Warehouse Management Software

Software Tips

What is a Warehouse Management System (WMS)?

Warehouse management software, the warehouse management system (WMS), includes functions for mapping the complete administration and control of warehouses, storage locations, and logistics centers. Warehouse management software or a Warehouse Management System (WMS) can be used to map the flow of materials from goods receipt through storage location management, inventory management, order processing, and order picking all the way to shipping. A WMS also includes functions for mapping in-house warehouse systems (intralogistics). As a rule, a WMS supports paperless picking as well as perpetual inventory.

Warehouse Strategies

A warehouse strategy defines how the warehouse is organized and according to which rules goods are stored and retrieved in the different areas. Various warehouse strategies are available for warehouse operations. FIFO (First In – First Out), LIFO (Last In – First Out), and FEFO (First Expired – First Out), as well as chaotic or dynamic storage, are among the best-known warehouse strategies. Dynamic or chaotic storage is usually the more space-saving alternative to a warehouse system with fixed storage locations. The optimal warehouse strategy in each case is influenced by various factors. These factors include the type of warehouse (high-bay warehouse, partially or fully automated warehouse, pallets, etc.), the number of storage locations, the type of goods, the storage duration of individual goods, and much more.

Cross-Docking

Cross-docking has become increasingly important in recent years because the basic idea of not storing goods but handling them directly significantly reduces warehousing costs. The advantages of this handling process include shorter throughput times, lower inventory levels, and reduced warehouse space requirements. There are different variants of cross-docking. In transshipment, the goods are shipped to the transshipment point, then transferred to new shipment units and delivered to the respective recipient. An extended variant includes carrying out additional process steps such as labeling or assembly before delivery to the final recipient.

Further tips and suggested questions for evaluating warehouse logistics and warehouse management software

• Before making a software decision, conduct a thorough market research of potentially suitable solutions. Our tip: Use our free research service without any obligation. Large parts of the tender are taken over, potential solutions are presented in a structured way and the communication with the providers is documented!
• Ask to what extent items can be created. This includes the ability to enter long, multi-digit alphanumeric item numbers (e.g. 999.999.999). Enquire about the length of the existing item groups or numbers. Is it possible to use an unlimited number of items in the WMS?
• Please check with the supplier whether the names of all items in the Warehouse Management System can be freely defined.
• Please explain whether prices for items and item groups can be defined freely.
• Ask the supplier whether the user interfaces are available in multiple languages. This will enable staff from different backgrounds at various warehouse locations to use the software without any problems.
• Please ask whether location details (storage locations, storage areas, etc.) can be maintained in the same way as the precise names of storage rooms, locations, warehouses, cold stores, temporary storage facilities, etc.
• Ask whether there are features for managing EANs and barcodes (including automatic EAN assignment).
• Item maintenance and overview also include replacement items, which should also be freely definable and can be assigned accordingly.
• Please check whether, in addition to item number management, there is also a serial number management system in place, and ask how this is structured and when specific serial numbers can be created.
• Ask about the definition of reorder proposals based on demand, consumption or quantity, taking into account minimum order quantities and optimal order quantities for optimal stock management.
• Please ensure that packaging and sales units can be defined freely, e.g. by specifying external dimensions and weight.
• Naturally, functions for account allocation, cost centres, cost elements and tax codes should also be available for each item.
• Interfaces for the direct posting of stock movements to financial accounting, inventory management, ERP systems and, for example, online shops are also very important.
• Please check whether it is possible to manage multiple suppliers with different purchase prices, item numbers and currencies. Can the system handle identical items from different suppliers?
• Please also enquire whether it is possible to manage different item numbers and descriptions for each customer.
• If you still rely on manual stock receipt and issue, please ask whether the software supports this.
• Please also enquire about entering and managing stock location transfers and bulk transfers.
• Please enquire whether it is possible to set up inbound and outbound restrictions for each storage location (e.g. consignment stock).
• Look out for calculation functions. For example, are there options for calculating storage rent or for automatic settlement of storage charges?
• Ask if there is a way to get an overview of all price changes.
• It is also always important to have options for importing products from third-party programmes and other files (e.g. catalogues), as well as for synchronising products with third-party programmes (e.g. third-party online shops).
• Ask whether it is possible to create your own information windows for quick and clear overviews.
• Does the warehouse management system allow for the definition and management of bills of materials, as well as comprehensive product statistics?
• Take a look at the display options for stock availability windows, which show past and future information, as well as bulk updates via item selection.
• Support for price adjustments through functions that automatically adjust prices in response to exchange rate or price changes.
• Ask about options for displaying stock levels, such as available stock and planned stock, to support sales and purchasing.
• Please check whether there are calculation functions for cost prices at supplier level. Furthermore, calculation functions for cost and selling prices should be integrated.
• Ask how many order pickers can work with the solution at the same time and also test how an order is selected on the device. Can several warehouse employees work on one order if necessary?