The primary function of a warehouse management system (WMS) is to monitor the transfer and storage of goods within a warehouse and to process the associated transactions, including shipping, receiving, picking and put-away. WMS is a database-driven computer program that helps boost warehouse productivity by controlling cutaways and keeping inventory accuracy by documenting warehouse transactions. WMS also helps stock guide and optimize based on real-time details on bin utilization status.
How WMS can enhance supply chain management
A supply chain involves the flow of goods and services, right from the raw materials to production work-in-progress, and until the delivery to the customer. In this chain, warehouse is an integral part that ensures operations to happen effectively from suppliers to the immediate customers. A free-flowing logistics supply chain is nearly impossible without a powerful warehouse management system, as it removes all the irregularities, delayed sourcing, inventory management, and many other factors hindering the chain.
- Provide a Centralized platform
A WMS software offers a streamlined platform to track, monitor, and manage all the functions across the supply chain and logistics. Departments such as storage, shipping, and distribution are all connected under one software, thus helping overcome the information gap and friction among vendors. This guarantees a continuous flow of goods, helping the businesses to grow exponentially.
- Inbound & Outbound Process Optimization
A resourceful WMS is equipped with tools that can help plan and develop process automation, establish high-performance indicators, and align the ongoing processes to gather real-time information. WMS software can help determine the effective use of labour and space to minimize the wastage of resources in the supply chain. This software helps in location management by identifying the best location to keep certain goods or products in a warehouse, thus bringing optimal workflow in a warehouse.
- Cut-down expenses of operation
A well-designed WMS software allows suppliers to plan more frequent cycle counts (either of single or multiple goods), which gives them consistency in business and accelerate shipments in order to meet customer demands. WMS also helps the warehouse to run more smoothly with limited human monitoring and giving directions in the supply chain operations. Overall, this not only increases the volume of delivery but also reduces time and cost.
- Accurate Inventory visibility
In a warehouse, keeping track of the exact level of inventory is very crucial. WMS steps in to collect all the relevant data through serial number tagging, barcoding, and RFID tagging of the available stock. Once the data is collected, it is transmitted to the central database for further processing that happens in real-time. The database then helps provide useful reports as per the requirement about the status of goods in the warehouse. This increased identification of goods improves forecasting and smart analytics helps businesses to predict the customer demand for a product, especially during specific times of the year – such as holidays. This helps a warehouse to stock enough goods and ensure meeting customer satisfaction.
- Transparent Reporting Tool
One of the major benefits of WMS in supply chain and logistics is its ability to detect issues sooner and respond to them immediately. When one of the suppliers is unable to fulfil orders on time, WMS informs all the related users in the chain, immediately after the information gets updated in the system. This helps business receive enough time to find an alternate vendor, without affecting the customer experience.
Thus overall, a well-equipped warehouse management system has a very positive boost on the supply chain logistics of a business. It improves the consistency of product quality, increases customer satisfaction and leads to a brand name of trusted player in the market. However, a business must keep in mind that WMS is not a quick-fix solution, rather, a long-term tool that will help manage the warehouse inventory based on collected data. A business that is ready to invest in WMS must be certain of its streamlining goals and the upcoming business benefits. Such systems not only require capital investment, but also running costs, and equal enthusiasm and involvement from the warehouse team for its smooth operation.