In order to prepare for your first implementation of a Warehouse Management System (WMS), it is important to ground yourself in an understanding of these 7 key WMS concepts.
1. WMS - Software designed specifically for managing the movement and storage of materials throughout the warehouse. WMS functionality is generally broken into the following three operations: Put-away, Replenishment, and Picking. The key to these systems is the
2. Inventory Management – the direction and control of activities with the purpose of getting the right inventory in the right place at the right time in the right quantity in the right form at the right cost!
3. Continuous Improvement
a. Tracking: real-time location of the entity in the Supply Chain.
b. Trace: possibility of obtaining information in non-real time from data recorded about the flow (flow memory).
5. Allocation – allocations in inventory management refer to actual demand created by sales orders or work orders against a specific item. A standard allocation is an aggregate quantity of demand against a specific item in a specific facility. Standard allocations can be referred to as normal allocations, soft allocations, soft commitments, regular allocations. Standard allocations do not specify that specific units will go to specific orders. A firm allocation is an allocation against a specific unit within a facility, such as
6. Just-in-Time – LEAN manufacturing model developed initially by the engineer Taiichi Ohno at Toyota which consists of monitoring and controlling the production system to eliminate all
7. Replenishment – approach to determining the order quantity and order date of stocks. There are 4 traditional replenishment policies: Date Managed Inventory, Replenishment method, Order Point method and Replenishment of variable quantities at variable dates. Data managed inventory is often enabled through
Warehouse Management Systems range from the very complex to the very base implementations. Regardless of your short and long term goals,
By Steve Dwyer, Vice President, Appolis