| WMS 2024: Solutions Unlock Warehouse Efficiencies

The days of running a busy warehouse with spreadsheets and sticky notes are long gone. The warehouse stands at the center of the supply chain, a crucial connection linking inventory and order management and fulfillment, transportation management, and ultimately, customer satisfaction.

To make this complex interaction of data and physical operations hum, “a sophisticated warehouse management system (WMS) helps companies manage and control the daily operations of warehouses or distribution centers,” says Thomas A. Deakins, managing director of the Global Supply Chain Institute at the Haslam College of Business at the University of Tennessee Knoxville.

A WMS is the hub of a network of processes and applications, working with order management systems, enterprise resource planning (ERP) software, labor management, customer systems, and transportation management systems to interface with truckload, less-than-truckload, and parcel carriers.

“A WMS gives users the tools to understand the inventory levels of their products and helps companies become more efficient in the way that they control the flow of materials inbound and outbound,” Deakins says.

Given consumer pressure for fast shipping with accurate delivery dates, a WMS improves operational efficiency, order accuracy, and inventory visibility to give shippers a competitive edge.

“I can’t imagine a situation going forward where consumers would be willing to accept that products are going to be shipped to their home in longer amounts of time than they are now,” says Dr. Robert Hooker, an associate professor at the University of South Florida and an associate with the Monica Wooden Center for Supply Chain Management & Sustainability.

To serve the ecommerce boom, a WMS can enable a better omnichannel fulfillment approach, pulling from the same inventory for ecommerce and retail customers, including store fulfillment for online orders.

“The WMS lets companies make sure they have inventory on the shelves because they have one shot at retaining a customer,” Deakins says. “Companies should never get to the point where they get a signal that they need to fulfill an order and don’t have the inventory.”

In the mid-market third-party logistics (3PL) arena, having the right WMS in place is a critical factor in serving the increasingly complex demands of B2B and B2C fulfillment.

“Any competitive edge that a 3PL provider can have is valuable,” says Brian Kirst, chief commercial officer at SnapFulfil, which specializes in WMS for logistics providers. “A 3PL can accelerate their growth and take on opportunities or win business because they can move quickly to meet their customers’ demands.”

The Secret to WMS Success

Since a WMS connects with many aspects of the enterprise, adopting a new system can be a daunting task from both operational and IT perspectives. The process starts with developing an internal process to identify requirements and evaluate candidates before making a significant commitment.

“Know the functionality you’re looking for and make sure you have the internal bandwidth to get the project done,” recommends David Castanon, senior director of consulting for Datex.

David Bretey, senior 3PL consultant with Extensiv, agrees.

“Have an honest talk about which functions are core to your business and which are not,” he says. “Develop some sort of scorecard so you can compare systems on an equal playing field to get the features you need and don’t end up with things you don’t need.”

There’s one secret to implementing a WMS: master data management. This means ensuring the data for inventory, customers, and other elements is clean and accurate, notes Deakins. Otherwise, the best WMS in the world won’t be set up for success.

“The ERP sends orders to the WMS fill, and if those items don’t match what is in the WMS inventory, you’ll experience lots of errors,” he says. “I don’t care what technology you’re going to implement, you will have a bad outcome.”

Here are some leading WMS providers that offer solutions to position shippers to adapt to new supply chain challenges and create opportunities to drive efficiency and customer service improvements.

SnapFulfil WMS: A Configurable Solution Tailored for 3PL Success

As shippers add ecommerce channels and brick-and-mortar fulfillment to their operations, 3PLs seek a flexible warehouse management solution such as the highly configurable SnapFulfil WMS.

Third-party logistics (3PL) providers must be ready to handle a wide variety of products, so configurability is a critical feature that makes SnapFulfil stand out from its peers.

Unlike a first-party warehouse that may rely on an ERP system to drive the business, a warehouse management system is the backbone for 3PL operations.

“For a 3PL operator, the WMS becomes the center point of all the systems,” says Brian Kirst, chief commercial officer at Synergy Logistics, provider of the SnapFulfil WMS. “Efficiency and profitability are going to drive the successful deployment of a good WMS.”

Kirst owned a 3PL for years and knows firsthand the value of configuring a solution to meet each customer’s unique needs.

“The first customer might be shipping electronics, but the 10th customer might be shipping food, which has wildly different processes, so you need to be able to configure the WMS for each one,” he says.

The 3PL space is a highly competitive, fast-growing arena, so a flexible, scalable WMS positions a 3PL to accelerate its growth by being able to accommodate a wide variety of customer situations. In many cases, the 3PL is the last touchpoint with the consumer.

“The responsibility lies with the 3PL to ensure orders are processed efficiently and accurately,” Kirst says.

