Warehouse Management Systems - Research Paper Example

WAREHOUSE MANAGEMENT SYSTEMS (WMSS) Warehouse Management Systems (WMSs) Affiliation Introduction At the present, information technology based tools and applications have become a major driver of growth for the business organizations. In order to survive in this ever-increasing competitive business world it is essential for business organizations to implement latest tools and technologies. Without a doubt, these information technology based tools offer a large number of advantages and opportunities for business organizations. Seeing the advantages and opportunities offered by these tools and technologies International E-Z Up has decided to implement a warehouse management system (WMS). Basically, a warehouse management system is a software tool or application that is used by business organizations to manage their daily and usual business tasks in a warehouse. In this scenario, WMS allows the business organizations to unify their management of operations for instance tracking stock locations and inventory levels. In addition, WMS systems can be used as unconnected tools and applications or function of a large Enterprise Resource Planning (ERP) system (Ayub, 2007; Turban, Leidner, McLean, & Wetherbe, 2005; Rouse, 2009). This paper presents a detailed analysis of WMS in the context of International E-Z Up business. The basic purpose of this research is to analyze the benefits of a WMS and its implementation related issues. An Overview of Warehouse Management Systems (WMSs) Warehouse management systems are believed to be highly developed operating processes and technology that have the capability to optimize all warehousing operations. Additionally, these warehousing operations vary in nature and normally starting with receipts from suppliers and ending with delivery to end-users, as well as consist of all information flows and inventory transactions occurring in the middle of these operations. However, it is believed that warehouse management systems have normally been linked with huge, more complicated supply chain and distribution processes. In this scenario, non-complex, small supply and distribution operations have traditionally not been considered as nominees to considerably make more efficient distribution processes and decrease expenditures. On the other hand, even the majority of smaller and midsized organizations have started considering the worth of warehouse management systems in the present atmosphere of closely linked and merged logistics, just-in-time deliverance, and e-business and e-commerce implementation. Historically, warehouse management systems could have been used to get the facility of simple storage place functionality. However, today’s warehouse management systems are so stylish, complex and data intensive that they have need of devoted and expert personnel to execute and manage them. In this scenario, some of the high-end systems can comprise routing and tracking technologies for instance voice recognition and Radio Frequency Identification (RFID). Regardless of how complex or simple the implementation and maintenance are, the basic purpose of a WMS remains the same, which is to allow the management to get timely access to information that is required to them with the intention of proficiently and resourcefully managing and dealing with the flow of resources inside a warehouse (Ayub, 2007; Turban, Leidner, McLean, & Wetherbe, 2005; Rouse, 2009). In actual fact, effective and successful warehouse management systems and solutions are normally aimed at merging computer software, hardware, and tangential tools with enhanced working operations for dealing with and maintaining supplies, human resources, space, and capital equipment in distribution centers and warehouses. At the present, the majority of business organizations have started implementing latest technology based warehouse management systems for the reason that the implementation of a WMS facilitates a business organization to augment its competitive edge by minimizing human resource expenditures, increasing inventory accurateness, improving customer service, and improving elasticity and receptiveness. It is an admitted fact that a WMS allows a business organization to deal with inventory in a synchronized manner, by providing information as recent as the latest order, consignment, or receipt and any transaction meanwhile. Hence, the implementation of a WMS will offer a large number of benefits to International E-Z Up. Some of the important benefits are outlined below: (Ayub, 2007; Barcoding, Inc., 2012; Murray, 2013). WMS Benefits Quicker supply cycles: The implementation of a warehouse management will help International E-Z Up business minimize processing durations by putting limitations and restrictions on inventory distribution and increasing the accurateness of supply and inventory information, in so doing will support a JIT (just in time) mechanism. In this scenario, International E-Z Up business will no longer need safety stock as it increases inventory budget and working resources consumption (Ayub, 2007). More well-organized use of existing warehouse space: The implementation of a warehouse management system will not only allow International E-Z Up business to diminish safety-stock requirements, but it will also expand the existing warehouse space by more competently positioning materials and items on the subject of assembly, receiving, packing, and distribution channels and points. In this scenario, this massive increase in effectiveness can both improve performance and minimize inventory investments considerably (Ayub, 2007). Minimize the load of inventory paperwork: The implementation of an effective and synchronized warehouse management system would considerably decrease the load of paperwork usually linked with warehouse processes, and guarantee well-timed and correct