How Does a WMS Work?
A warehouse management system (WMS) transforms businesses into lean and efficient operations. By using computer software, handheld scanners, and printed labels, companies can track goods throughout the supply chain. This capability optimizes how businesses receive, order, store, and ship products.
Monitoring products closely allows manufacturers and distributors to know the exact location of stock, even during transit. Whether utilizing an in-house server or a cloud hosting service, a WMS provides comprehensive services to customers. The system breaks down orders into batches based on product locations. As goods move to and from the warehouse, staff scans them to ensure they follow the correct route. This process continues within the storage facility, helping different departments manage product movement efficiently.
What a WMS Measures
A WMS quantifies data using specific measuring tools. Key data units include:
- SKU Data: This comprises batch codes, barcodes, manufacturing dates, weight, SKU, and ID labels. Additionally, it includes carton and pallet dimensions, packaging types, and quantities.
- Location: The WMS checks storage types, pick sequences, storage restrictions, shelf and bin numbers, capacities, delivery docks, and warehouse door numbers as identifiable criteria.
- Staff Productivity: It tracks items picked or stored per person, throughput, pick journey time, errors, and staff allocations to specific tasks.
Depending on its configuration, a WMS uses this data to understand process efficiency and track the location of all items accurately.
How the WMS Benefits the Warehouse
With access to this information, you can plan and organize the warehouse more effectively. You gain clarity on staff allocation for tasks, optimizing SKU utilization. Furthermore, efficient storage increases throughput and enhances overall service to customers.
To improve your in-house processes, a WMS streamlines picking and packing, helping avoid bottlenecks and major delays in the supply chain. Management can break down each functional area into measurable performance milestones, easily translating these metrics into detailed costs for budgeting and minimizing unnecessary expenditure. Identifying issues within the process becomes straightforward, allowing for timely reviews and enhancements.
Once implemented, a WMS quickly demonstrates its value. It decreases your logistical footprint and increases effectiveness across both ends of the supply chain. From shipping and stock handling to managing returns, it helps reduce sales losses and boost customer satisfaction.