What is Warehouse Management System (WMS)?
businesses are greatly relying on online retail technology to make
their goods available to worldwide customers. Organizations very well
know that a winning e-commerce strategy can take their company to the
next level for which they first need to manage their inventory well and
serve their customers in the best manner. This is where a warehouse
management system or WMS will play a significant role, as it will give
them everything that they need to manage products, streamline processes,
and save money. A warehouse management system is a software solution,
which is increasingly used in the manufacturing and retail industries to
track goods and materials that come in and go out of the warehouse. In
other words, the warehouse management system looks into business
inventory and optimizes all warehouse processes. It efficiently manages
supply chain fulfilment operations, right from the distribution centre
to the shelf of the store.
Essential Warehouse Management Processes
warehouse management system is a set of processes used to organize the
work of a warehouse or distribution centre can make sure that this
facility efficiently operates and fulfils its objectives. Warehouse
management includes all the processes that are essential for running the
day-to-day operations of a warehouse. It includes receiving and
organizing warehouse space, scheduling labour, managing inventory, and
fulfilling orders. Effective warehouse management comprises optimization
and integration of all the processes to make sure that all aspects of a
warehouse operation work together to increase productivity and reduce
costs. Warehouse management processes comprise six main processes and
every process affects the efficiency of the next process, so every
process of warehouse management should be optimized to ensure that
warehouse operation run like a well-oiled machine. The six major
processes of warehouse management include:
Receiving the right products or items
- Businesses should log the incoming items and products and should
verify that they are receiving the items in the right quantity,
condition, and at the right time.
Move Items - The received items should be moved from the receiving dock to their proper storage space.
Safely and Aptly Store
- The products should be safe and aptly store by logically arranging
the inventory to ensure quick and accurate picking of items.
Collecting - The needed items should be picked to fulfil the sales order.
Prepare Items for Shipment - The items should be prepared for shipment by safely and properly packaging them along with a precise packing slip.
- Lastly the finalised sales order is shipped through the right vehicle
at the right time with the correct documentation to make sure that
customers receive their orders on time.
What are the Different Types of Warehouse Management Systems?
warehouse management system helps businesses manage daily warehouse
operations and finding the right WMS for the business can be a difficult
task. Thus, a business must know their options and the difference
between different types of WMS, as this will help them pick the best one
depending upon their requirements. A warehouse management system is
vital for every business to efficiently run its warehouse and it ties
together all aspects of the supply chain and completely streamlines the
entire supply chain process. The most common types of warehouse
management systems available to cater to the needs of diverse businesses
- This type of WMS is ideally suited for smaller warehouse operations
or for businesses that are planning to use it with their other supply
chain operations and are not looking to integrate a new system. This WMS
comes with just warehouse management features and is highly affordable.
This type of WMS is ideal for businesses that need to improve their
warehouse operations and inventory management of their supply chain
which are the two vital things of the warehouse functioning. Businesses
use standalone WMS to manage things like packing, shipping, receiving,
returns, barcode scanning, and inventory tracking.
- Enterprise Resource Planning Module is regarded as the best type of
WMS for 3PL businesses that are looking to expand and improve their
supply-chain operations. The extensive features of this type of WMS
allow businesses to organize their supply chain, HR, accounting, and
even customer relationship platforms. It is highly beneficial for large
supply chains because it consolidates operations into one platform. It
offers solutions for accounting, supply chain operations, customer
service, risk management, project management, and purchasing and this
type of WMS is ideal and the right fit for highly robust organizations.
- A cloud-based platform is the best option for quick integration and
added convenience of the WMS. The cloud technology used in the warehouse
provides innumerable benefits like more security, less IT maintenance,
and a lower cost. The integration and management of this type of WMS
become cheaper and easier this system runs on a server and system that
is outside the organization. The systems that are on-premises need more
work while implementing the platform within existing technology and
supply chain steps. Businesses will undoubtedly save money while having
an outside IT team managing their systems rather than having an in-house
team. The other highlighting feature of this type of WMS includes
better security, user-friendly, highly flexible, data recovery,
competitiveness, and consolidation. This type of WMS is generally
preferred by third-party logistics that outsource much of their
Supply Chain Module
- This type of WMS has a broad scope and allows businesses to manage
everything from vendor relationships to risk assessment to business
processes. This also focuses on material sourcing, automating inventory
management, and product cycles. It is ideally suited for 3PL businesses,
as it gives them chance to explore the benefits of supply chain
management while choosing this type of WMS businesses also need to
invest in supply chain planning applications that come with warehousing
features. Aligning WMS with other applications ensures better cohesion
between different parts of the business and it also supports holistic
management of the whole supply chain whereas standalone solutions
include only warehousing. Businesses that are using this type of WMS
need to minimize the overlaps within the existing software.
