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How to create a warehouse management system? Complete Guide

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Managing a warehouse can be complex and challenging, but having an effective warehouse management system can make all the difference. This post will outline the steps to creating a warehouse management system that will streamline operations, improve efficiency, and ultimately lead to a more successful warehouse. Whether you’re just starting or looking to improve your current system, these tips and strategies will help you create a warehouse management system that works for your business.

What is a warehouse management system?

How to create a warehouse management system?

A warehouse management system (WMS) is a software application that helps manage and control the day-to-day operations in a warehouse. It includes inventory management, order fulfillment, picking, packing, and shipping. A WMS helps to optimize warehouse processes, improve accuracy, and increase productivity.

To create a warehouse management system, you will first need to assess your warehouse’s specific needs and requirements. This includes understanding the volume of inventory, the types of products being stored, and the frequency of orders and shipments. Once you clearly understand your warehouse operations, you can start to design a system that meets those needs.

The next step is to choose a WMS that aligns with your warehouse requirements. Many different WMS options are available, so it’s essential to do thorough research and select a system that offers the features and functionalities essential to your operations.

After selecting a WMS, you will need to implement and integrate it into your warehouse. This may involve training staff on how to use the system, setting up barcoding or RFID systems, and integrating the WMS with other business systems, such as ERP or CRM software.

Once the WMS is up and running, monitoring and evaluating its performance is important. This includes tracking key performance indicators (KPIs) related to inventory accuracy, order fulfillment time, and overall warehouse efficiency. By regularly assessing the system, you can identify areas for improvement and make necessary adjustments to optimize your warehouse operations.

How many warehouse management systems are available?

Numerous Warehouse Management Systems (WMS) are available in the market, each catering to different business needs and scales. Here’s a list of some popular WMS solutions:

Major Commercial WMS Solutions

  1. SAP Extended Warehouse Management (EWM)
  2. Oracle Warehouse Management Cloud (WMS)
  3. Manhattan Associates WMS
  4. JDA Software (now Blue Yonder)
  5. Infor Warehouse Management
  6. HighJump (now part of Körber Supply Chain)
  7. Epicor WMS
  8. Microsoft Dynamics 365 Supply Chain Management
  9. Sage X3 Warehouse Management
  10. IBM Sterling WMS

Mid-Market and SMB Solutions

  1. NetSuite WMS
  2. Fishbowl Inventory
  3. 3PL Central
  4. Softeon WMS
  5. TECSYS WMS
  6. SnapFulfil
  7. Deposco
  8. Peoplevox
  9. SphereWMS
  10. Logiwa WMS

Specialized and Industry-Specific Solutions

  1. AscendTMS (for transportation and logistics)
  2. E2open
  3. Clear Spider
  4. Datex FootPrint WMS
  5. Latitude WMS by PathGuide
  6. Magaya WMS
  7. ShipBob (focused on e-commerce)
  8. ShipHero
  9. Orderhive
  10. EZOfficeInventory

Open Source Solutions

  1. Odoo WMS
  2. OpenBoxes
  3. ERPNext
  4. OpenWMS
  5. Warehouse Management System (WMS) by openMAINT

Cloud-Based and SaaS Solutions

  1. Zoho Inventory
  2. Unleashed
  3. TradeGecko (now part of QuickBooks Commerce)
  4. SkuVault
  5. QuickBooks Commerce

Which warehouse management system is most used?

Which warehouse management system is most used?

The most widely used Warehouse Management Systems (WMS) are those offered by large, well-established vendors with extensive functionality, scalability, and strong integration capabilities. Large enterprises and growing mid-market companies often choose these systems. Here are some of the most commonly used WMS solutions:

1. SAP Extended Warehouse Management (EWM)

  • Highly used by large enterprises due to its deep integration with SAP’sSAP’s ERP systems.
  • Advanced inventory management, real-time data, automation, and robust reporting.

2. Oracle Warehouse Management Cloud (WMS)

  • Favored for its cloud-based deployment and integration with Oracle’s suite of applications.
  • Scalability, real-time visibility, mobile access, and comprehensive analytics.

3. Manhattan Associates WMS

  • Widely adopted by retailers, wholesalers, and logistics companies.
  • Omnichannel fulfillment, automation support, labor management, and advanced analytics.

4. Blue Yonder (formerly JDA Software)

  • Commonly used in retail, manufacturing, and third-party logistics.
  • End-to-end supply chain visibility, inventory optimization, and integrated logistics solutions.

5. Infor Warehouse Management

  • Popular among manufacturers, distributors, and third-party logistics providers.
  • Real-time inventory visibility, labor management, 3D visual warehouse, and advanced analytics.

