Warehouse management systems (WMS) are software programs that track the location of
goods within a warehouse. This primarily saves storage space and eases order picking to make
the warehouse more efficient. WMS support varying configurations of automated and manual
The fundamental purpose of a WMS is to record the real-time location of goods within a
warehouse. Typically, WMS manage the inventory of finished goods within an intermediary
supply chain facility; raw materials are managed in manufacturing operations by
materials
requirement planning
(MRP) or enterprise resource planning (EPR) strategies. Inventory
management systems (IMS) are often a component of WMS, but are not equivalent. WMS
distributors or manufacturers typically require a yearly license fee which supports software
upgrades.
WMS have grown to accommodate the wide variety of sensors, processors, and
automated material handling equipment available. They can significantly reduce or eliminate the
need for personnel within warehouses, but require user-defined parameters and support
personnel to maintain workflow fluidity. Robotic systems have become prominent. These
systems minimize delays, equipment, inaccuracies, and labor to optimize warehouse efficiency.
Since no two warehouses are alike, WMS must be scalable, modular, and configurable to
the end user's needs. A WMS can typically support put-away and picking operations achieved by
both automated machines and personnel. It calculates the best location for an item to reduce the
overall spatial and labor investment of each item.
Receipt and Cataloguing
When a parcel or item arrives at the warehouse from a manufacturer, a barcode,
microchip, or RFID tag is affixed so that the WMS data acquisition system can readily identify
individual articles with common data acquisition equipment. A manufacturer may have already
installed an identification device upon the item as part of another asset management system or to
streamline distribution. Machine vision is another means of automated recognition. Many times,
the WMS determines at which dock to unload a trailer.
Identification information is relayed to a processor and WMS software which
acknowledges receipt of the item, determines the item's point-of-sale destination, and the item's
warehouse destination for storage or loading. This data can be held in a physical memory or
cloud-based data system. Additional information can be automatically queried, such as parcel
weight or quality assurance. The software also manages information such as lot numbers, SKUs,
control dates, or any other relevant information.
This information can be relayed to online storefronts and retailers for inventory and
overhead accounting.
Storage
The WMS software determines the optimal location for storage within the warehouse
while considering space constraints, shipping destination and date, inventory, and other factors
(i.e. products with the same destination or footprint will be stored together). This information is
relayed to automated material handling equipment or personnel which will route the items to the
determined warehouse location. Items are meant to be easy to find and relocate, and accounts can
be referenced to determine inventories.
Order Management and Shipping
Items for shipping are removed from their storage location by material handling
equipment and are agglomerated in a staging area for loading into a container or other supply
chain vehicle. This process is known as order picking, and WMS support all types of picking
practices (order, wave, pick-and-pass, etc.). Items are once again scanned upon their departure to
create a departed asset manifest.
Specifications
These values are an effective means of evaluating relative warehouse efficiency, but do not
provide a representation of overall warehouse efficiency.
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