prepare a complete order. The WMS optimizes employee paths, selecting routes that minimize the time required to collect all order items. This makes the entire process faster and less error-prone. This is especially important in warehouses with high traffic and numerous orders.
Once the order is completed, the shipping stage begins, which is also supported by the WMS system. The system automatically generates the necessary shipping documents, such as packing lists and invoices, and also updates order statuses in the system..
Employees are guided by the system during the packaging, labeling, and preparation of shipments for pickup by courier or transport companies. This integrated approach ensures that each order is properly and efficiently prepared for shipment. As a result, order fulfillment times are significantly reduced and customer satisfaction is increased.
Inventory in the WMS system
The inventory function in a WMS is a process that enables accurate monitoring and verification of inventory levels. In a WMS, inventory can be performed in a variety of ways, depending on the organization’s needs.
Companies most often use cycle counts, where selected product groups or warehouse locations are regularly checked. A full inventory is typically conducted once a year. A WMS provides tools for planning, executing, and monitoring these activities, automating many tasks, such as generating reports and analyses.
Through integration with other system functions, such as goods movement tracking and order management, the inventory process becomes part of a broader warehouse management system. This allows for rapid response to any discrepancies, such as stock shortages or surpluses, and ensures high accuracy of warehouse data. Automating inventory in a WMS significantly contributes to cost optimization and improved efficiency of warehouse operations.
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How does WMS support work management?
The WMS manages warehouse workers’ work by assigning tasks, significantly improving the efficiency and effectiveness of warehouse operations. It allocates tasks based on current needs and operational priorities, such as order urgency or picking route optimization.
Each warehouse worker receives instructions regarding where to pick up or put away goods and the route they should take. These instructions are transmitted via mobile devices, such as portable terminals (data collectors). This allows for ongoing task status updates and rapid response to changes. The warehouse worker confirms completion of each instruction by scanning the barcode of the item and the warehouse location.
The WMS also monitors and analyzes warehouse workers’ performance, using collected data to further improve processes and optimize tasks. This not only allows for faster and more accurate work but also identifies areas requiring additional training or process modifications.
When does a WMS become necessary?
Below, we present a list of specific challenges that indicate the need to implement an advanced WMS. If your company is struggling with these issues, it’s worth considering implementing a solution that will significantly streamline warehouse processes, improve operational efficiency, and provide better control over the flow of goods.
- Large volume of goods and warehouse operations – when a company handles large quantities of products and carries out many receipts and releases every day, an extensive WMS will ensure effective management of goods movement, space optimization and process automation.
- Difficulty finding warehouse space – when employees struggle to quickly locate products, a WMS with dynamic warehouse locations helps optimize warehouse layout and reduces the time required for storing or picking goods. The system automatically assigns the best storage locations, significantly increasing operational efficiency.
- Complex warehouse structure – in the case of warehouses with multiple locations, storage levels and different zones, an advanced WMS will allow for the management of dynamic locations, which improves the efficiency of warehouse operations.
- Complex logistics processes – companies with more complex processes, such as managing serial numbers, batches, expiration dates, or quality control, need advanced WMS features to track and monitor these elements in real time.
- High warehouse employee turnover – In companies with frequent warehouse staff changes, an advanced WMS simplifies new employee training thanks to intuitive interfaces and process automation. The system minimizes the risk of errors, which is crucial when staff turnover is high.
- Integration with automated warehouse systems – if your company uses automated systems such as high-bay racks, picking robots, or conveyors, an advanced WMS will ensure integration with these technologies, which will increase automation and work efficiency.
- Multi-channel distribution – for companies that operate various sales channels (wholesale, retail, e-commerce), WMS facilitates order management and inventory synchronization between these channels, which is crucial for smooth logistics service.
