SO, WHAT IS A WAREHOUSE MANAGEMENT SYSTEM?
A WMS is an instrumental part of the supply chain. The supply chain’s primary goal is to track and control products. Such as, tracking movement of products, and controlling inventory actions. Including, receiving, adding, picking, quality control, shipping, reporting, and forecasting.
A warehouse management system streamlines and facilitates processes and a product’s journey throughout the warehouse; for example, such systems will direct and optimize picking by utilizing real-time inventory data to determine the proper warehouse location to retrieve the product from.
More precisely, warehouse management involves the receipt, storage,and movement of goods. Normally, finished goods are accounted for, but kits may also be managed by a sophisticated WMS.
Note that a warehouse management system can manage multiple warehouses simultaneously; an example of such an arrangement might be a central warehouse, a regional warehouse (serviced by the central warehouse) and retail warehouses (serviced by the regional warehouses).
Why A Warehouse Management System?
The objective of a warehouse management system is to provide a set of computer automated procedures. Such
Features of a WMS:
- Receiving and Returns: The receipt of stock and returns into a warehouse facility. An efficient WMS helps companies cut expenses by minimizing the
amountof unnecessary products in storage. Similarly, a WMS assists in preventing out of stocks (aka OOS, stockouts, oversells, etc.) by maintaining accurate real-time quantities. A warehouse management system’s primary purpose is to maintain the proper balance of inventory.
- Warehouse Logistics: Modeling and managing the logical representation of the physical storage facilities (e.g. racking, etc.). You should group products that sell together physically close to each other. Or, you could place them near the delivery area to speed up the process of picking, packing
andshipping to customers.
- Integrations: Enabling a seamless link to order processing and logistics management in order to pick, pack, and ship product out of the facility. Why is this important? If the system is managing an eCommerce company’s inventory, integration with a channel management software might be necessary. It is important to track sales from the seller’s various online marketplaces.
- Reporting & Forecasting: Tracking product locations, suppliers, and storage duration
allowscompanies to control inventory levels, and maximize the use of warehouse space. This practice of analysis better prepares businesses for the demands of the market. Especially during unique circumstances, such as a peak season, holidays, or during daily deals. The reports generated by the inventory management system shows best-selling SKUs, target price range, fastest moving SKUs, SKU history, etc.