You’ve certainly got your clothes falling out of the shelf right onto your head at least once in your life. That happened because the space in your shelf was stuffed with your apparel and you didn’t arrange them well.
The same mess happens with your warehouse when it works unmanaged: sooner or later it will hamper the entire supply chain process. Since the demand on logistics services is expected to spike up to $15.79 trillion in 2028, your warehouse has more chances to look like that unfortunate shelf stuffed with clothes.
Global Logistics Market is Set to Increase by the End of 2023 by 4% and only 3% by 2024
For that reason, automating and keeping all processes in order within a warehouse becomes a serious challenge for logistics providers, especially under circumstances that 80% of warehouses have no automation at all. But there is a viable solution many logistics companies nod towards today: a warehouse management system (WMS) software. In this article, we’ll pin down the concept of WMS, describe its main advantages, and help you decide whether a custom WMS software development is what you should look for.
What is WMS?
To start with, let’s get a clear definition of WMS. Actually, WMS is a software program that helps businesses run their warehouses more efficiently. In simple terms, it tracks inventory and automates many warehouse tasks, like receiving shipments, putting things away, picking things out for orders, and shipping them out.
A robust WMS software can deliver you the following advantages:
- Access to real-time inventory data. A WMS can provide you with information about every single item that goes through your warehouse. When the item gets its barcode scanned, all relatable information is saved in your system, so you can track and view it whenever you need.
- Operating expenses reduction. Many WMS systems include a space planning tool, which means you can allocate spacing for every single order in advance, thereby reducing time and effort spent on spreading and fitting the items when they arrive.
- Billing management. With a built-in or integrated billing system, your WMS will let you run an activity-based billing of your customers. As a result, you’ll always have precise billing of your services while your clients will be satisfied with transparent and adequate charging.
- Demand analytics. You can get better insights about your future demand with the help of WMS. The application collects all the data about outbound and inbound movement of orders as well as historical data to make an accurate prediction about the future workload. In such a way, you’ll be able to plan relatable warehousing processes beforehand to save time and money.
- Faster order delivery. Taking the benefits we’ve just described, it’s safe to say that WMS significantly boosts order delivery as your employees spend less time on processing orders and avoid common errors.
- Improved security. Since WMS requires your employees to use individual user accounts, it’s easier to track transactions and other operations related to order handling, which reduces the risk for item thefts.
- Conveys transparency within a supply chain. It is one of the main advantages of WMS as it provides your business with an accurate view of your inventory and stock levels. Moreover, you can connect your regular partners and customers to the system, so they also have a bird-eye view on the workload of your warehouse and plan their logistics operations accordingly.
- Elevates employees spirit. As long as WMS automates recurrent and manual tasks, the work of your employees becomes less monotonous and daunting, which positively impacts their job satisfaction.
These are the most prominent advantages of WMS and they are attractive to you. But what exact solution do you need? You may already have one, does it mean you should upgrade it or substitute with a more sophisticated version? Let’s slice and dice all these questions by discussing various scenarios on how you can develop your WMS software, so you can decide which solution is your cup of tea.
What WMS software do you need?
There are different ways you can get a WMS solution for your company: purchase a ready-made WMS, expand your own system, or develop a custom WMS application from scratch.
Ready-made WMS
You can buy already developed WMS software like Pulpo WMS, Boxwise, ShipHero, and WebStock that have a standard functionality to optimize your warehousing processes. These features are:
WMS features
The following list of features isn’t exhaustive but describes all main functions a good WMS should have:
- Inventory receiving and putaway. This feature identifies items and verifies purchase orders using barcode, Radio Frequency Identification (RFID) tag, or computer vision technology. The system automatically generates labels and provides storage recommendations based on item-specific factors.
- Order picking and packing. A solid WMS can automatically notify about order arrival or departure as well as generate shipping labels, packing slips, and other supplementary documentation. This feature provides your clients as you with real-time visibility of an order’s journey across the supply chain.
- Warehouse navigation. This feature makes inventory location searchable based on specific criteria, and the system automatically creates time-optimized warehouse routes for tasks like inventory putaway and picking.
- Inventory tracking. In the same way as receiving and putaway functions, this feature enables you to track any inventory. You just need to scan a barcode or RFID tag to read all necessary information about the item such as destination, type of material, storage recommendations, stock amount, and to which employee the order is assigned.
- Shipping management. A reliable WMS has to include a rule-based shipment scheduling, with shipping times and rates calculation. Also, such features as same-address shipments order merging into one and splitting consolidated orders into several shipments are also essential for a quality WMS.
- Analytics and reporting. Access to configurable dashboards providing an overview of warehouse operations is an important WMS feature. The system generates automated reports for inventory on hand, labor resource use, inventory returns, and such. It also offers inventory demand forecasting and labor demand forecasting, estimating resource requirements for specific dates, zones, and tasks based on procurement and shipping schedules.
