What are the different types of WMS?

A warehouse is generally considered to be commercial space for the temporary bulk storage of raw materials and inventory, as a vital part of the supply chain.

Warehousing is the methodical process of storing physical stock and making products available easily and smoothly for optimised sales and timely distribution to specific locations and individual end consumers.

What is a Warehousing Management System? (WMS)

Warehouse Management Software Systems (WMS) are solutions, using advanced technology to enable companies to optimally and scientifically manage their receipts; automate data collection and storage; provide transparent and real-time inventory and stock management and control; programme and fulfill supply chain needs; schedule labour, synchronise barcode and other equipment; fully utilise space; and systematically create and manage control procedures for warehouse picking, packing and shipping.

Particularly with the dramatic increase in online shopping, some companies prefer to outsource the warehouse operations to providers of Third Party Logistics (3PL) operators with their own specialised WMS systems, tailored to the needs of the specific client company. The best 3PL warehouse management software is bespoke to the warehouse operation developed to meet the needs of its customers.

What are the Different Types of WMS?

Modern companies need to create efficient warehouses and effectively manage them to be assured of success.

There are four types of WMS: Standalone; as a module in Supply Chain Management; as a module within Enterprise Resource Planning (ERP) and as a Cloud-Based System.

To choose the WMS best suited to your business, it is important to first understand the different types and what they can do for your company.

•   Standalone WMS

Standalone WMS provides features for efficient digital control of day-to-day warehouse operations, such as monitoring and controlling supply chain flow from the time products or commodities arrive at the warehouse until they leave the warehouse.

Standalone WMS Functions:

Functions will vary from one company to the next, but will generally include a variety of inventory and operational features, such as:

• Receiving
• Putaway
• Replenishment
• Expiration date tracking
• Cycle counting
• Picking
• Slotting
• Packing
• Auditing
• Barcode Scanning
• Shipping

Advanced Standalone WMS functions

Some WMS can offer advanced features such as:

• Cross-docking
•       Advanced analytics such as daily performance and labour tracking; mapping out preferred KPIs, equipment usage, and maintenance schedules; warehouse layout optimisation, etc.
•       Basic transportation management

Benefits of Standalone WMS

•       Standalone WMS include the best and most important inventory management and warehouse operations features.
•       They are simple to use and work particularly well for smaller companies.
•       They are quick to install and can be used almost immediately.
•       They are generally more affordable.
•       They are typically onsite systems used with the company’s original hardware and network.
•       They can be used as an inventory management system in fields outside warehouse management.
•       They can be used to supplement and improve manual systems and spreadsheets, enabling small companies to automate many of their processes and to scale quicker and more efficiently.

2.     WMS module in supply chain management software

A WMS module can be bolted onto an integrated supply chain management software system to focus on warehouse operations as part of the bigger system.

The SCM-based WMS module plays an important role in the fulfilment process, from receiving raw materials to efficiently and cost-effectively moving goods and materials through the warehouse, and expertly shipping finished goods. It is excellent for managing inbound materials, balancing the amounts of ingredients or components requirements for manufacturing, and monitoring demand forecast and supply planning.

Functions of a WMS module in supply chain management (SCM-Based WMS module)

Diverse SCM-based WMS modules are available and it is necessary to customise the module according to the features that you deem important. WMS modules generally offer the following functions:

• Receiving
• Putaway
• Replenishment
• Expiration date tracking
• Cycle counting
• Picking
• Slotting
• Packing
• Auditing
• Barcode Scanning
• Shipping

Advanced SCM-Based WMS module functions

Some SCM-Based WMS modules offer advanced features such as:

•       Cross-docking
•       Advanced Business Intelligence and Analytics such as daily performance and labour tracking; mapping out desired KPIs, equipment usage, and maintenance schedules; warehouse layout optimisation, etc. as well as what-if scenario analysis.
•       Basic transportation management

Benefits of SCM-Based WMS modules

•       Merging the different facets of supply chain management and warehouse management, ensures greater cohesion and streamlines the entire process.
•       On top of providing common warehouse management tasks, an SCM-based WMS module can also feature customer service capabilities, vendor management, transportation management, material handling, inventory control, improved user interface, and customer relationship management
•       They are simple to use and work particularly well for medium-sized companies with complex supply chains.
•       Because of their production scheduling and real-time inventory functions, companies with some level of manufacturing or assembly would find SCM-based WMS indispensable.
•       They are typically on-premise based systems used with the company’s original hardware and network.
•       They can be used to supplement and improve manual systems and spreadsheets, enabling small companies to automate many of their processes and to scale quicker and more efficiently.

3.     WMS module within an ERP system

Enterprise Resource Planning (ERP) is a specialised system that offers a solid supply chain execution and scalability, incorporating a complete end-to-end solution delivering functionality addressing Purchasing – Purchase Reconciliation – Physical Stock Receipting Putaway – Telesales – Sales Order Consolidation – Picking & Despatch, that enables a company to perform effectively and successfully.

Although many ERP systems have some warehouse management capability, they do not provide the same advanced level of functionality and specialisation as a WMS. An SCM-based WMS module as part of the larger ERP system is considered one of the best options for automating warehouse and accounting operations and expanding and consolidating your supply chain and customer relationship platforms.

•   An ERP-based WMS module is specifically designed to optimise your warehouse operations within your ERP system.
•       Combining the different facets of ERP management and warehouse management ensures greater cohesion and streamlines the entire process.
•       EPR-based WMS modules improve logistics, product tracking and handling changes within the system.
•       ERP-based WMS systems are robust and interface and integrate well with different software systems.
•       They are typically on-premise systems used with the company’s original hardware and network. 

4.     Cloud-based WMS

Targeted web-based warehouse management systems that employ cloud, hosted or SaaS based software technology provides all the benefits of site-based WMS, but via offsite, cloud based servers.

•       In addition to all the features of standalone, SCM-based, and ERP-based WMS, cloud-based WMS offer much faster integration and implementation, affordability, better security protocols, and reduced IT maintenance. Functions like Receiving, stock management, order management and pick and despatch are included.
•   Tailor-made solutions for each company, with greater scalability and full integration of systems to streamline operations and increase productivity.
•   User-friendly and highly flexible with full IT support by the software supplier.
•   Off-site servers with the highest security protocols and backups ensure full data and disaster recovery in case of physical damage, system crashes, etc.
•   Reduces the expense of managing and maintaining an on-premise WMS.
•   Ideal for eCommerce, eFilfilment, distribution and manufacturing warehouse operators, especially those with multiple locations, who require flexibility to manage complex, fast moving, and high-value FMCG inventories.
•   Cloud-based WMS will suit 3PL companies to help them manage their outsourced warehouse operations.
•   Fast installation, integration, and great scalability, allowing your business to grow and make changes without disrupting the flow of current practices. Typically, installing cloud-based WMS takes a few weeks to implement, rather than the months or years required for some on-premise systems.
•   No, or minimised, downtime, if you choose a reliable software vendor such as ProSKU WMS Cloud from Principal Logistics Technologies.
•       Cloud-based WMS also gives you the option to get dynamic software updates without extra expense, ensuring technological competitiveness and contributing to lower costs.
•       Access to all your data from any device, anywhere.

Ask the experts at Principal Logistics Technologies / Chess Logistics Technology / ProSKU about the most suitable WMS or ERP software able to optimise your warehouse performance, reducing operating expense and add new value-added services. Phone Ireland: +353 (0)1 683 3333  or UK: +44 (0)121 368 0057 or visit www.principalsystems.com for more information.