What are the Benefits of a Warehouse Management System?
make use of the warehouse management system to enhance efficiency,
profitability, and balance safety. This system also benefits operations
by reducing human error, maximizing productivity and efficiency, and has
a positive impact on the overall business with automation. Some of the
other major benefits of the WMS include:
Operating expenses is reduced
- An aptly designed WMS significantly reduces operating expenses by
determining the effective use of the labour as well as the space to
minimize waste. This system helps a business determine the place to keep
certain items, products, and equipment to enhance the warehouse flow.
- The warehouse management system provides better inventory visibility
with real-time data on inventory through serial numbers, barcoding, and
RFID tagging. Users can use these methods to document every item
entering the warehouse, its movement in the warehouse, and while being
transported from one location to another.
- Another major benefit of WMS is just-in-time inventory management,
which is a practice that keeps stock levels low and allows products to
be quickly moved through the warehouse. Instead of holding inventory for
long periods, the warehouse receives items "just in time" to fill an
- The majority of WMS require employees to make use of individual user
accounts for entering transactions that create an audit trail connecting
specific employees to certain transactions, improve accountability, and
reduce the risk of theft and other issues. Besides, user-based access
prevents unauthorized access to some reports and analyses and allows
users to see the essential information required for their work. Thus,
the company doesn't have to worry about secrets and losing its
Inbound and Outbound Logistics is optimized
- With WMS users do just not optimize the inventory location and
equipment but their movement around the warehouse is also perfected. The
WMS provides inbound planning tools like scheduling and put away
management that allow businesses and their supplier to know the best
date and time to receive a shipment based on the availability of labour
The Functionality of a WMS
that are looking to run a profitable and efficient business should
understand that warehousing is a significant aspect that helps in
achieving this aspiration. It helps in managing inventory while
controlling and maintaining items before shipping. The following
warehouse management functions solve business challenges as well as give
a systematic process to follow.
- It plays a vital role in warehouse management functions, as
businesses will probably require more storage during the holiday season
or when goods sell at lower rates whereas businesses will need to remove
items from storage when demand is high or in case of the increased
price. This strategy reduces wastage of the stock and ensures that items
are protected and safe.
- Products or items stored in warehouses are protected from theft,
fire, and damage, as warehouses are installed with surveillance systems
to capture any illegal activity and save products from theft. Thus, the
security of the warehouse is boosted and managers can remotely monitor
every ongoing activity in and around the warehouse. Alarm systems or
sensors can be installed in the warehouse to monitor and that can
automatically send signals in case of break-ins.
- Warehouse another major functionality is that it ensures price
stability, as warehouses help in managing price fluctuations by storing
stock when there is an increase in demand in the market while releasing
the goods into the market when the demand is under control. This
strategy ensures that there is sufficient inventory to match supply and
demand which further leads to price stability.
- Warehouse functions include some significant value-added services
like packing, re-packaging, grading, customization, re-branding,
bundling, stamping, barcode printing, labelling, invoice printing, order
fulfilment, quality checks, goods disposal, and processing for
efficient product delivery and optimizing the supply chain.
What are the Features of a Warehouse Management System?
choosing a warehouse management system, businesses need to consider
their functional requirements and make sure that all the vital features
that are essential for their businesses are incorporated. This will make
sure that the warehouse management system is packed with all the vital
features for the most efficient and cost-effective movement of products
and also facilitates apt warehouse monitoring, inventory management,
packaging of goods, receiving and shipping, and reporting. The following
are key features of a good warehouse management system:
- This feature of the warehouse management system track inventory
through barcode readers and RFID tags and automatically update
information on the WMS software's dashboard ensuring that the latest
information is accessible to anybody with permissions. It also ensures
that inventory can be easily located when they are required to move.
