Warehouse management system - role and functions in the logistics chain

A warehouse management system (WMS) is the cornerstone of a logistics system. The WMS system is an internal system of logistics companies that is easily configured to control and manage aspects of storage, distribution, etc. receipt and audit.


An effective WMS system involves the use of a customizable set of solutions for a seamless workflow, not just data processing or storage procedures.


The warehouse management process is critical to achieving the most important business goal, which is to minimize operating costs and maximize profitability.


1. Control and management inventory

The general task of most enterprises is to maintain the accuracy of the inventory. An effective WMS system will help you manage your inventory quickly, easily and efficiently. You can improve inventory accuracy by reducing order cycle time and improving order fulfillment. A WMS system helps you reduce inventory levels by tracking every aspect of your inventory using real-time information.


Not only will you have a better idea of what's in stock, but you'll also be able to better track any necessary changes. You will be able to better serve your customers, because the WMS system facilitates a quick response to customer requests.


2. Centralized location

A warehouse management system saves a lot of time and money thanks to centralized storage of stocks. Storing, shipping and distributing inventory will be much easier if you have a warehouse management system as you will be able to bridge the production gap.


3. Improvement of product quality

The quality of your products will improve thanks to effective inventory management. You can know your suppliers and better track the expiration date of raw materials or products. In this way, you control not the quantity, but the entire production process. Now it is easier to get rid of defective products and ensure high quality of finished products.


By improving the quality of products, you can not only provide quality service, but also improve order processing. Isn't it great that an efficient warehouse management process will give you improved product quality? By improving product quality, you can also maximize company productivity, as a WMS system improves speed, efficiency and quality control.


4. Use of seasonal growth

You can make the most of holiday and other shopping periods to scale your business. Since the entire production process is easy to monitor with real-time information, you can also track consumer behavior during peak season. A tracking system will help you better deal with customer issues and provide quality customer service. Warehousing and logistics provide easy tracking of cargo due to automation and receiving information in real time.


This means you can improve accuracy and reduce customer complaints by making what they need available. In this way, you can take advantage of seasonal growth and increase the efficiency of your operation without additional costs. This means you get new opportunities to hit a lot of sales. With the right warehouse management systems in place, you can now sell faster and increase profits, which means a high return on investment.


5. Risk management

A warehouse management system is important to cope with supply and demand fluctuations and avoid wastage. Manage risks with real-time information on increases or decreases in product demand. Make a selling decision taking into account a sharp rise or fall in prices.
Improve purchasing decisions because you determine the right time to restock. In this way, you can always control your stocks and better meet the needs of seasonal products. Logistic warehousing also provides the opportunity to have additional storage in anticipation of future demand.


An effective WMS system provides improved inventory control and management, which means you can ensure product safety, avoid product spoilage, theft or accidents.


However, there is a need to choose effective software solutions that take into account the key features of warehousing and logistics.


Key features of the WMS system


1. Warehouse design

Warehouse design provides additional storage and optimized distribution of stocks. Not only can you customize your workflow, but you can also handle any seasonal inventory changes.


2. Information in real time

It is very important for businesses to receive real-time information, which requires an advanced warehouse management system. You can use built-in software and hardware applications to provide real-time inventory processing and improve accuracy.


3. Selection of warehouse management process

The choice of warehouse management process affects the performance of the supply chain and depends on the choice of element. Warehouse workers can better perform picking and packing tasks by selecting zones, lots and other functions. Packaging is now much more convenient, as modern logistics companies can package all your products if you sell the same products to different customers under the same brand.


4. Reception and shipment

With apps, you can provide receive and send functions. The software allows you to quickly identify and sort received items, record the data electronically and transfer to the ERP database. So now you can avoid any manual method of freight reconciliation with pick and purchase orders. Employees can use the software using separate accounts for data entry, increasing employee accountability and minimizing errors.


5. Inventory tracking

Tracking systems available in leading logistics warehouse systems are RIFD or AIDC and barcode scanners to save time when tracking and shipping goods.


This means that you can record all activities related to the internal movement of goods in the warehouse, incoming and outgoing inventory and other factors that affect inventory. This feature will help you save extra costs for picking and shipping jobs and ultimately simplify your day-to-day operations.


Advantages of the WMS system for logistics companies


There are several benefits you can gain by choosing and implementing the right WMS for your logistics business.


1. Process optimization

Whether it's equipment automation, barcode tracking, or smart scales, you can leverage the versatility of great warehouse management systems. A good warehouse management system will optimize your business process.
In this way, you can align operations with business objectives, establish key performance indicators, implement equipment automation and gather operational information about the current process.


2. Improving relations with suppliers and customers

An effective warehouse management system allows you to track customer behavior, fluctuations in supply and demand, errors in order accuracy, and others that occur during delivery. Ultimately, you can achieve 100% customer satisfaction and achieve high sales figures. Together with the centralized location feature, you can eliminate any friction with suppliers.


3. Cost reduction

A well-designed WMS system efficiently allocates labor and uses space while reducing waste. You can ensure the safety and preservation of perishable products, as well as simplify the collection and packaging process. This means that your operating costs are reduced in a number of ways, and you can lower your costs.

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