What is WMS?
February 06, 2025
A Warehouse Warehouse Management System Warehouse Management System) is a software solution designed to supervise and optimize daily warehouse or distribution center operations. It covers from receipt of goods to shipping, ensuring precise and efficient control of all stages involved.
Main features of a WMS:
Receipt and storage: manages product entry, recording detailed information and determining the best location for storage, optimizing the use of available space.
Inventory control: offers real -time visibility of inventory levels, allowing for precise tracking lots, validity dates and other essential characteristics.
Picking separation: optimizes the product collection product process, reducing time and minimizing errors.
Expedition: coordinates the preparation and sending of orders, ensuring that the correct products are dispatched to the right destinations at the right time.
Reports and Analyzes: generates detailed reports on warehouse performance, providing informed decision -making insights and continuous improvement strategies.
Benefits of implementing a WMS:
Increased operational efficiency: automates manual processes, reducing execution time and minimizing human errors.
Inventory accuracy improvement: provides accurate and updated data, reducing discrepancies and avoiding breakdown or inventory excesses.
Space optimization: intelligently takes advantage of the space available in the warehouse, resulting in better organization and storage capacity.
Operating costs: With more efficient processes and less errors, there is a decrease in costs associated with rework, product losses and overtime.
Customer service improvement: With more agile and accurate operations, orders are fulfilled faster and more correctly, increasing customer satisfaction.
According to Gartner, a WMS is a software application that helps in the management and intelligent execution of the operations of a warehouse, distribution center or service center.
In addition, companies such as SAP were recognized as leaders in Gartner's Magic Quadrant for warehouse management systems, standing out for their ability to execute and comprehensive vision in the sector.
In short, the implementation of a WMS is critical for companies that seek to optimize their logistics operations, reduce costs and improve customer satisfaction through more efficient and accurate warehouse management.
According to a study by Gartner , companies that implement a WMs can reduce order separation time by 30% and decrease operational errors in 40%. This is because the system can use advanced algorithms to suggest the best route within the warehouse, optimizing operators' movement.
A Deloitte points out that 60% of companies still use manual or partially automated processes for inventory management, which can lead to missing or excess products. With a WMS, inventory visibility is practically in real time , reducing losses and improving product turnover.
Modern WMs are integrated with ERP (Enterprise Resource Planning) and TMS (Transportation Management systems) , ensuring that the supply chain works in a synchronized manner. For example, integration with an ERP allows inventory information to be updated automatically as new orders are made or goods are received.
The McKinsey & Company report shows that warehouses that use IoT and artificial intelligence sensors by WMS can reduce by up to 20% OS OS storage and movement costs. This is because automation allows you to better monitor space and predict more accurate demands.
companies that adopted a WMS reported improvements such as:
According to a Forrester report, WMS advances are increasingly facing:
References:
Gartner: "Warehouse Management Systems Reviews and Ratings"
Deloitte: "Ramp-Up Planning for an Enterprise WMS Implementation"
Deloitte: "Making the Case for Inventory Optimization"
Made4Net: "Gartner Report Offices 12 Metrics to Improve Warehouse Efficiency"
Deloitte: "Improving Efficiency Through Warehouse Automation"
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