Warehouse Management System (WMS)---Simulate Before Selection (Part-I)

A case study on how to plan and select a Warehouse Management System to move the product faster and more efficiently

The warehouse is no longer just a storage place. It is becoming the key to a seamless supply chain. The mission of todays warehouse is changing from receipt, storage and shipping to value-addition in the supply chain. Therefore every company needs an effective plan to move the product faster and more effectively.

In todays world of rapid business changes, major growth, consolidation of distribution centres or a 95% order-accuracy rate are not sufficient to capture the market. Adoption of new technology may seem to be an easy answer. But before spending millions on new technology every company must outline exactly what and how much technology is required to create a state-of-the-art warehouse.

Companies need to look at where they are, where they want to be, what technology they have, and what they may need, to achieve their goals. According to the director of logistics for CFT Consulting, before spending on technology, warehouse mangers and other decision makers must ask themselves the following questions:

What is the quantity of product being handled in the warehouse? What quantity is being stored? How much selection is done? Whether workers select partial or full shipments? What is the shape or design of the warehouse? What type of packing is required? Can incoming product be bar-coded or should it all be checked? Can vendors check 100% of whats leaving the warehouse or can they do spot checking? Are trucks scheduled for pickups and deliveries or do they just turn up in a random manner? Is there any automation in operation? Is there one or more distribution centres (DCs) to be managed with one WMS system? How is the inventory tracked?

Before purchasing any type of technology ---- hardware or software, ponder over the above questions.

Warehouse Management Systems (WMS) is the buzzword today. Most of the available WMS are complex and must be selected only after careful consideration. While purchasing a WMS, every company must determine how purchased equipment will interface and work together. How the new system will work within the existing system should also be determined.

Before implementing a WMS, Manhattan Associates in the US, examined a potential customers order and shipment volume, labour allocation and payment, loading picking, receiving. An analysis of all these factors helped Manhattan Associates to tailor a WMS implementation to achieve maximum efficiency.

Companies can also take advantage of simulation software, which can demonstrate the effect of technology on warehouse management. AutoSimulations is a company that uses software to build a simulation model of a warehouse management. This model helps employees to understand what will happen in varying conditions.

To make effective use of the simulation software, a warehouse manager should be able to provide a detailed layout and information on picking, receiving, shipping and other vital aspects involved in warehouse operation.

Simulations can be done on how a conveyor, automated trucks or WMS can run a warehouse. Without simulation, warehouse managers have to make decisions on the basis of intuition or experience, which is not advisable.

The simulation software costs around $25,000- $50,000.When compared to the results it gives the investment is small.

A detailed case study on the selection and implementation of WMS is discussed in the next article.

Related Reading: Is technology the answer? Small, S., Warehousing Management, 03/1999

How To Select And Implement---- Warehouse Management System (WMS) (Part-II)

A case study on how to select and implement a Warehouse Management System to move the product faster and more efficiently

The Trane Co., in the US is a manufacturer and distributor of air-conditioning and heating devices. It wanted to replace its existing business system for supplying replacement parts and also re-engineer its packing operations. Its main objective was to provide excellent customer service. It targeted its 180,000 sqft and 100,000 sqft Distribution Centres (DCs) at two different locations for the new technology (software and hardware) to ensure operational consistency.

Trane needed a system based on Radio-Frequency (RF) because it had to work with carousels (a circular conveyor that moves objects) in both DCs. To eliminate a lot of data entry Trane decided to buy a shipping system. Inputs were taken from warehouse managers, floor workers, executives, consultants and vendors to decide on the shipping system.

According to the president of an international logistics-consulting firm, the vendor chosen for WMS should not only have the necessary equipment but also the knowledge required to make the equipment work for the company. To evaluate and select the potential vendors a list of questions should be prepared addressing competencies and support. Simulation can help to demonstrate some of the potential vendors competencies.

A technology acquisition team was assembled by Trane to select the required Warehouse Management System (WMS). The team identified a list of requirements based on the desired functionality. The team short listed WMS vendor choices to meet the needs of Trane. The team interviewed and visited various companies, which used vendor products they are interested in. Finally, Trane selected Catalyst of Milwaukee.

After selecting the WMS, a pilot of the system was run in a conference room. Then team members had a trial run of the system in the DCs. A detailed description of the every business that had taken place in the DC was recorded. This phase helped to find out if any modifications were required. It also helped Trane to identify if any additional software or hardware had to be purchased to work with WMS. The team also found vendors for an RF system; software to run carousels, labelling software and a shipping system that integrated and complemented the selected WMS.

On examining the features, functions and connectivity of several types of high-tech equipment the team chose shipping, carousel and labelling software and a host Oracle application. The team also spotted the best methods to convert data and design interfaces.

Warehouse is becoming the key to a seamless supply chain. The mission of todays warehouse is changing from receipt, storage and shipping to value-addition in the supply chain. WMS has altered warehouse managers job substantially and has driven logistics to the forefront, for a bigger push towards customer service.

Related Reading: Is technology the answer? Small, S., Warehousing Management, 03/1999