Managing warehouse stock well allows easy order picking, scalable stock collections and a better view of your total inventory. Today’s warehouses use digital systems to keep track of incoming and outgoing stock and automate order picking to maximise throughput.
In our facility, we use state-of-the-art warehouse management systems (WMS) to manage and control daily operations, including deliveries, fulfilment, packing and distribution. WMS combine hardware such as barcode scanners with database software to provide real-time inventory visibility, reduce waste and improve our labour resourcing. In this guide, we’ll explain what a WMS is in more detail, as well as how they support customers, the various types of WMS and how they work.
What are Warehouse Management Systems?
A warehouse management system is a software solution that supports warehousing operators to manage stock and personnel efficiently. They can integrate all paperwork, inventory, space planning, orders and pick-and-pack processes. The system may include hardware like barcode scanners, radio-frequency identification devices (RFID) and LED displays. By centrally managing smooth operations, a well-designed WMS saves hours of labour and paperwork.
Our customers can access the relevant portions of our WMS to get full visibility of their stock levels, order data and insights. We provide WMS training to help your team navigate the software.
Benefits of Warehouse Management Systems
When customers wonder ‘What are warehouse management systems?’, an explanation quickly highlights the benefits of this software. To make it completely clear, we’ve listed some of the key benefits of WMS applications here.
Inventory Visibility
With all stock scanned and logged on the WMS in real time, you can view an accurate count of each SKU from your desktop. You’ll have accurate data and insights that can improve forecasting. Visibility of stock levels can also help you make sure your e-commerce website is accurate and up to date, preventing missed orders or over-ordering.
Improved Efficiency
Inventory management is recorded live. This helps warehouse operators optimise logistics workflows and increase efficiencies. Because stock can be tracked easily, opportunities for improvement can be identified.
Lower Costs
Because of the operational efficiencies created by WMSs, warehouses can offer their clients lower costs for storage. Better stock management and automated reporting improve how time is spent, so we can provide more for less.
Rapid Fulfilment Processes
Warehouse management systems intelligently execute fulfilment centre operations, with work activity automatically directed in some cases based on orders received. With stock mapping, a WMS can generate pick lists based on the required zones to create the most efficient picking order. Packing lists can also be automated, so the right items reach their boxes even from the most far-flung corners of the warehouse. This saves walking time and fulfilment centres can achieve greater throughput.
Better Relationships on All Sides
Because of efficiencies in fulfilment, customers receive their orders in good time and returns are simpler, so your loyal customers are happy.
At the other end, the WMS means you have accurate oversight of low stock areas, so you can make sure these are replenished at the right time, every time. We can optimise delivery schedules, so suppliers have a better experience, reducing wait times at our loading bays and improving your supplier relationships.
How Does a Warehouse Management System Work?
Simply put, everything that goes into managing your stock is recorded in the WMS software. All deliveries are scanned in on receipt and logged on the system. All purchase orders, invoices, customer orders, and expiration dates are recorded, and the WMS does the difficult task of making sense of it all.
As well as letting you see your stock levels live, the system will provide insights such as your most popular items, seasonal trends and demand spikes.
Inventory Tracking
With warehouse management systems, each delivery is scanned in, recording the quantities of each SKU received. The WMS allocates space and creates a route for operatives to sort and put away items.
Tracking all stock and orders means the WMS can plan optimised warehouse layouts to reduce walking times between popular items. It records every move, so you always know where your stock is.
Where appropriate, you can even automate reordering for popular items. Stock is low, the system notices and raises a purchase order with your supplier. Your products stay in stock with minimal input from you, so you can concentrate on the big decisions of running your business.
Labour Management
The WMS keeps track of operatives’ schedules and picking and packing speeds. Based on the number of orders expected, a WMS can automatically assign the right number of workers to each shift in each warehouse area. It can link to a clock-in system, generating timesheets and payslips automatically.
The WMS can also track performance to assess where training is required and which processes need work to improve efficiency.
Order Picking, Packing and Fulfilment
When several orders include the same product, or many products from the same warehouse zone, the WMS creates a picking list for each operative. The list is optimised for the shortest possible route, so staff can simply follow the list in order, picking all the required SKUs in a single trip.
At packing, each order is assigned to an appropriately sized box and packing materials, avoiding wasted space. Pickers drop off the items into the right packing box and scan each item. Any mistakes are caught immediately, before the packages are sent for delivery.
Shipping
Order fulfilment should be fast and, most importantly, accurate. This keeps customers satisfied, as they can have confidence in the correct products arriving in good time. A quality warehouse management system can:
- Plan delivery routes and schedules with the optimal van size and last-mile couriers
- Automate label printing to ensure packages go to the correct destination
- Streamline paperwork to verify orders and reduce errors
Reporting and Forecasting
The WMS can automatically reconcile received items against digital purchase orders and invoices, saving accounting time and supporting visibility. It can notify you of upcoming expiry dates on perishable stock, so you can respond with special offers. It can also forecast seasonal demand spikes on popular products, so you can make sure you have enough stock in advance.
