Types of WMS systems for warehouse management

The use of WMS systems for warehouse management is essential for any 3PL company dealing with physical goods or materials that need to be transported to and from customers. Companies can be losing money if employees do not have an efficient system for managing warehouse operations.

It must be determined what type of warehouse management system will work best for a company so that inventory control, picking and shipping of orders is not delayed.

Types of WMS systems for warehouse management

There are several types of WMS systems for warehouse management and the one that best suits the needs of each company can be chosen. The most frequently used by 3PL companies are:

• Autonomous systems
• Supply chain modules
• ERP Modules
• Cloud-based systems

There are advantages and disadvantages to each type that help determine which system is best for each business.

The WMS systems for warehouse management are based on software that helps companies run their daily operations in a warehouse. A WMS has benefits that allow companies to control and monitor warehouse operations, such as goods in and goods out. Other operations include inventory management, picking and packing processes, auditing and shipping orders.

The WMS systems for warehouse management help a company reduce operating costs by reducing manpower and wasted space. Inventory control is a key factor in achieving this. A good warehouse management system allows employees to see where an inventory item is located anytime, anywhere. It improves inventory tracking through the use of serial numbers, barcodes and RFID tags. These tracking tools contribute to an organised inventory. Internal and external transport of inventory can be fully optimised with advanced inventory tracking features.

In addition to the warehouse equipment operations, the WMS systems for warehouse management help manage supply chain operations by tracking goods from manufacturer or wholesaler to retailer or distributor, perform cycle counting and monitor expiry dates. It also greatly reduces the likelihood of a shipping error, allows a company to fulfil orders instantly and track products ordered within the warehouse. It enables a paperless working environment and, at the same time, guides employees on best practices for warehouse management operations.

The WMS systems for warehouse management can be a stand-alone tool, used on its own, or it can be part of an enterprise resource planning (ERP) system. In addition, an EMS is often integrated with an inventory management system or a transport management system.

Functional requirements of the WMS systems for warehouse management

The WMS systems for warehouse management set the standards for warehouse operations by coordinating transactions between inside and outside the facility.

The advantages of these systems cannot be underestimated in the overall importance of operational warehouse logistics. There are many components of a WMS software that should be taken into account if you are trying to make a choice between different WMS systems for warehouse management.

What to look for in WMS systems for warehouse management

The following are the most important requirements and key characteristics of WMS systems for warehouse management that can be used to find out which system is right for a company.

• Maximum functionality

  Functionality is a basic and important principle. Good warehouse management system software maximises what the company can do and, at the same time, minimises the work that needs to be done. With the WMS systems for warehouse management streamline business processes and measure data that would otherwise be difficult to track.

  For example, an EMS can determine employee productivity and track which tasks an employee has completed, and where the task has been performed. This allows direct visibility into the efficiency, or inefficiency, of staff in real time.

• Ease of use

  The easier it is to use an EMS, the less time is spent on employee training. The WMS systems for warehouse management Well-designed systems will reduce the time it takes employees to set up and monitor operations and therefore allow more time to adapt to a continuous workflow.

  This is extremely useful when dealing with new employees. New staff can be up and running in a matter of hours, not weeks, when a WMS is easy to learn. Clear navigation properties also mean that employees can fully utilise the warehouse management system for optimum performance.

  It must be ensured that the WMS allows the user to simplify data entry, create reports and template charts and has a dashboard view that provides the user with a single point of access to all critical data. The dashboard view should also be automatically updated in real time so that employees are up to date on daily and hourly operations.

• Total transaction management

  You must be able to monitor everything from receipt to dispatch and have detailed information on everything every step of the way. That means products, employees and transactions, but at the very least, the WMS systems for warehouse management should be followed up:

  • Reception
  • Storage of incoming goods
  • Sending
  • Order preparation
  • Cycle counting/inventory audits
  • Any kind of movement of goods

  Specialised analysis of warehouse operations can then be performed, as the WMS keeps track of everything that happens in the warehouse. Specialised analysis helps you to hire smarter and be more efficient in the storage of products.

• Flexibility

  A solution with WMS systems for warehouse management In the long term, it must be able to adapt to a growing company and scale to future needs. One criterion that indicates whether the WMS is scalable is whether the system works with most ERP systems. This is because the company can change ERP systems as it grows and does not want to change the WMS every time the business expands. ERP software has many benefits. Discover how manufacturing ERP software can improve data collection, BI and compliance. 