As a shipper adds ecommerce channels or brick-and-mortar fulfillment to their online presence, a 3PL requires a WMS solution that can be set up for multiple configurations with little to no outside technical resources required. “SnapFulfil is built on a low-code rules engine that allows for self-configuration for users who have the resources and the expertise to do that,” Kirst adds.

Shippers and 3PLs seek out a new WMS solution that is well equipped to manage the increasing complexity of multiple sites and expanding distribution channels.

“Every time a 3PL adds a new customer, it could be a new implementation with very different requirements from the existing customer base,” Kirst says. “Being able to spin up quickly on their own timelines with internal resources is an extremely valuable option.”

One often overlooked WMS feature vital to 3PLs is revenue recognition. 3PLs frequently don’t capture tasks and activities they do on behalf of their clients, leading to revenue leakage. SnapFulfil offers an advanced 3PL billing module that can create a charge for any activity in the warehouse.

“The 3PL can create charge lines specific to each customer as an automated process to recognize revenue,” Kirst adds.

Automation is becoming a critical factor for mid-market 3PLs who are implementing tools like automated storage and retrieval systems (ASRS), autonomous mobile robots (AMRs), smart conveyors, and more. New technology known as multi-agent orchestration allows businesses to efficiently orchestrate and automate tasks across multiple tools and devices through the entire warehouse.

Synergy Logistics provides SnapControl for this purpose. SnapControl is automation agnostic, Kirst says, creating a bi-directional data conversation between the WMS and the automation. The data feeds business intelligence tools to drive dashboards that display the activity and resources within the warehouse.

At the same time, SnapControl has the ability to intelligently analyze operational data and make recommendations in case of interruption of human or automated equipment.

“It creates orchestration among the resources, so the workflow never stops in the warehouse,” Kirst says.

Extensiv WMS: A Foundation for Supply Chain Growth

3PL Warehouse Manager from Extensiv improves picking productivity, letting companies track every item in inventory from any web browser.

A WMS is more than a technology solution; it’s the key to managing inventory, labor, and other resources. Companies that don’t use a WMS to its full capability effectively give up operational efficiencies and strategic decision-making that could impede the company’s growth potential.

“If you don’t manage your inventory lifecycle, you don’t know what inventory is old and aging, you can’t understand inventory turns, and you lose track of your products,” says David Bretey, senior 3PL consultant for Extensiv.

Effective inventory control is crucial for maintaining profitability in any business. Pre-purchasing inventory requires capital, and misjudging stock needs can complicate cash flow. Overstocking unwanted items leads to tied-up funds, additional storage costs, and potential obsolescence.

Conversely, understocking popular items can result in missed sales opportunities and even the loss of customers. Inefficiencies such as expediting replenishment inventory, the cost of shipping orders multiple times, and even overtime to process late orders, inflate costs significantly.

“If you’re not managing the inventory lifecycle, that can be one of the areas where a business breaks down, not because there aren’t customers willing to buy from you but because the cost structure isn’t sustainable,” Bretey says.

A WMS is essential for companies at practically any stage to manage inventory and outbound shipments efficiently and accurately. “The minute you have more than 50 SKUs, or you’re outgrowing your garage, a WMS is critical to running a business,” Bretey adds.

If you are in the market for a WMS, Bretey advises you to seek out solutions that are both scalable and configurable. Look for systems with the features you need at a cost you can afford.

“While technology is moving fast, if you don’t think this software will serve you for five years or more, it probably is not the right choice,” Bretey says. “Switching systems is time consuming and complicated.”

With a WMS, you codify business rules, so decisions are made consistently in alignment with transportation contracts and other policies. “One of the reasons to use these systems is to mistake-proof your processes,” Bretey says. “You build rules into the system, and the system helps your employees make good decisions every day. That’s what gives you a scalable warehouse.”

An often-overlooked factor in successfully adopting a WMS is understanding the difference between configurability and customization. A configurable system allows you to arrange menus and processes using settings and preferences built into the system. It’s like setting up Microsoft Word the way you like it. Usually, there’s little to no cost involved.

On the other hand, customization means creating a unique version of the system for your company. Full customization usually requires additional investment in development and integration in addition to the baseline costs and ongoing expenses for support for future software releases.

Offering seamless integration, 3PL Warehouse Manager from Extensiv is a comprehensive warehouse management platform that makes it easy to manage inventory, automate routine tasks, and deliver complete visibility to 3PLs and their customers.

Datex WMS: Configurable Best-of-Breed Solution for Integrated Logistics

Datex Footprint WMS can handle heavy transaction volume and large numbers of users. Highly configurable, the Footprint WMS can grow with an organization as needs change.