Packing and Picking
- Preparing picking lists is a daunting task that is greatly eased with
the picking and packing feature of the warehouse management system. WMS
allows businesses to easily sort and print lists either by bin
location, order date, or SKU. WMS is equipped with voice systems or
mobile devices to direct workers to the inventory's precise location.
The ideal route is advised to the workers along with necessary equipment
to reduce travel time for picking up any goods. Not only this, but WMS
also provides an ideal packing strategy along with the type and quantity
of packaging. Several details like price tags, shipping labels, logos,
bills, and other documents are provided directly from the system.
Manually entering the addresses and retyping tracking numbers is not
- Order optimization is a vital feature of a warehouse management
system that helps businesses effectively manage orders by regulating the
inventory flow through the warehouse. Some warehouse management system
provides connectivity to carrier networks to improve shipping operations
and with automation in WMS becoming prevalent, time-consuming manual
entry chores are eliminated. WMS is automated through artificial
intelligence, robotics, and machine learning that boost both speed and
efficiency, as picking robots can locate and deliver materials without
the need for workers.
- The analytics feature in the warehouse management system allows
businesses to benefit from real-time tracking, especially for inventory
management. It allows businesses to view their inventory levels in
real-time, making sure that they are aware of the situation when they
are running out of specific stock or have excessive stock. It
facilitates data filtering for KPI analysis, highlights improvement
areas and workflow management also keeps a track of warehouse happening
and incidents that require further attention.
What is the Future of Warehouse Management?
management system operations run on many levels and handling a
warehouse and ensuring the correct delivery schedule is not a simple
task. Besides, there are uncountable other tasks that need to be carried
out daily that make the warehouse management task difficult and
complex. Luckily, new technologies and innovations are emerging and
beautiful ideas are making their way into the warehouse management
system to make things easier. The warehouse management task is difficult
and requires ample support, as they are an integral part of inventory
management. The future of the warehouse management system will have the
Robots for Warehouse Management
- Robots in warehouse management are a perfect example of automated
systems because they ease the difficult manual tasks to a great extent.
These robots are efficient in performing all warehouse tasks, from
transporting goods to streamlining warehouse operations; they can do it
all, thereby saving a great amount of time and energy for businesses and
also eliminating the chance of human error. Robots can quickly do
warehouse jobs in a highly organized manner that increases efficiency
and productivity. Robots help in picking, packing, and storage and also
come with sensors for smooth navigation within the warehouse.
Drone technology is effectively being used in wedding and corporate
events and the day is not far when this will also be used as a modern
world application in warehouses. Drones will prove much faster and more
powerful than manual handling of warehouse activities which will allow
organizations to save a lot of time and efficiency. The drones can
record and scan barcodes on every panel, thereby capturing details,
location, and relevant information about the product.
- Smartphones used in warehouse management is termed mobile warehouse
management system and is a part of technological advancement in the last
couple of years. Inventory tracking is evolved over these years, from
tracking through pen and paper to using computers and laptops to now
using smartphones. Now all types of warehouse management tasks can be
done with the help of smartphones, such as right from scanning QR codes,
capturing data, tracking inventory, and productivity, every task of
warehouse management has been considerably eased with the use of
smartphones. With smartphones, a business can track the latest
information, receive real-time updates, and have warehouse management
operations at their fingertips.
Forklifts and Automated Vehicles
- Automated vehicles and smart forklifts will prove a boon for the
warehouse, as these vehicles will considerably reduce the need for human
resources and manual assistance, thereby increasing productivity and
efficiency. These vehicles place the goods on their designated shelves
and can also pick up the assigned items from their allotted spaces for
How Can Our Modern, Cloud-Based WMS Help Your Business Grow?
modern and industry-leading cloud-based WMS prepares businesses today
for tomorrow’s supply chain. It aligns supply chains to inventory
management and fulfilment services and offers real-time visibility into
an entire inventory with access to the internet being the only
requirement. In today’s dynamic fulfilment economy, consumers prefer to
buy and return anywhere, and to cater to this need of consumers
businesses have to quickly respond with the help of warehouse management
software that enhances fulfilment capabilities. Implementation of our
cloud-based WMS will serve the businesses with the following benefits:
- Traditional WMS cannot increase the number of SKUs managed and with
continued SKU proliferation, it resulted in severe bottlenecks and delay
in fulfilling orders. A cloud-based WMS has limitless scalability,
benefiting the best companies and resources.