- Quality control. With the use of RFID tags, near-fidelity connection (NFC) chips, and other Internet-of-Things (IoT) devices, WMS can automate quality control of items stored at your warehouse. By setting specific conditions for every item type, WMS can monitor whether the storage environment meets these requirements, and in case it doesn’t, the system will alert you.
- Supplier communication. By integrating with your clients and partners, WMS improves your communication as everyone within the supply chain has a shared view of orders movement, current workloads, and estimated future demand. Consequently, this feature helps to avoid miscommunication and manage stakeholders’ expectations.
- Billing and accounting. As we’ve mentioned above, billing and accounting tools are essential features for a well-seasoned WMS. Action-based billing, accounting reports generating, customizable dashboards, and integrations with clients’ systems are critical features.
- Error notifications. In case a picking error happens or the number of items in stock doesn’t match, WMS should alert you about the mistake or discrepancy in the inventory.
Picking a ready-to-go WMS doesn’t require you to dive into a software development cycle as you get a solution ready for work which is a good choice if you don’t have any specific needs or don’t intend to expand the system any time soon. But if you want to customize every corner and shiny button of your WMS, a ready-made solution is not what you should look for.
Upgrade old WMS
If you already have a WMS, but feel that it lacks functionality that significantly helps you speed up warehousing operations, it makes sense to expand it by adding new modules. You can opt for adding the following components:
Supply chain module
You may want to go beyond just optimizing processes within your warehouse. If you need to improve your logistics operations across the entire supply chain, it’s reasonable to consider developing the entire supply chain module system.
Supply chain management (SCM) software is a broad term encompassing various tools that manage different parts of a business's supply chain. There isn't typically a single software app for the entire supply chain, but rather a suite of programs that work together such as WMS, order management system (OMS), transportation management system (TMS), rate engine and so on.
Integrated ERP
An integrated enterprise resource planning (ERP) software isn’t as huge and complex as SCM but offers a range of extra features that help you run your warehouse as a well-oiled machine. In addition to standard WMS features, an integrated ERP can work as a centralized hub for your supply chain management, accounting, HR, and even customer relationship management (CRM) application.
This type of WMS is a good fit for third-party logistics (3PL) companies that don’t have their own supply chain but need to stay up-to-date with logistics operations of their customers and have other processes managed under the roof of a single system.
If you already have an old WMS but want to scale and upgrade it, TwinCore will accept this challenge and assist you with migration to the cloud and developing new modules that widen your business opportunities. With 13 years of experience in custom logistics software development, our team of professionals will handle your WMS migration and expansion just like you want it to be.
Custom WMS development
In case a ready-made WMS doesn’t fit your needs and you have plans of expanding your business but still don’t have any WMS in place, custom WMS development from scratch is the most viable option. You’ll develop your own solution that is adjusted exactly to your business and you can change it in any way your logistics business will require.
Let’s just review the example of Amazon, the most prominent logistics provider so far. The company’s decision to go for a custom WMS development had several sound reasons. Theimassive scale and complex fulfillment processes require a system that goes beyond the capabilities of off-the-shelf solutions. That is why why a custom WMS was a good choice for Amazon. The company has managed to obtain such benefits as:
- Highly tailored operations. Amazon's warehouses handle a mind-boggling variety of items, from books to furniture. A custom WMS can be designed to optimize storage, picking strategies, and packing processes for this diverse inventory.
- Scalability and integration. As Amazon continues to grow, their WMS needs to keep pace. A custom system allows for easier scaling of features and seamless integration with other internal systems like their order management platform.
- Advanced automation. One of Amazon's key advantages is its use of automation in warehouses. A custom WMS can be designed to work hand-in-hand with robotic picking systems and other warehouse automation tools for maximum efficiency.
- Data analytics and customization. Amazon thrives on data-driven decision making. A custom WMS allows for in-depth analytics specific to their operations, providing valuable insights for further process optimization.
While the upfront cost of custom development can be high, even for a Big Tech company like Amazon, the long-term benefits in efficiency, scalability, and control over their warehouse operations make it a good investment.
Your WMS software is just one click ahead
Since not so many logistics providers have already automated their warehouses, it’s high time you grab such an opportunity to lead the competition by adopting trailblazing WMS software. Whichever type of WMS you would like to develop or upgrade an existing one, the TwinCore is here to offer professional help.
With more than 135 completed projects behind our backs, we can assist you with creating a custom WMS software according to your requirements. But if you haven’t decided yet what solution you need exactly, it’s not a problem! Just contact us, and we’ll get back to you to discuss your future WMS solution.