The value of WMS
Here's why a warehouse management system could be the solution you require for a more successful warehousing operation.
By Sonja Randall -- Modern Materials Handling, 6/1/1999
You've pushed your warehouse to its limits of efficiency and productivity and now you're looking for the next steps to take your warehouse to the next level.A warehouse management system (WMS) might be just the tool you need for your warehouse. Essentially, the WMS runs the warehouse from receiving all the way to shipping. The benefits of these software packages include increased accuracy of picks and shipments, real-time inventory tracking, and an overall increase in the efficiency of your facility. Consider the following examples.
With the installation of a WMS, third-party warehouse logistics provider Warehouse Services Inc. was able to decrease pick times from 32% of a worker's total activity down to 20%. Shipping accuracy rose to 99.999%, resulting in only 5 errors per 1 million shipments.
In two years, General Cable implemented a WMS system into five of its warehouses, standardizing how the work is done from coast to coast. Productivity increased by over 15% and order turnaround times were halved from 48 hrs to 24 hrs. Inventory and order accuracy now exceed 99%.
As these two companies, as well as many other successful users of WMS, the software is not a silver bullet for all warehouse ills. Says consultant John Hill of Cypress Associates, "The best WMS implemented in a poorly configured warehouse with ill-conceived material flow will only enable the user to do things badly faster."
With literally hundreds of WMS suppliers, making the right choice of software can be a challenging and lengthy process. While each WMS performs the same basic functions such as receiving, storage/putaway, picking, and shipping, each WMS has its strengths and weaknesses. Not every warehouse is created equally. The same is true of WMS software packages, so it is important to find just the right WMS solution for your facility.
Shopping around for the best WMS package is one way to find a software solution that is compliant with the needs of your warehouse. Visiting companies that already have a WMS in place is another way to evaluate the suitability of a WMS.
For those who are not experienced in the world of WMS however, consultants may be the best way to secure a proper software solution for your warehouse.
From dock to dock
Although there are literally hundreds of WMS packages available, the core of all software solutions is built on executing key functions from one end of the warehouse to the other. Here's a rundown of that functionality.
Receiving. When inventory arrives at the dock door, pallets or cases receive a bar code label, if one is not already on the inventory. The bar code is scanned with a radio frequency data communication (RFDC) terminal that relays the information on the bar code to the WMS.
Storage/putaway. If the inventory is to be stored, the pallet or case is scanned with the lift truck's RFDC terminal and the WMS chooses an open storage location. Once the lift truck driver arrives at that location, the location itself is scanned to ensure it is the correct storage location. Once the inventory is scanned, the WMS links the two and knows where that inventory is located until it is needed to fill orders later.
Picking. The host computer downloads orders to the WMS either in wave, batch, or other form. The software prioritizes orders and picking activities in however many pick areas there are in the facility. Workers are directed to storage locations with RFDC terminals and the location and the inventory are scanned so that the WMS can verify pick accuracy and inventory can be subtracted from the data base.
Shipping. Once the orders arrive at the shipping station, the WMS can generate packing and shipping labels. Weighing equipment and shipping manifest systems may also work in conjunction with the WMS.
Cross docking. At the time when inventory is received, the WMS may already have an open order waiting for that inventory. In such a case, the WMS can direct the inventory to be expedited directly to shipping.
What's new for WMS
Today there is great demand to ship the right amount of product on time. With Y2K almost behind us, suppliers believe that more IT money will be spent on systems such as WMS that provide high return on investment, and streamline the supply chain.
A WMS works best with data capture components such as bar coding which tracks inventory and RFDC which can eliminate a lot, if not all, of the paper documents in the warehouse.
Some WMS vendors are offering packages that include the component hardware (RFDC terminals, bar code labelers/applicators) as well as hosting the WMS application.
There are existing WMS packages that combine implementation services. This includes implementation study, training, configuration and testing, and startup support, as well as post- implementation maintenance and support.
A WMS with labor management functionality is also becoming popular. Labor management solutions enable users to collect data, conduct performance analysis, and create data presentations for all warehouse management activities.
Expanded functionality
It is notable to mention that warehouse management software is only part of a larger whole in regards to execution and planning software. Warehouse management software is in the process of being interfaced and integrated with transportation management systems (TMS), order management software (OMS), manufacturing execution systems (MES), and advanced planning and scheduling (APS) software.
End users are increasingly interested in suppliers creating total software solutions. As a result, an increasing number of new WMS packages are including TMS or OMS software. The integration of a WMS with these additional software systems results in more control of operations in a facility as well as with related functions such as order management and shipment transportation.
There is also interest in WMS packages that can interface with enterprise resource planning (ERP) software. This gives the customer access to complete business solutions.
For a list of prominent WMS suppliers and their telephone numbers visit www.mmh.com.
MWMS basic receiving and putaway functions
Received inventory information is entered into the WMS
The WMS generates bar code labels for pallets or cartons
The WMS chooses an open storage location for pallets or cartons
The lift truck driver is directed to a storage location by way of an RF terminal
Storage location and carton bar code labels are scanned by the driver with the RF terminal
The WMS knows the location and quantity of all inventory within the warehouse
WMS benefits
Reduces:
* Damage/shrinkage
* Lost stock & safety stock
* Search items & deadheading
* Paperwork/human error
* Physical inventory taking
* Labor, equipment, & utility costs
* Courier/delivery costs
* Outside warehousing
Improves:
* Inventory accuracy & turns
* Space utilization, stock rotation
* Order, lot, serial number tracking
* Crossdocking
* Resource planning & scheduling
* Labor & equipment productivity
* Performance measurement
* Customer service
What can WMS do for you?
* Order planning & scheduling
* Inventory allocation
* Lot & serial number tracking
* Shelf life monitoring
* Unit of measure conversion
* Task assignment & monitoring
* Location management
* Cycle counting
* Replenishment & consolidation
* Real-time updates & reports
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