What is WMS or Warehouse Management System?

Under the motto “standing still is moving backward,” the logistics sector is evolving at a rapid pace. Digitization is playing an increasingly important role in this development. The warehouse, combined with WMS, is a prime example of how digital advancements have led to significant progress. In the past, warehouse inventories were managed using cards in card catalogs, later with spreadsheet programs like Excel. Working in this way requires a lot of time for all the necessary tasks and adjustments.

Customer demands are now so high that there’s no time to work with card catalogs or Excel. A solution needed to be found to keep up with the demands of customers and consumers. In order to process goods and orders more quickly, sophisticated and advanced systems became a must. It was at that point that WMS was introduced. The latest developments even include artificial intelligence (AI) and hardware (robots), but these are reserved for the big players.

WMS

What is WMS?

A Warehouse Management System (WMS) is a system that helps you manage inventory. Inventory management refers to the control of the incoming and outgoing goods of the company. It involves managing a warehouse, a storage space for goods (this could be your garage), or a distribution center. It includes all the processes related to the movement of goods within the company. It’s necessary to constantly track which goods are delivered, which products are sold, and the size of the inventory.

To simplify inventory management, many companies use a Warehouse Management System. A modern WMS system covers the 3 main aspects of inventory management:

Incoming Goods: Receiving goods into the warehouse. At this stage, you check if the products match what was ordered and whether they meet the quality standards. The system should then indicate where the product has already been stored or which storage locations are still available.

Inventory: Storing and properly placing goods in the warehouse. The system should show where the goods are stored and if they have been moved. If you work with expiration dates, the system should block orders containing products that have expired.

Outgoing Goods: Efficiently picking, packing, and shipping items to customers.

What does a WMS automate?

We know that WMS maps the goods flows. There are several inventory management systems available on the market. Each system will map the inventory, but which system should you choose? Look for a system that fits your activities and offers that little extra. Not all systems are equipped for warehouse locations, automations, expiration dates, barcode scanning, pick-and-pack flows, etc. The idea is for the WMS to automate certain flows and eliminate errors.

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We always advocate automating purchase and sales orders. You need to think carefully about the flow in your warehouse. We recommend that you provide warehouse locations for all spots in your warehouse. These warehouse locations can be linked to products in the inventory management system. If you have multiple sales orders, you will want to pick and pack them as quickly as possible. A smart, modern inventory management system will then automatically map the most efficient picking route through the warehouse. This way, WMS ensures that not only are goods flows mapped but efficiency also increases. When combined with barcode scanning, the error margin in the warehouse will be significantly reduced.

It is also important to have a clear overview of, for example, the status of sales orders. Think of statuses like:

Ready for picking

Picking

Ready for packing

Packing

Ready for shipping

Complete

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This creates a clear flow for sales orders. Each status represents the next logical step, but each step has its own specific actions. So, you know at all times in which phase a sales order is.

What are the benefits of WMS?

A WMS provides a company with many benefits. These benefits are about increasing efficiency and improving quality in logistical processes. This allows a company to grow or save costs. Other reasons to invest in a WMS include:

Not wanting to be dependent on people in the company

Capacity planning

Digitizing the process to spread information more quickly through the organization

Webship Online

We conclude that an inventory management system takes the warehouse to the next level. This quality boost is absolutely necessary to continue meeting the growing demands of customers. Are you looking for a modern WMS? Contact Webship Online at hallo@webship.online. Webship has developed a modern and user-friendly WMS that will allow you to manage your warehouse optimally. Webship Online has all the functionalities you expect from an inventory management system, such as expiration dates, batch numbers, warehouse locations, barcode scanning, and automation. Want to try Webship Online immediately? Request your free trial period!

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