Loading Bay Management
WMSs help with loading bay management, as they schedule deliveries smartly, with staggered delivery times and optimised staffing.
With a smart WMS, you can even identify opportunities for cross-docking, where received items are immediately packed into outgoing shipments. This is ideal for fresh groceries, as items avoid interim storage.
What are the Types of Warehouse Management Systems?
Of course, not every WMS works in the same way. These systems require a huge amount of processing power and data storage, and often require hardware and handheld devices. The three main types of WMS are Cloud WMS, Standalone WMS and Integrated WMS, which work with your Supply Chain Management (SCM) or Enterprise Resource Planning (ERP) software packages.
Cloud WMS
A WMS that is stored in the cloud can be a cost-effective solution, as all data is stored off-site. Users can access the WMS from anywhere, and there’s no need for an in-house IT team to manage the system infrastructure. Cloud-based WMSs are automatically upgraded with software updates, so bugs are fixed quickly. It’s also simple to scale as needed to handle peak demand.
These are more secure and flexible as they are often delivered as a software-as-a-service on a periodic basis. However, they are less customisable than purpose-built platforms, relying on integrations with other solutions such as supply chain management.
Standalone WMS
These systems are purpose-built for the logistics company, deployed using the company’s existing hardware, such as scanners. They are customised for the warehouse’s existing systems, and all data is stored on site. For large logistics companies, this solution offers the most control over data and software, although there are higher associated costs.
Integrated WMS
Finally, an Integrated ERP or SCM-based WMS is the most flexible. Built as a modular software application, an integrated WMS is linked up to existing software systems for supply chain management and resource planning. Data can be shared between the platforms for accounting, automated ordering and business insights. With an integrated WMS, data provides a full picture of the business, offering end-to-end transparency from manufacture to delivery.
Must-Have Features in a Warehouse Management System
In almost every case, a WMS includes the following key features.
- Warehouse mapping, allowing you to optimise storage for efficiency and create picking zones
- Real-time inventory tracking
- Workforce management to help assign workers and assess productivity
- Integrated inventory devices such as barcode scanners and radio-frequency identification (RFID)
- Order entry and purchase order modules for integration with accounting
- Support for a range of picking and packing methods
- Automated labelling, including address labels, compliance labelling and advanced shipping notices (ASNs)
- Loading bay management to streamline incoming and outgoing deliveries
Many WMSs offer user-friendly features to support customers.
- Integrations with resource planning to support large enterprises
- Advanced reporting and analytics so you can easily see and communicate insights
- Mobile-friendly application design so you can access data from anywhere
The Role of Smart Technology in Modern Warehousing
Automation
Warehouse Automation uses smart technology solutions to accelerate labour. It typically replaces slow, manual operations with autonomous alternatives, reducing time spent on menial tasks and freeing up workers for more critical decision-making areas.
Introducing a warehouse management system is a type of automation that includes automatic data capture, software and analytics. However, automation can also include other smart technologies, such as drones, autonomous forklifts and voice activation.
In every case, a robust warehouse management system is the foundation of automation technology. Here are some ways a WMS is used to automate operations.
Light and Voice-Directed
Picking and packing operations can be directed by automated voice technology or LED displays. The WMS software creates efficient routes for operatives and directs them via a headset or a display attached to their trolley. Operatives can then confirm directions and locations via voice recognition or pressing a button.
The Internet of Things (IoT) & AI Analytics
By gathering data on every part of warehouse operations, WMS is one of the most powerful tools. When each item is scanned and logged, the system can automatically identify shortages, place orders for stock renewal or build optimised pick lists. Implementing AI analytics speeds up sorting vast datasets, predicting trends and understanding less obvious patterns.
Augmented Reality (AR)
Augmented Reality (AR) is used in some warehouses via tablets, phones or even smart glasses. For example, by scanning a rack of goods, the AR can highlight the correct area to pick from in an easily identified, visual form.
Robotics
Autonomous Mobile Robots communicate with the WMS to receive directions to areas where they are needed. These low, flat-topped units can navigate easily and carry totes. They automatically transport items from storage to packing areas, reducing the time operatives spend walking. They are even equipped with sensors to avoid obstacles and navigate around them.
Choose LTS Global for Warehousing Solutions
Now that you’ve read our guide to warehouse management systems, you hopefully have a better overall picture of what warehouse management systems are, and how we use this software to support your business. By providing comprehensive data analytics, our WMS streamlines all our operations and delivers data insights and inventory tracking directly to our service users.
Whether you need ambient storage, food warehousing, or are looking for palletised storage for bulk items, our warehouse is equipped to manage your inventory.
LTS Global Solutions is a BRCGS-accredited logistics provider. Our agile and flexible systems keep lead times to a minimum, so you can start working with our services as soon as you are ready. We offer personalised quotes based on your service needs, supporting businesses of all sizes with tailored plans. Our warehouses are completely secure, with easy access to motorway networks, providing rapid delivery services perfect for e-commerce.
Our teams aim to provide an excellent customer service experience for all clients, so get in touch to start working with LTS. You can call us on 0121 753 0080, email info@ltsglobalsolutions.com or fill in our enquiry form.