execution of information and inventory. In this scenario, International E-Z Up business can maintain some of the business processes electronically, for instance, receiving reports, movie tickets, pick tickets, packing lists, etc., which are normally kept as a paper form, can all be kept and maintained electronically (Ayub, 2007). Enhanced cycle counting: International E-Z Up business can implement a warehouse management system if its intention is to collect and process appropriate data (these data can comprise specific locations, frequency of movement etc.) to analytically plan human resources for cycle counts. In addition, these cycle counts not simply can enhance the accurateness of inventory information and records for effective planning, however also can get rid of or decrease the need for full, expensive physical inventories (Ayub, 2007). Reduced dependence on warehouse workers: The implementation of a warehouse management system will allow International E-Z Up business to normalize the flows of inventory, select appropriate mechanisms, and decide for appropriate inventory locations. In this scenario, this standardization process will help International E-Z Up business to diminish dependence on unceremonious mechanisms, which will result in reduced training expenses as well as lower fault rates (Ayub, 2007). Effective and efficient customer support: The implementation of a warehouse management system will allow International E-Z Up business to make more efficient all its business operations from taking orders to their shipment. In addition, International E-Z Up business can to be more precise find out product availability as well as reasonable delivery dates. In this scenario, a warehouse management system can repeatedly recognize and free backordered stock and inventory and also can decrease returns due to improved delivery accurateness (Ayub, 2007). Improved labor performance: The implementation of a warehouse management system will help International E-Z Up business standardize and keep track of information and material flow, normally by integrating a number of inventory selections into one or by "cross docking". In this scenario, cross docking is a method that is used to set direction for received shipments to the location nearest to the external shipping port, in that way minimizing warehouse management (Ayub, 2007). Receiving: The implementation of a warehouse management system will help International E-Z Up business get a detailed idea of deliveries that have been sent for shipments; however that are not up till now reached at their desired location. It will help International E-Z Up business ensure products or materials at low stock levels are balanced timely and clear up earliest, minimizing the effect of ineffective execution of processes and out-of-stocks (Barcoding, Inc., 2012). Put-Away: The implementation of a warehouse management system will allow International E-Z Up business to identify the place and position of all stocks and inventories on their shelves. In this scenario, International E-Z Up business will be able to set the direction of human resources to the accurate place, establish their picks in the appropriate way to diminish movement duration, as well as increase the number of orders they can accept on a daily basis (Barcoding, Inc., 2012). Picking: The implementation of a warehouse management system will help International E-Z Up business improve efficiency and error-proofing in the selection practice. In this scenario, personnel can be able to get their picks on a mobile device that guides them to the appropriate place. In this scenario a WMS will allow the firm to scan items when they select them in order to authenticate that the accurate item in the accurate quantity is selected (Barcoding, Inc., 2012). Packing: The implementation of a WMS will guarantee the accurateness of each order that is selected and minimize material expenditures by shaping the accurate sized distribution carton (Barcoding, Inc., 2012). Shipping: The implementation of a WMS will allow International E-Z Up business to determine that each order is appropriately packed and delivered to the exact target as well as shipped on the exact date (Barcoding, Inc., 2012). In addition, the implementation of a warehouse management system does not only provide benefits in the context of general users but it also offers specific benefits for specific users. For instance, the implementation of a warehouse management system will allow the management of International E-Z Up business to determine an instantaneous depiction of: (Ayub, 2007; Barcoding, Inc., 2012; Cross, 2012) How much inventory they currently have in their warehouse? How many orders are at this time being delivered or processed? What is the status of processing of awaiting orders? The performance details of human resource performance. Products delivered by the warehouse over any specific duration. Moreover, one of the most important benefits of a WMS is that it allows business organizations to find out how much inventory they currently have in the number of phases of processing as compared to non-automated warehouse management. In this scenario, sales personnel are able to find out the level and quantity of current available stock as well as can speak about in a better way to the warehouse workers therefore improving their customer relationship levels. In the same way, customer managers can make use of a warehouse management system to preserve stock or items for a customer in that way making sure that it will not be delivered to any other customer. Additionally, inventory managers can also take benefit of this system as it can help them follow communication at a very excellent detail to make a diagnosis unanticipated unexpected changes in stock and inventory. For instance, if International E-Z Up business had thousands of items of certain product yesterday