What Are The Key Benefits Of a Warehouse Management System?
What is a WMS?
A Warehouse Management system (WMS) such as ProSKU, is a sophisticated software solution to manage, integrate, and control the multitude of warehouse operations and functions by various types of businesses and industries, particularly those operating within any wholesale and retail distribution centre, import and export, factory, supply chain, and business supplying goods in strictly regulated environments.
A comprehensive warehouse management system is designed to optimise, streamline, automate, analyse, and efficiently oversee the entire succession of supply chain and warehouse operations, from inception to final consumption and disposal. It maximises warehouse operational efficiency, resource allocation, productivity, service standards, cost-effectiveness, and profitability.
The best warehouse management system software is flexible enough to synchronise the activities of all the supply chain partners across various platforms to harmonise supply, tracking and movement, storage, accuracy, and rapid order fulfilment.
Contact us for a demo or expert advice. Call us on 0800 170 1161, or email info@prosku.com or www.prosku.com/contact-us/
What Kinds of WMS Are There?
Businesses in various industries, and at different stages of their development, require warehouse management systems that differ in complexity, scale, and functionality according to their needs.
Standalone and cloud-based WMS
Warehouse management systems can be broadly classified into the following categories:
Standalone WMS
Standalone is arguably the simplest form of warehouse management system, focusing exclusively on a smaller business’s warehouse inventory management functions or as an integrated part of ERP and transport management systems.
Their functions are generally limited to focused inventory control, order management, warehouse personnel and resource management.
Standalone WMS is hosted on the company’s hardware on their premises and is maintained and updated by in-house or contracted IT specialists.
Cloud-Based WMS
A specialist software-as-a-service (SaaS) WMS such as ProSKU, is an innovative, flexible, and scalable solution hosted off-site on protected servers. It can be accessed securely on a smart device anytime, anywhere.
The service provider ensures enhanced customer service and the software is updated with the latest upgrades and internet security. The service provider also customises and maintains the system according to the customer’s needs and requirements, seamlessly integrating with all existing systems.
Integrated WMS
The more complex and diverse the business, the greater the need for one WMS system that seamlessly integrates with all its other systems, such as enterprise resource planning (ERP), onward customer services systems, supply chain management (SCM), accounting and financial planning systems, automated and robotics systems, and compliance procedures.
ProSKU offers full API (Application Programming Interface), marketplace, and carrier system integration from multiple channels. Its scalable and modular nature enables companies, particularly industry-specific businesses, those with variable seasonal cycles, and those operating in highly specialised or regulated environments, to create bespoke WMS end-to-end solutions.
Integrating multiple platforms enables free real-time data flow between systems and provides a holistic view of the entire process, including superior analytical and forecasting features.
Added portals enable collaboration with suppliers, vendors, sales partners, logistics providers, and clients, to link historical data for real-time 360 ° views of the entire supply chain and synchronise activities.
Key Benefits of WMS
Enhanced inventory management and control
All the raw materials, components, and finished goods held by a business for production, utilisation, and resale, is known as inventory. The more complex the inventory, the more complicated the process of managing inventory is, and the greater the need for a sophisticated warehouse management system.
Inventory management encompasses all the processes and procedures to identify and track inventory from procurement to accurate order fulfilment and final disposal. The benefits of warehouse management include accurately forecasting what type of stock and how much to order; identifying, locating and tracking each item along the entire supply chain and storage; and maintaining optimal stock levels.
A WMS can effectively manage high-density storage systems and large volumes without expanding floor space or resources.
Efficient order fulfilment
In its broader sense, order fulfilment entails the process from customer enquiry to product delivery.
Starting with receiving and holding the product in stock, the order fulfilment feature acts like a choreographer that aligns the workflow and optimises all tasks, from exact order processing and invoicing to speedy and accurate order picking, assembling, packing processes, shipping, delivery, and client satisfaction follow-up.
An advanced WMS significantly enhances order fulfilment speed, enabling faster and more accurate picking, packing, and shipping processes, with greater customer satisfaction and retention and a competitive edge.
Optimise warehouse storage space
Based on factors such as demand, size, weight, shelf life, warehouse workflow, and resource allocation, a warehouse management system analyses the best use of floor space and helps you design strategies and systems to maximise warehouse space in the most logical and space-efficient manner; minimise wasted time, space and operational costs; and improve accessibility to locate and retrieve products.
Directional workflow can be planned easily to prevent bottlenecks or to prevent travelling unnecessary distances, in particular when vehicles or mechanised service systems are used.
Stock and material rotation practices are simplified. For instance, FIFO, LIFO, and FEFO, systems can exist side-by-side with greater flexibility and efficiency.
A well-organised warehouse layout leads to improved inventory tracking and retrieval, reduces labour costs, minimises the likelihood of errors or miscounts, eliminates the need for excess storage space, and facilitates automation.
Real-time visibility
Real-time data on inventory levels, location and movement of stock items, allows managers to accurately and efficiently monitor the status of inventory and customer orders, identify potential glitches, and make informed business decisions to respond quickly to any challenges or changes in demand or supply.
A warehouse management system has a huge advantage over manual inventory tracking, which is prone to errors, takes an inordinate amount of time, and often causes business closure during stocktaking.
Complete visibility enables the company to precisely measure and maintain inventory levels and estimate demand, avoiding backorders or overstocking.
