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What is a Warehouse Management System? Describe its types and benefits

As we all know, a warehouse is a basic necessity for product construction, storage, and distribution. 

Likewise, the warehouse management system complies with several factors to maintain the working area’s workflow, safety, and efficiency. If you are leading a warehouse facility, this article will help you keep key factors in mind while maintaining your warehouse.

What do you understand about the warehouse management system?

Generally, a warehouse includes an important manufacturing place to distribute loads and other machinery parts. Likewise, you get manual, semi-automatic, and fully automated material handling solutions at warehouses. The warehouse management system also considers productivity, storage, picking, packing, and distribution of goods. 

Additionally, it involves the financial management and labor records of the place. Likewise, a warehouse and distribution center follow a set of rules and policies. You need a license to run a warehouse or dispersal center. Similarly, control of production and warehouse supply chain records remains at the top.

What factors are responsible for the immaculate warehouse management system?

Nowadays, these systems change into automated, and robotics, laptops, etc., take responsibility for optimizing the records’ accuracy. Let’s talk about the management of a warehouse or industry. It includes primary factors that must be addressed to organize and improve the steady workflow.

Factors responsible for the warehouse management solution

Warehouse Inventory systems

  • Generate orders

Stores and synchronizes supplier information to create purchase orders.

  • Receiving and storage 

Scan goods with barcodes and optimize receipt, then plan the appropriate use of storage space.

  • Production Control

Check the distributed, remaining units in stock, and a further order for the same items helps to control the overproduction of stock.

Order Management

  • Receiving and generating sales orders

WMS permits you to receive and create sales orders from different channels in a single system, like Amazon, eBay, etc. 

  • Picking

SKU codes, order dates, location, print lists, and easy access to the product storage places.

  • Packing

The type of material and amount of packaging are automatically calculated and packed with price tags, logos, shipping labels, and tracking codes; no need for manual data entry.

  • Shipping

Real-time parcel tracking and total price calculation are done automatically, and orders shipped to similar locations can be merged to diminish the shipping cost. 

  • Returns

A few cases happen when the wrong or damaged product is delivered. Additionally, returned units are easily identified, sorted, and returned to the manufacturer. Complete or partial refunds are sent to the buyers. 

  • Invoicing

Electronic invoices send to clients as text, emails, etc., and stored as company data.

Also, read Tips for Warehouse Optimization

Labor Management

  • Scheduling

Schedule the time, the number of people, days, etc., for warehouse labor.

  • Boosted Performance

KPIs tracking and hard workers keep managers or supervisors informed to reward them, provide additional training if needed, and select who do not meet their work requirements, etc.

  • Safety Control or Protection

Integrated security systems, cameras, video surveillance, fire extinguishers, prohibited areas, etc., help make the work environment safe and stress-free. 

  • Comprehensive cost assessment

It provides complete cost visibility and identifies which customers are unprofitable by breaking down costs by process, employee, shift, supervisor, department, or client.

Monetary Management and Reporting

Top-selling products, best sales executives, best-performing employees, profitable customers, etc., are part of financial management. Moreover, automated balance sheets, software, revenue, taxes, production to labor cost, etc., are included in reporting.

Risk Management and Forecasting

It consists of managing and forecasting predetermined risks, the damage to goods, and the management of pre-analyzed risks.

How many types of warehouse management systems are there?

Several warehouse management systems (WMS) are available in this technological era. Likewise, you need to select the best fit for your warehouse requirements. However, it considers the 3PL system to deal with loading and unloading from one place to another and distribution to consumers.

Types of Warehouse Management Solutions
  • ERP modules

  • Warehouse Supply Chain modules

  • Cloud-based systems

On a final note

All in all, the warehouse management system follows OSHA rules, reduces operating costs, and provides real-time inventory data. Likewise, it helps keep the goods safe and makes tracking easy for employees and products. Additionally, it helps to optimize and streamline the business flow. 

Consequently, WMS appears necessary to go ahead with technology for safety, productivity, and accuracy. Therefore, to learn more about warehouse safety tips, go through our blog post, “Best Ergonomic Equipment & safety tips for warehouse workers.”


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