Back in the day, when production and provision were crowned priorities, oppositions were low, and the emphasis on consumer needs was twelve feet deep; individuals who were employed in supply chain sectors weren’t required to desperately work themselves into the ground.
However, now that our society has become a united global village, wholesalers, providers, and delivery associates are all on pins and needles.
Now you may wonder how in the heavens, modernisation of our contemporary society can pose an underlying threat towards the supply chain industry. Well, it’s very simple.
Due to the advancement in technology and the gigantic surge in diversified businesses, the sales industry has achieved a new peak. For instance, statistical data conveys that in the year 2019 alone, online retail sales were calculated as $343.15 billion. Additionally, they’re suggested to reach approximately $476.5 billion by the year 2024.
We could witness how online sales and customer expectations are growing as a result of this evolution. On the contrary, no matter what your company is attempting to sell, the rising competition from your rivals will be menacing.
This pressure gradually falls not only upon managers but also on the shoulders of warehousers, shippers and providers. Thus, a heartfelt desire to pull their rivals down from the place of pride and attain the said position will inevitably be their earnest expectation. Moreover, the need to simplify the awfully complicated supply chain procedures climbs up the urgency list.
The aforementioned external forces and intrinsic motivational cues create the wish for a faster and more effective Warehouse Management System.
What Is a Warehouse Management System?
- What Is a Warehouse?
Although a majority of us are already aware, in order to lessen any soaring confusion, let’s briefly recap what a warehouse actually is.
So, a warehouse is a type of commercial building that is considered a vital component of the supply chain. According to the materials they look after or specific requirements they cater to, warehouses are often categorised into different classifications.
These are extensively utilised by manufacturing and distribution sectors to safely store both finished inventories as well as raw materials inside these spaces. Certain warehouses are temperature-regulated, while some incorporate cross-dock methods.
Security-controlled access and departures, collecting and dispatching ports, massive storage facilities and damaged inventory accumulating locations are significant parts of a warehouse.
In the absence of a proper management system, these essential segments will come crashing down right in plain sight.
However, in the presence of a decent warehouse management system, it’s possible to banish these eye-watering, agitating adverse concerns.
Typically, a warehouse management system, such as Simplr WMS, is a software solution designed to manage all activities within a warehouse. Specifically, a WMS is meticulously engineered to enhance various aspects of an organization’s warehouse operations, thereby improving overall efficiency.
Based on Grand View research analyses, the worldwide warehouse management system market is anticipated to increase from $2.8 billion to $6.1 billion by the year 20216 at a compound yearly growth rate exceeding 16.7%. This best indicates the value of the warehouse management system in the current community.
Why Is a Proper Warehouse Management System Important To a Business?
Just as most living organisms seek shelter to ensure their security and survival, your company’s inventory deserves a roof over their heads to sidestep hazards.
Starting from stockpiling to delivering items to your consumer’s doorstep, an adequate warehouse management system can support in terms of streamlining every element of warehousing.
Activities such as replenishment, packaging, inventory tracking and detecting defects would be like a cakewalk since a warehouse management system allows you to organise each task through a single interface.
Contrastingly, we humans are error-prone. Mere earthlings like us are absentminded, unlike ethereal extraterrestrial dwellers. Even though you’re a legendary manager, perfectionist or god-level businessman, the probability of you making a mistake isn’t technically zero if the warehousing process you handle is completely paper-based.
These unintentional human blunders may appear only mildly troublesome, however, can lead to a greater calamity. Nevertheless, these slip-ups, which are commonly inherent in old-school systems, can be reduced through an automated warehouse management system. Thereby, it’s feasible to simultaneously improve inventory accuracy to 99.52%
These software platforms are pleasantly sociable. Therefore, a warehouse management system would gladly get along with instruments, including basic forms of barcode scanning, radio frequency identification labelling, as well as other crucial approaches such as logistic programs.
In 2009 an in-depth study was conducted by Au Yung to investigate the effects of an accurate warehouse management system on business performance improvement.
Results depicted that WMS not only positively impacts an organisation’s performance but also it aids in gaining a competitive advantage through strengthening internal and external relationships related to the business.
6 Top Features of a Warehouse Management System
Most WHM technologies enthusiastically cater to your daily business needs. Hence, they are naturally prepared to overflow with helpful features.
1: Receiving and Putaway
A warehouse management system support businesses to smoothly handle every process that occurs between receiving products from vendors to allocating them to their respective locations. According to the warehouse flow and business rules, the most efficacious manner to put away items will be calculated.
Despite us living in a technology-driven century, in a 2018 survey conducted by Peerless Research, it was astonishingly revealed that 87% of the respondents controlled materials manually while receiving stock, and the usage of physical receipts was habitual.
However, a warehouse management system, if integrated together with radio frequency identification tools, billing and other software, products can be automatically collected, validated and tallied alongside digital barcode scanning for storage and retrieval ease.
2: Predictions and Analysis
The best available warehouse management system offers predictive analytical instruments on a silver plate. These analysis algorithms include a wide range of smart elements such as data mining, statistics and modelling that allow you to convert the quantity of information into quality and feast on it. As analyses yield resourceful insights, your decision-making procedure gradually improves.
