Warehouse Management System

A warehouse management system (WMS) is a software application that helps control and
manage the day-to-day operations in a warehouse. WMS software guides inventory
receiving and put-away, optimizes picking and shipping of orders and advises on inventory
replenishment.

The benefits of a comprehensive warehouse management system include:

▪ Reduced fulfillment time
▪ Increased inventory accuracy
▪ Improved customer service
▪ Greater space utilization
▪ Increased warehouse productivity
▪ Reduced labor cost

There are several types of Warehouse Management Systems, each with it’s own pros and
cons. Here are the most popular types:

▪ Standalone System
▪ ERP Modules
▪ Cloud Based

A standalone warehouse management system is your typical on premises type system which
is deployed on the native hardware and network of the business. These systems are often the
lowest long term cost option, but lack the benefits of a more integrated WMS option.

A cloud warehouse management system is a web-based software as a service (SaaS) model

utilizing enterprise cloud technology.
The benefits of cloud based WMS software include better flexibility, disaster recovery,
scalability, and security.

Example: Amazon (https://www.youtube.com/watch?time_continue=2&v=5TL80_8ACPc)

 Maritime Logistics:
The global shipping industry is the backbone of both modern culture and economy. Without the
rapid exchange of goods and ideas afforded by speedy and reliable shipping services, many now-
ubiquitous products would have simply not been possible.
Maritime transport logistics allows businesses to keep their goods moving across nations and
borders smoothly and without delay.

Traditionally defined as the means of transporting components as well as finished goods on a global
scale. More broadly speaking, maritime transport logistics can be defined as anything that
encompasses the processes of moving goods from one place to another utilizing cargo ships.

Steps: (For a shoe order)

At the heart of any maritime transportation strategy is the cargo ship. These versatile tools have
been shaping the world’s economies for millennia, and will continue to do just that for the
foreseeable future.

▪ Placing an order: The shoe store will place an order with its distributor or corporate body
for 1,000 new pairs of shoes. The distributor will work with the manufacturing facility,
which is located in Vietnam, to arrange for the order’s transportation by a freight forwarder.

▪ Picking up the goods: After the order has been placed with the distributor, the freight
forwarder will arrange for a 40-foot container to arrive at the factory and pick up the orders
of several different shoe stores. The container will be sealed until it arrives at its final
destination, unless it is inspected by a customs officer.
▪ Getting to the port: The container will most likely be trucked to the nearest shipping port.
Prior to loading the container onto a ship, the freight forwarder must file documents and a
ship’s manifest with officials in both the country of origin and the final destination.

▪ Docking: The ship carrying the container must request permission from the destination
country prior to docking. Once it is docked, the ship will be unloaded, and the goods will go
through customs, and may be inspected.

▪ Back on the truck: After clearing customs at the port, the distributor will pick up the
container and load it again onto a truck. The truck will carry the container to the distribution
center, where it will be unsealed and unloaded.

▪ Final delivery: After the container is unloaded, each order must be sorted and then sent out
to the store that placed the original order. A small, localized delivery truck will most likely
carry the order to the store.
 SCM Summit 2019
An initiative from the Economic Time’s with the Title Sponsor being DHL, the summit aims
at providing the current generation of top executives with an overall understanding of how
Supply Chain 4.0 (machine learning, Artificial Intelligence etc) would help their
organisations grow and how the supply chain network could be greatly imrpoved upon.

It has been Economic Time’s constant endeavour to highlight, acknowledge and amplify the
voice of the industry through our publications, news coverage and industry led networking
platforms and summits. The idea behind the ET Supply Chain & Logistics Summit 2019 is
to discover a world of innovation that will transform the supply chain domain and design a
highly engaging and educative networking platform that encourages the stakeholders to
collaborate and innovate.

The event took place on the 26th June, New Delhi at the Hyatt Regency Hotel.

Why the Summit?

• Thought provoking leaders from the domain under one roof

• Inclusive session that will enable and engage the audience through an interesting and
thought provoking group discussion to discuss the key issues in the industry and
bring out their relevant solutions
• Case studies to understand business models that’s transforming businesses
• Live Survey during the summit that will provide immediate feedback from the
attending audience on varied issues
• Real world industry case studies covering FMCG, Retail, Transport, Manufacturing,
Government, Healthcare and more
• A community of CxOs, supply chain and data leaders and innovators at the forefront
of the digital supply chain
• We will also explore an opportunity with “Student Chair” & “Open Chair Forum”
wherein a selected/nominated student and/or an attendee will get an opportunity to
share the platform with visionaries and share their thoughts with the forum.
 WMS Benefits

Increased inventory accuracy

One of the most important functions and benefits of a Warehouse Management System is to
improve stock control and inventory tracking. You'll be able to provide your clients with the goods
they want when they want them or at least keep them up-to-date with accurate stock information.
In turn, it will help improve customer satisfaction levels but also remove the potential operating
costs incurred due to errors - creating greater overall efficiency, cost reductions and improved
profits.  

