What is Warehouse Management System - WMS ?

In this article, we will focus on warehouse management systems (WMS), which is one of the most important concepts for all businesses that trade goods in general. You would find replies to the below questions What is WMS? What are WMS usage areas? What are the advantages of using WMS? etc.

What is WMS?

Warehouse management system (WMS) is a software solution that provides visibility into a business and its entire stocks and enables the management of supply chain order management operations from the wholesaler or manufacturer to the warehouse, retail, and store shelves.

Today, due to the dynamic, multi-channel, order management economy, customers want to buy the product they want from wherever they want and perform various transactions related to their orders. The warehouse management software, which is the modern solution of today and optimizes the order management processes of the enterprises, quickly responds to these demands. This software makes supply chains wider and integrates order and stock management services with modern purchasing methods.

Intelligent Storage Systems are designed to work with maximum efficiency using the best technologies.

WMS can also be expressed in terms of:

• ERP Logistics System, Smart, Cloud Data Storage Solutions, Intelligent Storage Software, Inventory Management and Material Management

What are WMS Usage Areas?

WMS can be used in any industry, wherever there are warehouse and storage concepts. The sectors and areas where WMS is mainly used are given below;

- Logistics industry

- Pharmaceutical industry

- Distribution warehouses

- Automotive parts

- White goods / electronic product storage

- Air cargo companies

- Book publishing and stationery

- Chemistry 

- Clothing and textiles etc.

What are the Advantages of Using WMS?

Inclusive WMS systems, which have the ability to solve many problems in general, provide added value to the processes of enterprises. In this context, we tried to list the advantages of using WMS as items below;

- Provides tracking of goods in and out of the warehouse in terms of units.

- It facilitates the creation of documents such as receipt documents, warehouse entry/exit documents.

- Provides tracking of damage and malfunctions.

- Makes it easier and safer to track differences in quantity, weight, and volume between operation and warehouse.

- It acts as an export warehouse by providing information exchange with export modules of International Road, Seaway, Airway, and Railway Transportation applications.

- It acts as a warehouse by transferring freight information with the import modules of International Road, Seaway, Airway, and Railway Transportation applications.

- It facilitates the tracking of delivered and received products by providing integration with cargo companies.

- It provides access to the warehouse from different carrier companies.

- It automates the distribution of collective income and expense items based on entry and exit dates.

- It enables the tracking of commissions based on the carrier company and the customs company.

- It makes processes such as storage time tracking, tariffs, pricing, and invoicing easier.

- It enables reports and statistics to be produced.

- It is suitable for multiple warehouse management.

- The section inside the warehouse allows the definition of aisle, place, and shelf.

- It ensures that the places are suitable for specific products such as quarantine, quality control, cooled area, stocking, collection, and transit areas.

- It provides separation of places according to the type of goods and space optimization.

- It provides an easy way to list the goods that have a difference between the goods acceptance list and the goods acceptance and delivery note.

- Manages material acceptance, placing, picking, and shipment movements.

- Makes pallet tracking.

- Determines storage and warehouse movement tariffs.

- It facilitates stock tracking on a pallet/parcel/unit basis.

- It also enables movement tracking through non-standard second units such as case and roll.

- Manages audit processes such as expiry date tracking and quality control.

- Serial Number and Lot follow-up.

- It makes it easy to follow the minimum and maximum stock levels.

- It allows some areas to be rented by revealing filled and empty spaces.

What is the Architecture of WMS Software?

It is also important to know the parts of the relevant decisions in WMS software. As a rule, the three-level principle is observed.

- Regarding the first level, it can be said that there is an application window, that is, a user interface, where a warehouse worker performs basic operations, enters and changes data, interacts with other experts, and receives the results of automatic miscalculations of warehouse operations.

- At the second level, the system's main server operates in the part where data is stored and processed. The server receiving the command from the first level makes the appropriate entries in the database at the second level. These commands and data are managed in a special algorithm.

- The third level is the stage where the software code that forms the so-called "business logic" of the system is used. It provides the processing of data received from the server and the realization of the first-level commands.

What are the Types of WMS?

Although there are various products of server companies, there are basically 4 types of WMS.

- An entry-level platform for small companies and stores with a small range of products to manage their warehouses.

- These are the “boxed” platforms used by enterprises with low turnover but medium and large area warehouses to manage their warehouses.

- They are called adaptive platforms. It has many integrations. They are used by large logistics enterprises and distribution centers.

- These systems, called configurable platforms, are used in the management of warehouses with a wide area and a wide variety of products, generally serving more than one sector at the same time, with high turnover dynamics.

How would be the Future of Intelligent Warehouse Systems?

Warehouses used today now offer sections from a science fiction movie. WMS is viewed very positively in logistics and industry. International giant storage pioneers such as Amazon, DHL, XPO, Geodis attach great importance to R&D studies by constantly renewing their warehouses. In the near future, automation will become more widespread in warehouses, as in many areas, and smart warehouse systems will have a large share in the sector.

We hope that article about some key points of WMS is useful for you. Please check our blog post that may help you to understand some important topics. Please share your comments and give your valuable feedback.

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