What is warehouse management, exactly?
Warehouse management is the oversight of warehouse operations. Receiving, tracking, and maintaining inventory, educating personnel, managing shipments, task planning, and monitoring the flow of things are all responsibilities.
What is the definition of a warehouse management system (WMS)?
A warehouse management system (WMS) is software designed to improve warehouse operations. Implementing a warehouse management system (WMS) gives real-time visibility into inventory levels and storage, staff productivity, demand projections, and order fulfillment procedures inside a warehouse.
Warehouse management systems are essential because they eliminate manual processes and guesswork, saving time and offering a more accurate picture of what’s going on inside a facility without the need for periodic warehouse audits.
This data helps warehouse managers identify areas for development and monitor progress to drive changes across the supply chain, from the moment inventory arrives at the loading docks until it is dispatched to its next destination.
Warehouse management software contains capabilities for pushing strategic considerable picture improvements and monitoring day-to-day operations if a picker or packer relies on the system to determine what to choose or pack next, what a management team sees in the warehouse management system will vary from what a picker or packer sees on the warehouse floor.
Each warehouse management system may have different characteristics depending on the industry it serves (for example, what a direct-to-consumer eCommerce seller needs is not the same as what a vast brick and mortar shop chain requires).
5 essential warehouse management processes
Warehouse management is one part of supply chain management. Order fulfillment in retail, storage, inventory management, shipping, and distribution are all impacted. Having an all-in-one solution lets you see what’s going on in real-time throughout the warehouse’s numerous operations, such as inventory being received, orders being packed, shipments being marked, and any other item movement.
- Inventory control
Inventory tracking is the process of monitoring stock levels to know which SKUs you have in your warehouse and where they are housed, as well as whether they are in transit from a manufacturer or on their way to a store.
Inventory management tells you how much inventory is available for distribution if a customer purchases an item today, as well as when you should buy more based on projected demand.
You will most certainly churn through inventory faster, add new locations, and broaden your product offerings as you grow. This highlights the importance of inventory accuracy and monitoring.
- Choosing and packaging
Picking and packing are two of the most crucial warehouse activities. To retrieve items as effectively as possible, a warehouse management system should generate pick lists for each selector, including zone picking, wave picking, and batch picking.
The selector will be handed a packing sheet listing the items purchased and the warehouse storage locations for each new order. The selector will collect the order from their respective areas.
When an order is selected, it is routed to a packer responsible for securely putting the items in a box or poly mailer, adding any required packing materials, and affixing a shipping label to it.
- Taking in and hoarding
Any warehousing company must receive merchandise or freight from trucks at loading docks and store it in a safe location. A warehouse management system must scan each new box received and the inventory quantities included inside it.
We will then scan it again before being delivered to its short-term or long-term inventory storage facility. Warehouse management software should provide explicit instructions to each user on receiving, unloading, retrieving, picking, packing, and shipping merchandise.
- Delivery
Shipping firms such as DHL, USPS, FedEx, and UPS will pick up orders from the warehouse and convey them to their next destination depending on the delivery choices and shipping services you offer customers.
When an item ships, your warehouse management system should be able to promptly communicate eCommerce order tracking information back to your company, enabling your customers to trace their shipments.
- Reporting
A warehouse management system should provide operational and inventory data ready for usage across the facility. Order fulfillment accuracy total orders completed by the hour to monitor staff efficiency, orders shipped on schedule, and much more are examples of this.
Additional information on people’s actions, such as inventory forecasts, is available to assist labor management and staffing needs. A warehouse management tracking system lets you quickly discover which employees have completed safety training and those who have permits and certifications to operate specific equipment and other regulatory requirements that must be satisfied to run a safe warehouse.
Advantages of Using a 3PL for Warehouse Management
Because warehouse systems are complex and expensive, many organizations outsource the fulfillment process to a third-party logistics (3PL) provider. Unlike an on-demand warehousing company that finds warehouses with additional space, 3PLs run their fulfillment centers and should have consistent warehouse management across all of them.