6. HighJump (now part of Körber Supply Chain)

  • Preferred by various industries due to its flexibility and scalability.
  • Cloud and on-premises options, automation, labor management, and seamless ERP integration.

7. NetSuite WMS

  • Frequently chosen by small to mid-sized businesses, especially those already using NetSuite ERP.
  • Inventory control, order fulfillment, real-time data, and mobile access.

8. Epicor WMS

  • Commonly used in manufacturing and distribution sectors.
  • Integrated with Epicor ERP, real-time inventory management, and robust reporting capabilities.

5 Best Warehouse Management Software and their advantages

Here are five of the best Warehouse Management Software (WMS) solutions, along with their key advantages:

1. SAP Extended Warehouse Management (EWM)

Advantages:

  • SAP EWM offers extensive features for managing complex warehouse processes, including inbound and outbound processing, inventory management, and cross-docking.
  • Seamlessly integrates with SAP ERP and other SAP modules, providing a unified view of the supply chain.
  • This department supports advanced warehouse automation technologies such as automated guided vehicles (AGVs), conveyor systems, and robotics.
  • Provides real-time visibility into inventory levels, movements, and locations within the warehouse.
  • Designed to handle the needs of large enterprises with complex and high-volume warehouse operations.

2. Oracle Warehouse Management Cloud (WMS)

Advantages:

  • This option offers the benefits of a cloud-based solution, including lower upfront costs, faster implementation, and easy scalability.
  • Provides real-time visibility into inventory, orders, and warehouse activities from anywhere, at any time.
  • Includes powerful analytics and reporting tools to help optimize warehouse performance and decision-making.
  • The system supports mobile devices for tasks like barcode scanning, picking, receiving, and inventory management, enhancing flexibility and efficiency.
  • Easily integrates with other Oracle applications and third-party systems, improving overall supply chain coordination.

3. Manhattan Associates WMS

Advantages:

  • Designed to support omnichannel retailing, including direct-to-consumer, B2B, and store fulfillment.
  • Provides robust labor management tools to optimize workforce productivity and track performance.
  • Compatible with various warehouse automation technologies, helping to increase efficiency and accuracy.
  • Offers detailed analytics and reporting to help monitor and improve warehouse operations.
  • Suitable for various industries and capable of scaling with business growth.

4. Infor Warehouse Management

Advantages:

  • Provides real-time insights into inventory levels, movements, and location, enabling better decision-making.
  • Includes advanced labor management features to optimize workforce utilization and efficiency.
  • Offers 3D visualization of the warehouse layout, improving space planning and resource allocation.
  • Suitable for mid-sized and large enterprises, capable of handling complex warehouse operations.
  • Tailored solutions for various industries, including manufacturing, distribution, and retail.

5. NetSuite WMS

Advantages:

  • Seamlessly integrates with NetSuite ERP, providing a single platform for managing financials, orders, and inventory.
  • Supports mobile devices for warehouse tasks such as receiving, picking, cycle counting, and inventory management.
  • Streamlines order fulfillment processes to ensure timely and accurate deliveries.
  • Ideal for growing small to mid-sized businesses, offering flexibility and scalability to meet evolving business needs.
  •  User-friendly interface and straightforward implementation process, reducing the learning curve and speeding up adoption.

How do you create a warehouse management system?

Creating a Warehouse Management System (WMS) involves several steps, from planning and design to development, testing, and deployment. Here’s a comprehensive guide to help you create a WMS:

Requirements Gathering

Identify Business Needs:

  • Understand your warehouse’s specific needs, such as inventory tracking, order management, picking and packing, shipping, and receiving.
  • Conduct stakeholder interviews to gather input from warehouse managers, staff, and other relevant parties.

Define Functional Requirements:

  • List essential features such as inventory management, barcode scanning, real-time tracking, and reporting.

Define Non-Functional Requirements:

  • Consider performance, scalability, security, and user-friendliness.

Planning and Design

Project Planning:

  • Develop a project plan with clear timelines, milestones, and resource allocations.

System Architecture:

  • Design the system architecture, including database design, server-side logic, client-side interface, and integration points.

Database Design:

  • Create a schema for the database, covering tables for products, inventory levels, orders, locations, and users.

User Interface Design:

  • Design wireframes and mockups for the user interfaces.

Technology Stack

Frontend:

  • Use technologies like HTML, CSS, JavaScript, and frameworks like React, Angular, or Vue.js.

Backend:

  • Develop the server side using languages like Python, Java, or Node.js and frameworks like Django, Spring Boot, or Express.js.

Database:

  • Choose SQL databases like MySQL or PostgreSQL or NoSQL databases like MongoDB.

