In an industry where speed and precision are crucial, inventory management can prove to be a hurdle for many supply chains: stock errors, poor product location, limited visibility on all operations, delivery delays… Poor inventory management can significantly impact the overall performance of a supply chain.
Faced with these logistical challenges, an innovative and effective solution has found its place in Supply Chain 2.0: Warehouse Management System (WMS) software.
By automating and optimising processes related to inventory management, this system provides supply chain actors with the visibility necessary to make the right strategic decisions and improve their operational efficiency.
This article contains all the vital information related to WMS software: from key features to the best solutions on the market.
I. What is WMS software?
- Definition
Warehouse management software, commonly known as WMS (Warehouse Management System), is an essential tool that allows industrial companies to organise and control all the issues associated with the operational management of the physical stocks in their supply chain.
Within warehouses, factories, or retail outlets, WMS meticulously oversees the entire product lifecycle, from arrival to the completion of orders.
- Warehouse Management System (WMS) software functionality
Adapted to all sectors of logistics activity, WMS software can be customised to fit specific professions and sectors of activity.
Nevertheless, there are some more general functionalities of WMS software:
1 – Management of goods receipts
The first step in the logistics chain is the receipt of goods.
A WMS software can facilitate this task by automating the reception process through advanced features such as barcode scanning and RFID.
The WMS ensures accurate and fast receipt of goods by enabling, in particular:
- Package verification: The software checks and manages delivery notes to ensure that the received products match the orders placed (quantity, product characteristics; for example, the colour of the model).
- Coordination of logistics flows in cross-docking: Whether in consolidated, pre-distributed, or hybrid mode.
- Quality control: The WMS verifies product conformity (condition, dispute declaration, expiration dates, etc.).
- Automatic updating of stock levels: The software generates labels and captures logistics data in real-time.
2 – Management and optimisation of stock and storage locations
This function of the WMS enables warehouse managers to define and supervise all activities related to the movement of goods taking place in their storage spaces:
- Real-time control and updating of stock levels: Based on receipts/withdrawals in storage locations.
- Optimisation and organisation of storage locations: Based on demand (seasonality, product turnover rates) and product characteristics (nature, weight, size).
- Precise location of goods in warehouses: Real-time tracking of product stock movements within the warehouse (transfers between locations, replenishment, order shipments, etc.)
- Management and optimisation of product flows between storage locations: What is the fastest route? What quantities need to be transferred? The software helps determine the most viable solution.
- Tracking key performance indicators (KPIs): Shelf Fill Rate, Product Availability Rate, Space Utilisation Rate, and many others.
Example :
This functionality of the WMS can be used to define locations dedicated to receiving goods. For each location, several parameters can be controlled such as:
- The size of the location.
- Acceptable weight limits.
- Authorised categories of logistics units.
- Authorised product categories (ABC classes)
Once configured, the characteristics of the location are listed in a barcode. This barcode allows the warehouse manager to manage the status of the location: dedicated or general, for example.
3 – Management of order preparation
This feature of the WMS is used to guide operators in the most efficient preparation of orders. It includes a precise packaging and palletising function, which is highly beneficial for warehouses that have been handling increasingly large order volumes in recent years.
- Retrieval of data from the ERP / e-commerce platform: The software records data from different orders (product type, quantity, delivery deadlines, coordinates, etc.)
- Assignment and scheduling of orders: The software determines which picking system is most appropriate and assigns order preparation tasks to operators or to automated handling systems within the supply chain.
- Quality control: The software ensures that orders are accurate (barcode scanning, quantity checks, etc.)
4 – Shipping management
The final step in the logistics process is the shipping and transportation of products to customers. This functionality complements order preparation.
WMS software facilitates this step by:
- Generating necessary documents: Transport labels and documentation (delivery notes, bills of lading, etc.)
- Selecting the most appropriate carriers for the context by comparing costs, delivery times, and modes of transport used.
