A Warehouse Management System (WMS) is key to streamlining warehouse operations. But what exactly does it do? At its core, a WMS helps manage warehouse tasks, from receiving and inventory control to order fulfilment and shipping.
As noted by industry leaders like Gartner, WMS encompasses various 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 essential to understand the specific features and benefits each one offers.
WMS is crucial for effective warehouse management
The scope of the WMS is not set in stone – there are multiple variations between WMS providers. This means that some WMS solutions can cover all these areas, some of these areas, or even more. From the activity perspective, this is the scope of the warehouse operations in WMS – how many activities can the system cover?
Another question is how effectively the system can perform the given activity. There's more to it than that. You must consider the scope of this activity's process and what solutions the WMS can offer for a particular activity or task.
For example, regarding inventory management, how much inventory management can the WMS cover? And what does inventory management even mean in this context? And what about ERP (Enterprise Resource Planning), which processes ERP management? Which system is doing what?
Typically, warehouse-related operations are divided between ERP and WMS if you have a WMS in your warehouse. There might also be other systems, but the warehouse's central split of tasks is between ERP and WMS. ERP is built for business purposes, so the WMS is built for warehousing. In this sense, the WMS performs warehouse-related tasks more effectively than ERP. In this context, WMS is more intelligent than ERP. If you're ready to unlock the full potential of your warehouse operations, explore the benefits of Agilon WMS today. How smart is WMS, then?
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.
Understanding inventory management in WMS
Inventory management is a core function of WMS, and understanding its role is crucial. According to Investopedia, 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 is responsible for storing information and updating 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 officially manage inventory.
What can Agilon WMS do?
Let’s continue with inventory management, specifically the ordering process. The ordering process is critical in your company and forms the backbone of your Purchase-to-Pay (P2P) process. Accurate stock levels, at the right quantity, quality, and time, are essential. If you fail to maintain this, your business faces poor on-shelf availability, delayed deliveries, slow Inventory Turnover (ITO), higher inventory capital, cancelled deliveries (lost sales), and obsolete stock.
Agilon WMS plays a crucial role in streamlining the ordering process by taking over tasks that were traditionally managed by ERP systems. By automating this process, Agilon effectively manages inventory levels, reorder points, and lot sizes, and it sends Purchase Orders (POs) directly to suppliers. This complete automation of the ordering process allows Agilon to update the ERP system through an interface, showcasing a great example of digitalization in action.
The benefits of Agilon WMS extend beyond just system-level improvements; they also enhance physical warehouse operations. With Agilon WMS and automated storage, suppliers can ship directly to your automated storage systems, eliminating the need for manual handling. This process can occur at your goods receiving area or even outside your building, allowing suppliers to avoid entering the warehouse altogether. By integrating Agilon WMS with automated storage, you streamline operations and increase warehouse efficiency.
Key takeaways for you
We assist in identifying critical processes within your warehouse, sharing our expertise and guiding you towards success. Review KPIs and evaluate the methods affecting them, ensuring a thorough understanding of the entire process, including all departments.
- Efficient warehouse management: WMS is more efficient than ERP for warehousing tasks.
- Digitalization: Agilon WMS automates many steps in the process, improving both digital and physical workflows.
- Complete inventory management: Agilon can handle the entire inventory process, from ordering to shipping.
- Performance improvement: WMS optimization directly impacts warehouse operations' key performance indicators (KPIs).
Ready to see how Agilon WMS can transform your warehouse operations? Explore our customer success stories and learn more about how Agilon boosts efficiency, accuracy, and throughput:
Explore how Agilon enhances operational efficiency across industries | Konecranes
Agilon: Streamline operations and boost efficiency and productivity | Konecranes
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