The key function of a warehouse is to act as a buffer to supply variability and leverage savings brought about by economies of scale, with a warehouse management system (WMS) facilitating the support and control of stock management activities. The primary, albeit simplified, purpose of a WMS is that of a tool utilised in the management of stock with the efficiencies or inefficiencies within the pre-warehouse supply chain activities significantly impacting on the capabilities of the WMS.
A WMS facilitates improved stock accuracy, stock turns, and labour management with a reduction in labour costs occurring as a result of advanced, optimised resource utilisation and task assignment. A WMS is not a driver but a facilitator of stock reduction efforts as the latter is directly correlated to lot-sizing, lead-times, and demand fluctuations. Helping you shape your decision are several factors:
Functionality
Most solutions these days are configurable to the customer’s requirements and facilitate the basic receiving, putaway, replenishment, picking, and goods issuing processes. A true litmus test of a WMS is how it deals with the industry nuances such as catch-weight, receiving and issuing in different UoMs, and intelligent loading.
Intelligent stock and labour control go hand-in¬hand with RF infrastructure mobilising and facilitating barcode scanning, route management, and real-time data acquisition. An industry with a high degree of automated material handling equipment is best served by a package that comes with standard interfaces to AS/ RS, conveyors, lean-lifts and others.
Historically, ‘best-of-breed’ solutions would best meet these functional requirements, but ERP vendors have effectively bridged the divide with their standard solutions and leveraged the experience gained from their wide customer base.
Integration
This requirement is an area where ERP vendors win hands-down as their solutions are fully integrated within themselves thus delivering true, seamless integration. Vertical and horizontal integration are not mutually exclusive.
Many best-of-breed vendors have attained certifications stating that their solution can be fully integrated into the larger ERP systems thus lowering the barriers to entry.
Scalability and flexibility
The true value of a good WMS is if it meets your short, medium, and long-term supply chain and technology platform strategies. The scalability and flexibility of the solution delivers this value by meeting your growing and changing business environment requirements respectively.
Best practice, R&D, and support
WMS must introduce best practice processes into your organisation as bad business practices can erode the bottom line and should be eliminated. Continued investment in the product that you’ve purchased by the vendor should be high on your list. It ensures that your WMS continues to grow in capability and meet your ROI expectations. A strong solution support base coupled with expert business knowledge from within your own organisation as well as that of your implementation partner is a must.
Cost and financial viability
Cost structures are important and require a critical long-term evaluation. A full scale WMS is not cheap when one considers the full scope of the implementation that includes networks, RF infrastructure, printers, licences, training and other factors. A realistic, total cost of ownership is required to avoid long-term disappointment.