4 supply chain management requirements to factor into your WMS selection

Controlling your warehouse is challenging work. Effective warehouse management demands attention to detail and robust systems; without proper oversight, operations can quickly become chaotic. While a Warehouse Management System (WMS) is warehouse-focused, it plays a critical role in supporting the entire supply chain.

The positive news is that your WMS can play a smart role in giving you this control. For best results, choose a WMS that meets your supply chain management requirements.

Use our free requirements template to ensure your WMS meets all your selection criteria

For many companies, supply chain management (SCM) encompasses various best practices needed for daily operations. Some companies also use a dedicated piece of SCM software to support these processes. However, even without full SCM software, your WMS can help streamline many SCM-related tasks.

As you explore these four core WMS requirements, keep your SCM needs in mind.

1. KPIs to track

Key performance indicators (KPIs) are a vital tool for your WMS because they enable you to see how well your operations are performing. There are a variety of supply chain tools to collect data, including your WMS. Top metrics to track include inventory levels and accuracy, receiving and putaway times, storage costs per item, orders picked per hour, cost per line item picked, labor costs, cost per item shipped, cost per order, and the percentage of correct shipments.

Using WMS-integrated analysis tools to monitor KPIs such as order accuracy and labor productivity empowers warehouse managers to make data-driven adjustments, supporting smooth supply chain operations. Customize your KPIs to meet the specific needs of your warehouse and supply chain process.

There are a variety of metrics you can use to understand customers and leads.

If you’ve been in the warehouse for any time, you know that these numbers can help you understand and improve your operations. That list is just a start, so be sure to customize yours for your supply chain process.

2. Supply chain size

WMS supply chain requirements should always focus on the size of your individual efforts as well as the entire supply chain. You need a platform that can support all your warehouses, SKUs, staff, and equipment.

Just as important is a WMS (or any other supply chain management software) that supports your supply chain partners. Look for systems that allow you to share or collect information with supply chain partners, and specifically ask vendors about the full length of your supply chain.

One item most warehouse management systems support, but is worth asking about, is electronic data exchange (EDI). An EDI is a standardized format that makes it easier to share business documents. A mix of EDI support and collection of photos or signatures in a WMS simplifies the auditing process and helps track goods, materials, or finished products at every step in your supply chain.

3. Automation requirements

If you already have automation tools in place or are considering adding them to your 5-year plan, add automation support to your list of supply chain requirements. Otherwise, you’ll be spending a lot more trying to find, or create, an automation module under a more significant time crunch.

Automation in WMS not only streamlines warehouse processes but also supports supply chain goals by enhancing order accuracy and reducing processing times. Features like automated replenishment and route optimization can reduce delays in product availability.

4. Staff levels and needs

It takes a team to manage a supply chain and run your warehouse. So, an important question to ask is: how many people can you spare to run a WMS during the day?

Supply chain management requirements need to look at your available staff for each shift. If a system requires one person to be continually at the helm, you’ll need a specific staff level.

Complex systems that are automated may also require significant training to operate. Your existing talent needs to be able to use this system, or you might need to hire for this knowledge and skill set. Review your team’s capabilities to see what you can support already. Or, if your business is growing, this could be a smart element to consider for your next hire.

Tools to integrate with your warehouse management system for enhanced SCM

Integration with supply chain management tools can elevate your WMS, making it a pivotal part of the entire supply chain. Tools commonly integrated with WMS include:

• Inventory optimization software: Works in tandem with WMS to predict demand and adjust stock levels, preventing overstock and understock situations.
• Transportation management systems (TMS): Complements WMS capabilities by managing logistics and optimizing routes, ensuring that products are moved efficiently within the supply chain.
• Supplier management tools: Allow warehouse managers to track supplier performance and coordinate deliveries, making it easier to receive stock on time and maintain steady inventory flow.

These integrations allow WMS users to transform their warehouse operations into a powerful supply chain hub, ensuring smoother coordination from suppliers to end customers.

WMS analytics tools for supply chain optimization

Warehouse managers benefit from supply chain analysis tools built into or integrated with WMS to gain insights into performance metrics and identify areas for improvement. Key analysis tools include:

• Predictive analytics: Uses historical data to forecast demand, enabling proactive stock management and reducing the risk of overstock or understock.
• Labor analytics: Monitors workforce productivity, helping optimize shift schedules and task assignments.
• Performance dashboards: Provide real-time updates on metrics like order accuracy, pick times, and inventory turnover, allowing quick adjustments.

Implementing these tools allows warehouse managers to proactively address inefficiencies, making the WMS an indispensable component in the supply chain strategy.

Conclusion

As you compare different systems, consider your current needs and future growth plans. Use the requirements template mentioned above to ensure any WMS under consideration can support not only your warehouse but your entire supply chain.