3: Inventory Tracking and Managing
A warehouse management system paves the way for you to automate the majority of inventory management processes. You can bid farewell to out-of-stock or excessive stock-related issues and put a stop to running around and panicking during such scenarios.
Because through WHM, you get accurate data predictions about your warehouse business and can foresee when and which products you should order and what items should be restocked.
Another sub-feature of the warehouse management system is it provides real-time access and visibility to your inventory across any location, whether they are in stores or in transit.
With this tracking information and automated recognition, you can simply keep a close watch on inventory levels and ensure there’s a sufficient amount of stock to please your consumer demand.
4: Ultra-Modern Picking and Shipping
As stated by the Logistic Magazine survey, a warehouse is the most mentioned site for packaging and fulfilment obligations.
Picking, packaging, restocking as well as shipping these items in mass quantities are some of the fundamental yet daunting responsibilities for a business as it expands. At times, it can pressurise a person until they reach their boiling point.
But! There won’t be any reason to drown in stress because, in a situation like this, a warehouse management system will be your silver lining, the blessing in disguise descended from the promised land to cleanse away your sorrows.
This feature offers the following benefits as solutions to simplify tasks.
- An elevated order accuracy percentage
- Improvement in efficiency
- Streamlined and sustainable distribution system
- Budget-friendly shipping
- Lowered likelihood of errors
An article published on Research Gate appraises order picking expenses account for 55% of the entire cost of storage. Luckily, a warehouse management system can assist in reducing these expenditures by retrieving and packing merchandise in an economical manner.
- Order Fulfilment
Order fulfilment is a tedious task which gobbles up a considerable portion of your staff’s valuable time. However, this process can be optimised if you use a warehouse management system with automatic fulfilment features. It completely automates and digitises each phase, from collecting to exporting the finished goods.
- Manage Labour
In order to enhance a business’s response speed, a WMS may offer instantaneous insight into warehouse personnel, labour costs, reaction times, productivity discrepancies, trends to prepare for, and more. Earning knowledge about labour-related expenses and productivity supports make warehouse operations leaner and more powerful.
Deriving computations using parameters like urgency or proximity, the warehouse management system also strives to diminish travel duration by eliminating the time spent on deadheading.
What Are The 4 Types of Warehouse Management Systems?
Now, if you are intrigued and contemplating how to incorporate the perfect warehouse management system into your business, it will be advantageous to first acknowledge that there are four different types. Let’s take a fleeting glimpse at them, shall we?
1: Standalone System
This is a form of software which usually gets installed straightly onto the local hardware of your company. The standalone system includes essential features mandatory for the seamless execution of regular operations, and it streamlines a bunch of existing management duties. In a responsible manner, it revolves the primary focus on preceding duties such as tracking, picking, delivery and handling returns.
2: Cloud-Based System
Half a dozen warehouse management systems originated as on-premise approaches, perhaps like CDs or even disks. Currently, however, cloud-based methods are gaining immense popularity due to their swift implementation, broadened protection, higher scalability and versatile characteristics.
This solution is a web-based technology maintained on outside or external servers while employing an exterior technical staff for support. This could be an ideal choice for firms because it doesn’t necessitate on-site installation.
Furthermore, since it operates independently, cumbersome integration with all of the other pre-existing administration software isn’t required.
However, if you prefer to govern your data solely by yourself, this system might not be your cup of tea. Why? Because third parties are entangled, you will not be able to take full control of the database.
3: Supply Chain Modules
Besides determining the basics warehousing tasks, just like the aforementioned systems, a supply chain module provides services in relation to the entire supply chain. This warehouse management system can accommodate things such as risk assessment, analysing market trends, maintaining vendor partnerships, manufacturing and administering transportation. This type can be helpful for scaling businesses.
4: WMS With an ERP System
An Enterprise Resource Planning (ERP) system goes beyond ordinary functionalities by integrating services such as HR, marketing, solution provision, and accounting for supply chains. A Warehouse Management System (WMS) acts as a complementary component within the ERP, seamlessly integrating with other operations.
How To Select The Best Warehouse Management System?
Since we have garnered an overall awareness regarding the aspects of a WMS, now it’s high time to understand how we can choose a warehouse management system which will ferry your business through the river of prosperity.
Here are some key factors to bear in mind during the selection strategy.
Identify The Accutate Timining
Discreetly figuring out precisely when to begin the implementation of a warehouse management solution is the roadway to accomplishment. Thus, first and foremost, before jumping to a conclusion, ask yourself this question.
“Is it the best time to merge a warehouse management system with my company?”
Now, if you are getting absorbed into the rabbit hole of uncertainty, here is a cue for you to ponder over before leaping. If your distribution facility perpetually keeps on expanding, in order to ensure your business remains capable of delivering the finest customer service, it’s advisable to commence thinking about mounting a warehouse management system.
Understand What You Actually Need
Let’s say you’re a warehouse manager. During a little teatime chit-chat among your colleagues, you earn a piece of zestful gossip. Upon hearing this, you come to a wild realisation.