  Flexibility also applies to hardware. An EMS must be compatible with other versions of the equipment listed below:

  • Label printers
  • Scales
  • RF scanners and terminals
  • Radio frequency terminals mounted on forklift trucks

  Lastly, the flexibility of the WMS systems for warehouse management with respect to different sizes and types of companies. A good EMS must be successful with all sizes and types of industrial distributors and wholesalers. An EMS is an investment in the future of the business, so the EMS needs to be able to grow at the same time.

• Useful and easy-to-read metrics

  It is not enough to have data, you must be able to understand it to fully exploit the information. Metrics that track the performance of warehouse operations are highly valued and are most beneficial when data can be presented accurately and effectively.

  It must be possible to easily create reports and graphs based on warehouse operations with a WMS. This includes real-time tracking of both employee and warehouse performance in organisational groups. Management can then compare the performance of employee groups and geographical areas. In addition, individual employee performance can be measured against speed and accuracy standards.

• Seamless integration with ERP

  If the decision is made to integrate the WMS with an ERP, it is essential to choose the WMS systems for warehouse management that combine seamlessly with leading ERP systems. This ensures that the WMS and ERP work in unison to keep the business running. Any WMS you consider investing in should be fully compatible with the current ERP system. In addition, the WMS provider should be able to develop complementary ERP integrations. Discover how to successfully select an Industrial ERP system in just eight steps. 

• Verified history

  Customer references should be used to obtain first-hand information about the operation of the warehouse management system. You can ask the supplier for a list and, if possible, meet with the customers alone and not with any of the supplier's sales people. Questions to ask existing customers include the following:

  • Did the EMS meet expectations?
  • What kind of support was received from the supplier?
  • What was the quality of the support received?
  • How was the follow-up after using the support?

  The more customers you can talk to, the better image you will have of the WMS. Ideally, you should be able to see the EMS in action and see how it performs in certain situations. However, it should be borne in mind that the needs of the company may be different from those of the customer reference being reviewed.

• Value of ROI

  Price is an important factor when choosing an EMS. The WMS systems for warehouse management may have a lower initial cost, but consideration should be given to long-term implementation as the business grows and develops. Other determining factors to consider are:

  • Functionality
  • Flexibility
  • Integration
  • Scalability
  • Ease of use
  • Customer support
  • Any specific tool needed for the business

  It could be a big mistake to buy an EMS with a lower initial price tag if you have to spend money to solve the problems caused by the necessary integrations and customisation requirements. The frugal price tag could end up costing a lot in the long run, so consider the overall value and long-term implications of the chosen EMS solution.

• Storage and logistics commitment

  A WMS provider's commitment to warehousing and logistics solutions indicates whether a product should be considered. Many WMS solutions span many different countries and cover various requirements, allowing suppliers to diversify what they can offer. However, this sometimes results in a restricted view of the day-to-day and niche scope of warehouse management.

  To counteract this possibility, it is necessary to look at how often and how rigorously the provider is updating the WMS systems for warehouse management. A preferred supplier solicits customer feedback, acts quickly to take advantage of market changes, and will provide upgrades and improvements at no cost.

Basic types of WMS systems for warehouse management 

There are four basic types of WMS systems for warehouse management which are usually implemented by a 3PL company:

• Stand-alone EMS
• Supply chain implementation modules
• Integrated ERP systems
• Cloud-based WMS.

Many of the features are similar, but what differentiates them is the packaging and delivery style.

Most WMS solutions have a variety of tools that can handle different components of a warehouse management system. The pros and cons of each must be weighed against what a company needs and may need in the future.

Stand-alone warehouse management system

A stand-alone WMS is usually the cheapest, but it also often lacks many of the advantages of an integrated WMS solution. Stand-alone systems are the most basic and are only used for warehouse management functions. They are a typical local type system that is used with the company's original hardware and network.

Stand-alone systems are sold without any additional supply chain functions and instead include only the best and most important features of the WMS modules. The two most important functions are inventory management and warehouse operations. A company opting for a stand-alone WMS can expect to have the following features:

• Expiry date tracking
• Barcode scanning
• Cycle count
• Slotting
• Storage
• Reception
• Picking
• Packaging
• Sending

Some providers offer the most requested basic transport management tools with a stand-alone system. However, the majority of WMS systems for warehouse management are sold as stand-alone packages that are installed and then integrated with the current software. Integrating an external program with current software works, but often causes problems such as duplicate data entry, delays/silos of information, interface problems and additional customisation costs.

