Automated logistics systems are now standard in warehouses and distribution centers. In a global marketplace with ever-growing consumer demand and shifting customer expectations, companies can’t compete without them. However, automated tools like conveyors, depalletizers, and goods-to-person workstations don’t offer instant success. Companies need a reliable warehouse management system (WMS) to act as the nerve center of their automated infrastructure.
A WMS is software that optimizes the daily functionality of an automated warehouse system. It’s the wizard behind the curtain that supports operational efficiency and provides transparent oversight and management of a company’s warehousing and fulfillment process.
Let’s examine how a WMS strengthens a warehouse’s infrastructure and facilitates business growth.
Streamlining the Order Fulfillment Process
Consumers expect fast order fulfillment and look for alternatives if a brand can’t deliver. This puts much pressure on companies to create seamless inbound and outbound logistics.
A WMS tracks the entire fulfillment journey, from when a customer places an order to when the product reaches their doorstep. As the item moves through a warehouse, this powerful software optimizes the material handling process so orders reach customers quickly.
Here’s a look at a warehouse management system in action:
- The system verifies the availability of a product the second a customer orders.
- It generates the fastest, most efficient picking route and communicates with automated shuttle systems to initiate the fulfillment process.
- It oversees automated packing stations, ensuring the correct product goes in the proper box.
- It scans product barcodes, prints shipping labels, and selects the best carrier based on the cost and expected date of delivery.
- It tracks the item and updates the customer on their order’s status.
In addition to supporting faster, more accurate fulfillment, a WMS cuts down on the manual work required throughout the material handling process. Instead of doing the heavy lifting and walking long distances, employees work with the warehouse management system to maintain a smooth fulfillment operation.
Tighter Inventory Management
Controlling product inventory is crucial to distribution center success and cost efficiency. Tracking stock levels in real time and recording the exact location of products supports a timely and consistent fulfillment process.
Inventory management also prevents overstocking, reduces waste, and contributes to better space utilization—all important for cutting operational costs.
High-volume fulfillment centers (especially omni channel operations) can’t afford to rely on spreadsheets and outdated inventory software. They need a WMS that provides complete visibility over the warehouse’s inventory throughout the storage and material handling process.
When items enter a warehouse, the WMS scans them into the inventory via barcodes or Radio Frequency Identification (RFID) systems. If a warehouse uses an automated storage and retrieval system (AS/RS), the WMS identifies the most logical storage location based on the item’s size and order frequency. It assigns each item to a storage slot and logs the location.
Warehouse managers can set stock level alerts in the WMS so they never run out of a product. Once a stock level drops below the defined parameters, the system automatically places a reorder.
Optimizing Layout and Workflow
A fulfillment center must operate like a well-oiled machine to meet seasonal spikes or lulls in demand. Automated systems and workers must strike a harmonious balance, requiring a smart warehouse layout and optimal workflow. Warehouse management software helps companies achieve both.
A WMS recommends warehouse storage configurations based on demand fluctuations. Predictive analysis allows the software to anticipate seasonal trends and reassign in-demand products to different storage locations. This speeds up order picking and saves workers from searching for items.
It’s easy for warehouse managers to get caught up in day-to-day operations and overlook congested or underutilized space. A WMS picks up the slack by pinpointing bottlenecks and areas of low productivity. Companies use this data to restructure, expand, or downsize warehouses.
Warehouse management software also maximizes the performance of automated material handling systems. For example, a WMS assigns new orders to the most logical picking or packing stations based on the current workload and product demand. It also communicates with automated warehouse robots to ensure the seamless movement of items through the facility.
Data Insights
Flexibility is essential in today’s unpredictable marketplace. Fulfillment centers must adapt to industry trends, new products, and turbulent supply chains. Pulling this off requires targeted operational data.
One of the most powerful features of a warehouse management system is its ability to collect, store, and analyze key metrics. By accessing data insights in real-time, companies can work toward a more productive, cost-effective fulfillment operation.
The following are some of the most common data insights companies use to optimize their warehouses:
- Fulfillment KPIs: Tracking order accuracy, cycle times, and the number of items shipped per hour helps companies identify bottlenecks in the material flow and iron out kinks in the fulfillment process.
- Employee productivity metrics: Analyzing worker performance highlights the need for additional training or team restructuring.
- Error reporting: Spotting mistakes in the material handling process allows companies to make informed improvements that reduce returns and improve customer satisfaction.
- Demand forecasting: Monitoring demand surges or slumps allows companies to anticipate staffing requirements and adjust their automated systems.
A WMS facilitates proactive decision-making by capturing these metrics, turning fulfillment centers into agile ecosystems.
Seamless Integration With Automated Systems
The best warehouse management systems integrate with existing automated technology. This functionality lets companies overhaul their fulfillment process and create a more efficient, accurate operation.
Software integration syncs a WMS with goods-to-person systems, automated conveyors, warehouse robots, sorting stations, and AS/RS. Once in control, the WMS monitors each automated system and performs upgrades.
A WMS reroutes items on automated conveyors to speed throughput, assigns jobs to warehouse robots, and optimizes the structure of automated storage systems. It also collects data from each system so companies can spot inefficiencies and make adjustments.
Most WMS providers offer integration support to ensure a seamless connection. This cost-effective solution allows companies to improve their fulfillment process without the risk of downtime. Integrating a warehouse management system also gives companies a chance to replace or eliminate legacy systems.
The Future of Warehouse Management Systems
The innovations made to fulfillment centers over the last few decades are staggering. As consumer demands continue to change and the customer experience evolves, warehouse management systems will play a bigger role in product distribution.
Artificial intelligence and machine learning will revolutionize warehouse management systems, taking predictive analysis to the next level. Companies will have the data they need to create fully scalable fulfillment centers that can adapt to changes instantly. AI and machine learning will also find more ways to reduce labor costs or circumvent labor shortages.
Mobile interfaces will make WMS control faster and easier for warehouse managers and employees. This will boost productivity and create new opportunities for eager workers to expand their skill sets.
Smarter warehouse management systems will help companies overcome supply chain challenges by syncing with third-party suppliers and carriers. They’ll also help companies pivot in response to sudden changes in the supply chain.
Any way you slice it, this is an exciting time for companies ready to reach new customers and significantly impact their industry.
