With all the thousands of SKUs stocked in a building, warehouse at first glance can be a scary place and it requires careful coordination to ensure that everything runs smoothly.

Warehouses typically contain a large amount of inventory, which is a significant investment for a company. From receiving and storing inventory to picking and packing orders for shipment, many warehouses operate on tight deadlines, with orders needing to be fulfilled quickly to meet process demand.

This can create a sense of urgency and pressure for warehouse operators, managers and employees and any loss or damage can result in financial losses and negatively impact the companys reputation.
So, how businesses can ensure that everyone follows proper procedures to avoid some potential scenarios that could lead to a nightmare situation.

The answer is WMS or Warehouse Management System.

Businesses invest in robust warehouse management processes to take the burden of day-to-day warehouse operations and maximize returns on equipment, space, and labour investment.

What is a warehouse management system?

A warehouse management system is a software platform created to manage and optimize the operations of a warehouse or distribution centre. It provides real-time visibility into inventory levels, helps track the movement of goods within the warehouse, and automates various warehouse processes such as receiving, put-away, picking, packing, and shipping.

WMS software also offers analytics and insights to help warehouse managers make data-driven decisions about inventory management, labour allocation, and process optimization.

What does a warehouse management system do?

The functionality of warehouse management software has significantly developed, thanks to the advancements in technology and changes in the way businesses operate.

The earliest WMS warehouse management systems were essentially electronic versions of manual systems, with barcode scanners and handheld devices replacing pen and paper.

But today, these software products leverage the power of automation. For example, automated guided vehicles (AGVs) and robots can move products around the warehouse and reduce the need for human intervention.

Integration the inventory warehouse management software with other business systems, such as enterprise resource planning (ERP) systems, transportation management systems (TMS), and supply chain management (SCM) systems allows to share real-time data between systems, thus increasing efficiency and reducing errors.

With the growing use of data analytics, warehouse management software has become more sophisticated in its ability to provide insights into warehouse performance. Advanced analytics can help identify areas for improvement, such as identifying bottlenecks, improving inventory accuracy, and optimizing picking routes.

Functions of warehouse management systems

1. Inventory management

A WMS helps keep track of inventory levels and locations so that warehouse managers can optimize storage space and prevent stockouts. The managers can even track the movement of inventory on-the-go by integrating it with amobile inventory management system.

2. Order management

Order management is another important feature of WMS. One can receive orders from various channels, such as online marketplaces, and automatically direct workers to pick the right products and pack them efficiently.

3. Warehouse optimization

With proper WMS software in place, businesses can optimize the layout of a warehouse and guide workers on the most efficient paths to take when moving goods from one location to another.

4. Barcode scanning and RFID tracking

A WMS can use barcode scanning and RFID (radio-frequency identification) technology to track products as they move through the warehouse, ensuring accurate inventory counts and reducing the likelihood of errors.

5. Reporting and analytics

Generating reports with a WMS on various warehouse metrics, such as inventory levels, worker productivity, and order fulfillment rates, offers valuable insights to improve operations over time.

6. Integration with other systems

Integration is latest functions that allow to get holistic view of entire business ecosystem from purchase to production to sales.

Different types of warehouse management systems

1. Standalone WMS

These systems are standalone software applications designed specifically for managing warehouse operations. They typically include inventory tracking, order management, and shipping/receiving capabilities.

2. ERP WMS

ERP warehouse management tools are integrated into larger ERP software suites that perform multiple business functions, including finance, HR, and supply chain management.

3. On-Premises WMS

This type of WMS software is installed on local servers and is managed by the IT department of the company. It usually offers more control and customization options but needs a higher upfront investment.

4. Cloud-Based WMS

One can host cloud-based warehouse software systems in the cloud and access them via the Internet. They offer the benefits of remote access, automatic updates, and scalability without requiring the purchase and maintenance of on-premises hardware and software.

5. Open-Source WMS

Open-source WMS is an open-source software platform that is typically free to use and modify. It might be suitable for smaller businesses or those with customized needs..

6. Third-Party Logistics (3PL) WMS

These software products are for third-party logistics providers that offer warehousing and fulfillment services to multiple clients like multi-tenant capabilities and billing functionality to manage invoicing for multiple clients.

7. Automation Warehouse System

Automation warehouse systems work with warehouse equipment, such as robots or conveyor systems. One need to integrate them with sensors and other tools to automate inventory tracking and order fulfillment.

8. Supply Chain Modules

These software solutions manage various aspects of warehousing in supply chain management. It streamlines operations like procurement, inventory management, transportation, and logistics.

Factors to consider before choosing a warehouse management system

• Scalability: A good warehouse inventory management software should be able to handle a growing business, so it is important to choose a system that can scale with your business needs.
• Integration: One must choose a warehouse management platform that can integrate with existing business systems, such as your ERP, TMS, or CRM.
• Ease of use: The system should be user-friendly and easy to navigate for both warehouse managers and employees.
• Customization: Customization should be one of the top priorities of an inventory warehouse management system to meet specific business needs and workflows.
• Cost: The cost of the WMS is also a crucial factor to consider, including both the upfront costs and ongoing maintenance and support costs.
•  Vendor reputation: The reputation of the software product development company also matters. One should check their level of support and customer service.
• Security: Warehousing management systems must have robust security measures in place to protect data and inventory from theft or other security breaches.
• Training and support: The WMS vendor should offer comprehensive training and ongoing support to ensure teams can effectively use the system..

EXPRESS 3PL can help businesses streamline warehouse management

EXPRESS 3PL owns entire technology stack that powers distributions centres to provide consistency, reliability, and speed across domestic and international supply chain network.

Our WMS act as a control centre to compile all distribution metrics, including warehouse performance and shipping insights.

When businesses outsource warehouse management to EXPRESS 3PL, we manage the entire operations along with providing the technology stack for businesses to gain better fulfillment solutions and support without having to invest in the individual components that makes up warehouse management cost.

To know more on solutions offered by EXPRESS 3PL, kindly mail to us at info@express3PL.in