Mid-market companies have different needs than enterprise giants or smaller 3PLs. Datex Footprint WMS was developed to serve that market with a best-in-breed solution that seamlessly integrates in a hub-and-spoke fashion with other systems driving the business.

“Our system is rarely a standalone application running in a silo. There are usually multiple integration points into various platforms, everything from ERPs to shopping carts to ASRS, robotics, and other technologies,” says David Castanon, senior director of consulting for Datex.

Datex Footprint WMS was built and is supported on Wavelength, a low-code application platform (LCAP). Footprint WMS is essentially three components: the web-based desktop tool, the mobile app, and a client portal for 3PLs to share with their clients. Wavelength (Footprint’s foundation) combines an application builder, a graphical workflow generator, and a robust API integration layer.

The LCAP layer enables citizen developers to tailor the application to fit the user experience as it relates to a specific process for a specific client, reducing the risk of data entry errors and missed operational procedures.

For example, a dry-goods shipper doesn’t need the same compliance functions as a food producer. Footprint WMS can support regulated products, including food, medical devices, and pharma, with strict compliance with tracking and traceability standards.

Highly configurable, the Footprint WMS can grow with an organization as needs change. A 3PL can enable the components required for their operations.

As requirements change, additional components are ready to go. “The beauty of the architecture is that it allows components to be configured and deployed without source code changes, minimizing the business impact of deploying new functionality when the operation requires it,” says Castanon.

Warehouse operators may search for a new WMS for many reasons. One reason is that their current system could be at the end of its useful life without ongoing vendor support for software and hardware and may be challenging to integrate with.

New Markets Require WMS Upgrades

Moving into new markets is another common trigger for a WMS upgrade. The existing WMS may be built for pallet-in pallet-out operations with mass inventory tracking. Expanding into ecommerce fulfillment requires connection with shopping platforms, the ability to rate shop parcel carriers, implement advanced pick methods, and tool configuration according to requirements.

“Companies need more than what their current WMS offers. It’s like trying to go from a two-seater car to a minivan and eventually to a sports car as the company grows without having to keep changing systems,” Castanon adds.

When a company considers a new WMS, there’s a balance between efficiency and accuracy. The big question is if the WMS will help ship more boxes in the same amount of time. With a leading WMS, better inventory controls boost order accuracy without compromising efficiency. Shipping more orders accurately improves the bottom line.

“Companies want to know how the WMS will deliver value by shipping more boxes with the same people and within the same time frame, as well as compliance and customer constraints,” Castanon says.

5 Ways a WMS Improves Business Processes

While a WMS is focused on the four walls of the warehouse, its impact extends beyond the boundaries of an organization to downstream customers, as well as upstream customers and other stakeholders in the reporting process, says Dr. Robert Hooker, associate professor at the University of South Florida and an associate with the Monica Wooden Center for Supply Chain Management & Sustainability.

Here are five areas in which a WMS will improve a company’s processes and business outcomes, says Dr. Hooker.

1. Cost reduction. A WMS will help an enterprise reduce costs by optimizing stock levels, minimizing inventory carrying costs, and streamlining processes.

2. Productivity. You can automate manual tasks such as data entry, creating a picking sheet, and inventory counting. Also, you can schedule dock doors and the labor required to match inbound shipments.

3. Error minimization. The WMS can direct put away for inbound shipments and picking and packing for outbound fulfillment, so products are tracked automatically, and workers are directed to where the correct items are located in the warehouse.

4. Visibility. The WMS tracks stock in the warehouse and can automatically replenish it when it reaches a predetermined level.

5. Customer service. By tracking inventory levels, product should never be out of stock so customer orders can be fulfilled without back orders or delays.

WMS Leaders

Datex | www.datexcorp.com/wms-solutions

The Datex WMS helps companies save time, labor, and operational costs. Developed specifically to meet the needs of third-party logistics providers, Datex Footprint WMS easily handles complex operations and any kind of inventory. The 3PL WMS helps enable businesses to meet the needs of a wide range of customers.

Extensiv | www.extensiv.com

3PL Warehouse Manager from Extensiv can help deliver sophisticated fulfillment strategies to customers, reducing costs and delivery times. The cloud-based WMS connects seamlessly with the systems your customers use, allowing you to gain visibility and control. It offers real-time inventory tracking, mobile picking and scanning, and automated billing.

SnapFulfil | www.snapfulfil.com/us/

SnapFulfil is a cloud-based, Tier 1 warehouse management system with flexibility at its core. It delivers cutting-edge technology at a fraction of the cost of traditional installations and is quick and easy to implement, providing a rapid return on investment. Once up and running, SnapFulfil is highly configurable and can adapt to meet evolving fulfillment demands.