WMS, or Warehouse Management System, is software that helps companies manage and control daily warehouse operations, from the moment goods and materials enter a distribution or fulfillment center until they leave. WMS software systems are a key component of supply chain management and provide real-time visibility into a company’s entire inventory, in warehouses and during transit. In addition to inventory management, WMS offers tools for picking and packing processes, resource utilization, analytics, and more. There are basically a variety of colors on the market.
At HOPI, we chose the SAP , which is an ideal system that meets our and our customers’ expectations.
A robust, digital warehouse management system is essential for any business with on-hand inventory – and can help you save money and gain new efficiencies in many areas. The five most important advantages of the WMS system are 1:
- Improved operational efficiency: WMS systems automate and streamline warehouse processes, from inbound receipts to outbound deliveries, for increased efficiency, smoother operations, and the ability to handle higher volumes. They reduce errors in picking and shipping goods and eliminate duplication and unnecessary work. The WMS also shares data with ERP systems and transportation management systems, providing a holistic view that goes beyond the warehouse and helps speed up the flow of goods.
- Reducing Waste and Costs: If you have limited-date or perishable inventory, the WMS software can determine which items need to be picked first and which may require sales support to minimize waste. It can also help determine the most efficient use of warehouse space, from inventory placement to optimal picking paths. Some systems offer advanced simulations to create floor plans and place pallets, shelves and equipment in the best locations to run at peak efficiency and save you time and money.
- Real-time visibility of inventory: Using barcodes, RFID tags, sensors, or other location tracking methods, the WMS provides real-time visibility of inventory as it moves into, around, and on to the next location. With this visibility, you can create more accurate demand forecasts, execute a just-in-time inventory strategy, and improve traceability – especially important in the event of a recall.
- Improved work management: WMS can help you forecast labor needs, create scheduling, optimize travel time in the warehouse, and assign the right tasks to the right workers based on skill level, proximity, and more. A good WMS can also help boost employee morale by creating a more relaxed, organized and safe environment where employees feel their time is valued and used wisely.
- Better relationships with customers and suppliers: With a WMS system, customers can fulfill orders better, deliver goods faster and with fewer inaccuracies, which increases their satisfaction and loyalty and improves your brand reputation. Suppliers may also experience reduced waiting times in loading areas and docks, which will improve relationships.
1SOURCE: What is a WMS (warehouse management system)? | SAP Insights