- Managing invoicing and pre-invoicing.
- Optimising and planning shipments based on truck loading rates.
- Tracking shipments (delivery statuses, reverse logistics, etc.)
5 – Real-time management and reporting function
Finally, so that logistics managers can have a real-time overview of all their operations, the WMS integrates:
- Functional and customisable dashboards: You can track and select the KPIs that are most important to you.
- Detailed reports: You also have access to a more in-depth analysis of your key KPIs.
These essential reporting and management features allow you to analyse the performance of your supply chain and make informed decisions to improve its operational efficiency.
Find out more: Warehouse logistics automation: what are the best solutions?
II. WMS software: what are the benefits for your supply chain?
- Very good compatibility with ERP
WMS software integrates easily within Enterprise Resource Planning (ERP) systems.
This complementary use greatly facilitates coordination and management across all processes of your supply chain: from production to the delivery of goods to your end customers.
- Increased stock visibility
WMS provides you with real-time visibility into your stock and inventories: origin, condition, location, and future destination of products.
With comprehensive and precise data, you can make the right strategic decisions for your supply chain.
Find out more: Data, the key to an economically efficient supply chain.
- Better quality of service
The WMS software reinforces:
- The accuracy of your supply chain by reducing human errors and eliminating interruptions (related to lack of storage, for example).
- The spEed of its execution by optimising order preparation and delivery processes, ensuring rapid and error-free execution.
- Reinforced flexibility
Thanks to a WMS, your supply chain will be even more capable of adapting to changes, trends, and fluctuations in its market!
Process automation enables real-time updating of all information flows within your supply chain, allowing you to remain competitive and responsive to the constant evolutions in your environment.
- Reduction of costs
One of the most significant benefits of a WMS software is the reduction of operational costs.
By optimising processes, minimising errors, and streamlining the use of human and material resources, a WMS contributes to a more efficient and cost-effective management of the supply chain.
This cost reduction is reflected in both decreased labour costs, improved utilisation of warehouse space, and reduced costs associated with logistical errors.
As a result, by implementing a WMS into your supply chain, you will quickly notice a significant return on investment.
III. WMS software: the 5 best solutions
Several software solutions stand out in warehouse management solutions. Here is an overview of the top 5 WMS software on the market:
- Reflex WMS: This software is characterised by its customisation according to the specific needs of each company. Reflex WMS offers comprehensive inventory management and integrates advanced features for managing returns, lot traceability, and expiration date management.
- Easy WMS: This solution provides complete visibility into the supply chain. Its features include inventory management, location optimisation, and a reporting and analysis module. Its user interface is particularly intuitive.
- Infolog WMS: This software integrates key features such as multi-warehouse management, transport resource planning, and real-time operation control.
- Infoplus WMS: This cloud-based platform is a comprehensive warehouse management solution. This software allows precise order management, efficient shipping, and excellent product traceability. It easily integrates with e-commerce platforms.
- Manhattan Associates WMS: This software offers advanced solutions for inventory management, work planning, order execution, and performance analysis. It is suitable for a wide range of sectors, from distribution to retail, and manufacturing.
Conclusion
In conclusion, the integration of a Warehouse Management System (WMS) represents a decisive step for companies seeking to optimise their supply chain. The benefits of adopting WMS software are many, whether it’s for inventory management, operational accuracy, real-time visibility into logistics processes, or responsiveness to market fluctuations.
Among the WMS solutions available on the market, Reflex WMS and Manhattan Associates WMS stand out for their functional richness and their ability to adapt to various logistics environments.
However, even before considering the integration of WMS software into your supply chain, you can start by adopting pallet pooling. This approach, proposed by LPR, allows companies to benefit from more flexible, economical, and sustainable pallet management. By beginning with pallet pooling integration, companies lay the groundwork for a more agile and environmentally friendly logistics system before fully committing to the digitalisation of their supply chain with a WMS.