By securely tracking the location and status of inventory on a smart device in real-time from wherever the manager is, it is possible to ascertain accurate stock levels and quickly access goods for urgent orders, to radically reduce warehouse costs while improving accurate order fulfilment speed and accuracy.
Real-time inventory visibility further enables the manager to judge product sales performance, returns, and defects against similar items, stay abreast of what will be in future demand and adjust inventory orders accordingly. This function is of crucial importance, especially during seasonal or cyclical demands, changing fashions and fads, special events, and market shortages.
By using lot-, batch-, and serial numbering; and integrating automated systems such as mobile barcode scanners or QR code scanners; RFID, pick-to-voice, or pick-to-light technology; it becomes even easier to eliminate human error and ensure stock will not be lost, misplaced, forgotten, or become redundant.
Instant and secure access to crucial information
Key personnel can securely access vital information at any time, from anywhere, on a smart device. With multiple access, various stakeholders and decision-makers can simultaneously access the same information, even miles apart, to make informed decisions. Likewise, they can collaborate on the contents of documents and files in different locations.
Cloud-based software and data are safeguarded from cyber-attacks and threats with the latest protection systems and internet security. Data loss is prevented by storing data on various, secure off-site servers.
Reporting and analytics
To measure and manage warehouse performance, administrators and warehouse staff need accurate, current, and quantifiable information such as swiftness of order processing, fulfilment rate and accuracy, inventory turnover, space utilisation, and opportunities for improvement.
Comprehensive analytical reports on a variety of metrics give you real-time insight into the current situation and trends and allow you to test different strategies before making knowledgeable business decisions.
Forecasts, lead times, product flows, etc. can be compared to the actual performance, to eliminate glitches and promote improved customer service.
Integration with other systems
By seamlessly connecting and integrating all business systems and software on one platform in real-time, the key benefits of a WMS solution ensure optimal data flow and resource utilisation. Accounting systems, ERP, robotics, and automated systems are coordinated to form a cohesive infrastructure that works together smoothly, to share information and execute processes more efficiently.
Scalable system architecture
Cloud-based WMS software like ProSKU, allows you to add or remove features or storage space to meet changing demands, handle rapid changes to workloads at certain times, create the capacity to grow, benefit from economies of scale, and save costs when the demand for certain services drops.
Vertical scalability (scaling up) involves the addition of computing or resources or features for space utilisation on a single server, while horizontal scalability (scaling out), refers to adding servers or nodes, and diagonal scalability combines both these methods without additional overheads and yet benefits from cost savings when scaling down, either temporarily or permanently.
Responsive warehouse automation
WMS software monitors and controls various automated systems, such as storage and retrieval systems, guided vehicles, conveyor belts, robotics, sorting machines, pick-to-voice, and pick-to-light procedures.
By maintaining constant interactive communication with WMS software and receiving sequential instructions, workstation operators can complete all tasks quickly and accurately without supervisor intervention.
Financial management becomes fully automated as the system analyses financial data and tracks inventory levels, automatically issues invoices and receipts, updates stock levels, and flags or issues order instructions.
As AI and machine learning continue to develop, constantly updated WMS software, like ProSKU, will further enhance efficiency, accuracy, adaptability, and predictive inventory ordering and storage requirements.
Assignment, monitoring, and oversight of task schedules
Each warehouse requires its unique workflow stratagem to optimise receiving, invoicing, putaway, storage, movement, tracking, orders, picking routes, packing, and shipping; and minimise labour costs and order fulfilment time.
A WMS customises the workflow and streamlines the process by assigning and prioritising the various tasks according to your business approach, increasing productivity and reducing costs.
From the moment an item is ordered by a customer, the process is triggered to locate, pick, and move items, issue invoices, prepare for shipping and delivery, and track the parcel throughout the process.
Once the order is delivered, the WMS will follow up with client communication to ensure positive customer experience and retention.
Warehouse operations are more accurate and efficient because built-in control systems require the operators to confirm the successful completion of tasks. Supervisors can easily identify and correct complications.
Coordinated supply chain management
The WMS serves as the hub of the entire supply chain, receiving goods from one end of the chain and distributing them towards the other end. An integrated WMS coordinates information sharing to streamline the planning, production, and logistics along the entire chain and across the systems of all the supply chain partners.
Cost reduction
Exact forecasts and procurement, greater accuracy in order picking and inventory, error-free bookkeeping and administration, labour management, labour efficiency, fast-moving processes, and timely delivery, result in greater productivity, minimised losses, and customer satisfaction, with a significant impact on the company’s bottom line.
By making the best use of expensive storage space, there is no waste or paying for labour costs or additional warehouse space.
Effective inventory management significantly lowers warehouse costs and reduces the risk and associated expense of overstocking or understocking, items becoming redundant, or passing their expiry date.
Compliance with legislation and regulations
WMS software has features to enable importers, exporters, and companies operating in strictly regulated industries, with cross-border and regulatory compliance.
Which industries need WMS the most?
While all businesses, large or small, benefit immensely from an appropriate WMS, the following industries will find an advanced WMS indispensable:
- eCommerce
- Fulfilment and distribution centres
- Manufacturing
- Food and beverage
- Health and beauty
- Chemical and pharmaceutical
- Medical and hospital care
- Retail and consumer goods
- Wholesale distribution
- 3PL (Third-party logistics)
- Telecoms
Get in touch
Contact us for expert advice, a demo, or an introductory chat. You can call us on 0800 170 1161 or book a demo here: https://www.prosku.com/contact-us/
