What Is Warehouse Management Software?
What Is Warehouse Management Software?
Warehouse management systems are digital tools that have been designed to control, optimize, and support warehouse workflow. Usually, the processes include everything from inventory accuracy and management, shipping, picking, auditing, fulfillment, and a lot more.
Warehouse management systems have become so popular in recent years that the industry is set to be worth $6.1 billion by 2026, and the trend is still growing year on year.
Recent research has shown that 62% of companies lack visibility in their supply chain, so perhaps you are running one of those organizations that already have warehouse management solutions in place, but they simply aren’t getting the job done to a high enough standard for your needs? Or perhaps you’re ready to implement your first system to streamline your warehouse processes. Either way, you’ll find the information you’re seeking right here.
Inventory Management vs Warehouse Management
Inventory management and warehouse management modules may often be found combined in the same software package, but they may also be purchased as standalone options.
Although inventory management and warehouse management may seem to be the same thing, there are some key differences. Warehouse management involves handling inventory along with other related tasks in your warehouse. Meanwhile, inventory management involves dealing with stock management for the entire business as well as forecasting the most up-to-date business trends.
Both warehouse management and inventory management help in the movement of inventory to the end consumer from the supplier in an effective and efficient manner. Both also involve the storage, shipping, and reordering of stock, and both provide greater visibility into stock, using RFID, barcode tools, and software to improve accuracy and efficiency.
Benefits Of Warehouse Management System
There are many benefits that come with using warehouse management software, including lower operational expenses and reduced labor costs, improved tracking of inventory, fast replenish and low stock warehousing inventory capabilities, better security practices, improved billing management, inbound and outbound control, CRM, and a lot more.
A business’s success and profitability can dramatically be increased with the impletion of the right Warehouse Management Software.
A List Of Common Warehouse Management Features
Warehouse management software boasts a number of commonly seen features. These include:
Inventory tracking data – the best WMS platforms track your inventory data using RFID tags and barcode readers and update that information within the dashboard so anybody with the correct permissions can access the most up-to-date information readily.
Warehouse design – many warehouses are poorly designed. They waste a lot of space which can draw out the picking and packing process. The best WMS platforms will improve picking logic and customize workflow, making the warehouse better designed for optimal inventory allocation.
Packing and picking – wave picking, batch picking, and zone picking are all optimized effectively if you use a WMS. Warehouse workers can become more productive thanks to the greater efficiency WMS software lends to their processes.
Receiving and put-away – Some WMS systems offer this technology to speed up retrieval and put-away of inventory through PTV (pick to voice) or PTL (pick to light) technology.
Shipping – WMS platforms send B/L (bills of lading) ahead of each shipment, generating invoices and packing lists, and sending advance notifications of shipments to recipients.
Labor management – good WMS platforms can monitor the performance of warehouse workers through the use of KPIs (key performance indicators) to indicate which employees are performing below or above the standard.
Dock and yard management – if you’re running a large-scale operation, a WMS platform can help truck drivers that come into your warehouse by guiding them effectively to the correct loading dock.
Reporting – a well-designed WMS platform can generate reports automatically to help managers to analyze how well their warehouse employees and operations are performing in order to anticipate possible issues in advance and pinpoint areas where improvements can be made.
Different types of software are suited to different sizes of businesses. Therefore, you need to do your research well and select a system that is designed to work best with your requirements, whether you are running a small, medium-sized, or large-scale company.
Competitive Advantages Of Using Warehouse Management Software
If your business adopts warehouse management software, it can reap a number of competitive advantages over its rivals. For example:
Greater agility – an agile WMS solution gives you the opportunity to take greater control over your warehousing operations in order to make speedier improvements.
More clarity – WMS solutions automate your warehouse’s manual processes, thus enabling management visibility while facilitating easier decision making in all of your warehouse functions.
Improved flexibility – a well-designed WMS can provide excellent flexibility so the system can be tailored to your business’s unique needs. This improves your accuracy, efficiency, and profitability.
Relevant Warehouse Management Software Trends
Some of the most up-to-date warehouse management software trends for this year include:
A move towards cloud computing. The manufacturing sector has seen huge changes come about due to cloud computing, especially in terms of warehouse management. The adoption of cloud services enables retailers, small-scale manufacturers, and those running eCommerce businesses to streamline warehouse operations while driving significant financial savings. Cloud-based solutions also eliminate any need to maintain a complex software/hardware infrastructure to reduce overhead costs considerably.
Adoption of the IoT. The Internet Of Things has begun to gain a lot of traction around the world, and it is becoming more accepted in the mainstream year on year. Connected devices are becoming increasingly visible in daily life and the manufacturing sector represents a huge percentage of the world’s IoT spend. RFID is one of the most important examples of the use of the internet of things in the field of warehouse management and investment in this technology is set to increase by as much as 11.3%.
4PL and 3PL Logistics. Third-party logistics have already seen tremendous growth in the supply chain and manufacturing industries. Small companies are now beginning to adopt this technology, and 4PL logistics are gaining more traction globally with more companies investing in the automation of their whole supply chain.
The Cost Of Warehouse Management Software
There is no single price tag for warehouse management software. The cost very much depends on which software you choose, the size of your business, the features you require, and a number of other considerations. While there are some free options, in most cases to get the functionality you require to make a significant difference to your warehousing operation you’ll need to pay a fee. Some companies providing WMS solutions offer monthly pricing plans at varying prices depending on scalability. Others offer one-off or annual fee structures. You can expect to pay several hundred dollars per user per month for a high-quality system.
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