Good warehouse management, whether you run a logistics warehouse or a simple storage unit, is essential. The results show up directly: goods delivered to customers in good condition, within the agreed timeframe. To optimise your logistics flow, you need to think about automating the tasks that eat time. WMS software has proved a valuable help there. How does it work? What does it bring? This article looks at the tools that optimise your warehouses.
Definition: what is a WMS?
A WMS, or Warehouse Management System, is software for managing the stock held in a warehouse. Packed with features, it makes controlling and tracking stock easier through dashboards that give a real-time overview. WMS warehouse management software is now the norm for businesses.These tools help run operations. From goods-in to dispatch, taking in storage, organisation, control, replenishment, picking, order preparation and packing.
Why adopt WMS software?
Large retail and e-commerce were the first sectors to see the advantages of WMS software. Now more and more businesses in every sector adopt it to run their supply chain efficiently.
Deliver high accuracy
Built on advanced technology, WMS software automates data capture with 99% accuracy. The risk of picking errors, for example, drops sharply or disappears altogether. That lets you give your customers a quality service and keep them.
Free up your team’s time
Automating the supply chain frees your team from some time-consuming work. Producing dispatch notes, consignment notes and labels listing the contents of boxes before they are packed, for example. The team can then turn to work with more value in it.
Increase productivity
Using logistics WMS software raises the warehouse’s overall productivity. It maximises inventory efficiency by cutting stock levels and avoiding stockouts.
Cut costs
Did you know that stock management costs account for roughly 15 to 35% of your spending? With WMS software, you optimise all of your logistics flows, processes and operations (optimised stock, streamlined resources and better order processing). That cuts your costs and improves your productivity.
How does WMS software work?
The software uses specific technologies and features to automate the supply chain. From barcoding to radio-frequency identification (RFID), the whole process is automated.
Warehouse management
This WMS feature lets you run every activity that takes place in the warehouse efficiently. That means storage, goods in and out, picking and dispatch.The warehouse has to be organised so that parcels and pallets can be received and stored in good conditions. And so that orders can be picked. To that end, WMS software lets you define:
- The different locations
- The size of each location
- The product classes allowed (ABC classes)
- The maximum permissible weight
- The types of logistics unit allowed (packaging types: box, tote, pallet, and so on)
- The maximum load the warehouse can take
- The logistics families accepted
- The replenishment thresholds
A barcode records the specifics of each location, which can be fixed or floating. In short, warehouse management organises the space as well as possible around the stock and the growing flow of goods.
Item information
This feature records every piece of data about an item:
- Reference and description
- ABC rotation class
- Type of logistics unit
- Picking statistics for each ABC class
- Stock quantities (in progress, quarantined, total)
- Dates of the last goods-in and the last picks
Goods-in management
The goods-in feature lets you plan and manage inbound flows (goods received, back orders, and so on). It also records the characteristics of the goods received (purchase order number, line number, references, quantities, batches, and so on) along with the matching purchase orders. That information lets the purchasing department or the production planning system update the quantities available in the warehouse in real time. The best packages include modules for expected and unexpected receipts, customer returns and back orders.
Storage management
It covers several functions:
- Goods entered into stock automatically when they are received
- Definition of the storage mode: dynamic, bulk or racking. Dynamic mode reduces stock volume without putting availability at risk. It also shortens the team’s route when handling goods
- Definition of the dependent logistics functions: location management, storage by family, stock optimisation, and so on
The storage management feature also determines:
- The goods or products in stock
- The stock quantity
- The replenishment methods and dates
- When orders are placed
Finally, storage management covers the storage space itself, meaning the locations, so that movements can be optimised. Each pallet can be given a start and end address, taking into account:
- Whether the location is available
- The size and the weight of both the location and the pallet
- The logistics units and logistics families the location accepts
Order picking
This feature manages, among other things, every operation needed before goods are dispatched. That means:
- Entering or importing the orders
- Packing, which determines the type, size and contents of the parcels for each order
- Parcel tracking
It also lets you choose the best picking method. To do that it works from the customer type, the weight and size of the order, the volume, the carrier, the dispatch zone, the lead time and the time of day. Depending on those criteria, it might be order-by-order picking, grouping, wave picking, batch picking, and so on.
Dispatch
The dispatch feature of WMS software lets you check goods before they are dispatched and transported. Warehouse staff can scan the barcode on each parcel or use the order data:
- Dispatch identifier
- Carrier and lorry identifier
- List of orders and parcels
Once the order is confirmed, the software automatically runs the following:
- Archive the order information
- Produce a dispatch and transport note
- Send the order list for invoicing
Reporting and control
This last feature of logistics WMS software lets you define and track the warehouse’s operating indicators. The point is to have statistics on how the warehouse runs and on inventory: the number of items and lines, the weight and the volume for goods in, goods out and storage.
How do you compare the WMS packages on the market? How do you choose?
Choosing your WMS software can be an obstacle course. And no wonder: there are dozens of solutions on the market, around fifty. These tools also come in two versions: licence and ASP (Application Service Provider). The latter is turning into “SaaS” (Software as a Service). In other words, you do not need to install the software on your machine. To use it, you simply connect to the internet. So which WMS should you choose? Before you decide, weigh up the following criteria:
- The size of your warehouse
- The types of WMS most commonly used in your sector
- How it integrates with your ERP, TMS and YMS systems
- How the solution evolves and how it is maintained
- How usable and flexible the tool is
- The cost of the WMS software. Note that it can be free or paid for
What are the best free WMS packages?
Some vendors offer free WMS software. Certain features are disabled to push you towards buying the full solution. Others offer free trials, with every feature enabled but limited in time. A free trial lasts 15 to 30 days on average. After that, vendors offer several plans: standard, premium, and so on. Among the best packages with a free trial, we can name WMS Manhattan software. It is aimed at every kind of business, from small firms to mid-caps and large groups. Reflex WMS software is also one of the best solutions with a free trial. On the market for more than 20 years, it is used by more than 300 companies.Only a few years ago, WMS software was used by large companies alone because it cost so much. Today smaller firms have followed. Thanks to advances in technology and to competition, prices have fallen considerably. WMS software is now within reach of every business and every budget.WMS software has established itself through considerable strengths: better supply chain visibility, higher productivity and fewer errors, not to mention better customer service.
