A warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations. WMS systems may be standalone applications or part of an Enterprise Resource Planning (ERP) system. Warehouse management system (WMS) software helps control the movement, storage and accounting of
materials or finished goods through a warehouse. Warehousing management system benefits can be seen
throughout the manufacturing process.
Early warehouse management systems could only provide simple storage location functionality. Current WMS applications can be so complex and data intensive that they require a dedicated staff to run them. High-end systems may include tracking and routing technologies such as Radio Frequency Identification (RFID) and voice recognition.
Early warehouse management systems could only provide simple storage location functionality. Current WMS applications can be so complex and data intensive that they require a dedicated staff to run them. High-end systems may include tracking and routing technologies such as Radio Frequency Identification (RFID) and voice recognition.
No matter how simple or complex the application is, the goal of a warehouse management system remains the same -- to provide management with the information it needs to efficiently control the movement of materials within a warehouse.
The implementation of a WMS is often complex. Project planning is
critical to the success of any WMS implementation. The project requires
warehouse resources to collect data on the physical warehouse,
materials, inventory as well as defining the strategies required to
operate the warehouse. There is the added challenge of implementing the
system whilst still operating the warehouse. A major factor of all
projects is still ship product whilst the WMS is being implemented.
The complexity of a WMS implementation varies with every business.
The physical dimensions and characteristics of each item in the
warehouse are required to be collected and entered into the new system.
Capacity calculations require the physical size and weight of the item
as well as the dimensions of all the storage bins or racks in the
warehouse. The storage options for each item are required, for example
if the item can be stored separately, in box, pallet or if it can be
stacked. Each item must be reviewed to see if it is physical limitations
on its storage, such as requiring refrigeration. Hazardous material
information needs to be collected so that the item is not stored in
certain areas. This information is only part of the requirements of the
WMS implementation. The system requires decisions or configuration to be
made on how items are to be placed or removed from the system, in what
order, for what types of materials and what methods of placement and
removal should be used. The implementation requires significant input
from the resources that operate the warehouse on a day to day basis and
this can be a strain on warehouse operations. A successful project will
recognize this fact and ensure that the key personnel required for the
implementation are given adequate back up so that warehouse operations
do not suffer.
After the successful launch of the WMS system, many businesses will
find that the resources required to operate the system is greater than
prior to the implementation. This is primarily due to the data intensive
nature of the software and the fact that warehouses are in a state of
flux; racks are moved, placement and removal strategies changed, new
items added, new processes developed. Warehouse accuracy is paramount
for the software to operate and to do this data will need to be entered
accurately and in a timely fashion. Although most WMS implementations
will reduce labor costs in the placement and removal of materials, there
is often an added warehouse management function required just to
operate the software.
Here are a few main reasons why warehouses exist:
- Match Supply with Customer Demand: Because demand can change quickly, having the appropriate level of merchandise ready to ship to the customer is a key ingredient in a good customer experience. In this case, the warehouse allows for quick and rapid response and acts as a buffer to the changing customer demand.
- To Consolidate Product: In warehousing, the debate isn’t about one-piece flow versus batch, it’s really about what level of batch is appropriate. There is a fixed cost any time product is transported. To lessen the cost burden on the supplier, it often makes sense to fill the carrier to capacity. Because of this dynamic, consolidation of inventory has come into play and is a major strategy to reducing overall supply chain landed costs.
- Provide Value Added Processing: In some situations, to differentiate in the market required adding some value added processing prior to selling merchandise to the customer. This might mean strategies such as creating kits of various pieces of inventory to create a sale-able product (known as kitting). An example of this is with bicycles: bicycles come in parts and are consolidated at a warehouse for assembly. The company then sells the bicycle whole, not in parts.
Types of Warehouses
In general, here are the types of warehouses
- Retail Distribution Center: This type of warehouse typically supplies product to retail stores, such as Wal-Mart or Target. The customer for this type of warehouse is the retail store.
- Service Parts Distribution Center: This type of warehouse holds spare parts for expensive capital equipment, such as planes or other types of manufacturing. Toyota has a network of supply parts distribution centers where they supply automotive parts to the manufacturing plants.
- Online Retail or eCommerce: This type of distribution center receives orders online, then those orders enter the pick, pack, ship process to the end customer.
- 3PL Warehouse: This type of warehouse is where a brick-and-mortar retailer of an online retailer outsource their warehouse operations. For example, Amazon.com often acts as a 3PL to large retailers, such as Target. In other words, if you purchase an item from Target.com, that inventory is actually housed in Amazon.com’s fullment centers and will be shipped from there. In this example, Amazon.com acts as a 3PL to Target.
