WMS reaches out beyond the four walls

Warehouse management systems need to link with other information systems that affect activities outside the warehouse.

By Staff -- Modern Materials Handling, 11/1/2004

Not long ago, a warehouse or distribution center that installed a warehouse management system (WMS) to execute basic warehouse functions was ahead of the game.

Today, customer demands for compliance to their requirements and value-added services have raised the bar, according to Thomas K. Ryan, vice president of value chain research for Aberdeen Group (www.aberdeen.com) and author of "Extending Warehouse Management Beyond the Four Walls," a new benchmark report on the software.

"Many companies still think that basic warehouse operations, simple value-added services and basic compliance functionality will differentiate them in the marketplace," Ryan says. "They're wrong. Today, those are the basics you need just to get in the game."

Instead, a WMS needs to be integrated with systems that improve customer service and deliver value beyond the four walls. That's because distribution processes are being transformed by new wireless-enabled technologies such as RFID and low-cost wireless network options like cellular and WiFi.

"Leading supply chain managers are rethinking how to integrate inbound vehicles, dock activity and yard management into traditional transportation and warehousing processes," Ryan says. "They are looking at new ways to control product movements and improve velocity in drop yards, satellite facilities and even their suppliers' warehouses."

Ryan's report identifies at least three supply chain execution functions that when brought together deliver real differentiating business value.

• Real-time integration of a WMS with a transportation management system (TMS) ensures that the right shipments are grouped together to meet delivery requirements.
• Adding a yard management system (YMS) lets a facility manager know where inbound inventory is located so that it can be brought in to fill immediate orders.
• Compliance management applications allow processes to be tailored for specific customer requirements that customers perceive as beneficial.

The full report is available at www.aberdeen.com.