How smart is your warehouse management system?

A Warehouse Management System (WMS) is key to streamlining warehouse operations. But what exactly does it do? At its core, a WMS handles receiving, inventory control, order fulfilment, and shipping.

As noted by industry leaders like Gartner, WMS encompasses a range of functions, including receiving, put-away, stock location, inventory management, picking, packing, and shipping. However, not all WMS solutions are created equal. The scope and effectiveness of these systems can vary, making it crucial to understand each solution's unique features and benefits. WMS is essential for effective warehouse management.

The scope of a WMS can vary significantly between providers. Some solutions cover all warehouse operations, while others focus on specific functions or extend beyond traditional warehousing tasks. The key question is: How many activities does the system support within warehouse operations?

Equally important is how effectively the system can perform each activity. It’s not just about the tasks it handles but how well the system addresses each step of the process. How comprehensive is the WMS’s approach, and how does it integrate with ERP (Enterprise Resource Planning) systems that also handle inventory?

Typically, warehouse operations are divided between an ERP and a WMS when a WMS is in place. While other systems may also be involved, the core division of tasks lies between these two. ERP is designed for business management, whereas WMS is purpose-built for warehousing. 

Understanding inventory management in WMS

The scope of the WMS is vast. Let's delve into inventory management. According to Investopedia, inventory management is a process of ordering, storing, using, and selling a company's inventory.

Inventory management is a core function of WMS, and understanding its role is crucial. Investopedia says inventory management involves ordering, storing, using, and selling inventory.

Here's how WMS and ERP interact within this process:

• Ordering: Traditional WMS typically do not handle ordering, which is what ERP usually manages.
• Storing: WMS stores information and updates the ERP system on stock balances and transactions.
• Usage: WMS manages material distribution for manufacturing or shipping, including picking, packing, and shipping.
• Selling: ERP handles financial transactions, while WMS oversees shipping and some aspects of transportation.

The extent of a WMS's involvement in inventory management can vary, as there's no standardized requirement for how many areas it should cover. However, the smarter the WMS, the more it can handle across the entire inventory lifecycle.

As Gartner notes, while WMS typically manages inventory, its responsibility varies depending on the system's scope and how effectively it handles the tasks. There's no industry standard for the exact number of areas a WMS must cover to manage inventory officially. 

So, how smart is your WMS? Let's explore how Agilon WMS enhances warehouse efficiency and streamlines operations.

What can Agilon WMS do?

A well-structured ordering process is critical for inventory accuracy, ensuring product availability, and optimizing the Purchase-to-Pay (P2P) process. Without it, businesses may face poor on-shelf availability, delayed deliveries, slow Inventory Turnover (ITO), excess capital tied up in stock, cancelled orders, and obsolete inventory.

Agilon WMS enhances inventory management by automating key processes traditionally handled by ERP. It manages to reorder points, lot sizes, and purchase orders (POs), sending them directly to suppliers. This automation streamlines operations and ensures seamless ERP integration, reducing manual workload and errors.

Beyond system-level improvements, Agilon WMS enhances physical warehouse operations. Suppliers can ship directly to storage systems by integrating with automated storage, eliminating unnecessary manual handling. Deliveries can be received at designated goods receiving areas outside the building, reducing warehouse traffic and improving efficiency.

By automating both digital and physical inventory processes, Agilon WMS drives warehouse management efficiency, accuracy, and productivity in warehouse management.

Integrating WMS and automation

Konecranes has integrated TBA's expertise in warehouse management systems with Agilon warehouse automation as part of its ongoing commitment to advancing warehouse automation. This collaboration combines TBA's experience with systems like Autostore and Konecranes' Agilon solution to provide a comprehensive approach to optimizing warehouse operations.

Read more about this collaboration: Konecranes and TBA combine expertise for warehouse automation success | Trade press releases | Konecranes

Key takeaways for you

Identify critical processes within your warehouse and leverage our expertise to guide you toward success. Reviewing key performance indicators (KPIs) and evaluating the methods affecting them ensures a comprehensive understanding of your entire operation:

• Efficient warehouse management: WMS outperforms ERP for warehousing tasks.
• Digitalization: WMS automates many steps, improving digital and physical workflows.
• Complete inventory management covers the entire inventory lifecycle, from ordering to shipping.
• Performance improvement: WMS optimization directly impacts warehouse operations' key performance indicators (KPIs).

Ready to explore the impact of Agilon WMS on warehouse operations?