- Cloud-based WMS requires an unmatched level of cybersecurity, though
it may not seem like a vital issue for the modern warehouse but it is
critical to guarantee customer support for building brand value. To
avoid risks of cyber-attacks, we spend millions on developing advanced
cybersecurity measures of which businesses can take advantage without
the investment and development cost of implementing cybersecurity
measures in their company.
Around the Clock Operation
- Both e-commerce and Omni channel benefit by using a cloud-based WMS,
as they both operate around the clock, so any disruption, whether it is
for an update or repair of a problem adversely affects customer
experiences. Besides, cloud-based WMS facilitates scaling of product
selection to cater to the demands of e-commerce.
Faster Processing Power
- Cloud-based WMS operate in a neutral environment having broad
scalability so the WMS provides a faster processing power. Thus,
downtime is less likely to affect the customer experience. In the
e-commerce business, downtime can make the difference between consumers
either shopping with the company or abandoning their purchases.
What is Cloud-based WMS?
cloud-based WMS is a software application that allows businesses to
manage and store their inventory in the cloud. It stores all the
information on a remote server and provides businesses access through an
active internet connection. The server is maintained by the service
provider and businesses are charged depending on the agreement with the
vendor and are provided with access to the feature of the program.
Cloud-based WMS allows businesses to manage inventory in reduce time and
cost, and also makes it easier to find and order products from
suppliers. It automates many of the inventory management tasks like
ordering and shipping products, tracking inventory levels, and managing
How does the warehouse management system work?
warehouse management system has its own way of working and it differs
from traditional warehouse operations. The most basic action of the WMS
is to track the goods entering or exiting the warehouse, as every piece
of goods that is received is updated in the system and tracked from
their arrival and the location from where it was sent. Even the items
shipped from the warehouse are properly recorded in the system. After
this, WMS organize and monitor all goods that they possess and once the
goods are sold, the inventory is converted to revenue. Another action of
WMS is to keep units set up together to form new storage-keeping units.
In implementing this WMS carries out order management and fulfilment.
The WMS also provides data insights that allow businesses to improve
their processes and significantly reduce their overall costs. WMS's
thorough reporting feature improves businesses' current processes. Data
can be viewed and monitored that is generated in different forms like
graphs and charts that allow businesses to make sound decisions on the
effective management of the warehouse.
What is the main objective of the warehouse management system?
objective of a warehouse management system is to offer automated and
computerized procedures to improve the efficiency of businesses and
minimize their costs. The warehouse management system is used to achieve
the following objectives:
- Accurate inventory counts
- Reduces human error
- Sync Platforms and Software
- Faster Shipping
- Improved customer experience
- Improved accountability
How are warehouse services different from third-party logistics?
third-party logistics warehouse is an outsourced business, which takes
care of a company’s supply chain and logistics operations whereas
warehouse services offer storage space to businesses in the short or
long term with fees that are based on duration and the amount of space
required. Warehouse services provide in-house workers and equipment to
move items around, manage operations and keep the facility running.
How Do You Choose the Right Warehouse Management System?
warehouse management system allows businesses to efficiently monitor
their everyday operations and also helps them work collaboratively.
Businesses need to carefully choose a warehouse management system
through proper research because the right WMS will facilitate seamless
operations, thus increasing the profit margins for the organization.
Businesses while choosing a WMS must keep the following factors in mind:
Understand the significance of WMS for their business
- Know their ROI and requirements and select a WMS that meets their organization's requirements
should seek vital information related to the WMS like a list of
features supported, availability of training services, estimated cost of
the WMS, additional configurable features, etc.
- Select a more
dynamic WMS and provide extra functionalities and business must take
into consideration the upgraded path of the WMS
- Select the WMS
from the best warehouse management software provider like 3SC offering
tried and tested methodologies, and even implementation is as per the
requirement, and the system provides optimal solution right from the
How warehouse services can improve your business?
growth of the international trade and retail sector is increasing the
significance of warehouse services and it is greatly impacting the
supply chain efficiency. Good warehouse services provide substantial
benefits to businesses, right from better operational efficiency to
better stock and inventory management to better customer experience.
With warehouse services, businesses are more in control of their
shipping and handling because it increases the value of goods by
providing services that make products available in a convenient way. It
also reduces the cost and increases the value of customer service and
warehouse operations also add value to the logistics of the business.