What is a Warehouse Management System?

Warehouses are at the heart of logistics, and managing the vast inventory that they possess used to be a nightmare. Stacks upon stacks of paper were overwhelming, but now there is a solution. Since most industries have gone virtual, there is professional software for warehouse management, which makes warehouse organization quite simple.

Here we’ll introduce you to warehouse management system software, the different types of it, and more!

What is a Warehouse Management System?

A WMS is a tool that allows warehousing operations and logistic companies to oversee, control, and administer in-house operations at any time. That is essential for managing the flow of materials which enter a warehouse and the speed at which they leave.

Managing and cataloging the inventory of a warehouse, pick-up, and send-out processes are all overseen and managed through the warehouse management system software. An adequately set up WMS can significantly streamline the inventory management process, clearing up time for the workforce to handle more complex tasks.

A warehouse management system usually compliments a warehouse alongside a transportation management system to further streamline the internal operations and processes.

There are generally three different types of warehouse management system software, each with their benefits:

Standalone Warehouse Management System

A standalone warehouse management system is a system created from the ground up for a specific warehouse, and it’s located and operated in-house. These systems are very costly since they require advanced installation and regular maintenance, but they’re a great long-term solution to warehouse management.

Cloud Warehouse Management System

Unlike an in-house warehouse management system, a WMS based on the cloud is owned and maintained by the service provider. It’s an affordable option that provides much-needed convenience but requires regular payment. They are very beneficial, as they provide top-notch security features, alongside data recovery, and regular updates.

ERP Modules

ERP vendors offer management systems already built into the existing ERP solution. It comes with some benefits but is, in most ways, an inferior method compared to the in-house and cloud options. It’s also the most affordable out of the three and can handle shipping, MRP, orders, and accounting.

The Benefits of a Warehouse Management System

There are many different benefits to using a proper WMS, such as:

  • Increased worker productivity
  • Less worker demand
  • Cheaper costs
  • Quicker operations
  • Better oversight
  • Streamlined internal processes
  • Better cataloging
  • Better transportation management

Why Is Warehouse Management System Software Important?

Warehouse management systems bring quite a lot to the table, all while cutting down on the required human resources to file and manage the workflow. They’re cost-effective, and make processes far easier, thus improving logistics significantly.

Picking a proper WMS for your warehouse is almost as important as having one in the first place. Different types better suit different businesses. For example, if you’re running a smaller operation, you’re not going to require a large-scale, in-house WMS system. Take all the factors into account and pick accordingly.

Warehouse management systems are an integral piece of any business, and can significantly benefit them, no matter the type, size, or inventory. If you have a warehouse — you should have warehouse management system software.

Or, if you’re looking to outsource your warehouse management process, reach out to JRC Dedicated Services!

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