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What is a warehouse management system? Introducing the functions and benefits of introducing them in detail

 warehouse management system
warehouse management system

Many people working in the logistics industry have problems such as “I don’t have time to keep track of inventory status” and “I can’t tell whether the inventory is good or defective”.
The warehouse management system is a system that solves such problems.
In recent years, technological innovations in the Internet and big data have enabled the logistics industry to accurately manage large quantities of goods and inventories.

Here, we will explain in detail the functions of the warehouse management system that manages the entire warehouse, the merits of introducing it, and how to select it.

 

table of contents

  • 1. What kind of system is a warehouse management system?
  • 2. What are the functions installed in the warehouse management system?
  • 3. Three benefits of introducing a warehouse management system
  • 4. Are there any disadvantages to the warehouse management system?
  • 5. Points to keep in mind until the introduction of the warehouse management system
  • 6. Warehouse management system can also be developed

What kind of system is a warehouse management system?

A warehouse management system is a system that manages the “flow of goods” in a warehouse.

Simply put, it manages most of the logistics-related work such as warehousing and delivery, and inspection. Various people are involved in the work in the warehouse such as warehousing, shipping, and inventory management, but thanks to the system, we can build an efficient system. Due to this characteristic, the warehouse management system is also called WMS (Warehouse Management System). It is introduced not only in a specific industry but also in a wide range of industries and companies such as manufacturing, retail, wholesale, and EC mail order.

 

What are the functions installed in the warehouse management system?

Main functions of the warehouse management system
function Overview
Arrival management A function to manage the list of products to be received, the number of products to be received, the arrival record, etc.
Inventory control Function to manage the position and quantity of inventory items in the warehouse
Goods issue management A function to manage the shipping status of products such as the number of planned shipments and the number of actual shipments.
Inventory management Functions for managing warehouse inventory work, such as workflow line management and inventory report creation
Form/label issuance Function to manage form creation and label issuance after delivery

 

The warehouse management system is equipped with the following functions to facilitate the work in the warehouse.

 

● Arrival management

The arrival management function is a function that manages the list of products to be received and the number of expected arrivals and converts the arrival record and returned goods into data. In addition, depending on the system, not only the quantity is counted, but also the product status and storage location at the time of arrival can be managed. Since the system manages all the flow of goods entering the warehouse, it is possible to always keep track of the exact number of items such as “how many items are on which shelf” at the time of delivery and to improve time efficiency during inventory. increase. In recent years, data can be handled smoothly because automatic counting can be performed simply by scanning the barcode or IC tag attached to the product.

 

● Inventory management

The inventory management function makes it clear where and the number of shelves on which products are placed. Work efficiency can be improved without hassle even when disposing of items due to expiration or collapse of cargo, or when replenishing items in an emergency due to long vacations, large amounts of special demand, or stockpiling. At the same time, the inventory management function is also useful for lot management by product code and product name.

 

● Goods issue management

The shipping management function manages the shipping status of products. By being able to manage to ship, you can centrally manage shipping schedules, actual numbers, allocation or withdrawal, picking list, distribution list, and packing. If this delivery management is not done properly, it may cause complaints and it may take a long time to take inventory.

 

● Inventory management

The inventory management function manages the inventory workflow line, creates an inventory report, and assists the inventory work in the warehouse. Even if you normally use it handy to count the warehousing and delivery, the number of books and the actual number may not match at the time of inventory. By using the warehouse management system, it is possible to determine “which product has a difference between the quantity on the data and the actual number?”, And even if there is a difference, it is possible to immediately grasp the difference.

 

● Issuing forms and labels

Issuance of forms and labels is performed after the delivery work. Depending on the type of business, such as invoices, packing statements, and invoices, it may take time and labor to enter labels. If you use the form/label issuance function of the warehouse management system, you can prevent erroneous input work and complete the work quickly.

 

As mentioned above, the warehouse management system has various functions. On the other hand, some business systems, such as “warehouse management systems,” specialize in specific management tasks. If you would like to know more about this warehouse management system, please refer to the following page. It introduces the functions and introduction method of the inventory management system in an easy-to-understand manner.

■ What is an inventory management system? Introducing the reasons and types that should be introduced

 

Three benefits of introducing a warehouse management system

Introducing a warehouse management system in a company makes it easier to enjoy the following benefits.

  • It becomes easier to improve work reliability and work efficiency
  • It will be easier to realize cost reduction
  • It will be easier to check the status of the warehouse in real-time.

 

● It becomes easier to improve work reliability and work efficiency.

As mentioned in the overview section, the warehouse management system is a system that creates a database of product information and manages a series of in-warehouse operations such as a receipt, inspection, and delivery. The system supports and manages work that was once done manually, making it easier to improve work efficiency. Some systems even warn of work mistakes with sound or screen display to prevent human error. A warehouse management system can help improve work reliability and efficiency.

