Because there are so many different types of warehouses and the definition of warehouse operations is different for every warehouse, there are many types of warehouse management systems (WMS).  Trying to determine which WMS is best for which warehouse can be a daunting and expensive task, even for the best warehouse operations specialists. 

Let's break down warehouse management systems into the different types of software modules available on the market today.  By looking at the types of software packages available, we might find a clue as to which system is best for which warehouse.  The three basic types of warehouse management software are as follows: 1. package or commercial off-the-shelf (COTS); 2. hosted systems and 3. proprietary systems.

A package, otherwise known as a commercial off-the-shelf solution, is a warehouse management template that can be easily configured to work against a variety of database systems depending upon the infrastructure of the firm implementing the solution.  Most warehousing functionality has been included such as asset tracking and definition, material-handling supervision, scheduling modules for trips and docks, stockyard management, shelflife supervision and much more.  Once a package has been selected, consultants typically schedule workshops to flush out functional requirements and specifications, which then convert to configuration requirements for ultimate implementation and migration from your current system to the new system.  As with any software implementation, if the requirements are well-defined at the inception of the project, using a COTS system can go very smoothly.  Drawbacks with packaged solutions are generally related to performance with the occasional problem of desired functionality not being available.

Hosted WMS solutions are relatively new to the scene.  These use the Internet for access to WMS software. Organizations no longer need to purchase software to operate their warehouses.  The core software for a hosted WMS is owned and operated by the hosting company.  All the functionality required to run your warehouse is available through your browser.  Typically, these solutions are best for smaller warehouse operations, but new functionality is being added every day.

Proprietary systems are really the benchmark by which many of today's packages and hosted systems are measured.  Aberdeen recently reported that nearly 60% of all warehouse management software is still proprietary in nature.  Apparently custom software providing the specific functionality, responsiveness and flexibility required, is still a viable solution for many organizations.  One drawback to proprietary systems, however, is the high cost of ownership relating to custom service and maintenance.  In general, the resource expertise required to maintain a custom software package comes with a high training price tag.  Yet, when cost is sufficiently reduced, and accuracy and productivity is increased, proprietary systems can be quite attractive as they have been for companies like Wal-Mart.

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Before the availability of warehouse management software in conjunction with a WMS, to run a warehouse, managers and workers relied upon clipboards and paper lists. Inventories and the functions required to move product were limited. Today, the magnitude of inventory that can be processed through the walls of the warehouse using a WMS is immeasurable. The functionality available in today's warehouse management software makes this all possible.  So, what are some of the functions of the WMS?

The Scheduler
One important function, unavailable back in the paper days, is the concept of the Scheduler.  The scheduler is a service that is capable of reserving dock time for a trailer based upon such metrics as when the trailer will be available, when the trailer must arrive at its destination, when product will be available for shipment, the amount of time required for product to be packaged, tagged, staged and loaded and more.  No warehouse management system is complete without a schedule.

Material-handling Supervisor
The Material-handling Supervisor is another service operating within the WMS that keeps track of the availability and location of the assets required to move product.  Such assets include but are not limited to forklifts, totes, mobile devices and carts.

Inventory Locator
The inventory locator is a module that allows workers to find product within the warehouse.  More than just a simple lookup table, the functionality of a locator can include one or more of the following features: a quick search, a multiple location search, a replenishment alert. If inventory is out of stock, the locator can also have the ability to identify when new product will be available, where it will be staged and trip a replenishment alert once it has arrived.

Inventory Pick Supervisor
Whether product is picked using voice technology, bar code scanning, radio frequency identification (RFID), the inventory pick supervisor controls the amount of product to be moved from a staging area onto the conveyor's (pick belts) or one of many other inventory picking configurations including pick to light, etc.

Shelflife Supervisor
A shelflife supervisor is an invaluable asset for any WMS especially when it comes to food and beverage or consumer package good operations where the amount of time product remains on a shelf is important.  Such functionality automatically routes product from the appropriate staging areas and forces bulk moves between staging areas depending upon expiration date of the product.

Additional WMS functionality should include cycle counting, inventory auditing, inventory counts, external hardware interfaces, database maintenance, report generation and more. Although this is not an exhaustive list of all the functionality available in today's WMS solutions, we hope you find this outline useful as you decide what the critical functions are in your warehouse operations.

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