Benefits of Warehouse Management System

Warehouse management is very important in any country’s economy, because a significant percentage of the assets of organizations are accumulated in their warehouse inventories. Also the management of warehouses is hard and expensive, and organizations are trying to determine the best optimal practice that includes the minimum cost and in this regard, they benefit from the techniques and science of warehouse management system, because time, cost and accuracy are the main elements of decision making. Here are some benefits of Warehouse Management System (WMS).

What are the targets defined in contemporary warehouse management processes?

Warehouse Management is one of the most important functions among logistics processes. Since the warehouse of an organization always holds a large part of the capital, it helps to reduce the costs and profits of the organization.

Permanent management of goods in warehouses increases the speed of customer service and eliminates problems in manual and traditional systems.

In order to use warehouses more effectively and efficiently, unlike the traditional Warehouse management approach, today’s Warehouse Management systems strive to make significant use of technology, to make in-house processes more systematic and to reach the maximum possible speed of operation. Some of the targets are –

Achieving the lowest possible storage cost
Performing operations with the highest levels of speed
More systematic storage activities
Low rates of losses.
Easy access and fast transfer capability
High flexibility in logistics services
The use of the most advanced technology possible

Such targets can be considered among the main objectives of warehouse management. Effective and efficient warehouse management; it can be implemented as a result of efforts such as planning, controlled and improving processes.

What is WMS (Warehouse Management System)?

WMS, which stands for warehouse management system, is a software used to manage operations in a warehouse including inventory management, collection and auditing processes.

It is a mechanism to improve the accuracy and efficiency of warehouse operations. WMS includes Master management, Inventory management, Inbound management, Shipment management, Return management etc..

With WMS, you can see inventory and work conditions, so you can turn your work around efficiently.

WMS can be used for activities such as adding new products, collecting required products, inventory quality control, transportation, reporting, forecasting the products and raw materials needed, channel management, etc.

The purpose of each warehouse is to control the entry and exit and inventory of goods in the best and most effective way possible.

With warehouse management system (WMS), the process of entering and exiting and sending orders is possible more quickly. A proper and accurate warehousing system can greatly reduce the likelihood of mistakes that may occur when carrying a product. With a warehouse management system, a company will be able to manage its inventory on time. Every step in this process, from ordering a customer’s product to receiving this product, can be synchronized with inventory records, which help businesses maximize productivity.

Why You Need WMS?

It is an important part of supply chain management. First of all, these systems control material movements and storage activities, including purchase, collection, shipment and transportation within the warehouse. Because Warehouse Systems provide interactive use, it routes inventory based on real-time information about inventory status, and moreover optimizes all operations. In fact, WMS monitors and directs the progress of products through the system. For this, physical storage infrastructure requires monitoring systems (devices) and communication (network).

A company can have multiple storage areas in different locations or within the same building. This can be a central repositor, (service with central warehouse), regional warehouses, and potential retail repositors. WMS systems have emerged because the control mechanisms of these warehouses are difficult separately.

1.) Total daily warehouse capacity, personnel status, carriers, route information and orders can be planned to direct all activities of an operation or a day.

2.) Meeting delivery expectations according to customer situations, workflow can be arranged throughout the day for warehouse and material statuses.

3.) During the day, personnel assignment can be provided and optimized according to the work area in order to make a plan, job assignment and balanced transaction, to optimize the use of personnel and equipment.

4.) By analyzing operations and physical capacity, it provides appropriate reports for identifying needs and optimizing efficiency and for the performance of each task/staff.

5.) By monitoring daily transactions instantly, these necessary overtime and personnel shifting problems can be predicted in a timely way during the day and precautions can be taken in advance.

Benefits of Warehouse Management System

Saving space by warehouse management system

When the inventory is managed properly, a large part of the storage space is maintained. In other words, this system allows you to store orders accurately and set them together.

Visible inventory status

The major advantage of introducing WMS is the “inventory modeling”. WMS performs inspection work using handy terminals, etc. in the receiving business. When the inspection is completed, it is reflected in the inventory in real time, and the stock status is instantly visible. In addition, you can grasp the status of the product by performing shelf life and lot management. By utilizing the first in, first out function, it is also possible to ensure that inventory that exceeds the expiration date is not shipped along with other products and manage the allowable expiration date. Location management also gives you an understanding of where you are physically. The appeal of WMS is that it can help you efficiently produce, purchase, and sell products by being able to grasp inventory status in real time.

Increase customer satisfaction and improve services

Increasing customer satisfaction and improving services by reducing errors in ordering process is another advantage of using warehouse management systems.

Increase employee efficiency and productivity

The use of these systems in warehousing, in addition to equipment, has significant benefits for employees. For example, workers who know exactly which shelf the products are don’t waste time walking and searching, reducing the risk of over-activity and creating a continuous productivity in the warehouse.

Reduce vulnerabilities in terms of security

An effective WMS system records inventory accurately, and since it is login-dependent and is owned by specific persons, management staff can be sure that workers will not steal from additional stocks or products.

Improving the accuracy and efficiency of logistics work

One of the biggest advantages of WMS implementation is improving the accuracy and efficiency of logistics work. Because warehouse work is done by people, human error inevitable and a lot of time is lost in correcting them. WMS provides –

Reduction of human error by use of inspection system using handy terminal and barcode
Significantly improved logistics quality, such as improving inventory accuracy in data on in-shipments, returns, and inventory information
Automatic inspection work by handy terminal
Location management that makes it clear what is stored, where and how much, ensures optimal route picking instructions and lean work instructions according to the number of products.

Difference between WMS and Core systems

In the “Core system” that manages production, purchase, sales, etc. in the company, it is possible to perform inventory management and order management. However, the core system does not have the function of inspection of inbound and outbound goods required for warehouse operations, counting, and issuing delivery slips. This is where WMS helps.

WMS has location management and inspection functions that specialize in improving the efficiency and quality of warehouse operations.

In other words, work areas that cannot be supplemented by core systems can be realized by utilizing WMS for high-quality and highly efficient inventory management and in-ship operations.

Summary

WMS is a system that can solve various problems in warehouse operations.

It can be said that it is an indispensable system to improve the quality and efficiency of warehouse operations.

In addition, by utilizing WMS, warehouse operations can contribute to sales increase by improving customer satisfaction.

In recent years, the introduction of WMS will become increasingly important in order to introduce and utilize AI and RPA to replace people.

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