It’s the fact that, while you struggle day and night, thanks to your company’s heavy reliance on traditional management schemes, other businesses have already transitioned to digital supply chains.
In such instances, you might grit your teeth in vexation, regret your life decisions and let your boiling anger take the best of you.
However, before rioting in front of your seniors, pressuring them to grace you with a similar warehouse management system, remember that it’s unwise to blindly jump in a well simply because someone else did, and a system which suits company B might not be applicable to company C.
Therefore, it’s important to specifically define your company’s particular requirements prior to selecting the most suitable warehouse management system for your organisation.
You can examine what possible measures would perform well and what will fail to function within your warehouse operations. Then you can discover a strategy that enables you to best preserve the elements that are functioning competently and simultaneously address the areas of contention.
Assemble a Project Team
A dedicated team of members should be placed in charge of managing the full process of researching viable supplier alternatives, from planning to execution. To verify that the WMS is tailored to the needs of the organisation, they should be granted requisite decision-making privileges.
Most importantly, all the business units of your organisation should be awarded the freedom to determine how the warehouse management system should work for them without solely allowing the IT department to take responsibility.
Is Controlling Your Inventory Feasible?
When your products are not updated in real-time and inventory controlling turns out to be an utter failure, your customer satisfaction ability hitting a new low is obviously inevitable.
Therefore, when selecting a warehouse management system, it’s essential to take into account what sort of products your organisation deal with and whether the WMS you prefer can organise your inventory compatibly while wrangling any pertinent disputes.
Take a Sneak Peak At Your Future
The WMS you’re inclined to employ shouldn’t only be prepared to cater for your present warehouse needs, but also it has to be designed to withstand future alterations. It should always be on the same wavelength as current market movements.
Before you make a purchase or click on years-long subscriptions, catch a glance at your strategic ideas for the following couple of years, roughly ascertain how your organisation will advance over time, as well as what its probable needs would be.
Certain WMS platforms can make it challenging to create adjustments to a system as a business spreads its wings, while others make it less difficult. Keep track of this piece of information for future benefits.
Moreover, send a request for a proposal outlining your most crucial needs to vendors. Once the responses flood in, evaluate them and make a vendor shortlist.
Get To Know About Expenses
Normally, what do you first consider when buying something? Oftentimes, the immediate notion that crosses your mind would be the real price of it.
Likewise, once you deliberately start aiming to affix a warehouse management system, it would be brilliant to consult a representative or an industrial specialist to fetch information.
These professionals would provide you with a thorough understanding of your company’s requirements and how much the installation and set-up of the system will cost. Reliable and reputable programmers will be eager to collaborate with you in assessing your needs and budget estimations.
Knowing is indeed better than wondering mindlessly and hitting rock bottom!
Obtain Authentic Global Statistics
Many firms that offer WMS software are willing to inform you how much money could potentially be saved through utilising their platforms; however, never miss to inquire about proof and specifics.
For example, it’s certainly one thing for a sales representative to promise you significant cost savings and return of revenue with their service, but it’s an entirely different story when it necessitates them to demonstrate the beneficial effects it has produced on their current client base.
Therefore, before selecting your desired system, researching the rates each software company provides, comparing them and reaching out to previous customers to get reviews can bring you advantages.
Appraise Your Business Relationships
Consider Mr Miller is a vendor, and you think of buying a warehouse management system from his brand. Once the purchase is secured, you will eventually establish a connection with the supplier, and this relationship undoubtedly determines how fortunate you’re going to be if the system is employed.
During the initial prerequisite assessment and whenever you require technical aid, you will surely have to rely on Mr Miller. You cannot purchase the product and simply cut ties with him. Since he will be one of your lifelong business partners, it’s better to be attentive towards his temperament and observe whether he easily harbours any sour feelings or not.
While interacting with Mr Miller during the choosing stage, be cautious and keep in mind how helpful he is. Unless he is satisfactorily responsive, it’s smart to avoid seeking business with a warehouse management system vendor like him.
Seasons Are a Matter Of Consideration
If your company is encouraged to forecast orders on a seasonal basis, you should specifically look for a WMS which integrates forecasting as a part of its package.
This way, human calculation errors that cause consumer dissatisfaction will completely vanish. Now, you can sit back, and relax, because WMS assures you will have the correct number of items for the ongoing and upcoming seasons.
Connection Is Essential
The bond you possess with customers, suppliers, and warehouse staff is the architecture of your business. They’re the pillars that reassure the growth of revenue. Feedback and input derived from them are essential as well.
The best warehouse management system guarantees these connections are well protected, thus pushing your progress upwards. So, when selecting a WMS system, make a note to confirm whether your consumers, employees and third-party associates can interconnect via the network and leave feedback behind for your reference.
What We Discussed So Far In a Nutshell
As we explicitly explored what a warehouse management system is, we were also able to go through the benefits of having it cater to your organisation’s demands. We sincerely hope the tips that are mentioned towards the latter part of the blog support you in selecting the best WMS for your company.
