Early warehouse management systems could only provide simple storage location functionality.

Current WMS applications can be so complex and data intensive that they require a dedicated staff to run them. High-end systems may include tracking and routing technologies such as Radio Frequency Identification (RFID) and voice recognition. Successful WMS solutions are generally designed to merge computer hardware, software, and peripheral equipment with improved operating practices for managing inventory, space, labor, and capital equipment in warehouses and distribution centers. Implementation of a WMS allows a company to increase its competitive advantage by reducing labor costs, improving customer service, increasing inventory accuracy, and improving flexibility and responsiveness. A WMS enables a company to manage inventory in real time, with information as current as the most recent order, shipment, or receipt and any movement in between. ADVANTAGES FOR WMS USERS For Management: WMS can help management to access an instant picture of: How much inventory exists in the warehouse How many orders are currently being shipped? What are the stages of processing of pending orders? Staff productivity details Goods shipped by the warehouse over any given period of time.

WMS BENEFITS WMS is an invaluable tool for improving your organization's productivity and customer focus. Here is a list of some of the benefits that you can expect to get. Visibility Warehouse Manager has a very clear picture of the status of each customer orders, as a result he can give a true and accurate feedback to the customers. Information like

percentage of order that has been completed, expected shipment date and problems in meeting schedule can be passed on to customer for his satisfaction. Advanced shipment notification helps customer in preplanning his further processes. WMS

provides diversified all-embracing reports for almost any plausible aspects of activities and substantiates the fact that working of Warehouse is made 100% transparent. Each and every activity can be tracked, reported, monitored and consequently controlled. These reports are web based and are platform independent applications. Therefore reports are visible to anyone who is willing and authorized to see. This feature is especially beneficial for multi location Warehouses and sales offices.

Accuracy The system keeps an intensive check of the goods or a stock unit meant for different customers and flashes an alarm/warning if the goods meant for one customer are mistakenly placed in cartons meant for other. Intensive checks are kept at each and every stage which safeguards against possibilities of errors in inventory records. As the items are systematically stored and retrieved, no time is wasted in searching for items not in stock and more than one order can be processed at any given time. This results in the increase of efficiencies, eliminating wastage of time due to errors. WMS incorporates distinct features for functions to be performed by Manager or Operators thereby eliminating the chances of wrong data entry. WMS makes information readily available to only those who have permission to see it. For example the operators are not entitled to view the important MIS reports. Inventory Managers can track transactions at a very fine detail to diagnose unexpected sudden changes in inventory. For example, if we had thousands of pieces of some SKU yesterday and today we don't have any, then where did they go? Were they shipped to some other customer? Were they sent to some other warehouse of the company to be shipped from there? Or did they get lost or were picked away? WMS helps answering such problems

Resource planning and productivity By keeping track of the operator's and staffs' activities, their productivity can be monitored. This aspect is of particular importance in case of productivity based remuneration schemes. When deciding for automation, one of the major concern of management is that they have to hire technical people at all levels and retrain the existing workforce. But in WMS the programs are so designed that no special skills are required to operate the system even at lower level. Programs for shop floor are specifically designed to run on hand held radio frequency terminals and emphasis is on scanner based data inputs. Therefore same workforce can very effectively be used for implementing WMS. Automation and streamlining of processes ensures that operational bottlenecks are eliminated and productivity increases. As a result all resources - man, machine, and money are utilized to their optimum level. Apart from the system no additional manpower or special machinery is required in order to automate the process for an efficient and proper handling of the goods. Efficient tracking of warehouses activities are possible with WMS as it provides a comprehensive set of web-enabled reports detailing all the activities happening in the warehouse and their effect on the inventory management. WMS also helps to detect bottlenecks in operations, which can increase the overall throughput of the warehouse.

Order Processing More than one order can be processed at any given time helping in better resource utilization.

Inventory Holding Cost

The main goal of WMS is controlling and streamlining the flow of inventory in a profitable and productive manner thus optimizing all resources. Payback period of WMS project will be very short because we are addressing the warehousing area where

at-least 60% of organization's working capital is tied. The results of such savings are immediate and apparent. Optimal Level of Inventory In an average business around 60% of the working capital is tied down in the inventory; the percentage is even higher in trading business. In an ideal situation warehouse should maintain optimal level of inventory at any given time avoiding both under and over stocking. If the Warehouses are overstocked that means excess working capital is tied in inventory which is dead money. Under stocking leads to delay in customer orders and even cancellation of orders at times. Thus actual picture about the inventory status in the Warehouse have valuable financial and strategic implications. WMS not only streamlines the flow of inventory but also tracks the inventory at various levels of processing thereby enabling decision makers to view actual picture of inventory at any given time and take appropriate steps. Better Revenue Realization Companies often loose considerable amount of revenue due to: excessive / under stocking as explained above incorrect tendering due to inaccurate knowledge of available stock Over / under shipping to customers. Wrong consignments. Inaccurate billing. Delay in order processing leading to order cancellation. WMS helps in controlling these losses to a large extent.

Orders and Stock Planning The warehouse management can determine how much inventory exists in the various stages of processing unlike in non-automated warehouse management. The reports generated during checking processes enable policy decision to be taken about the reliability of the suppliers. Sales people can determine how much inventory is available and can relate better to the warehouse staff thus bettering their Customer Relationship

levels. Customer Managers can reserve inventory for a customer thereby ensuring that it will not be shipped to anyone else.

Warehouse Operations Ease and Speed

WMS eases the operator's task and makes the data input process fast, increasing the overall efficiency of the operator. Some programs like Locating and Pulling are especially designed to run on hand-held radio frequency terminals. These terminals make the task of pickers and locators easy, as these are easy to carry. Modern WMS programs have been coded with extra emphasis on scanner based data input to minimize the need for keyboard or mouse input.