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There are currently several types of warehouse management system, each of which has its own benefits that are suitable for different organizations and companies. Organizations and businesses need to research well on which system can help handle and monitor their warehouse operations.
How to choose the best Warehouse Management System
What is Warehouse Management System (WMS)?
A warehouse management system (WMS) is a software application designed to support and optimize warehouse functionality and distribution center management. These systems facilitate management in automatic technologies in daily activities like planning, organizing, staffing, directing, warehousekeeping and controlling the utilization of available resources, to move and store materials inside, around and outside of a warehouse, while supporting staff in the performance of material movement and storage without causing any large scale disruption to business resources.
4 Types of Warehouse Management System
Standalone Systems
A standalone WMS is the standard software of the sort on-premises system, a model that is installed on the company’s native hardware and network. Many WMS applications are third-party packages that need to be combined with the organization’s management applications (such as the ERP system).
Its distinct benefits are: advanced features, integration capabilities and improved customer service.
It is ideal for small sized businesses or businesses with limited software budgets.
Cloud-Based Systems
This is a web-based, centralized-computing model using cloud technologies. The cloud-based system is famous for its fast scalability and rollout. It can have the same advantages as a conventional WMS while offering quicker supply chain execution and lower inventory costs. The cloud-based warehouse program does not require installation and synchronization with native hardware and networks because they are web-based.
Its distinct benefits are: quick implementation, an easy to use platform and cost-effectiveness.
It is ideal for companies of all sizes and businesses with multi-location needs.
Supply Chain Management Systems
Technology for supply chain management system development is much wider than WMS and can support customers in handling multiple facets of the supply chain. Automation of inventory management, material procurement, and other activities are the primary focus of supply chain management. However, it can also accommodate risk analysis, market operations, and vendor partnerships.
Its distinct benefits are: strong focus on business aspects and supply chain operations, high flexibility and satisfaction of consumer needs.
It is ideal for companies of small to medium size or businesses with multiple supply chains.
Automation of the supply chain can be beneficial to businesses
ERP Systems
Enterprise Resource Planning (ERP) software is used to monitor the resources of the whole business or organization. Some of the ERP programs offer a WMS software or SCM module integrated into their ERP system, in addition to main applications, such as human resources software systems, sales and marketing, finance and accounting, and CRM solutions.
Its distinct benefits are: high visibility, improved reporting and planning and great customer relationship management.
It is ideal for companies of all sizes and varied customer requirements.
Read more: Top 5 smart warehouse solutions in manufacturing industry
Finding a suitable warehouse management system is an essential to businesses
Warehouse management systems have the ability to automate all types of workflows. However, each type of system has its own features. It is time for businesses to think about what exactly their warehouse needs. Since warehouse operations can differ greatly based on the market and the particular business needs of each customer, it is important to fulfill each one of them.
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