Top Guide on Warehouse Management System

WMS software (warehouse management system) is essential for firms that deal with third-party logistics (3PL). Unfortunately, selecting the right one is not always simple. There are various types of warehouse management systems, as well as numerous solutions within each of these categories. Making an informed selection necessitates understanding your options, why they differ, and which solution is best suited for your business.

Warehouse Management’s Top Picks

When it comes to 3PL WMS systems, there are four different categories. Standalone warehouse management systems, supply chain execution modules, integrated ERP solutions, and cloud-based systems are examples. The functionality and features of each system are generally the same; however, the package and distribution style change.

The different types of warehouse management software provide numerous benefits, including lower operating costs. Businesses can use WMS software to oversee logistics and inventory by doing cycle counts, tracking shipments, and monitoring expiration dates. Through the use of barcoding, serial numbers, and RFID tagging, these methods improve inventory visibility.

Through inventory tracking functionality, WMS optimizes inventory mobility both internally and externally. There are also tools to help you optimize your receiving, putaway, slotting, picking, packing, and shipping responsibilities.

Types of Systems

So, let’s have a look at the four primary types of warehouse management systems:

1. Independent

Standalone systems are purchased only for their warehouse management capabilities. These storage systems can be coupled with existing or future solutions, but they are sold as specialized products that do not include other supply chain tasks. Some providers provide a few basic transportation management solutions, but the emphasis is on best-of-breed WMS.

Greatest-of-breed is similar to selective breeding in that it only incorporates the best, most significant aspects of all possible warehouse management system modules. WMS often includes inventory management and warehousing operations. Expiration date tracking, barcode scanning, cycle counting, slotting, putaway, receiving, picking, packing, and shipping are all features of standalone WMS.

Businesses can utilize standalone WMSs as independent software, inventory management systems, or in conjunction with other system interfaces.

Because of this, it is particularly suitable for SMBs or organizations with limited software budgets. It does not include any other phases in the logistics chain and may not interact as well with other types of business software as some of the warehouse management systems listed below.

2. Modules of the Supply Chain

When analyzing various WMS systems, you might consider them a subtype of supply chain management (SCM). Although there are various warehouse types in supply chain management, we will concentrate on those that provide value to products and services.

Supply chain management software provides a wide range of applications, assisting customers in managing everything from vendor relationships to corporate processes to risk assessment. It focuses on inventory management, material procurement, and product life cycles.

Choosing this form of warehouse management system necessitates investing in supply chain planning programs with warehousing capabilities. It’s a popular path since it allows 3PL companies to learn about the various advantages of SCM. Combining WMS with other apps is an excellent method to guarantee that different portions of the business are well-coordinated. It enables holistic supply chain management, whereas standalone solutions mainly cover warehouses.

If you choose this approach, it’s critical to minimize overlaps with your existing software. If you already utilize fleet management, inventory management, and warehouse management software, you might potentially integrate them all into a single SCM platform. Another alternative for avoiding overlap is to select an SCM solution that connects with other corporate software such as payroll and ERP systems – which brings us to the next choice.

Download our Warehouse Management Software Requirements Template for free.

3. ERP integration

ERPs are robust software solutions that integrate the capabilities of numerous different systems. They provide the majority of the fundamental applications that help to streamline 3PL activities, such as supply chain planning, procurement, accounting, customer relationship management, human resources, and more. ERP is an excellent choice for companies wishing to enhance their software solutions on a wider scale.

According to Proficient Industry Insights, the global ERP software market is expected to grow at a CAGR of 5.9 percent between 2021 and 2028. The market will be worth $63,030 million by 2028, up from $42,160 million in 2021.

Although integrated ERP systems include some warehouse capabilities, they are not a primary function. Keep this in mind while you hunt for ERP software. Make certain that the solution you select has warehouse management functions ahead of time.

Because of its unique components, integrating a WMS with ERP might cost you twice as much. Think of it as a software jack of all trades. This system handles a variety of tasks and consolidates them into a common interface.

If you’re unhappy with your present software or want a centralized system, ERP may be the right answer for you.

WMS as a supply chain module or ERP integration differs from standalone solutions in that it provides warehouse management as part of a larger package.

The first option to make is whether to invest in a dedicated WMS or if a combination product would be more beneficial. The answer is determined by the size and aims of your company.

4. Cloud-based WMS

Cloud-Based On-premise Solutions are typically unreliable in terms of maintenance and installation costs. You could end up paying a lot of money to manage installation and infrastructure.

Using a cloud-based WMS has several significant advantages. You can significantly reduce implementation and installation costs because they are managed and hosted by a provider. Because of their low barrier to entry and subscription-based payment choices, these scalable solutions are especially appealing to startups and small companies.

Cloud-based management systems optimize warehouse processes such as inventory reporting, workflow automation, and data entry time, among other things. They also ensure that product upgrades are delivered on time and that data is accessible in real-time. Using a cloud-based WMS allows you to manage multiple system functions from a single location.

As appealing as these solutions appear to be, they are not without flaws. Because the solution is hosted by your vendor, you have less control over data security, and internet connectivity issues can disrupt service.

Before deciding on a platform, consider your pain points and must-have requirements. Deployment, integration, and easily accessible sales channels all contribute to a successful implementation.