Types of warehouse management systems
3PL software comes in various types and implementation methods, with the general type depending on the size and nature of the organization. They can be standalone systems or modules within a more extensive ERP or supply chain execution suite.
WMS can also vary significantly in complexity. Some small organizations may use a simple series of printed documents or spreadsheet files. Still, most large organizations use complex WMS software, from small and medium enterprises (SMEs) to large enterprises. Some WMS configurations are tailored to an organization’s size, and many vendors have versions of the WMS product that adapt to different sizes of organizations. Some organizations build their own WMS from scratch, but deploying WMS from an established vendor is more common.
WMS can also be designed or configured for an organization’s specific needs; For example, an e-commerce provider might use a WMS with a different function than a brick-and-mortar retailer. WMS can also be designed or configured specifically for the types of goods and organization sells; For example, a sporting goods retailer will have different requirements than a supermarket chain.
Characteristics of a warehouse management system
Many features are common to WMS software products, typically including the following:
- Warehouse design allows organizations to customize workflows and select logic to ensure that warehouses are designed to optimize inventory allocation. WMS defines bin slots that maximize storage space and considers seasonal variations in inventory.
- Inventory tracking, which enables advanced monitoring and automated identification and data capture (AIDC) systems, includes RFID readers and barcodes to ensure that items can be easily found when they need to be moved.
- Receiving and Putaway enables the clearing and taking of inventory, often with pick-to-light or pick-to-voice technology to help warehouse workers locate merchandise.
- Picking and packing merchandise, including zone picking, batch picking, and batch picking. Warehouse workers can also use task collection and batch zoning features to guide picking and packing tasks efficiently.
- Shipping allows WMS to send a bill of lading (B/L) before shipment, generate packing lists and invoices for freight, and send pre-shipment notices to recipients.
- Workforce management helps warehouse managers monitor worker performance by using key performance indicators (KPIs) that show workers’ performance above or below standards.
- Yard and Dock Management, which helps truck drivers enter warehouses to find the right loading dock. More complex use of yard and dock management allows cross-docking and other inbound and outbound logistics functions.
- Reports help managers analyze the performance of warehouse operations and find areas for improvement.
Cloud-based WMS
Warehouse management systems and other business systems, such as ERP, start as systems that run on the organization’s local servers. This model has changed, and cloud-based WMS has become more common as organizations realize the benefits of running schemes in the cloud.
The key feature of a cloud-based WMS versus a traditional on-premises system is that the software is hosted and managed by the WMS provider or cloud service provider. It removes the burden of installing, caring for, and updating systems from an organization’s IT department.
Because they are easier to install and less expensive to manage, cloud-based WMS tend to be favored by SMBs. Large enterprises often deploy WMS on-site because they need a highly customized system that meets their specific industry requirements and has the resources to manage IT requirements.
