Downloadable WMS diagnostic. Are your WMS features right for your needs?
The distribution business is very dynamic by nature. That is why WMS providers are constantly adding features to their solutions to adapt the system to new technologies and needs. In addition, the changes in the external environment since 2020 have forced distributors to change how to do business, as commented in “Economy slowdown: how can distributors prepare for it?” Which begs the question: Is your current WMS adapted to your new realities? We developed a WMS diagnostic tool that allows you to answer that question. If you are only interested in running the diagnostic, click on this link to download it. If you are also interested in understanding more the WMS features to consider, keep reading the rest of the post.
Basic WMS processes
There are six warehouse processes that Warehouse Management Systems addresses. The depth of control that a WMS has over these functions depends on the size and complexity of the operation. Startup distributors usually need the basic functionalities. But as they grow, they will need more advanced systems. In the reminder of the article I will go over the 4 top functionalities for each of these processes that you need to consider in a WMS diagnostic.
Purchase and receiving WMS features
Scan items received: If you cannot scan items received, the possibility of human errors and the time spent to receive an order is high.
Generation of labels to stick on pallets/cartoons: If the products on the racks or bins are not labeled, you risk picking the wrong products or not picking the oldest item received of that SKU.
Reorder point capabilities: Not having this feature might lead to either stock shortage or overstock of items.
Suggest where to put away the orders received: products will be placed anywhere, at the discretion of the warehouse employee, and this can lead to products getting lost in the warehouse. You will notice that when you do an inventory count, you risk having expired products, overstock, and orders unfulfilled.
Management of discrepancies: Manual handling of differences between the system and bins complicates the paperwork and might lead to wrong inventory and loss of money by overpaying vendors.
Inventory management WMS features
Product tracking capabilities: Bad inventory accuracy will lead to frequent inventory counts and having more or less inventory than required.
Product return capabilities: If you do not have this feature, returns must be managed manually and based on the drivers’ report, which can result in errors and even product loss.
Transfer management: If transfers between zones and facilities are a manual process, you might experience excess inventory, item misplacement and longer time executing inventory activities.
Inventory optimization KPIs support: If you are not measuring ”Inventory Turnover” and “Inventory to Sales Ratio” you could experience cash flow issues or excess backorders on peak or low seasons.
Level of alerts generated: An alert system can help you to avoid problems. Issues such as “low reorder point”, “order delayed”, or “Order backlog high”, can generate customer insatisfaction and higher costs.
Order picking WMS features
Label reading: You risk picking the wrong items which will result in customer dissatisfaction, double trips to deliver one order, and high cost per order.
Inventory discrepancy detection: All discrepancies have to be reported by the picker verbally or in writing, increasing the risk of lost information and no correction of the problem. These mistakes can only be detected with cycle counts or inventory counting.
ERP synchronization: The picking process is running unlinked from the ERP, increasing the possibility of picking the wrong items or quantities and delivering incomplete orders.
Picking route suggestion: Your time to pick an order and the costs per order will not be optimal.
Packing and loading WMS features
Packing slip printing: Without an automated packing slip, the risk of consolidating wrong items into the order to packed increases, which has its effect on customer satisfaction and returns.
Shipping label printing: Manually created shipping labels are prone to discrepancies in the name or address of the customer, which leads to wrong deliveries and undelivered orders.
Lots and serials tracking: This feature allows you to make recalls and prevent products from expiring on shelves.
Truck inventory tracking and returns management: If the WMS does not have this feature, you must rely entirely on the drivers’ report to reconcile inventory.
Counting WMS features
Cycle counting capabilities: If cycle count does not exist, the only way to reconcile differences is by a complete or semi-full inventory counting, which disrupts the regular operation.
Store inventory tracking: Without this feature, tracking products close to expiration in the stores will not be possible, leaving no room for special offers to avoid returns. Mandatory product recall will be a complicated manual process.
Counting linked with picking and receiving: In a distribution operation picking and receiving products are always active. If your WMS has no visibility on items in these two processes while counting inventory, you might have wrong counts.
Counting while delivering capability: Inventory counting will disrupt the regular operation if this feature does not exist.
Integration WMS features
Integration with ERP: Any process of movement of products in the warehouse, that does not have inventory monitoring, creates the possibility of errors and discrepancies between actual inventory and the inventory in the system.
DSD and WMS integration: Your sales in the store will not be optimal if you do not know what there is in inventory.
Integration with Route delivery system: If the picking and receiving processes are not synchronized, you cannot detect discrepancies between actual inventory and inventory in the system. Physical counting will be the only option to detect and correct this.
EDI and DEX capabilities: If your WMS does not have this capability, you will have difficulties registering products in big chains like Walmart.
I hope this article on diagnosing your WMS has been helpful to you. I will continue to post information related to warehouse management, distribution practices and trends, and the economy in general. If you are interested in this article or want to learn more about Laceup Solutions, please subscribe to stay updated on future articles.
There is a lot of relevant information on our channel. Check out this video on the 5 most difficult features of a WMS.
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