As the backbone of the supply chain, the importance of a Warehouse Management System (WMS) should not be overlooked. Serving as “command central,” a WMS plays a pivotal role in enhancing inventory visibility, optimizing picking processes, boosting labor efficiency, and reducing errors. In this post, we’ll explore the key features and functions of a WMS, the common challenges faced in today’s warehouses, and how customers are overcoming these obstacles and achieving new levels of success with the help of Made4net’s cloud-based warehouse management system.
What is the Main Objective of a Warehouse Management System?
The purpose of a WMS is to efficiently streamline and optimize warehouse operations, providing real-time inventory visibility and enhancing processes from receiving to shipping.
Nowadays, WMSs come with a variety of standard features we’ve all come to expect, including:
- Inventory Management: Monitors and controls inventory levels in real-time, covering the processes of receiving, putaway, and storing of products.
- Order Management: Handles order processing, overseeing picking, packing, and shipping activities to ensure precise and timely fulfillment.
- Receiving and Putaway: Streamlines the receipt of goods, guiding them to optimal storage locations based on the warehouse layout.
- Picking and Packing: Enables efficient picking and packing operations, using wave, batch, or zone picking.
- Shipping and Transportation Management Integration: Coordinates outbound shipments, often integrating with transportation management systems (TMS) to handle deliveries and track shipment progress.
- Barcoding and Scanning Integration: Leverages barcode scanning and RFID technology to monitor goods throughout all warehouse operations, enhancing accuracy and minimizing human error.
However, a growing number of companies today need WMS functionality beyond the fundamentals to handle more complex operations. Advanced features like task interleaving, labor management, cycle counting, and cartonization help operations optimize workflows, reduce costs, enhance accuracy, and adapt to evolving customer demands and market conditions. Omnichannel functionality has also become essential, allowing businesses to quickly adjust to changes in demand and support diverse sales channels.
What Are Common Challenges in Managing a Warehouse?
While every warehouse will have its own set of challenges, some rise to the top as the most common. According to the Association for Supply Chain Management’s (ASCM) list of top supply chain trends to watch out for in 2024, key challenges include:
- Digitalization: Warehouses face the challenge of converting vast amounts of data from physical to digital formats to fully embrace emerging technologies like artificial intelligence, blockchain, and cloud-based solutions. This digital transformation is a double-edged sword. While it is essential for creating connected, intelligent, and scalable supply chain networks, the process can be daunting, requiring significant investment and infrastructure changes. While some warehouses may achieve comprehensive digital transformation, others must balance long-term automation investments with immediate, smaller-scale implementations that reduce repetitive tasks, manage employee fatigue, and allow workers to focus on tasks where human input outperforms automation.
- Big Data Analytics: While big data and analytics can strengthen resilience and agility in the face of frequent disruptions, it is not easy to implement. Organizations must standardize freight data to optimize operations, routes, and emissions, and integrate sales, marketing, and sensor data to improve demand forecasting, inventory management, and predictive maintenance. This requires a commitment to seamless data exchange and information-sharing, which isn’t always attainable, especially across fragmented supply chains.
- Artificial Intelligence (AI): Keeping up with the rapid advancements in AI and machine learning (ML) is no small feat. AI may offer immediate returns in sourcing, inventory management, and logistical route planning, but implementing these technologies takes time, upfront investment, and dedication to training. ML can be used to predict demand and optimize new product development, but it presents both an opportunity and a challenge, as accurate data inputs and skilled oversight are crucial for success.
- Labor / Investments in Systems and People: As the global supply chain management application market continues to grow, warehouses will need to contend with the growing complexity of adopting emerging technologies. Automation, Internet of Things (IoT) data, blockchain, and cloud-based solutions can offer powerful insights and network optimization, but effectively integrating them into existing operations is complex. Warehouses must invest not only in technology but also in training and development, fostering a culture of innovation. Without proper workforce education, the benefits of these technologies won’t be realized.
- Supply Chain Transparency: Visibility, traceability, and location intelligence present significant challenges for warehouses, as they require continuous monitoring and the integration of real-time data across the entire supply chain. While these tools enhance the tracking of goods from origin to final destination, they require substantial financial investment. Location intelligence also requires the integration of AI and ML to predict future conditions like traffic, weather, and bottlenecks, which means warehouses must ensure accurate data collection and have the capacity to respond to disruptions quickly.
