Why does a company need a WMS?

Why does a company need a WMS?

• Although companies operating with paper-based systems are able to introduce best practice into the warehouse such as improving warehouse layout and minimizing travel time by having the fastest-selling items closest to despatch, they can improve even further and become more productive by introducing software technology into the warehouse.
• Customers are becoming increasingly demanding and the ability to communicate via electronic data interchange, have online visibility and receive instant replies to queries is more of an expectation than a need. A WMS can be part of this solution. 
• Sales and marketing teams are also desperate for real-time information, whilst finance departments are chasing data constantly. 
• Before we discuss the advantages of a WMS we need to point out that a stock-control system is not the same as a WMS. We have come across many companies who have purchased an inventory management system in the belief that it will operate the warehouse efficiently. Stock-control systems will manage the inventory at stock location and quantity level, but the majority of these systems will not manage productivity within the warehouse. 
• In our opinion, in order to be productive, warehouse systems need to be able to work in real time, manage all the processes within the warehouse and have the ability to communicate with other company systems. We will go into more detail as to the minimum requirements of the system later in this chapter. 
• A WMS can process data quickly and coordinate movements within the warehouse. It can produce reports and handle large volumes of transactions as experienced in e-commerce operations. 
• The introduction of new technologies into your operation not only improves your competitiveness in a challenging market but can also be instrumental in meeting ever-increasing customer demands.

The potential benefits of having a WMS in place include the following:

● Real-time stock visibility and traceability;

● Improved productivity;

● Accurate stock;

● Reduction in mis-picks;

● Automatic replenishments;

● Reductions in returns;

● Accurate reporting;

● Improved responsiveness;

● Remote data visibility;

● Improved customer service; and

● Minimized paperwork.