15 January 2022

What is a WMS (Warehouse Management System)?

15 January 2022

Understanding what a WMS system is, its applications, and the benefits it provides to intralogistics operations

WMS (Warehouse Management System) is software designed to support and optimize the processes and management of a logistics warehouse. The system has numerous features that allow companies to control and manage the entire flow of materials, from the moment goods enter the warehouse until their exit.

With WMS, the warehouse manager has a powerful ally for strategic planning, inventory organization, task management, resource optimization and control, and intelligent movement of goods. Additionally, by offering real-time operational information and also presenting notifications, the WMS system greatly aids in making accurate and timely decisions.

Control and Better Use of Resources

The great potential of the WMS lies in the control the system offers throughout the entire operation, handling not only inbound control, product routing, picking, and shipping processes. The software also coordinates employee tasks, defining who will perform each activity (based on role, availability, and equipment used) and monitoring their performance through connection with mobile devices (RF collectors, smartphones, etc.).

When using the WMS, all functions performed by the employee are recorded, ensuring complete traceability of products and their locations, as well as productivity in task execution. Through monitors strategically placed in the warehouse, the WMS informs about the status of each process, allowing the manager to monitor the operation’s progress and employees to evaluate their performance. We often say that the WMS does not tolerate errors and delays, which is why the system is so renowned for the increased efficiency and accuracy it provides. And not only that: since the software works by focusing on the best use of resources (people, equipment, and space), there is a significant reduction in costs, leading to greater profitability for the company.

An example we can cite is picking. In addition to offering different types of separation, allowing the manager to choose the ideal model for their company, the WMS system directs tasks always aiming to reduce movements and the path taken by the pickers. The result is a reduction in costs and order separation times, allowing companies to deliver more quickly and decisively, competing on equal terms with the major players in the market. Even in shipping, the WMS plays a fundamental role: it defines the load based on the routes followed by the transport, helping to provide even more agility to deliveries.

Another important optimization provided by the WMS system concerns storage space. By determining the position of each product as soon as it arrives at the warehouse, based on its characteristics and turnover, the system can make the best use of every square meter of storage space. All this means fewer logistics expenses.

Accuracy and Integration

In addition to all these advantages provided to the operation, the WMS is present in inventory management, allowing for cyclical counts inserted into the warehouse routine, bringing greater agility and precision and increasing inventory accuracy to rates that can reach 99.9%.

How Does the WMS System Work?

And most importantly, the WMS system integrates with other important software for the company, such as ERP, OMS, and sales systems. The WMS is also ready for Logistics 4.0, integrating with the most modern automation systems to bring even more speed and precision to intralogistics processes. Regarding new formats, such as urban micro-fulfillment centers, dark stores, store fulfillment, and new practices, such as dropshipping, cross-docking, shipping from store, the system offers all the functionalities to support them.

Control and Information

By accessing the WMS from a computer or mobile device, the manager and their team will have access to a series of features and information that will make their work easier. In the system, it is possible to access data on purchase orders, entry, transfer, movement, exit, delivery, quality control, inventory, among others. All this because the software works in harmony with the ERP, continuously exchanging information.

In this way, it is possible to closely monitor order fulfillment (on time or delayed), storage, replenishment, and movement orders, picking waves, picker performance, box performance per operator, the address and status of each stored product, as well as a series of other information that will allow control of everything that happens in the warehouse.

Task Execution

With an RF collector in hand, the operator receives on their device the command to perform a task, whether it be reception, storage, replacement, or separation. The WMS provides the information for the action to be performed, and the employee confirms the data to achieve maximum accuracy.

Since everything is recorded in real-time, the manager can instantly monitor the operation, both inside and outside the warehouse. The WMS sends information to any registered device.

Goods Inbound and Outbound

As soon as the product arrives at the warehouse, the WMS, with data sent by the ERP, will ensure total assertiveness in input, in the right quantity, in the right batch, among other details. This also happens at the exit, where control verifies if the separated products exactly match what was ordered. With the WMS system, there is an increase in the level of service offered to the customer, as precision and quality of deliveries are greatly enhanced. Another advantage is the reduction of failures, given the high traceability offered by the software.

Picking and Shipping

When an order is placed, the WMS generates a separation wave, aiming for the best route that the separator(s) must follow. As the employee separates the products, they confirm, and in case of discrepancies, the system automatically alerts them so that corrections can be made. At the time of shipping, in addition to the checkout to verify the order, the WMS system calculates the volume, determines the ideal box/package for shipping, and suggests the order in which the load will be formed based on the common region of the recipients.

Management

As detailed in the first topic, the WMS offers on a device (computer or tablet, for example) all the necessary information for complete warehouse management. Whenever it is necessary to replace goods, the software alerts you, avoiding stockouts. This also happens with expiration dates that are about to expire. The system also helps control lead time and, in addition to offering real-time data, brings a series of KPIs (e.g., OFR, OTD, OCT) essential for constant business optimization.

Tangible Gains Provided by WMS

Since the WMS automates warehouse processes and offers full support for efficient management, the benefits provided by the system affect various operational areas. Among the success stories of Deagor customers using our WMS for e-commerce, we can cite:

– 99% accuracy.
– 4 times more agility in order picking
– 136% increase in productivity in physical space
– 100% more productivity per person
– Elimination of order backlog
– Reduction in receiving times (from 4 to 1 day)
– Reduction of operations (from three shifts to two)
– Increase in daily order fulfillment capacity, with 98% of orders shipped the same day
– Better control of variable measurement elements
– Greater reliability in product traceability, from receipt to sale
– Greater satisfaction of e-commerce customers, with more agile and assertive deliveries


What is a WMS (Warehouse Management System)? Deagor WMS per ecommerce può aiutarti!


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