Effective management control

We must not overlook the improvement in management control that often accompanies the
installation of a WMS. Offering advance warnings of stock control issues and process events can be
created to generate purchase orders once inventory hits a specified level - such technology can
reduce the likelihood of costly mistakes, having excessive stock or not enough stock, help to
improve profitability and make your entire enterprise more efficient and productive. But most
importantly, it allows buyers or senior managers to make informed decisions based on the
accurate data generated.

Reduced staffing levels

The more members of your team that you have on the job, the higher your overheads will inevitably
be, so efficiency in this area is essential to increasing productivity. With an effective WMS system
this is easily achievable it can either help you optimise processes so there is no need for additional
staff, allow you to reduce staff levels during normal operational conditions or it can make the need
to hire temporary staff during in-demand seasonal peaks redundant by improving your
organisational abilities and how you manage resources.

Reduced equipment usage and related overheads

The ability to reduce your workforce will typically enable you to use less equipment in the running
of your warehouse. You’ll need less of everything, for fewer people will be present to use your
machinery and technology. This can amount to some significant savings, not just in the sense of
reducing the need for replacement equipment in the future, but also in helping to minimise annual
maintenance budgets as a result of less wear and tear on your equipment.
If you’re interested in learning more about how a Warehouse Management System could benefit
your business, why not contact WinMan today? Offering an integrated ERP solution that can help
you link your stock management activities with the rest of your business.

Faster Inventory Turnover

 
The first step in improving the running of your warehouse and thus your business is to improve your
inventory management. By inventory management, we mean total control of your inventory, from
receiving to shipping.
Without a fundamental understanding and full visibility of your inventory, you face the problem of
either carrying too much stock leading to a decreased cash flow or worse, running out of stock
resulting in backorders that will most likely make your customers unhappy.
 
Enhanced Customer Service
 
A WMS enables inventory paperwork to be reduced which means reports, pick tickets, move tickets
and packing lists can all be maintained electronically. By streamlining processes from order to
delivery, product availability can be more accurately determined giving more realistic delivery dates
to customer, reducing the level of customer complaints and enhancing your overall customer
service.
 
Warehouse Personnel Reduced
 
A WMS system can mean benefiting from an increased efficiency within your warehouse by
standardising inventory movements, picking methods and inventory locations, whilst lowering error
rates and reducing training costs. It can also help to optimise stock flow via an automated
replenishment system.
 
Better Stock Control
 
The nature of warehouses means that stock is constantly on the move. Whether it is coming in,
being stored or going out, there are goods travelling in multiple directions, which can make the
process confusing. We recommend that you track which items of stock have the quickest turnover
so that you can store them more efficiently and keep downtime to a minimum.
Tracking each of your product’s whereabouts in your warehouse is a mammoth task and losing track
can have costly consequences for your business. A warehouse management system allows you to
locate and retrieve goods in an instant. Better still, using a portal allows you to view this
information too, so you never lose track of how much stock you have, and you know exactly where
it is in your warehouse.
 
Optimised Warehouse Space
 
Having enough storage space is vital to an effective warehousing operation. Correctly organising
your warehouse can maximise the amount of goods that can be stored, for example, using narrow-
isle equipment will allow you to place racking closer together.
A warehouse management system is designed to locate items in relation to sell-by date, receiving
assembly, packing and shipping points, meaning your inventory holding costs can be lowered.
 
Improved Labour Productivity
 
A slow, inefficient and unproductive warehousing operation is likely to be caused by a number of
smaller issues such as outdated processes and lack of staff motivation. To help increase efficiency,
it’s important to develop modern systems and techniques, and a warehouse management system can
help with that.
A WMS can help to optimise stock flow by utilising an automated replenishment system to top up
pick face stock. Scanned picks provide a seamless link back onto the software and then onto the
invoice or transfer note.
 Traditional Inventory Management
Under traditional management, It used to be physical counting, manual forecasting, too much
dependence on labours, lack of communication which results in poor decision making. Though it
was cost efficient but not effective.

