What is a WMS (Warehouse Management System)?

A Warehouse Management System (WMS) is crucial in the logistics and supply chain industry, providing the backbone for efficient warehouse operations. This article covers the basics of a powerful, efficient WMS and explores the distinctive features of nyce.logic WMS, a market leader.

What can a WMS do for your business?

Warehouse management is about moving goods and material through the warehouse in the most efficient and cost-effective way possible. To achieve it, you have to use the latest technology in the field. Choosing a modern WMS is essential in optimizing supply chain management (SCM) by managing order fulfillment processes, from receiving raw materials to shipping finished goods.

Order picking and packing stands for a large part of the warehouse work and costs (some estimate as high as over 50%). With the right WMS in place, you can use modern technology to streamline the whole process. Moving your inventory faster and reducing manual work can do wonders for your bottom line.

A modern WMS coordinates inventory management, order processing, and distribution, ensuring that goods are stored, retrieved, and transported efficiently and accurately. The WMS is a key hub in the supply chain management that provides real-time inventory and resource visibility. 

Some benefits of a best-of-breed WMS are:

• Enhanced efficiency: the system's sophisticated algorithms and real-time data can improve the precision and speed of warehouse activities, from picking and packing to shipping
• Operational visibility and control: a comprehensive overview of warehouse operations can empower users to make informed decisions and respond quickly to unexpected situations
• Scalability and flexibility: A quality WMS can be customized according to the user's need and workflows, and scaled along with the business' needs
• Customer and workforce satisfaction: the system can ensure service quality and employee engagement by simplifying onboarding processes and optimizing workforce management, contributing to overall productivity.

The development of WMS technology over time

The capabilities of WMS systems have developed significantly since they first became available on the market. Early WMS systems of the 1970’s and 1980’s merely kept track of stock and inventory on a basic level. Inventory control, order picking, barcodes and RF technology took the systems to the next level in the 80’s and 90’s, followed by integrations with ERP systems that finally linked warehouse management with other business functions, like procurement, finance and sales. 

In recent years, technological advancements have continued, leading to many new innovations. Current warehouse trends like artificial intelligence & machine learning, robotics and enhanced user experience are propelling the systems into highly automated, efficient and integrated solutions that your business simply cannot afford to be without.

Which companies need a WMS system?

All businesses that manage goods in a warehouse benefit from using a WMS. The company size doesn’t particularly matter, as there are many different systems available on the market, fitted to different inventory volumes and supply chains. Regardless, effective warehouse management is a growth factor that will increase your profitability and develop your business.

WMS and supply chain management (SCM)

Supply chain management (SCM) describes the step-by-step flow of goods and services from and to a business. Improving your supply chain is an important part of effectivizing your business, cutting costs and increasing customer satisfaction. Choosing the right WMS is a key factor in that, especially if you deal with physical goods. 

Key functions in a modern WMS

A powerful WMS needs to be equipped with the right functions. To stay ahead of the curve, our experts have identified the top functionalities to look for in a WMS in 2024 and beyond:

• Real-time insights and control: the ability to track and follow-up inventory in real-time is one of the biggest advantages of modern WMS systems. A high-quality system should provide immediate visibility into warehouse activities, key performance indicators (KPIs), and inventory levels, enabling proactive management and decision-making
• Agile client and workforce planning: the WMS should be able to streamline the integration of new clients and optimize workforce allocation, ensuring that resources are used effectively. The new insights helps you identify improvement areas, getting the most out of your staff and better meeting the challenges of modern logistics
• Cloud-based technology: the system should be cloud-based, facilitating easy integration and speeding up client onboarding, while offering comprehensive control over multiple warehouses through a single, low-maintenance platform
• Sustainable operations: ideally, the WMS should support paperless processes and employ algorithms for efficient resource utilization, contributing to environmentally responsible warehouse management

Types of warehouse management systems

Standalone WMS

Standalone WMS systems are solely designed for warehouse management functions, focusing on inventory-related tasks. These types of systems are more basic, and may not be enough for a company seeking broader functionality and integrations. 

Industry-specific WMS

Some WMS systems are tailored to meet the demands of a certain industry. They come with specialized features, e.g. for industries like manufacturing, retail, healthcare or food. An industry-specific system can be a smart choice, but it is good to have in mind that broader solutions might also include useful functionality tailored for specific industries.

On-premise WMS

On-premise WMS solutions are installed and managed locally. These types of systems require a higher initial investment and ongoing maintenance. You also need to make sure that the local IT infrastructure is managed safely and effectively. Some modern WMS systems leverage the strengths of on-premise solutions, combining it with the best new innovations, such as cloud-based technology.

Integrated ERP- and SCM-based WMS

In some cases, the WMS functionality is a part of the ERP (enterprise resource planning) or SCM (supply chain management) solution. Warehouse management is built-in as modules or applications within the larger system, coordinating multiple business processes to improve accuracy and efficiency across the board.

Cloud-based WMS

Cloud-based WMS systems are hosted on remote servers, being accessed over the internet. Many retail companies choose cloud-based solutions because of the fast time to market, remote access and automatic updates. They require a lower initial investment, offering high scalability, accessibility, flexibility and robust data security.

What does the future of WMS systems look like?

WMS technology is developing rapidly, and providers are steadily introducing new, useful solutions. If you want to stay ahead of the competition, it’s important to have the future in mind, by choosing a top-of-the-line system. Scalability is a key factor, especially if you’re looking to continually expand your business. If your technological solutions are not scalable, you risk having to change or upgrade systems every time you scale up, which can lead to downtime and costly IT projects.

Introducing nyce.logic WMS - a future-proof solution from Extenda Retail

nyce.logic WMS is a leading warehouse solution from Extenda Retail. Its wide range of tools and features help you handle the complexity of the modern business environment. It will significantly improve your logistical and supply chain performance, turning your warehouse into a true competitive advantage.

If you choose nyce.logic, you can say goodbye to:

• Spiraling IT costs and expensive customizations
• Error-ridden manual processes
• Clunky integrations
• Untracked and unbilled value-added services
• Lengthy staff training and onboarding
• Compliance breaches or near-misses

The system has specialized setups available for any industry, including 3PLs, e-commerce & retail and wholesale logistics.