The disruption in the supply chain due to the Covid-19 pandemic and geo-political factors, such as Russia-Ukraine war in the last couple of years, has been a major issue for businesses globally. It has been one of the primary reasons behind rising business costs, which is fueling global inflation as well. In the wake of these issues, it becomes more than necessary to focus on supply chain management.
That is where a Warehouse Management System (WMS) in a supply chain can help you out. It provides you with all the relevant data and lets you set KPIs (Key Performance Indicators) for managing inventory. As a result, you can meet customer demands regarding delivery, quality, and consistency.
So, what is WMS in supply chain management? How can AI in warehouse automation help you optimize your business processes? And where can you find the best cloud-based inventory management system for your business needs? These are some questions that you’ll find answers to in this article.
What is WMS in Supply Chain?
A Warehouse Management System (WMS) is the digital backbone of modern warehousing. It is software that optimizes every warehouse process step, from incoming stock to outgoing shipments. By providing real-time visibility into inventory levels, locations, and movements, a WMS empowers businesses to make data-driven decisions and streamline operations.
Beyond inventory management, it handles tasks like order picking, packing, and resource allocation, ultimately enhancing efficiency and accuracy. As a result, it becomes simple for supply chain managers to make relevant decisions. They can focus on inventory management, resource allocation, and labor movement in a much better way.
Key Warehouse Management System Features to Look For
Types of Warehouse Management Systems When it comes to choosing a WMS, you don’t just go with the first option you see. In fact, there are certain warehouse management system features that you need to look at. This way, you can ensure that you have the right WMS by your side. Here is what you need to consider when choosing a WMS:
- Warehouse Location Management
- Goods In Processes
- Shipping Management
- Order Picking, Packing, and Overall Management
- Returns Management
- Reporting and Analytics
- Real-time Inventory Tracking and Control
- Labor Management and Resource Allocation
Impact of WMS: How Can It Help In Supply Chain Management
Incorporating WMS in your business process means less stress for inventory and warehousing management. With the right WMS system, you can avail of the following benefits.
Optimize Warehouse Layout
The WMS can also play a major role in optimizing the processes by examining your warehouse layout and ensuring everything is easily accessible. As a result, it can give smoother picking processes for your employees. They won’t have to spend a lot of time finding different items and can easily find the right one.
Streamlined Business Operations
WMS streamlines warehouse operations by providing real-time visibility into inventory levels and locations. This enables swift order fulfillment. By anticipating potential delays in the supply chain, warehouse managers can proactively manage customer expectations. Ultimately, a well-implemented WMS boosts productivity and optimizes warehouse utilization.
Better Customer Experience
The best way to improve customer experience is by sending them the right products on time. That is what a smart WMS will do as it can bring down the lead times while enhancing order accuracy. Furthermore, WMS in the supply chain can also integrate with customer-facing applications. It will provide them with all the relevant information they need regarding their favorite items.
Labor Management and Resource Allocation
A smart WMS will not only help with inventory management but also help in optimizing labor management and resource allocation. Supply chain managers can get a better idea about the labor requirements and availability. They can then allocate resources accordingly, meeting all the KPIs.
Greater Warehouse Safety and Security
WMS helps you maintain accurate inventory stocks. As a result, you can have a better idea about the items in stock and their inventory levels. So, if anything goes missing, you can quickly get an idea of it. Keeping inventory records manually means a greater chance of theft. Nevertheless, the right WMS can help you maintain greater warehouse safety and security.
4 Types of Warehouse Management Systems
Different enterprises in various industries would have varying requirements. Therefore, there is no one-size-fits-all WMS that suits all of them. Rather, there are four types of warehouse management systems that organizations can choose from according to their needs.
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Standalone WMS
The first type of WMS on the list is a standalone WMS, which manages the inventory management for a company only mainly with the organization’s owned on-premise hardware. This type of WMS is suitable for SMEs because of its costs. It can be customized and integrated into other systems for the business, such as:
- Purchase ordering software
- Order management
- Inventory control
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Supply Chain Module WMS
Many warehouse management systems that you find are subdivisions of supply chain management (SCM). The difference is that SCM focuses on various aspects, such as product sourcing automation, inventory management, etc. Ideally, you should get a supply chain module that offers easy integration with other software of the business.
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WSM Integrated with ERP
WSM Integrated with ERP is a robust solution that can help with overall business management. It is an optimal solution for businesses with large-scale operations, such as manufacturers, eCommerce retailers, etc. You can streamline end-to-end processes and get a centralized system. However, not all ERP platforms offer WMS integration. Therefore, you should use the ERP solution if it has WSM integration before choosing it.
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Cloud-Based WMS
Last but not least, the cloud-based WMS is a Software-as-a-Service (SaaS). It stores all information regarding your inventory and warehouse in the cloud. The best thing about it is that it doesn’t need physical server hardware. Plus, this type of WMS is easily deployable and offers greater scalability. With flexibility and easy scalability, it’s an ideal option for businesses with multi-location requirements.
What is the Difference between SCM and WMS?
Many people believe that Supply Chain Management (SCM) and WMS are the same, but that’s not the case. To put it simply, SCM comprises all of the software solutions to manage the overall supply chain operations, such as WMS, ERP, etc. SCM also has a broad scope where it connects with suppliers and managers.
Using a WMS will allow you to manage a critical aspect of the supply chain operations, which is warehousing and inventory. On the other hand, SCM offers a holistic management of a business’s overall supply chain.
Final Words: The Lasting Impact of WMS on Supply Chain
A Warehouse Management System (WMS) plays a vital role in modern supply chain management, optimizing everything from inventory control to customer satisfaction. By incorporating AI warehouse automation and real-time analytics, you can further refine operational efficiency. Investing in the right WMS, such as WizeFulfill, is essential for businesses looking to thrive in an increasingly complex and competitive marketplace.