Here are some of the advantages of keeping products and transporting orders with a reputable logistics company.
- Logistical enhancements
Because 3PLs deal with hundreds of companies – seasonal brands, high growth brands, and everyone in between — they have a plethora of data. They can do anything from appraising shipping zones to projecting demand and inventory.
Continuous data aggregation and learning aid in optimizing each warehouse for enhanced efficiency and reducing shipping costs and transit times for your customers, all of which aid in your expansion.
- A larger worldwide footprint and a large number of warehouses
When you own a warehouse, you only ship from that location. When you work with a 3PL, you may store inventory at many fulfillment centers, enabling you to keep the list closer to more customers. You must have warehouses from coast to coast if you ship across the nation.
- Significant savings in time
The most time-consuming logistical chores (inventory storage, picking, packing, shipping, order tracking, replenishing supplies, returns, kitting, etc.) and the stress of warehouse management are reduced by a 3PL’s eCommerce order fulfillment services. While they execute these tasks for you, you can monitor their progress and use the data they provide to help your business grow and make better choices.
- Improved storage space use
Working with a 3PL may make your life a lot easier if you’re set to outgrow your warehouse space. Even if you’ve outsourced fulfillment to a 3PL, you may repurpose your old warehouse space to concentrate on another aspect of your company (for example, creating in-house B2B eCommerce or wholesale fulfillment channels) or let the lease expire.
A 3PL may let you pay for just the space you need – whether it’s by the bin, shelf, pallet, or any combination of those for your things. You won’t have to worry about outgrowing (or never growing into) the space you’re paying for.
- Information in real-time
Simply because you are not working in the 3PL’s warehouse does not mean you are unaware of what is happening. You should be able to see your inventory move through their system, including when it is received, stored or put away, picked, packed, and delivered, as well as any other movement.
ERP Gold’s proprietary warehouse management software allows you to search orders by tracking number, destination country, number of items, sales channel, and fulfillment center location, as well as gain complete visibility into performance metrics such as fulfillment speed, orders fulfilled on time, accurately, and claim-free, and much more.
“The key differentiator is the technology ERP Gold delivers, and the selling point is the dashboard’s visibility and openness.” Mike Stein Gold, RSI Brokers & RC Toys
Three qualities to look for in your next warehouse management system
If you insist on operating your warehouse, conduct your research and choose a warehouse management system that matches your company’s unique needs.
- Your store’s connectivity software (s)
Integrating your online enterprises will make everything work more smoothly, from providing customers with specific tracking information to analyzing sales trends to satisfy demand. The warehouse management system will generate pick lists that optimize each picker’s workflow based on logic corresponding to your warehouse design and items ordered by feeding in your sales channels.
It should prioritize orders placed first or request rapid dispatch, in addition to selecting similar orders that take inventory in the same area or rows, so you can keep promises made to customers (e.g., “Any orders placed before noon local time are guaranteed to ship the same day”).
To increase the overall integration and execution of your retail supply chain operations, employ a warehouse management system in combination with a project management platform.
- Software that is compatible with your warehouse equipment.
Depending on how your warehouse is set up and maintained, you’ll want to ensure that any warehouse management system you use is compatible with inventory scanners, terminals, labels and printers, scales, portable or wearable devices, and any other physical equipment or hardware you use. If not, keep in mind that you’ll need to make further purchases.
- Demonstrated Return on Investment
In addition to hearing how other businesses, particularly those of a similar size and industry, have found success with a particular warehouse management system, look for examples of time and money savings shown by the program, such as:
- X hours per hour save
- X% improvement in accuracy or reduction in errors
- Recovered or saved X dollars
- A boost in X’s order processing speed or throughput.
You won’t justify the expenditure if you don’t understand how the warehouse management system will enhance warehouse operations.
Last Thoughts
Well-managed warehouses utilize cutting-edge technology to boost productivity and profitability. Every complex system has pinpoints that make the business weak. Still, well-managed systems have fewer of them because they regulate what occurs, coordinate things that happen as planned, and communicate what is intended is also anticipated.