Small mishaps cost a warehouse time and money. The entire supply chain is impacted if a product is placed incorrectly, shipment arrives late, or stock counts are not accurate. A warehouse management system (WMS) ensures these issues do not occur and brings all inventory, workers, orders, and day-to-day workings into an orderly fashion.
Not every WMS works the same. Amid the varying interface and functionality of warehouse management systems, knowledge of the types of warehouse management systems can enable businesses to opt for software optimal for their size, budget, and operational requirements.
Standalone Warehouse Management Systems
A WMS is specialized software built to manage specific warehouse-related activities. Handles activities, such as, receiving, picking, packing, shipping, & inventory tracking.
This would be ideal for companies that want more advanced warehouse control, but do not necessarily want to replace their existing enterprise software.
Suitable for: Small and medium size businesses that have basic warehouse needs.
ERP-Integrated WMS
An ERP-integrated WMS is a warehouse management system that integrates warehousing processes with other business functions, such as, order processing, inventory tracking, and procurement. For example, they might include accounting, purchasing, sales, production, and customer services.
When an order is received, you may update the inventories and let the warehouse team know. This kind of solution reduces data duplication and maximizes cross-department visibility.
Suitable for: Enterprises with established ERP.
Cloud-Based WMS
Your cloud-based system is running through the internet. If this is the case with your software, it will be hosted and updated by the provider, most of the technical infrastructure will be managed for you.
Cloud WMS platforms also tend to have more flexible pricing and easier access from different locations. They also can cater to any developing companies while cost no huge hardware purchases.
Review its security controls, data backup process, integration options, and whether it is subscription-based before taking a plunge.
Suitable for: Organizations that have variable use cases with low upfront technology investment.
On-Premises WMS
An organization with an on-premise WMS has it installed on the company servers. It is the way that you can control the software environment, data storage, and system updates.
This way gives you more control and flexibility. On the other side of it, this does require a significant investment in hardware, IT staff, and ongoing maintenance and security.
Suitable for: Enterprise businesses, large use cases, as well as require in-house IT capability.
Supply Chain Management WMS
Some systems combine warehousing with other points in the supply chain. They can assist with transportation planning, linking suppliers and partners, demand forecasting, management of distribution, etc.
These types of tools enable companies to visualize inventory movement with more than one warehouse. They are particularly useful when goods pass through one or more facilities before arriving at the end customer.
Suitable for: A business having a broader network.
How Do You Choose One?
Several practical factors determine the right system:
A basic warehouse doesn’t require an extremely advanced platform filled with features it will never use. Conversely, a larger operation may find that their software cannot accommodate automation or multiple locations.
Final Consideration
The cost, controls, flexibility, and functionality of warehouse management systems differ. Identify your largest warehouse problems. Then, rank systems on how well they solve those problems today and help you grow in the future.