- Perishables Warehouse: Similar to the examples above, this type of warehouse holds food items or pharmaceutical items that have a short shelf life. This type of warehouse usually is part of a “cold chain” where temperature and other conditions that can impact the merchandise is closely monitored and controlled.
The main activities any warehouse management system needs to be able to do are the following:
- Record receipt of inventory
- Record shipment of inventory
- Stock locator (inbound: where can a piece of inventory be stored and outbound: where can I go to pick an inventory item a customer ordered)
- Main Features:
- Receiving
- Cycle Count
- Put Away
- Location Tracking
- Picking
- Packing
- Consolidation
- Space Capacity
- Shipping
- Replenishment (replenish prime bins from safety stock and replenish safety stock from supplier)
- Vendor and Carrier quality compliance
- Trailer Manifesting
- Returns
- Labor Management
- Advanced Slotting
When selecting a WMS there are many vendors to choose from. If you
currently operate an ERP system then the WMS functionality may be part
of that suite, or you can use a bolt-on WMS package. For companies that
use best of breed solutions, the choice of WMS will reflect the
requirements of your warehouse operations.
Some sample of the WMS software as follows:
Warehouse Management System Buyer's Guide
ACCTivate!
For small to mid-sized businesses distributors looking for a
complete, cost-effective ERP, ACCTivate! is a system that integrates
seamlessly with QuickBooks, expanding the solution's capabilities
without expanding the cost.
ADS Solutions Advantage - Distribution
ADS Amplexus Distribution is a solution that has been developed over
more than 25 years for small and medium sized distributors. The
software is best for firms that make between $1 million and $25 million
annually.
Abas Distribution
abas Business Software is a well-respected ERP solution that serves
the manufacturing and distribution markets. abas Distribution is a good
fit for distributors of HVAC & mechanical, electrical, chemical
supplies and more.
Apprise
For manufacturers, importers and distributors of consumer goods,
Apprise Software offers a fully integrated Enterprise Resource Planning
solution. Apprise gives consumer goods companies sophisticated
out-of-the-box functionality.
Blue Link Elite
Established in 1992, Blue Link Elite develops software for the small
to midsized distributor that makes from $1 million to $50 million. Blue
Link offers their system as an on-premise or hosted (SaaS) solution.
CMS
CMS Professional is an affordable transportation management system
for distributors. This TMS asisits all FTL and LTL, including equipment
& customer management, accounts payable and receivable, invoicing
and billing.
ECi Maytech
An ideal distribution ERP for the janitorial, sanitation and
industrial paper industries, Maytech is backed by ECi's 20+ years of
technology experience. The system includes accounting, inventory
management, purchasing and more.
Enterprise 21 ERP
Enterprise 21 is an award-winning, fully integrated ERP solution for
small to mid-sized wholesale distributors that combines financial
reporting, CRM, business intelligence and warehouse and inventory
management.
Entree
NECS has provided software systems for the food distribution industry since 1987. NECS entrée is an ERP for all types of food distributors, offering order entry, sales, purchasing, inventory, routing, and reporting functionality.
Epicor (formerly Activant) Distribution
Epicor is a highly regarded vendor of ERP software that is known for its flexibility and ease of use. Epicor has more than 25 years of experience and serves more than 20,000 customers across the world.
Exact Globe Distribution
Exact Globe can serve for small to medium manufacturers and
distributors industries. The software provides best-of-breed accounting
and inventory management, customer management and others in the suite.
Fishbowl Inventory - Distribution
Fishbowl Inventory is built for distributors that are using QuickBooks as their accounting package and need to improve their inventory capabilities. This system is popular amongst distributors working in the lower to middle market.
Geneva Business Management Systems (GBMS)
Geneva is a good system to upgrade from a standard basic application such as QuickBooks. The system is great for midsized distributors but can also scale to meet the needs of larger distributors.
HighJump Warehouse Advantage
High Jump for distribution targets the large distributors that usually have requirements to operate multiple warehouses across North America or the world. The software is a best fit for companies that have more than 100 employees.
IBS Enterprise
Backed by over 30 years of experience in supply chain and
distribution software, IBS Enterprise is a fully-integrated ERP solution
for manufactures & distributors. Over 4,000 customers have been
helped by IBS’s 40+ modules.
Infor ERP Distribution
Infor Distribution solutions currently drive more than $100 billion
of services and goods in N. American supply chains. This system includes
WMS, TMS, order and inventory management, demand planning, & demand
management solutions.
Inform Distribution Software
Inform Distribution Management Software by DDI System is the choice
of thousands of distributors. The software is fully integrated allowing
distributors to manage everything from inventory and purchasing to sales
performance.