Using traditional methods order placement is done using manual operations like call, mail, fax,etc .
This requires employees to manage this activity. The probability of placing a wrong order, improper
scheduling, not remembering to place the order, etc is really high because of human involvement in
the process.

In traditional methods, managing storage of inventories is done manually by maintaining records on

paper, excel sheets or accounting software. It was difficult to track the changes in stock, expiry of
perishable goods, excess of stock, etc. Improper warehouse management led to wastage of
inventories, higher handling cost, customer dissatisfaction.

Transparent reports on a daily basis using a traditional method of inventory management is difficult.
Stock in manufacturing industries tend to change frequently so it is not easy to generate reports on a
daily basis. Improper reporting of inventories leads to poor forecasting and decision.

With the leading modernization & fierce competitive environment, a manufacturing company need
to provide lots of variations in product for the survival. Its really difficult to keep a track of a huge
number of products & raw materials manually. It definitely affects your counting procedure along
with poor production procurement.

Modern Inventory Management

With perfect combination of technology and other resources, modern inventory management system
delivers new insights and improve steady flow of materials while also minimising the carrying
costs.

Modern inventory management help companies to make use of time efficiently. It saves time,
reduces employment cost which ultimately leads to higher profits. Order placement is done
automatically without any employee input. Also, it is pre-scheduled, thus human error reduces.

Modern inventory management is taken over completely by technology. Today we have barcode
scanning technology which makes warehouse management easier for manufacturing companies.
Managers can keep live track of inflow & outflow of the stock & ensure stock of required material
only. Also, companies can track the location of stock, availability of stock, shelf life of perishable
goods, etc at just one click.

Modern inventory management gives access to live reporting of all the metrics related to
inventories. It notifies the user regarding any inventory which is running low on stock to fulfill the
upcoming orders. Such kind of features help companies to meet customer expectations inspite of
dynamic trends emerging everyday.

By adapting a manufacturing ERP software, one can optimize the time & improve the efficiency of
the business. Inventory tracking monitors where a company’s inventory resides in the supply chain.
A clear visibility of the overall business helps to streamline the business process & yield higher
profits as well as growth.
 Inventory Management

Inventory management is the supervision of non-capitalized assets (inventory) and stock items. A
key function of inventory management is to keep a detailed record of each new or returned product
as it enters or leaves a warehouse or point of sale. 

Inventory management is a complex process, particularly for larger organizations, but the basics are
essentially the same regardless of the organization's size or type. In inventory management, goods
are delivered into the receiving area of a warehouse in the form of raw materials or components and
are put into stock areas or shelves.

Inventory management uses a variety of data to keep track of the goods as they move through the
process, including lot numbers, serial numbers, cost of goods, quantity of goods and the dates when
they move through the process.

Inventory management software systems generally began as simple spreadsheets that tracked the
quantities of goods in a warehouse, but have become more complex. Inventory management
software can now go several layers deep and integrate with accounting and ERP systems. The
systems keep track of goods in inventory, sometimes across several warehouse locations. The
software also calculates the costs -- often in multiple currencies -- so that accounting systems
always have an accurate assessment of the value of the goods.
Some Inventory Management Techniques:

• Stock review, which is the simplest inventory management methodology and is generally
more appealing to smaller businesses. Stock review involves a regular analysis of stock on
hand versus projected future needs. It primarily uses manual effort, although there can be
automated stock review to define a minimum stock level that then enables regular inventory
inspections and reordering of supplies to meet the minimum levels. Stock review can
provide a measure of control over the inventory management process, but it can be labor-
intensive and prone to errors.

• Just-in-time (JIT) methodology, in which products arrive as they are ordered by

customers, and which is based on analyzing customer behavior. This approach involves
researching buying patterns, seasonal demand and location-based factors that present an
accurate picture of what goods are needed at certain times and places. The advantage of JIT
is that customer demand can be met without needing to keep quantities of products on hand,
but the risks include misreading the market demand or having distribution problems with
suppliers, which can lead to out-of-stock issues.

• ABC analysis methodology, which classifies inventory into three categories that represent
the inventory values and cost significance of the goods. Category A represents high-value
and low-quantity goods, category B represents moderate-value and moderate-quantity
goods, and category C represents low-value and high-quantity goods. Each category can be
managed separately by an inventory management system, and it's important to know which
items are the best sellers in order to keep quantities of buffer stock on hand.