E-Commerce Warehouse Management System- Things You Should Know About

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E-Commerce Warehouse Management System- Things You Should Know About

With the advancement of internet and digital technology, Warehouse Management System can meet the changes connected with consumers with a digitally connected solution that offers real-time visibility, scalability, and market reactivity.

What is a Warehouse Management System?

Warehouse Management Solution (WMS) is a software application that is designed to control and manage daily warehouse operations. Warehouse management system involves movement and storage of materials into, within, and out of a warehouse. It also focuses on their daily planning, organizing, staffing, directing, and controlling the utilization of available resources. Previously, warehouse management solutions only offer a simple feature of location information but nowadays, it has transformed into a highly advanced business solution. 

Benefits of Warehouse Management System

Ø  Optimized Space and Lower Operating Expenses- Warehouse management systems involve the best and full utilization of floor space based on the task and material available. WMS solutions facilitate you to maintain material rotation including various practices such as first-in, first-out (FIFO), last-in, first-out (LIFO), or first-expired, first-out (FEFO) practices. 

Ø  Real-Time Information –Through a warehouse management system you can also obtain visibility of accurate, real-time inventory levels. With real-time information, this enables a company to more securely estimate supply and avoid backorders. 

Ø  Effective Labor – Considering workers’ skill level you can better assign the right task to the right person at the right time. The optimization of travel time helps you to provide improved labor utilization. WMS can help you in assigning jobs on a day-to-day basis and efficiently design schedules.

Ø  Optimized Supply Chain- Warehouse management system optimizes various internal operations as well as supply chain.

Ø  Traceable Materials- By using the lot, serial, or batch numbers inventory materials can be easily traced with warehouse management systems. The serial number identifies an item and lot/batch numbers indicate the group in which materials were made.

Ø  Effective Shipment Management providing better Customer Service- Warehouse management system can adjust movements of inventory and equipment. They can also pick and pack products more effectively.

Ø  Ongoing Improvement- It is designed for continuous improvements and also allows us for new processes and innovation over time. Warehouse management also helps companies to maximize profits and support their business.

Ø  Internal Automation Benefit – Warehouse management systems can automate internal work assignments and also simplifies processes which increase the ability to scale.

Types of Warehouse Management System

There are several types of the warehouse management system:

1.      Standalone warehouse management system– This system only has warehouse management features that can be used as an inventory management system. A business with a standalone warehouse management system has the following features:

·         Expiration date tracking

·         Barcode scanning

·         Cycle counting

·         Slotting

·         Put-away

·         Receiving

·         Picking

·         Packing

·         Shipping

2.      Integrated ERP solutions– ERP (Enterprise Resource Planning) dynamic software is a powerful solution that contains the capabilities of many other systems. ERP is one of the best choices for the improvement of the business. It is not compulsory to integrate your ERP with the WMS system, but this integration offers a solid supply chain execution and scalability.

3.      Supply Chain Execution Modules – Warehouse management systems come under the supply chain management (SCM) category. If you want to scale up your business then you get a WMS system with supply chain management software (SCM).

4.      Cloud-Based Systems- A cloud-based WMS is a web-based system that is based on cloud technology. This system is used because of its quick scalability and deployment and is provided with “software-as-a-service” (SaaS). This system helps in reducing IT maintenance. It is hosted on a separate or private server that leads to higher data security protocols, which are important for businesses.

Things to be Analysis in the Warehouse Management System

  • Ease of use 
  • Maximum functionality 
  • Transaction management
  • Flexibility
  • Easy to read 
  • Useful metrics
  • Verified tracked record
  • Customer support
  • Scalability

Features of Warehouse Management System

Ø  WMS Integration with ERP Platforms: When the data of WMS is integrated with your ERP, it facilitates accuracy and real-time tracking of data across the organization. It always ensures that entire information is stored on a single platform and is also integrated with other departments. For managing all important functions from a single source such as ERP, inventory management, etc., e-commerce warehouse management systems must be combined.

Ø  Barcode Scanning: In WMS software scanning of barcode function is highly essential so that manual workload can be reduced. 

Ø  Inventory Management and Control– You need to know how the warehouse management system will help in managing and controlling inventory. Inventory is a fundamental part of the WMS system that ensures that it can fully support inventory management.

Ø  Simple Interface:  WMS warehouse management system is developed to ease out logistics operations and reduced difficulties. But, when the software interface is disorganized then it can increase the difficulty level instead of decreasing it down.

Ø  Cost-reduction through resource optimization: The warehouse management system is optimized and utilizes the available resources that reduce the cost.

Core functions of the Warehouse Management System

Ø  Receiving Goods: Once goods have been received in the warehouse then the quality and quantity of goods are determined.

Ø  Tracking Stock– A WMS allows managers to check the amount of stock available in the warehouse when restocking is needed. 

Ø  Layout Design– A WMS enables the arrangement of products within the warehouse layout to be charged efficiently and logically, using criteria such as weight, accessibility, and demand. This ensures the easy functioning of warehouse functions.

Ø  Picking & Shipping– A WMS confirms that the correct product is picked and shipped to the right clients on time. 

Ø  Control of Labor– Most warehouse processes can be automated by the WMS that save the time spent on labor-intensive activities, which helps businesses to bring down unnecessary staff expenditures. Resulting in improving the productivity of the existing employees.

Ø  Improved Customer Relationships– Customers are satisfied when they receive their orders on time and start developing trust in the business. Hence, this improves customer-client relationships.

Ø  Improves Productivity– WMS provides a rational structure that increases efficiency and accuracy and makes the working lives of your team a whole lot easier. 

Ø  Reduced Admin work– WMS automates the administrative work that requires a lot of paperwork and data entry.  

Ø   Ensures Transparency and Visibility– The data that is provided by the warehouse management system is accurate, transparent, and visible that can be accessed by any internet-enabled device.

Ø  Enhanced Security– A good warehouse management system also enhances security.

Warehouse Management System plays a vital role in E-commerce businesses and also provides many benefits to them. It helps to control the flow of inventory by various distribution centers and has positive impacts on various business performances. Ecommerce Warehouse implementation is very important for reducing the cost at the operational level. Companies who opt this system are able to control and manage their warehouse more effectively and efficiently. 

Rachit Sharma
Rachit Sharma
iPhone Solution Architect Managing Director, Founder @ Phontinent Technologies.