This is where the importance of a warehouse management system becomes most apparent. The right WMS in the right environment will work to help address these common challenges, setting warehouses up for success.
Why a Warehouse Management System is Important
The best WMS will monitor and control inventory levels, handle order processing, take care of receiving, putaway, picking, and packing, and coordinate outbound shipments. With real-time visibility into inventory and warehouse optimization, warehouses can improve efficiencies, scale, and grow. The true impact of a WMS is best demonstrated through warehouse operators themselves who have transformed their operations, reduced costs, and achieved greater accuracy and speed with a robust WMS. Here are few to consider:
Pearlgreen Corporation
Pearlgreen Corporation is a family-owned and operated building maintenance and contractor supply company that has been serving the New York City tri-state area for over 85 years. With a vast inventory of over 15,000 industrial products from more than 400 manufacturers, the company faced significant challenges in inventory control, cycle counting, and overall supply chain management.
The implementation of Made4net’s WarehouseExpert™ WMS has led to significant benefits for Pearlgreen Corporation:
- Inventory Accuracy: Pearlgreen achieved superior inventory control, ensuring that every product in their extensive catalog is accurately tracked and managed.
- Resource Optimization: The company saw a 40% reduction in drivers and a 70% savings in warehouse labor, allowing them to manage more orders with fewer resources.
- Customer Service Excellence: The cloud-based WMS has delivered better uptime, new functionalities, and increased visibility, enabling Pearlgreen to continue delivering on its promise of unparalleled service and quality.
Testimonial:
“The cloud is the future of the company, and I’m excited to be a part of this vision and necessary upgrade!”
— Joey Valcarcel, Operation Manager at Pearlgreen
Dekko
Dekko, a technology leader in power systems and industrial lighting, faced significant operational challenges as it expanded its product lines and customer base. Their reliance on a legacy, manufacturing-focused system created two major issues: frequent errors in picking, packing, and inventory tracking due to manual processes, and the inability to scale with the company’s rapid growth. To address these challenges, Dekko needed a modern WMS that could improve accuracy and adapt to their evolving operations.
Since implementing WarehouseExpert, Dekko has experienced significant improvements in their warehouse operations, including:
- Picking accuracy 99.9%
- OTIF shipments are at 99.8%
- average pieces picked per hour went from 350 to 750
- receiving to put away went from 450 pieces per hour to 1,300 pieces per hour
- The number of staff members required to manage the program has been reduced by 50%
Testimonial:
“Made4net has been an essential tool for the successful start-up of our new warehouse. The real-time tracking and reporting capabilities have been invaluable in monitoring inventory levels and optimizing our warehouse operations.”
— Jason Prier, Plant Manager at Dekko
K&M Style
K&M Style, a leading 3PL provider based in Bulgaria, faced significant challenges in their logistics operations as they navigated the complexities of managing a large number of SKUs, diverse product attributes, and fluctuating client demands. As their business grew, the need for a more efficient WMS became evident. Key pain points included slow picking and receiving processes, difficulty in managing a vast inventory, and lengthy onboarding of new employees.
Since implementing WarehouseExpert, K&M Style has achieved notable improvements across their logistics operations. The WMS enabled faster picking and receiving times, streamlined workflows, and facilitated quicker employee onboarding. K&M is now better equipped to manage a diverse range of SKUs and respond swiftly to their customers’ evolving needs. Additionally, the seamless integration with ERPs and carriers has allowed K&M to scale their services efficiently, meeting client demands with ease.
Testimonial:
“With Made4net’s SCExpert, we are able to accommodate our customer’s changing needs. The system allows us to streamline our processes, gain efficiency, and scale our operations.”
— Rado Ratchev, Operations Director at K&M
The Importance of a Warehouse Management System — It’s Undeniable
In today’s era of instant gratification, complex supply chain structures, and technological change, the importance of a warehouse management system cannot be overlooked. As Made4net’s EVP of Sales and Strategy, Amit Levy, explains, “As they continue to grow, add more customers, and expand their physical footprints, companies need flexible technology solutions that can grow right along with them. WMS continues to fulfill this role regardless of which person or what type of equipment is handling the actual work.” If you’re on the hunt for a new WMS, our Ultimate WMS Buyer’s Guide is here to help! Download a copy today.
You may also find value in our blog post detailing the advantages and benefits of a warehouse management system.
