Where do the merits - benefits to implement a modern WMS come from?

An increase of accuracy is mainly caused by:
• Online checks on operations :
  • Operator cannot take 'wrong pallet' or wrong product
  • Operator needs to scan bin where stock is put
• Stock accuracy via built-in stock counting mechanisms
• Yard management (avoiding wrong goods are loaded or products are lost on the yard)
• Reduction of errors leads to serious cost-down (how much does an error cost?)

The picking efficiency typically is increased by:
• Avoid searching stock
• Follow efficient routes through the warehouse
• Avoid paperwork (going to the office)
• More efficient put-away strategy (fast movers - slow movers) leads to shorter picking routs
• Replenishment of picking locations allows fluent hand-picking
• Cross-docking (avoiding first put-away and then picking)
• Waved operations (group several orders together in 1 physical operation, reducing walking (driving) distances)
• Avoid loss of time due to misplaced stock
• Avoid loss of time writing down additional information (like serial numbers, differences, packaging information…)
• Immediate pick - and pack functionality
• Put fast-moving materials on places where they can be picked easily, and move slow movers to the more difficult bins (on the higher shelves, deep in the rows...). This reduces the walking - driving distances...

Also put-away can be done more efficiently:
• Avoid searching empty bins
• Follow efficient route through warehouse while put-away

On top of that, a modern WMS (like SAP WM via Task and Resource Management) allows you to control the sequence in which and the workers who to certain orders are given. This further increases the efficiency of the operations inside the warehouse.

In principle, a WMS allows you to fill you warehouse up to the maximum. Although the draw-back is that this fights several ways of working put in place to increase the efficiency of operations (like putting fast-movers on easily reachable places). But anyway...:
• system knows every empty bin
• addition to existing stock till bin is 100 % full

Trace-ability increases:
• System can easily find back all pallets and batches from receiving document (with which delivery did it come in - when - from where) till delivery (to where)
• FIFO can be guaranteed
• Multi-property warehousing becomes possible, because it is easy to trace back the stock owner on pallet level. This also avoids that you should store all products in areas dedicated to certain customers (although of course, that remains possible as well).
• Full history on pallet level

A modern WMS enables easy EDI links to other systems, or are even integrated to the company ERP system. This avoids:
• Manual re-input of data
• Lead to less errors

Planning & steering becomes easier with a WMS:
• Steer work orders (picking, put-away…) to operators. In SAP, to further optimize this, you use TRM.
• Workload estimation allows you foresee how many warehouse workers you will need.
• Warehouse area occupancy rate is made visible, allowing you to see where you have still place to add materials. This is a crucial tool in keeping the warehouse organized efficiently and effectively.
• Via the warehouse monitor you get easy or immediate feedback to capture potential issues (orders staying open too long, lack of available stock…)

Special products handling can also be tackled via a modern WMS:
• System-guided separate handling and separate storage for dangerous… goods is possible
• Security features ensuring only dedicated staff is allowed
• On top of that, you can ensure certain forms are printed when required.
• Integration with transportation allows to ensure the special products are loaded how they should be

Integration with SAP ERP leads to:
• Full stock transparency
• Integration with Quality Management
• No stock differences between the high level inventory management system (the level on which the MRP and ATP work) and the bin-to-bin level stock inside the warehouse.
• No manual re-input of data
• Smooth integration with outside world via standard messages
• Full trace-ability on pallet level throughout all plants
• Packing information can be used to calculate transportation costs
• Packing instructions can be used to make the packing operations smoother - and according to the customer's needs
• Trace-ability from production parts towards finished products
• Value added services can be incorporated easily - eventually even via the customer order which remains visible through the entire process
• Easier order modification and/or addition
• Trace back from customer complaint till order picking (did the picker confirm differences, who was it…)
• Same look and feel and same userid as ERP system applications makes it easier for office users to check the warehouse situation - the situation of the order they want to follow-up closely.
• Consistent authorizations between ERP and WMS
• Possibility to work Just In Time (via Kanban)
• No more bothering about the interface when new functionality is required. Any functional update can be done by 1 team (no more need to get separate WMS and ERP specialists).
• Warehouse becomes visible for all ERP users. It thus is less a black box, which leads to better cooperation between all parties.
• Multi-language support
• Easy roll-out along with ERP solution itself.

Avoid stop to scan via RFID
• Further increase of accuracy (no more discrepancy between what operator scans and what he does)
• Efficiency increase due to requirement to stop operation and take scanner is removed
• Less risk of damage (mobile RF device not required anymore)
• Less risk of theft

Full automatic warehouses
• Avoid human error entirely
• Less workers required
• Higher through-put (manually steered devices go much slower)
• Reduced risk for handling damage
• Reduction of energy waste because no light or warming required

If you want help in prooving the added-value of a WMS, we are there to help! Contact us, f.e. via j.schelfaut@sapstroom.com...

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