Introduction to warehouse management systems

 BASIC UNDERSTANDING OF WAREHOUSE MANAGEMENT SYSTEMS 

                       

    Before we dive into learning about WMS, it is important to understand what a warehouse is --- a place where goods are received from suppliers, stored securely and then dispatched to the final customers.. Warehouses are operated in almost every major industries including healthcare, electronics, clothing, cold storage, consumer goods and many more....

  

 In today's fast paced supply chain environment, efficiency, accuracy and visibility are more critical than ever. Whether you're running e-commerce small business or managing large distribution center. A warehouse management system (WMS) Plays a vital role in streamlining your warehouse operations.

What is Warehouse management systems?

WMS is a software tool designed to support and optimize warehouse functionality and distribution center management. It helps to record and manage all activities in a physical warehouse like receiving, checking inventory level, monitor stock movements and ensure accurate order fulfilment all in real time.

Why is WMS important?

A WMS is important because it helps businesses run their warehouses more smoothly and efficiently. Here are the key reasons why we need WMS

1. Accurate inventory tracking:

WMS shows what products are in the warehouse, how many are available, how many are blocked and where they are stored. This reduces mistakes like stockouts or over stocking.

2. Saves time and effort:

It automates daily tasks like receiving, storing, picking and shipping items which save time and reduce manual work

3. Better use of Space:

WMS helps to store items in the best location, so space is utilized efficiently, and workers can also find things quickly.

4. Faster and accurate order fulfilment:

Customers get their orders faster and more accurately, which improves customer satisfaction and reduces returns.

5. Realtime information:

Supervisors can see what's happening in the warehouse at any moment, which helps in making quick and smart decisions.

Functions of a WMS:

1. Inbound process:

The inbound process in a warehouse refers to the entire workflow involved in receiving goods from external suppliers, verifying their accuracy and quality and then moving them into appropriate storage locations. A well-managed inbound process ensures inventory accuracy, product integrity and overall warehouse efficiency.

Receiving:

1. Check for ASN in the System

When the trailer arrives at the warehouse, the inbound clerk checks the Advanced Shipping Notice (ASN) in the Warehouse Management System (WMS). This electronic document provides important shipment details such as expected items, quantities, and delivery references.

2. Check-In Process

Once the ASN is verified, the check-in process begins. This involves registering the trailer or shipment into the system to track its movement within the warehouse. A dock door is then assigned for unloading.

3. Move to Receiving Dock

After successful check-in, the trailer is directed to the receiving dock. This is the designated area where the physical unloading of goods takes place.

4. Unloading and Physical Verification

Warehouse staff unload the goods and compare the physical shipment with the ASN and packing list. They verify item types, quantities, packaging condition, and any visible damages.

5. Quality Inspection (if applicable)

For certain types of goods (like perishable items, electronics, or high-value products), a quality check is performed. This step may include checking expiration dates, lot numbers, product integrity, and compliance with specifications.

6. System Update and Receipt Confirmation

Once verified and approved, the receiving operator updates the inventory records in the WMS, confirming that the goods have been received. The system reflects the quantity and location of the received items.

7. Labeling and Tagging

If the products do not already have barcodes or tracking labels, warehouse staff will label each item or pallet to enable traceability and future tracking during storage and picking.

8. Putaway Process

Finally, based on item characteristics and warehouse slotting rules, the system recommends or assigns storage locations. Operators then move the goods to the designated bins or racks, and confirm the putaway in the system.

Outbound process:

The outbound process refers to all the steps involved in order creation and moving goods out of the warehouse to fulfill customer orders. It is a critical part of warehouse operations that ensures the right products, in the right quantity, reach the right customer at the right time.

1. Order receiving:

The warehouse receives the customer orders from the ERP system or order management system. These orders are verified and prioritised based on shipping deadlines.

2. Order release:

The system selects the orders based on predefined criteria, allocates them and releases them for picking according to priority and resource availability.

3. Picking:

Warehouse staff are guided to the exact locations of the ordered items. Depending on the system, picking may be directed by paper lists, RF handheld scanners, or voice commands.

4. Sorting & Staging:

Picked items are brought to a staging area where they’re sorted by order and verified to ensure accuracy.

5. Packing:

Items are securely packed, labeled with shipping information, and prepared for dispatch.

6. Shipping:

Packed orders are loaded onto trucks or carriers. The WMS updates the inventory and confirms shipment completion.

Inventory management operations:

Inventory management is a critical component of a WMS. It enables businesses to track and manage inventory levels, locations, and movement in real-time. Below are the key inventory operations handled by WMS.

1. Cycle counting:

Cycle counting is a routine inventory-checking process where selected items, iLPNs or locations are counted periodically instead of doing a full warehouse count. It helps maintain high inventory accuracy throughout the year with minimal disruption to operations. WMS can trigger cycle counts based on criteria like item movement, location priority, or scheduled frequency.

2. Stock adjustments:

Stock adjustments are changes made in the system when the actual quantity of inventory doesn’t match the recorded quantity. This may be due to reasons like product damage, shrinkage, misplacement, or incorrect receiving. WMS allows users apply or remove the condition codes, increase or decrease the inventory etc..

3. Replenishment:

Replenishment is the process of restocking the picking locations from reserve or bulk storage. It ensures that the picking areas always have enough stock to fulfill outbound orders. WMS systems automatically generate replenishment tasks when inventory falls below a predefined minimum level, improving picking efficiency and preventing order delays.

4.Inventory Transfers:

Inventory transfers involve moving stock from one location or zone to another within the warehouse. This could be for space optimization, preparing for outbound orders, or shifting slow-moving stock to less-accessible areas. WMS records all transfers and updates the inventory location in real time to ensure traceability.

5. Inventory Hold Management:

Sometimes, certain inventory needs to be restricted from regular operations. This could be due to quality inspections, damages, or pending approvals. WMS enables users to place inventory on "hold" status, preventing it from being picked or shipped until the issue is resolved or the hold is released.

Bonus:

Are you preparing for interviews? Here are list of interview questions and answers for beginners 

WMS interview prep

Thanks 

Ganga prasuna 

prasunaganga73@gmail.com 

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