Key functions of warehouse management systems
Your warehouse is filled with inventory. Some items are ready to sell immediately, while others require processing or customization. Whether you're managing specialized products, such as meat cut to order, or customizable inventory like an item with various color options, efficient warehouse management is essential to ensure smooth operations.
This is where your WMS comes into play. At its core, the functions of a warehouse management system include tracking the location of every item within the warehouse. But its capabilities extend far beyond that. From optimizing picking routes to managing labor and yard operations, WMS solutions are designed to streamline operations and boost profitability.
Below, we explore the critical warehouse management system functions that can transform how your business operates.
Picking
A fundamental WMS function is optimizing the picking process. With the picking module, you can answer key questions such as:
- What items are needed to fulfill an order?
- Where are these items located?
- What is the most efficient path for staff to follow to retrieve them?
By using a warehouse management system, picking paths are streamlined, ensuring faster order fulfillment and increased accuracy.
Receiving
This module involves transforming incoming deliveries into inventory records. When a truck pulls up to your dock, the WMS facilitates transactions that convert purchase orders into inventory, setting the stage for seamless accounting processes. This key WMS module ensures that your stock is accurately accounted for and ready for further action.
Put away
Now those newly received items are in your inventory, where should they be kept? Some of them will be needed to ship out today to a customer so a cross-dock movement is made and those items never need to sit on an inventory shelf.
Other items will be part of a shipment soon - where should they be stored so that the day’s picking path is as short and simple as possible? WMS will find those locations.
Packing
In any busy warehouse, multiple employees may be tasked with picking items for the same order. One of the most critical functions of warehouse management systems is ensuring that picked items are correctly grouped and matched to customer orders. This allows for quicker packing and minimizes errors in the order fulfillment process.
Shipping
Some deliveries will go by your own trucks, others will ship with parcel carriers and perhaps some will ship through the mail. WMS will help keep each batch of shipments together ensuring that when the parcel shipper arrives, all the right orders will be in one place.
This WMS function also helps produce accurate shipping labels to ensure every package reaches its intended destination.
Yard management
Often your inventory cannot be held in your warehouse and you have containers and trailers parked outdoors. Some are waiting for space within the warehouse and some can wait until the merchandise within is needed to ship to a customer.
WMS extends beyond your walls and tracks the location of all the items held in those containers and trailers.
Labor management
How many people are needed on any day? WMS calculates the time required for work on any day and gives you the tools to employ the right number of people every day. WMS also tracks the productivity of those people.
Who picks the most items? Who picks with the highest accuracy? Who can find the putaway shelf in the least time? WMS helps ensure you have the best people in your warehouse.
Conclusion
A well-implemented warehouse management system is essential for running an efficient, profitable warehouse. Its various features and modules, from inventory tracking to labor management, work together to streamline operations and ensure that every part of the supply chain is optimized.
Whether you're receiving goods, organizing storage, or shipping orders, the WMS functions you rely on play a critical role in ensuring efficiency, accuracy and overall success. When combined with an ERP system, a WMS brings even more value by integrating inventory data with your broader business processes to give you a holistic view of your supply chain.
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