A stand-alone warehouse management system can be used as an inventory management system. Therefore, it can be used with many fields outside of warehouse management. This feature makes a stand-alone WMS ideal for a small company or a company that does not have a large software budget. However, other steps in the logistics chain are not incorporated and, as a result, it may not integrate well with other types of business software such as the WMS solutions listed below.

Supply chain implementation modules

A warehouse management system can be considered a subcategory within supply chain management (SCM). SCM software is broad in scope by nature and can help users manage many aspects of the supply chain. While its main purpose is to automate common tasks, it can also manage supplier relationships, ongoing business processes and risk assessments.

The use of a supply chain module such as a WMS requires the company to invest in supply chain applications that also provide warehousing functions. This allows a 3PL warehousing business the ability to explore numerous benefits associated with SCM. This option is commonly used, along with the combination of the other WMS applications.

The combination of the different parts facilitates cohesion between the different areas of the company. It also supports the streamlined management of the entire supply chain. This differs from a stand-alone WMS in that a stand-alone system generally only covers warehousing. It is essential to minimise any overlap with existing software if a supply chain module is chosen.

Integrated ERP systems

ERP software is a powerful solution that combines many capabilities found in other systems. It is one of the best choices for a company looking to improve software solutions and is considered one of the best WMS systems for warehouse management. They are also an excellent option for a company that wants to gain a competitive advantage and improve its return on investment.

ERP is a specialised system that can provide robust supply chain execution and scalability, incorporating most of the core applications that allow a 3PL to operate seamlessly. These core applications may include, but are not limited to:

• Supply chain planning
• Accounting
• Customer relationship management
• Human resources

A key idea to keep in mind is that while integrated ERP systems may offer WMS functions, warehouse management functions are not a core function of ERP. Your chosen solution should offer WMS functionality up front, but here are some helpful hints to assist you 10 questions small manufacturers need to answer before purchasing industrial ERP software. 

ERP integration is considered the end of warehouse management systems, which means that it comes at a considerable price. At the same time, ERP can replace many other software applications due to its wide scope, thus centralising operations in a single interface. ERP can be a good option for any company that is dissatisfied with current software solutions and wants to consolidate them all into a single system.

Cloud-based warehouse management system

A cloud-based WMS is a centralised web-based computing model that uses cloud technology. Cloud-based WMS is typically offered via software as a service (SaaS) and is notable for its rapid scalability and deployment. It can offer the same advantages as a more traditional WMS, but also faster implementation and lower costs.

A cloud-based WMS is known to have reduced IT maintenance, as it is hosted on a separate or private server, depending on the provider's specifications. A separate or private server leads to higher data security protocols, which is important for companies that manage high-value inventories or businesses that simply want more security in their WMS.

As long as the provider manages the software, customisations can be made to the software when the WMS is in the cloud. However, the amount of customisation may vary depending on the software provider. Software customisation is essential as it allows the company to grow and make changes to operations and procedures without altering the flow of current practices.

The WMS systems for warehouse management online systems are well suited to companies with multi-location needs and offer a great deal in terms of flexibility and system complexity. Such systems can be tailored to the needs of each company and can increase business productivity regardless of the size, volume or complexity of operations.

Cloud computing also offers users the option to obtain automatic software updates without additional costs, which helps to reduce costs and provides technological competitiveness. Details of the benefits include:

• Minimal expense: Cloud EMS solutions do not require a long-term licence or specialised equipment, but do require the resources to host and maintain the system. This eliminates large financial outlays and instead opts for stable subscription fees.
• Rapid implementation: A typical cloud-based WMS can take weeks to implement, not months or years like on-premises systems. This is because the cloud EMS provider handles the configuration, hosting and implementation itself.
• Scalability: A cloud WMS supports scalability in two ways. Firstly, the software needs no hardware configuration and can run on any computer with Internet access. This means it can be quickly and easily shipped to warehouses to support growth and expansion. Secondly, the warehouse can adapt to growing demand by enabling more licences as needed.
• Ease of use: this type of system can be less complex for the end user - the employee. Warehouse operations can be more efficient and fully maximised when the WMS solution is easy for everyday users to operate and access.