Until recently, the abbreviation WMS (Warehouse Management System) was known only to providers of warehouse management solutions. Now, a constantly growing number of Polish companies operating warehouses know what a WMS is, and what benefits it can bring to the company. WMS applications support the logistics processes in the warehouse by enabling both fast exchange of information with the database, and issuing requests to be displayed on portable terminals of the warehouse personnel. "WMS solutions are being deployed increasingly often in warehouses in Poland," says Marcin Figlarek, logistics consultant, Consafe Logistics. "This is a result of analyzing the experience of foreign companies. They have been operating such solutions for many years, and know that a WMS directly improves the efficiency of warehouse logistics, reduces labor costs, and eliminates mistakes."
WMS: To deploy or not to deploy
WMS is supposed to streamline all warehouse processes, to help to efficiently use the human and material resources, and to enable the warehouse space to be used optimally. Regardless of the warehouse size, level of complexity of the processes, number of the staff, and number of forklifts, every company can find a suitable WMS solution. WMS solutions include software and equipment for wireless, instant exchange of information in the warehouse. The workers use handheld terminals, each equipped with a scanner, keypad, and touch screen. The manager assigns the tasks to the workers and the worker gets the task displayed on his screen, together with information on the source and target locations. The warehouse manager has a computer with the WMS application which enables the manager to overview the whole warehouse operations, to check the stock levels, and to monitor the performance of individual workers and of the whole facility.
A modern, fully functional WMS in a standard version supports the following processes:
- receipt of goods (delivery, unpacking, labeling, returns);
- placing the goods in warehouse locations;
- order picking (selecting the shipment method, order processing and merging, order picking, supplementing);
- shipment (packing, loading, distribution);
- stock management (stock level monitoring, stocktaking, warehouse operation tracing, blocking, data management, statistics, reporting).
"A properly selected WMS will help you to eliminate mistakes and improve productivity, thus increasing the customer satisfaction," adds Figlarek. "The estimated return on investment in a properly deployed solution is 6 to 24 months at maximum."
It should be emphasized that a WMS brings benefits both to the personnel and to the management.
Identification of the needs
It is very important to identify the needs of the company operating the warehouse.
Examples of problems resulting from inefficient warehouse management include:
- incomplete stock data;
- slow execution of order delivery processes;
- mistakes in orders;
- low quality of customer service.
When it becomes obvious for the warehouse personnel and management that organizational changes alone cannot increase the productivity anymore, it is worth considering a WMS solution.
Forming the project team
It is very important that the customer establishes a project team responsible for coordination of the WMS deployment project. The team should include:
- a person with sufficient technical knowledge to understand the planned changes related to the system deployment;
- a person with experience in management of projects involving a software provider;
- a person with perfect knowledge of the warehouse processes and everyday operations;
- a representative of the management.
Or perhaps to develop a WMS in-house?
It is estimated that in-house implementation of a WMS application may take several years, and the cost would amount to EUR 1 million.
- It is beneficial to use independent logistics consultants who can perform an objective internal analysis of the company, and identify its needs.
- An independent, experienced logistics consultant will be able to identify the functions necessary in the warehouse and eliminate non-critical functions.
- If the company decides to purchase a WMS solution, it may expect that the provider will develop the system and deliver new versions of the software.
- On the other hand, a company which decides to develop a WMS application in-house must face challenges already resolved long ago by the solution providers.
How to select a WMS provider
The number of WMS providers on the market is increasing. How to select a reliable provider and the most suitable WMS? What should be looked at during the proposal selection process?
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Logistics analysis. Each professional WMS provider should assign, before presenting the proposal, a logistics consultant to conduct the logistic analysis. Such analysis identifies the processes executed in the warehouse, any problems and bottlenecks, the objectives set in the company, and any intentions to modify the logistics processes.
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Tailored solution. It should be remembered that a WMS is a complex, end-to-end solution resulting from analyses and consultations with the customer. It is not an off-the-shelf product, but rather a tailored solution designed to meet individual customer’s needs.
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Provider’s experience. Another aspect that should be taken into account is the experience and references of the application provider.
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Training and support. A professional provider will provide training for the personnel on using the solution, and will provide support, both during the deployment phase and thereafter.
Bibliography: Jan Young, “Selecting, Buying, Installing, and Using a Modern Warehouse Management System”, Amazon, 2009