and today they dont have any, then where have they gone? Were they moved to any other warehouse of the organization to be delivered from there? Were they delivered to any other client? In this scenario, a warehouse management system helps resolve all these issues and get answers such questions. In addition, the reports produced while keeping an eye on inventory operations facilitate policy decisions to be made regarding the consistency and trustworthiness of the suppliers. In fact, these systems are developed to be reliable and efficient (Ayub, 2007; Barcoding, Inc., 2012; Cross, 2012). For Warehouse Supervisors: One of the most attractive features of a warehouse management system is that it creates efficiency reports for each operator and these reports are utilized to put into practice production based rewards plans or to let off unproductive workers. In addition, the effective implementation of a warehouse management system also allows well-organized tracking of warehouse operations because it offers a wide variety of web-enabled reports covering all the operations and processes taking place in the warehouse as well as their impact on the inventory management. Moreover, a warehouse management system can also identify problems in inventory operations, which can improve the general efficiency of the warehouse (Ayub, 2007; Barcoding, Inc., 2012; Cross, 2012). For Warehouse Operators: A warehouse management systems come with an easy to use graphical user interface, in which more often than not the operator has to just look into the barricades. In addition, the default direction - finding of mouse cursor on the monitor screen imitate the typical business laws. In addition, the implementation of a warehouse management system allows computer operators to enter data input quickly and processes it faster, improving the general performance of the operator. In this scenario, a wide variety of software programs such as Locating and Pulling are in particular developed to execute on hand-held radio frequency points. Additionally, these frequency points simply the task of pickers and locators, for the reason that these points are simple to carry (Ayub, 2007; Piasecki, 2013; Muehlbauer, 2012; Cross, 2012). The ROI in a Warehouse Management System The majority of firms believe that the implementation of a warehouse management can be an expensive investment; however a firm promptly gets its value. In fact, soon after a WMS has been installed and executing for simply one or two months, the companies start believing that they cannot imagine their stock and inventory operations without it. Without a doubt, from attaining synchronized visibility and control into inventory and orders, to minimizing the duration it takes to bill and deliver to customers, a WMS expands mobility to each worker working in a warehouse and allows an organization to level its business (Barcoding, Inc., 2012). Selection of a Vendor The first warehouse management that I am going to analyze is Accellos One Warehouse and One 3PL Software. In view of the fact that this warehouse management system is built on three-tiered, Internet-based architecture, so it turns out to be the focal point of a business supply chain. In fact, it is based on the mixture of two technologies radio frequency and barcode technology along with incorporated accounting/order and delivery software, Crystal Reports, electronic data interchange (EDI) systems and warehouse automation equipment. Additionally, this warehouse management system is extremely customizable, which makes it perfect for any wholesale distributor, together with areas for instance consumer packaging, automotive, automotive, food and electronics and pharmaceuticals. In fact, it allows business organizations to have strong control over major business processes and operations. Though, it offers a number of benefits that are necessary for International E-Z Up business but its cost is beyond $30k. In fact there are also various costs associated with this installation which go far away from $30k. So this warehouse system is not suggested for International E-Z Up business (Software Advice, Inc., 2013). There is another well-known vendor for warehouse management system that is known as the SAP’ Warehouse Management system (WMS). This warehouse management system offers efficient, automated support in keeping track of all goods, movements of information and items and in dealing with stocks in warehouses. In addition, this warehouse management system also provides an excellent support for scheduled and well-organized operational capabilities of all logistics operations in a warehouse. In addition, this warehouse management system is completely integrated into the SAP environment. So it will be feasible for large size business organizations that are using enterprise resource planning systems for managing their business operations for the reason that this warehouse management system provides an excellent support for SAP systems. Without a doubt, it is an excellent warehouse management system which provides an excellent support for a wide variety of business processes, which can be triggered in other application elements (in SAP environment) lead to physical goods movements in the business’ warehouse. In this scenario, a business can put in order, manage, and keep an eye on these goods movements with the WMS. Even though, this system offers a number of advantages and can be useful for International E-Z Up business but the cost of this system is beyond $30K (SAP, 2013). The suggested WMS vendor that I have selected for production is Foxfire, which offers a wide variety of warehouse management software solutions and services. In fact, they offer warehousing solutions for various levels such as for level 1 they offer inventory management and for level 2 they offer WMS Express, and for level 3 they offer WMS Enterprise. The price