The better and more efficiently the available warehouse space can be used, the more profitable it is for the company. For a small start-up, a manually operated warehouse may initially be manageable and sufficient to meet requirements. As the company grows, the warehouse grows as well. In a manual operation, efficiency will usually suffer at that point. The question then quickly arises as to which measures are most effective in ensuring smooth warehouse operations.
Not every company will opt to outsource its own goods by renting storage capacity in an external warehouse and, at the same time, handing over the actual warehouse logistics to the landlord. If you expand your own warehouse and begin automating a purely manual operation, you will inevitably reach the limits of simple and fast warehouse work with purely “home-made” spreadsheets as well. However, this very simple and efficient way of working, with fast putaway and stock transfers or correspondingly fast order picking, is the desired standard today. As a rule, however, this can only be achieved for a corresponding volume of goods with a warehouse management system, or a so-called Warehouse Management System.
Another scenario for using warehouse management software could be that, as the operator of a warehouse, you have spare capacity and would like to rent it out. In order to make optimal use of the total warehouse space for your own operations and possibly also for rental, support from suitable warehouse management software is generally required.
Warehouse management systems (WMS) map both warehouse structures and processes, from goods receipt through to shipping. They are generally designed in a modular way so that individual modules can be used depending on company requirements, and the software is also highly scalable and can be expanded when needed.
Warehouse management software, or a Warehouse Management System, helps you eliminate performance issues, among other things. Paperless picking can reduce errors. The digital recording of goods also saves time in processes by avoiding manual procedures. Inventory data is available in real time, and extensive search efforts can be avoided.
Core functions of a WMS
Additional functions (selection)
The warehouse management system should, of course, also offer various interfaces. This allows you to exchange data directly with third-party systems such as an ERP system or, for example, an e-commerce shop. Data on orders, deliveries, etc. is therefore available in real time in all key systems and, above all, up to date.
For the above selection of functions, it should be checked in each case whether these represent a basic requirement for you and the operation of your warehouse. To select a suitable Warehouse Management System, it is therefore important to define the picking methods or picking procedures for the warehouse. If you know whether you want to use pick-by-voice, pick-by-scan, pick-by-light, etc. in the warehouse, you can pay attention to the corresponding functionalities when selecting the software.
Another aspect in the selection process could be the functionality of cross-docking or kitting, for example. This is particularly suitable for companies with high goods throughput and plannable volumes. Cross-docking means that goods are handled quickly and are not first stored, but forwarded directly to customers. Kitting refers to combining several goods or products into one set, which is then packed and shipped.
To select the right WMS, you should first define your requirements for the software. To do so, you should first consider which warehouse processes you currently want to improve and why. Should these processes be digitized and automated? What general improvements do you want to achieve by using the software? These questions help formulate the software requirements and document them in a specification sheet. Specify all processes that the software should map as precisely as possible.
When defining requirements, also determine what is a must-have and what is a nice-to-have for you. Under certain circumstances, the provider may only need to make a small effort to map exactly your desired workflow or the function you specifically require.
Some providers of warehouse management software also offer suitable mobile devices for use in the warehouse, so they can also support you when switching to barcode data capture or RFID. Therefore, based on your requirements and the desired picking methods, carefully examine which software and, if applicable, hardware providers should be shortlisted. Some software providers offer test or demo versions with sample data sets or allow the import of trial data from your company for testing the software. Make use of these options and test the solution. When selecting the provider, also take into account which projects they have already implemented. In your decision-making, also weigh whether new or already proven technologies should be used.
In addition to the provider’s references and industry know-how, you should also consider the provider’s service offering when making your selection. What support services do they provide? How are your employees trained to use the software and, if applicable, the hardware? Is the provider available quickly and competently in the event of problems? When selecting warehouse management software, also pay attention to a user-friendly and easy-to-operate solution. Check, for example, how quickly it is possible to train new warehouse employees to use the software. Only software that is used correctly and is easy and safe to operate will pay off in the long term and contribute to efficiency in your company.
There are numerous WMS solutions for companies to choose from. Since every company has different requirements for a warehouse management system, careful selection and the subsequent implementation are an extremely extensive project. This depends on a wide variety of factors such as warehouse size, initial situation, and so on. The implementation should therefore be planned carefully. Targeted and comprehensive project management is very important in all project phases. Throughout the entire go-live phase, you should remain in constant contact with the software manufacturer, who should provide initial support and later ongoing support as well.