Additional Tools:

  • Integrate tools like barcode scanners, RFID technology, and mobile devices.

Development

Set Up Development Environment:

  • Configure the necessary development tools and environments.

Database Implementation:

  • Create and implement the database schema.

Backend Development:

  • Develop the server-side logic, including APIs for inventory management, order processing, and reporting.

Frontend Development:

  • Build the user interface and connect it to the backend.

Integration:

  • If needed, integrate with other systems such as ERP, shipping carriers, and payment gateways.

Testing

Unit Testing:

  • Test individual components to ensure they function correctly.

Integration Testing:

  • Test interactions between different system components.

User Acceptance Testing (UAT):

  • Have end-users test the system to ensure it meets their needs and functions in real-world scenarios.

Performance Testing:

  • Ensure the system can handle the expected load.

Deployment

Set Up Production Environment:

  • Configure servers, databases, and other infrastructure for production.

Deploy the System:

  • Move the system to the production environment.

Data Migration:

  • Transfer any existing data to the new system.

Training:

  • Train warehouse staff on how to use the new system.

Maintenance and Support

Monitor the System:

  • Continuously monitor system performance and errors.

Regular Updates:

  • Provide regular updates and improvements based on user feedback.

Support:

  • Offer support to users to address any issues or questions.

Sample Basic Features of a WMS

  • Track stock levels, locations, and movements.
  • Process orders from receipt to fulfillment.
  • Handle the receipt of goods and update inventory accordingly.
  • Optimize the picking and packing process for orders.
  • Manage shipping processes and carriers.
  •  Generate reports on inventory levels, order status, and other vital metrics.

Sample Database Schema

Here’s a basic example of what the database schema might look like:

CREATE TABLE Products (

ProductID INT PRIMARY KEY,

Name VARCHAR(100),

Description TEXT,

Price DECIMAL(10, 2),

Quantity INT

);

CREATE TABLE Orders (

OrderID INT PRIMARY KEY,

OrderDate DATE,

CustomerID INT,

Status VARCHAR(50)

);

CREATE TABLE OrderItems (

OrderItemID INT PRIMARY KEY,

OrderID INT,

ProductID INT,

Quantity INT,

FOREIGN KEY (OrderID) REFERENCES Orders(OrderID),

FOREIGN KEY (ProductID) REFERENCES Products(ProductID)

);

CREATE TABLE Locations (

LocationID INT PRIMARY KEY,

Name VARCHAR(100),

Description TEXT

);

CREATE TABLE Inventory (

InventoryID INT PRIMARY KEY,

ProductID INT,

LocationID INT,

Quantity INT,

FOREIGN KEY (ProductID) REFERENCES Products(ProductID),

FOREIGN KEY (LocationID) REFERENCES Locations(LocationID)

);

Final Word

Creating a Warehouse Management System requires careful planning, robust design, and diligent execution. Following the steps outlined in this guide, you can develop a system that meets your warehouse’s needs and significantly enhances operational efficiency. With a well-implemented WMS, you can achieve better inventory control, streamlined operations, and improved customer satisfaction.

FAQS

What is a warehouse management system (WMS)?

A warehouse management system is a software application that helps manage and control the day-to-day operations in a warehouse, including receiving, storing, and shipping inventory.

What are the key features of a WMS?

Key features of a WMS include inventory management, order fulfillment, picking and packing, receiving and shipping, barcode scanning, and real-time tracking of inventory.

How do I create a WMS for my warehouse?

To create a WMS for your warehouse, you must first assess your warehouse operations and identify your business’s needs and requirements. Then, you can either develop a custom WMS solution or purchase and customize WMS software from a vendor.

What are the benefits of implementing a WMS?

Implementing a WMS can improve inventory accuracy, increase efficiency in warehouse operations, improve order fulfillment, reduce labor costs, and enhance customer satisfaction.

What are the challenges of implementing a WMS?

Challenges may include the initial cost of implementation, integration with existing systems, training employees on how to use the system, and potential resistance to change.

How can I ensure a successful implementation of a WMS?

To ensure a successful implementation, key stakeholders should be involved in the decision-making process, employees should be thoroughly trained on how to use the system, and the system should be continuously monitored and evaluated.

Can I use a WMS for multiple warehouses?

Many WMS solutions are designed to support multi-warehouse operations, allowing businesses to manage inventory and operations across various locations.

What are some popular WMS software options?

Some popular WMS software options include Oracle WMS, SAP Extended Warehouse Management, Manhattan Associates WMS, and HighJump WMS. Researching and evaluating different options is essential to find the best fit for your business.

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