The operation of the warehouse management system is designed to maintain a certain level of productivity even if a beginner is involved. Therefore, it is not easy for experienced veteran employees to be burdened, and it is easy to entrust work to inexperienced young employees.

 

● It will be easier to realize cost reduction

If the work is automated in the warehouse management system, it will be easier to promote labor saving in proportion.

In the logistics industry, many warehouses still require manpower. The key to reducing costs in a warehouse with many employees is how to reduce labor costs. If the work is streamlined by introducing a warehouse management system, it will be easier to build a system that requires a small number of employees and does not cause mistakes no matter who works. In addition, if work can be completed in a short time by improving work efficiency, it will be easy to contribute to work-life balance.

 

● It will be easier to check the status of the warehouse in real-time.

If you manage the data of warehousing and delivery on paper media, it will take time to update the information and it will be difficult to check the status in real-time. If you introduce a warehouse management system, the data of warehousing and delivery will be reflected immediately, so you can grasp the latest situation under any circumstances. For example, the inventory status of multiple warehouses can be immediately grasped by the system.

In addition, the warehouse management system also has a system that can manage the progress of daily warehousing and delivery using the Internet. If you can get a bird’s-eye view of the situation from warehousing to warehousing, it will be easier to plan production and purchasing plans, and it will be easier to prevent excess inventory.

 

Are there any disadvantages to the warehouse management system?

There is a reasonable cost to introduce a business system in a company. In addition, it is necessary to create a manual for employees and educate them on how to use the introduced system. It’s not just about warehouse management systems, but keep in mind that deploying a system can be both financial and time-consuming.

Therefore, when introducing a warehouse management system, make sure that you have a clear purpose for the introduction and that you have the necessary functions. At the same time, it is important to verify whether it is cost-effective.

 

Points to keep in mind until the introduction of the warehouse management system

In the following, we will briefly explain how to make a plan to introduce a warehouse management system.

 

● Understanding issues in warehouse management

Before introducing the system, let’s understand the current situation in the warehouse. Even if we blindly introduce a warehouse management system at a high cost, we do not know whether it can be used. First of all, “Where is the department where the work is not done efficiently in-house?” “Where is the department that takes time in the work process?” “Can the time be shortened if a warehouse management system is introduced to solve it?” Let’s review the whole and organize the points that can be improved once.

 

● Check if the functions required for business improvement are installed

After clarifying the points for improvement, it is necessary to confirm whether the warehouse management system has the functions required for improvement. There are various types of warehouse management systems. Carefully examine the content and choose a system that has features that can be improved.

Also, the warehouse management system is not as good as it has many functions. If there is a function that is not necessary for the business, it will be overkill and may incur unnecessary costs.

 

● Check the introduction cost and operation cost

Once you have selected the best system, the next point to consider is cost. Consider how long it will take each year to install and operate. In general, the more cost you spend, the easier it is to get a generous service, but it doesn’t make sense to exceed your budget. To stay within the budget, it is important to determine whether it is necessary or unnecessary while checking the system functions and fee structure. Each company has different points for improvement, so it’s best to decide from the perspective of whether or not the function is necessary for your company.

 

● Check the level of support system after introduction

Even if you select a product that is highly evaluated in terms of functionality and price, operating costs tend to be high if the support system after purchase is not sufficient. We recommend a system that has specialized staff and engineers who can provide installation support and troubleshooting. If you introduce a system with an inferior support system, it may hinder your business in the unlikely event that an error occurs. If you get an error that cannot be resolved immediately, the logistics will stop and you may suffer great damage.

 

The warehouse management system can also be developed

So far, we have introduced the functions and selection methods of the warehouse management system, but depending on the company, it may be that “the best warehouse management system for your company cannot be found”. Some have some degree of customization, but it’s difficult to find the perfect system in all respects. If you are a company person who wants to introduce a system that suits your business, you can outsource the warehouse management system. Many companies that are in charge of system development are good at warehouse management systems, and we can develop original warehouse management systems that match the business content.

 

This time, we introduced in detail the functions and introduction method of the warehouse management system.

In recent years, the logistics industry has transformed “human wave tactics to labor-saving.” Due to labor shortages and the aging of workers, warehouse work is in an era where systems using AI and IoT and robot automation are required. It is easy to imagine that even if you try to solve a huge amount of work only with human wave tactics, you will reach the limit early.

From the perspective of “work style reform” that has become widespread in the modern era of Reiwa, we recommend that you promote the automation and efficiency of operations through the system. If you are interested in developing a warehouse management system, it is recommended that you feel free to get a quote first. Ordering Navi is a matching site that “searches for the most suitable company by comparing and examining multiple system companies.” You can easily get a quote by using the ordering navigation.

If you ever want to know about similar things, check out the Facebook page Maga Techs

 

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