Intuit QuickBooks Enterprise
For distributors looking to more efficiently manage and streamline
business operations, QuickBooks Enterprise offers a cost-effective,
enormously popular ERP solution that can expand to meet the company's
growing needs.
Microsoft Dynamics AX
Microsoft Dynamics AX provides deep functionality and excels at
managing distribution across multiple warehouses and multiple countries.
This program is meant for large distributors with robust software
requirements.
Microsoft Dynamics GP
Microsoft Dynamics GP brings strong accounting capabilities to large
distributors that need to consolidate their financials. Dynamics GP
also offers transportation management, warehouse management, and more in
the system.
Microsoft Dynamics NAV
Supporting specialized functionality for distribution,
manufacturing, government, and other industries, Microsoft Dynamics NAV
is a highly customizable system that benefits from numerous
partner-developed vertical extensions.
Microsoft Dynamics SL for Distribution
Microsoft Dynamics SL for Distribution handles financial management, business intelligence, collaboration, and more. Available in both hosted and on-premises versions, the system works well for project-based businesses.
NetSuite Wholesale/Distribution Edition
NetSuite is one of the leading web-based SaaS applications for wholesale and distribution. This is a powerful solution for medium-sized and fast growing distributors looking to gain a competitive advantage.
Oracle JD Edwards - Distribution
At it’s core, JD Edwards is an accounting system designed for
mid-sized distributors that work in any industry. It offers modules for
accounts payable and receivable, general ledger, expense management, and
fixed asset accounting.
ProSel for iPad
For salespeople in wholesale distribution, ProSel automates and
improves the selling process by ensuring all the information needed on a
sales call is right at your fingertips. Interfacing seamlessly with a
distributor's existing ...
Produce Pro
Designed specifically for the perishable food distributor, Produce
Pro is a complete ERP which includes accounting, inventory management,
warehouse management and transportation management capabilities.
Retalix Power Enterprise
With its fully integrated ERP solution, Retalix Power Enterprise
offers food service retailers and distributors a comprehensive solution
to manage and streamline operations while providing a complete,
real-time business view.
Royal 4 Enterprise
For distributors looking for a highly scalable, complete ERP offered
as both on-premise and web-based, Royal 4 Enterprise is an
internationally recognized industry leader, providing robust
functionality that adapts to your needs.
S2K for Distribution
S2K is a bundle of hardware and software for retailers and
distributors. The system has functionality for point-of-sale, shipment,
and warehousing, as well as in-depth sales analysis. It can integrate
with other S2K applications.
SAP Business One - Distribution
With a strong background in enterprise resource planning (ERP)
software, SAP's solution is specifically targeted at mid-sized
distribution companies to help streamline the order-to-cash process and
improve inventory management.
SAP for Wholesale Distribution
Combining ERP and CRM functions compatible with the distribution
industry, SAP Business All-in-One leverages hundreds of
industry-specific solutions to provide specialized tools for financials,
inventory, marketing, and more.
SCP 4.0
Jada SCP 4.0 is a best-of-breed system that handles the demand management and inventory management requirements of distributors. The software can accommodate medium and large distributors and comes either on-premise or web-enabled
SYSPRO
Offering small to mid-sized distributors a fully integrated
solution, SYSPRO offers control over every aspect of the company, from
accounting to operations. SYSPRO has been designed to support the
special needs of distributors.
Sage ERP
Sage ERP is a comprehensive enterprise resource planning system for
managing finances, customer contacts, supply chain, and more. Deployed
on-premises or on-demand, it’s a good fit for companies with between 5
and 2,000 employees.
Syncron Global Inventory Management - Distribution
Syncron Global Inventory Management streamlines supply chain
management and planning by increasing stock availability, controlling
inventory, improving the end customer experience and, most importantly,
increasing profits.
V2
V2 by Distribution One is a functionally complete offering that is
sold as a broad suite to handle distribution needs. Distribution One’s
V2 solution is built for distributors with revenue between $1 million to
$25 million.
Vision SCM
Vision Supply Chain offered by Jesta I.S. is among the reader’s
choice of Top 10 companies according to Consumer Goods Technology. The
software supports the needs of distributors of apparel, books, and
consumer packaged goods.
e-PIC One Enterprise
Offering a flexible system developed specifically for distributors
and manufacturers, e-PIC One Enterprise incorporates all the
functionality needed to run a successful business: WMS, financials,
inventory management and more.
It is very important to determine the type of warehouse before you decide which warehouse management software systems are right for your needs. It should be plan carefully.
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