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How does a Warehouse Management System ( WMS ) fit into your supply chain?

In a fully integrated solution you will have your raw materials received into your Warehouse Management System, be consumed by your Material Requirement Planning system and the finished goods be deposited back into the WMS. The WMS will facilitate the tracking of the product through moves and cycle counts while in the warehouse, then finally be picked and sent to either the shipping system or Transportation Management System to route your trucks. The entire time your Enterprise Resource Planning system will be tracking the values, orders, sales, and invoices with all of the systems.

What to look for in a Warehouse Management System ( WMS )

There are different types of WMS ranging from simple uncomplicated systems to more complex ones that are more suited for large warehouses. When looking for a WMS system for your warehouse, there are different factors you need to consider before you can settle on one WMS. Some of the things to consider include

Functions

Different WMS can perform different functions and are built for different industries. What functions does your business need to meet to satisfy the needs of your customers, any regulating bodies, and your shareholders? Look for a warehouse management system that is configurable and able to scale past where you are, but to where you plan to be in five years.

Warehouse size

Larger warehouses require more detailed systems than smaller ones. This is because more activities and functions are carried out in a large warehouse and all such activities and functions require a more detailed system. The larger the warehouse, the higher the cost of travel between locations, and therefore the more important detailed tracking is.

Customer needs

By identifying the loopholes in your current system, you will be in a position to determine the functions you require in a WMS, and select a WMS that will ensure that you are able to serve your customers better and increase their satisfaction with the services you provide. Are you an ecommerce site that needs auto-allocation so your available inventory is always accurate? Do you need to post tracking numbers to your customers? Do you need lot tracking to comply with FDA regulation?

Cost

The cost of installing a WMS system differs greatly depending on the complexity of the system and the system vendor. Choose a WMS system that will serve your warehouse better by fulfilling all the required functions, and also one that your business can afford. Choosing a system that is way too expensive for you will only put your business in trouble and end up compromising the quality and efficiency you so much want to improve. Choosing a basic WMS system on the other hand might not serve you sufficiently, especially, if you have many functions in your warehouse. You have to find the right balance between cost and functions when choosing the right WMS for your business. Don’t get caught thinking what your business needs are today, think of where your business needs to be in 5 years and choose a product that can take you there and beyond.