Warehouse management systems (WMS) is described as the advanced technology and operating processes which optimize all warehousing functionalities. These functions begin from receipts from suppliers and ending with shipments to the customers, also including all inventory movements as well as information flows in between. Warehouse management systems are mainly associated with large and complex distribution operations. However even smaller and middle size companies are identifying the importance of WMS in today’s scenario of integrated logistics, just-in-time delivery and e- commerce fulfillment.
In practical situation, Warehouse Management System is used mainly in integrating computer hardware, software and peripheral equipment along with good operating practices so as to manage inventory, space, labour, and capital equipment in ware houses and distribution centres. Implementing of WMS serves the company by increasing its competitive advantage in matters of labour cost, improval of customer service, increasing inventory accuracy, and improving of flexibility and responsiveness. A WMS also helps the company in management of inventory in real time along with information regarding the latest order, shipment along with any movement in between.Benefits of Warehouse Management System
- Faster inventory turns. A WMS reduces lead times by limiting inventory movement and increasing inventory records thus implementing JIT environment. Thus the need of safety stock gets reduced thereby increasing inventory turnover along with working capital utilization.
- More efficient use of available warehouse space. A WMs along with recuing safety stock requirements also increases available warehouse spacing by efficiently locating items with relation to receiving, assembly, packing and shipping points.