As the warehouse goes, so goes WMS
By Staff -- Modern Materials Handling, 3/1/2000
A few years ago, one of the most important items on any warehouse manager's "to do" list was the need to reduce the level of static inventory in the warehouse.Inventory reductions are still important. But equally important is moving the remaining inventory through the supply chain from the manufacturing plant to the end user as quickly as possible."
The competitive advantage is going to be in goods that seldom pause," says Rich Sherman, senior vice president, visioneering at EXE. 'That means inventory that is constantly in motion versus static goods that seldom move."
The goal is to keep as little inventory as possible as close to the customer as possible so that warehouses can respond quickly to customer demands.
To facilitate the rapid movement of goods, today's DC's must handle cross-docking and flow-through operations, automated high-volume sortation, break-pack and piece-pick activities to ship orders of one rather than pallet loads.
In the supply chain of the future, all of the information about those goods will be available in real time to all of the trading partners of a supply chain. This will be the case even for supply chains that are formed to fill just one order.
In turn, warehouse managers have transferred these demands and pressures to suppliers of WMS software. "We're seeing more and more requests for WMS systems that will facilitate cross-docking, flow-through, and postponement strategies," says Alan Gosnell, vice president, research and development, Cambar Software. "All of these are approaches to reduce inventory and drive inventory through the supply chain. Those strategies are driving the system needs as well."
Meeting those demands has changed the way providers of software solutions view themselves and their products. Most no longer consider themselves just WMS suppliers. Instead, they are supply chain execution (SCE) or supply chain solution providers.
That represents a recognition that the WMS, like the warehouse or distribution center, is a dynamic link in the supply chain that extends well beyond its four walls. Some suppliers see this shift as imperative to success. "The suppliers who are going to be successful are those that have the same view of the market as the market does of them," says Aidan Hegarty, president of Kewill ERP.
"Our users in the materials handling world need to respond with urgency to the demands in the marketplace," adds Larry Cinpinski, of HK Systems. "As software providers, we need to respond with urgency as well."
Most important is the ability to deliver a total solution that works and to deliver it in a hurry. "More than anything, our customers want us to be able to implement a solution very quickly," says Cinpinski. "We used to think of projects in 6, 12 or 18 months. The e-fulfillment world in particular thinks in terms of 6, 12 and 18 weeks."
Within the four walls of the warehouse, the WMS is broadening its footprint. "Our largest customers want a system that will integrate with their conveyor systems, pick-to-light systems, shipping, and transportation compliance," says Dave Linnen, vice president of product strategy at Intrepa.
To facilitate postponement and order assembly strategies, some WMS systems can provide bills of materials and other functions usually associated with manufacturing execution systems.
Other new functions include planning, optimization, and metrics modules that allow warehouse managers to create "what-if" scenarios that simulate changes and measure their impact on a warehouse.
"WMS systems have traditionally been limited to order execution," says Scott Rishel, vice president of marketing at Catalyst International. "In the future, we're going to see more ability to plan and monitor. That's where you can squeeze the last cent of profit out of that order."
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