The evolution of warehouse management systems (WMS) is very
similar to that of many other software solutions. Initially a system to control movement and
storage of materials within a warehouse, the role of WMS is expanding to
including light manufacturing, transportation management, order management, and
complete accounting systems. To use the
grandfather of operations-related software, MRP, as a comparison, material
requirements planning (MRP) started as a system for planning raw material
requirements in a manufacturing environment.
Soon MRP evolved into manufacturing resource planning (MRPII), which
took the basic MRP system and added scheduling and capacity planning logic.
Even though WMS continues to gain added functionality, the
initial core functionality of a WMS has not really changed. The primary purpose of a WMS is to control
the movement and storage of materials within an operation and process the
associated transactions. Directed
picking, directed replenishment, and directed put away are the key to WMS. The detailed setup and processing within a
WMS can vary significantly from one software vendor to another; however the
basic logic will use a combination of item, location, quantity, unit of
measure, and order information to determine where to stock, where to pick, and
in what sequence to perform these operations.
So the 10 essential
features to look out for in a WMS is
- Integration
with advance radio frequency and bar coding technologies
- Complete
back office integration with order entry, inventory control and purchase
order module.
- Scalability
to accommodate future business growth
- Real
time inventory updates
- E-commerce
capability including web store integration and B2B EDI support.
- Advance
reporting capability
- Support
for multiple picking methods
- Automated
inventory receipt and put away.
Coming from a warehousing background I definitely appreciate
the functionality WMSs have to offer, and, in many warehouses, this
functionality is essential to their ability to serve their customers and remain
competitive. It’s just important to note
that every solution has its downsides and having a good understanding of the
potential implications will allow managers to make better decisions related to
the levels of technology that best suits their unique environment.