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A case study on how to plan and select a Warehouse Management System to move the product
faster and more efficiently
The warehouse is no longer just a storage place. It is becoming the key to a seamless supply
chain. The mission of todays warehouse is changing from receipt, storage and shipping to valueaddition in the supply chain. Therefore every company needs an effective plan to move the
product faster and more effectively.
In todays world of rapid business changes, major growth, consolidation of distribution centres or
a 95% order-accuracy rate are not sufficient to capture the market. Adoption of new technology
may seem to be an easy answer. But before spending millions on new technology every company
must outline exactly what and how much technology is required to create a state-of-the-art
warehouse.
Companies need to look at where they are, where they want to be, what technology they have,
and what they may need, to achieve their goals. According to the director of logistics for CFT
Consulting, before spending on technology, warehouse mangers and other decision makers must
ask themselves the following questions:
What is the quantity of product being handled in the warehouse?
What quantity is being stored?
How much selection is done?
Whether workers select partial or full shipments?
What is the shape or design of the warehouse?
What type of packing is required?
Can incoming product be bar-coded or should it all be checked?
Can vendors check 100% of whats leaving the warehouse or can they do spot checking?
Are trucks scheduled for pickups and deliveries or do they just turn up in a random manner?
Is there any automation in operation?
Is there one or more distribution centres (DCs) to be managed with one WMS system?
How is the inventory tracked?
Before purchasing any type of technology ---- hardware or software, ponder over the above
questions.
Warehouse Management Systems (WMS) is the buzzword today. Most of the available WMS are
complex and must be selected only after careful consideration. While purchasing a WMS, every
company must determine how purchased equipment will interface and work together. How the
new system will work within the existing system should also be determined.
Before implementing a WMS, Manhattan Associates in the US, examined a potential customers
order and shipment volume, labour allocation and payment, loading picking, receiving. An
analysis of all these factors helped Manhattan Associates to tailor a WMS implementation to
achieve maximum efficiency.
Companies can also take advantage of simulation software, which can demonstrate the effect of
technology on warehouse management. AutoSimulations is a company that uses software to
build a simulation model of a warehouse management. This model helps employees to
understand what will happen in varying conditions.
To make effective use of the simulation software, a warehouse manager should be able to
provide a detailed layout and information on picking, receiving, shipping and other vital aspects
involved in warehouse operation.
Simulations can be done on how a conveyor, automated trucks or WMS can run a warehouse.
Without simulation, warehouse managers have to make decisions on the basis of intuition or
experience, which is not advisable.
The simulation software costs around $25,000- $50,000.When compared to the results it gives
the investment is small.
A detailed case study on the selection and implementation of WMS is discussed in the next
article.
Related Reading: Is technology the answer? Small, S., Warehousing Management, 03/1999