What are the key functions of a WMS (Warehouse Management System?
A modern WMS (warehouse management system) consists of many useful, integrated functions. Features and integrations vary between different systems, but there are some things your business simply shouldn’t be without. Let’s explore some key WMS functions that make life easier for logistics and supply chain companies across the world.
Inventory management and tracking
Inventory tracking and management are the foundation of warehouse management. A WMS should be able to efficiently and accurately keep track of the inventory flow, including levels, locations, and statuses. The system helps the warehouse operators monitor demand and supply in real-time, e.g. to proactively replenish products.
There’s always a lot going on in a modern warehouse, and the WMS needs to perform many simultaneous, complex assignments correctly and efficiently. At the same time, it has to be easy for the warehouse team and other users to perform actions and understand insights.
Layout planning
The layout is crucial in getting the most out of your warehouse space. A high-quality WMS offers you tools to improve the layout, e.g. by organizing inventory in a better way. It can help you identify optimal locations, bottlenecks, and underused areas. The layouts of receiving, storage, packing, shipping, and service areas all impact your performance, and you have a lot to gain by optimizing them.
Order picking and packing
Effective and accurate picking and packing routines are crucial components in any warehouse operation. Some orders may require specific methods that the WMS can help set up and assign. In certain cases, picking multiple orders in bulk can be more effective than doing so separately. Regardless of specific circumstances, the system needs to be able to deal with these types of considerations.
Order picking and packing also impact customer satisfaction, given its major role in timely deliveries. The warehouse workflow can also be affected by fluctuations in order volumes. A good way to deal with fluctuations is to choose a scalable system that seamlessly adapts
Shipping management
You can also use modern WMS technology to automate parts of the shipping process. A common example of this is to automate shipping label generation to speed up the process and reduce manual errors. Another useful action is integrating the WMS functions with your shipping carriers, so it automatically selects the most cost-effective and timely shipping options. Integrating shipping and warehousing is a big win that can speed up operations and increase profits.
Labor and workforce management
One of the main goals of warehouse management is to increase efficiency operations across the board, including staff organization and performance. Cutting-edge WMS systems provide insights into employee efficiency and performance, giving you tools to increase productivity. You can also use it to put performance indicators and employee incentives in place.
The nyce.logic module Workforce Planning is a great example; an efficient tool allowing you to plan, forecast and organize the warehouse workforce inside the WMS system.
Receiving and delivery
Goods entering and leaving the warehouse need to be effectively and accurately tracked at all times. The WMS should also foresee and help plan upcoming deliveries, allocating resources in advance. If you’re using a certain solution to communicate incoming shipments, make sure your system can support it.
Returns management
Product returns are inevitable, especially for e-commerce businesses. Receiving, organizing, and inspecting the goods can prove a challenge, but you can turn it into a competitive advantage by offering customers easy and flexible return options. Regardless of the customer side, the system needs to be able to handle returns effectively and accurately. It should be able to validate and track return processes, while also enabling users to make manual actions.
Knowing why goods are being returned can be useful, so it’s a good idea to give the customers a way to express it. The insights can be used to improve business practices. It’s also good to offer several ways to make returns, e.g. through e-commerce channels and customer service.
Reporting and analytics
A high-quality WMS should provide you with the business data needed to continually optimize and improve operations. You should be able to easily monitor your KPIs and receive useful real-time insights on:
- Inventory
- Order fulfillment
- Warehouse utilization
- Workforce and productivity
- Shipping and receiving
- Quality control
- Forecasting and demand
In some cases, the business also has specific needs that require custom reports. Choosing a WMS with a high level of flexibility and many integrations can be a big advantage.
A paperless warehouse
Way too many warehouses still use paper in their day-to-day work. A modern WMS gives you the functions you need to go fully paperless, eliminating the need to fill out, store, print, and handle paperwork. It makes record-keeping easier, reduces human error, and contributes to a more sustainable business.
Integrations
The most effective WMS setups often consist of integrated solutions, where systems within the organization are fully coordinated. Integrating warehouse management with finance, CRM and other essential systems gives you the overview you need to work in a truly data-driven fashion.
This also applies to hardware, such as automation equipment and robotics. Increased warehouse automation and robotics require world-class integrations to handle the new level of complexity. Nyce.logic has developed the Automation API middleware to meet these needs.
Mobile functionality
Cloud-based WMS solutions make it easier to perform tasks on the fly on laptops, tablets, smartphones, and other devices. You'll have full access to the system anywhere in the warehouse, and the ability to scan barcodes and perform other warehouse tasks while on the move. For many warehouses, becoming more mobile is a game-changer, increasing efficiency and flexibility.
How do you know if a WMS has the right functions?
Exploring the functions of a WMS solution is one of the best ways to ensure that it’s a good fit for your business. Some vendors offer demos or free trials where you can experience the system for yourself. It’s also good to check out testimonials and other word-of-mouth so that you can find out what the users think about the system.
Nyce.logic WMS
Nyce.logic WMS from Extenda Retail is a warehouse management system with all the functions you need to bring your business to the next level. It is delivered as a cloud-based web application, offering the latest technology, user-friendly interfaces, and full scalability. We develop long-term partnerships that translate investment into profitability. If you’re curious about knowing what the system can do live, please book a demo with our experts.
