A Warehouse Management System (WMS) is a software system that helps manage the movement of goods and materials in and out of the warehouse. It’s designed to optimize warehouse operations and helps businesses track the flow of items, inventory levels, and other associated activities. WMS helps to ensure that goods and materials are handled efficiently, accurately and securely.
WMS systems are used in a variety of industries, including retail, manufacturing, and logistics. By using a WMS, businesses can improve their inventory accuracy, reduce labor costs, and track inventory in real-time.
WMS systems are typically composed of four main components: inventory management, order management, warehouse control, and reporting.
Inventory management is an important part of the WMS. This component helps businesses track the number of items in stock and their location within the warehouse. It also helps businesses determine if items need to be reordered or if additional stock needs to be purchased.
Order management is another key element of the WMS. This component helps businesses track customer orders and automatically generate customer invoices. It also helps businesses manage returns, refunds, and other customer service requests.
The warehouse control component of the WMS helps businesses with the physical movement of goods from one area of the warehouse to another. This includes tracking the movement of goods, the loading and unloading of pallets, and the tracking of stock levels.
Finally, the reporting component of the WMS helps businesses keep track of their inventory and warehouse operations. This includes generating reports on inventory levels, stock usage, and order fulfillment. It also helps businesses identify areas where they can improve efficiency and reduce costs.
The 3 types of Warehouse Management Systems
In order to select the right Warehouse Management System (WMS) for your needs, it is essential to be aware of the three types of WMS that are available. These include:
- Standalone system
- Simple
- Enterprise
- Cloud-based system
- Supply Chain Management Software
By exploring the various types of Warehouse Management Systems (WMS), we can gain insight into how they work and what they are capable of. From automated inventory control and advanced order processing to streamlined material handling and more, WMS can provide a wealth of benefits to businesses. Let’s take a closer look at the different types of WMS and how they can help your business succeed.
Simple Standalone System
Standalone systems are designed to manage a single warehouse and are typically used by smaller businesses with limited resources. Standalone systems are usually self-contained and provide access to basic features such as inventory tracking, order fulfillment, and basic reporting.
Pros: A standalone system can offer advanced warehouse management features that can streamline many current processes.
Cons: Standalone systems are usually better suited for small warehouse operations with tighter budgets and fewer integrations. If your business is expecting quick growth in the near future, investing in a more powerful warehousing management system may be the better option.
Enterprise Standalone System
Enterprise standalone systems are designed to manage multiple warehouses for medium to large businesses or smaller businesses that are expecting quick growth in the near future. These systems are Ideal for businesses in tiers one through five. With these advance features, they can accommodate robotics, artificial intelligence, and newer automated systems as well.
They are designed specifically for warehouse operations and have such advanced features as:
- Slotting
- Engineered Labor Standards
- Lot Traceability
- Expiration Date & Catchweight
- Rules Based
Enterprise standalone systems are generally highly configurable and can be configured for most business verticals. Can be seamlessly interfaced with other software products.
Pros: Enterprise standalone systems allow you to use your existing ERP system and are better suited to large enterprises that require a comprehensive solution. They are completely scalable, and adding additional warehouses is simple.
Cons: Proper operational assessments are necessary to make sure the system is correctly configured to your operation. It also takes time to implement properly, which must be budgeted.
Cloud-based system
In the past, WMS software was purchased and delivered in physical forms, such as a set of disks or CDs. Cloud-based systems are hosted in the cloud and can be accessed from any location with an internet connection and are becoming more popular due to their easy and fast deployment, scalability, improved security, and customizable features that can be adapted to your business needs.
This type of WMS is ideal for businesses that need to manage multiple warehouses or have a lot of data to manage. Cloud-based systems offer more advanced features than standalone systems, such as real-time inventory tracking and advanced analytics.
For most businesses, a cloud-based WMS system is the perfect choice since it does not require on-site installation and integration with current warehouse management systems. It is also hosted on external servers with an external IT team to provide support.
Pros: The advantages of a cloud-based warehouse management system (WMS) include not needing on-site installation or integration with existing systems. Upgrading software or hardware is also taken care of by the WMS vendor, eliminating the need for downtime associated with an on-site solution.
Cons: If you want to be in full control of your system and data, a standalone system might be the better choice. However, with a cloud-based system, the SaaS provider takes care of the maintenance and improvement of the whole WMS system.
Supply Chain Management Software
Supply chain modules are designed to be integrated with existing supply chain systems.
A supply chain module WMS can handle many things, including but not limited to:
- Order management
- Shipment tracking
- Inventory management
- Vendor management
While warehouse management software can assist fulfillment companies with activities such as picking, shipping, and receiving, a supply chain management software offers features that support the entire supply chain in addition.
Supply Chain Management Software is an ideal solution for businesses that require an efficient and scalable system to manage their supply chain. It covers every activity from sourcing raw materials to final customer delivery, including transportation and vendor partnerships. This comprehensive system provides an end-to-end approach to managing the entire supply chain, allowing businesses to maximize efficiency and profitability.
If you’re a business with high inventory throughput, a warehouse management system is the perfect tool for you. Our WISE WMS system can help you save time, money and increase accuracy and efficiency when it comes to warehouse operations. Plus, you can create reports that will tell you how to further improve your operations.
Book a demonstration with us to see for yourself how our system can make your warehouse into a competitive advantage.