A WMS, or warehouse management system, is software that helps companies manage and control daily warehouse operations, from the moment goods and materials enter a distribution or fulfillment center until the moment they leave. WMS software systems are a key component of supply chain management and offer real-time visibility into a company’s entire inventory, in warehouses and in transit. In addition to inventory management, a WMS offers tools for picking and packing processes, resource utilization, analytics, and more.

A robust, digital warehouse management system is essential for any business with on-hand inventory – and can help save money and gain new efficiencies in many areas. The top five benefits of a WMS system are:

Improved operational efficiency: WMS systems automate and streamline warehouse processes from inbound receipts to outbound deliveries – for improved efficiency, smoother operations, and the ability to handle higher volumes. They reduce errors in picking and shipping goods and eliminate duplicate and unnecessary work. A WMS also shares data with ERP and transportation management systems, giving you a holistic outlook that extends beyond your warehouse and helps expedite the movement of goods.
Reduced waste and costs: If you have date-restricted or perishable stock, WMS software can identify which items need to be picked first, or which might need a sales push, to minimize waste. It can also help you determine the most effective use of warehouse space, from inventory placement to optimal travel paths. Some systems offer advanced simulations to create floor plans and place pallets, shelves, and equipment in the best locations to run at peak efficiency and save time and money.
Real-time inventory visibility: Using barcoding, RFID tagging, sensors, or other location tracking methods, a WMS system gives you real-time insight into your inventory as it moves into your warehouse, around it, and on to the next location. With this visibility, you can create more accurate demand forecasts, run a just-in-time inventory strategy, and improve traceability – which is especially important in the event of a recall.
Improved labor management: A WMS can help you forecast labor needs, create schedules, optimize travel time within a warehouse, and assign the right task to the right employee based on skill level, proximity, and other factors. A good WMS system can also assist in boosting employee morale by creating a more relaxed, organized, and safe environment where workers feel their time is valued and being used wisely.
Better customer and supplier relationships: With a WMS, customers enjoy improved order fulfillment, faster deliveries, and fewer inaccuracies – which increases their satisfaction and loyalty and improves your brand reputation. Suppliers can also experience reduced wait times at loading bays and docks, for improved relations.

Any activities flowing into and out of the warehouse, and those that ripple out to the extended supply chain, can be improved with a good WMS – from receiving and storage to picking, packing, and shipping. The core features of a warehouse management system support these activities in the following ways.

idlWMS - Warehouse management system

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