range of these solutions varies from $30k to $100k. In addition, the Foxfire warehouse management system can be an ideal choice for International E-Z Up business as it wants to optimize business processes and production. In view of the fact that International E-Z Up business is already using an accounting system Microsoft Great Plains so Foxfire WMS has the capability as it can be integrated with existing systems. This vendor provides guidelines and material to learn the use of the system or to configure to exact specifications (Logistics Vendor Locator, 2013). Implementation Considerations Without a doubt, the implementation of a warehouse management system is critical to business success however the successful implementation of a warehouse management system requires many aspects to be considered. An organization must select a vendor very carefully by keeping mind its budget and existing processes and resources. A company which believed in using best of breed applications, the selection of warehouse management system depends on its requirements of regarding warehouse processes. In view of the fact that the implementation of a warehouse management system is a complex task so project planning is essential for the successful implementation of a warehouse management system. In addition, the complexity of a WMS implementation depends on the nature of a business organization and varies from business to business. In this scenario, a business organization should collect and identify the physical dimensions and characteristics of each item in the warehouse (Cunha, 2011; Murray, 2013). Decision Regarding Cloud Computing Through the implementation of a cloud computing can offer a number of advantages to International E-Z Up business however, this kind of implementation cannot be customized with existing processes. International E-Z Up business should use an in-house system for the reason that it will allow International E-Z Up business to have full control over its business processes. If it transfers its system to the cloud then it will also bring serious security challenges (Rittinghouse & Ransome, 2009). So International E-Z Up business should use this system in house. Summary This paper has presented a detailed analysis of warehouse management system. A warehouse management system offers a large number of benefits which are critical to business success. This system helps automate inventory processes and keep record of stock details. In this scenario, the efficiency of a business organization improves. However, the implementation of a warehouse house management system requires massive investment. This investment brings high return on investment. In fact, the business starts getting profits soon after one or two months of this implementation. In view of the fact the implementation of a warehouse management system is a complex task so it needs to be well planned and managed in order to take full advantage of this system. Before selecting a WMS vendor the business should identify its processes and resources. The business should estimate the budget that will be required for this implementation. In addition, it should get the trust of its employees regarding effectiveness of this implementation. In fact, the business organization should ensure its staff members the implementation of a WMS is aimed at improving business performance instead of decreasing number of staff members. Moreover, using a warehouse management system can require extensive computer knowledge and skills. In this scenario, it is the responsibility of business organization to spend adequate expenses in training staff members so that they could take maximum of this investment. References Ayub, N. (2007, September 05). What is Warehouse Management System (WMS). Retrieved January 23, 2013, from http://it.toolbox.com/blogs/wms-essentials/what-is-warehouse-management-system-wms-18819 Barcoding, Inc. (2012). Warehouse Management Systems (WMS). Retrieved January 23, 2013, from http://www.barcoding.com/tracking-software/barcode_warehouse_wms.shtml Cross, S. (2012). Warehouse Management Systems - the Whys and Wherefores. Retrieved January 20, 2013, from http://www.atmsplc.com/documents/warehouse-management-systems-the-whys-and-wherefores.pdf Cunha, L. (2011, December 19). Three Steps to Justifying a WMS Budget. Retrieved January 23, 2013, from http://www.warehousemanagementsystemsguide.com/blog/three-steps-to-justifying-a-wms-budget-1121911/ Logistics Vendor Locator. (2013). Foxfire Software - Foxfire WMS. Retrieved January 23, 2013, from http://logisticsvendorlocator.com/Listing/Company/13643132 Muehlbauer, B. (2012). What is a Warehouse Management System? Retrieved January 20, 2013, from http://distributionstrategies.net/uploads/What_is_a_WMS.pdf Murray, M. (2013). Implementing a Warehouse Management System (WMS). Retrieved January 19, 2013, from About.com: http://logistics.about.com/od/supplychainsoftware/a/ImplementingWMS.htm Piasecki, D. (2013). Warehouse Management System (WMS). Retrieved January 20, 2013, from http://www.inventoryops.com/warehouse_management_systems.htm Rittinghouse, J., & Ransome, J. (2009). Cloud Computing: Implementation, Management, and Security (1st ed.). Boca Raton, FL, USA: CRC Press, Inc. Rouse, M. (2009, August). warehouse management system (WMS). Retrieved January 17, 2013, from TechTarget.com: http://searchmanufacturingerp.techtarget.com/definition/warehouse-management-system-WMS SAP. (2013). Warehouse Management System (WMS). Retrieved January 17, 2013, from http://help.sap.com/saphelp_erp60_sp/helpdata/en/c6/f8386f4afa11d182b90000e829fbfe/content.htm Software Advice, Inc. (2013). Accellos One Warehouse and One 3PL Software. Retrieved January 16, 2013, from http://www.softwareadvice.com/scm/accellos-profile/ Turban, E., Leidner, D., McLean, E., & Wetherbe, J. (2005). Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Read More