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Introduction to Warehouse Management System
Warehouse Management System or WMS-
A warehouse management system (WMS) is a key part of the supply chain and primarily
aims to control the movement and storage of materials within a warehouse and process the
associated transactions, including shipping, receiving, put-away and picking. The systems
also direct and optimize stock put-away based on real-time information about the status of bin
utilization. A WMS monitors the progress of products through the warehouse. It involves the
physical warehouse infrastructure, tracking systems, and communication between product
stations.
Warehouse management systems often utilizeautomatic identification and data
capturetechnology, such asbarcode scanners,mobile computers,wireless LANs and
potentiallyradio-frequency identification (RFID) to efficiently monitor the flow of products.
Once data has been collected, there is either a batch synchronization with, or a real-time
wireless transmission to a central database. The database can then provide useful reports
about the status of goods in the warehouse.
Benefits-
Warehouse management increases quality and efficiency
Organized warehouses provide the foundation for quality and efficiencyin an environment
that is often fast-paced and chaotic. Strategic inventory storage decisions, enabled by a
warehouse system with the flexibility to accommodate numerous inventory statuses, locations
and types of ownership, give companies a distinct competitive advantage
Warehouse managementimproves overall business operations and profitability
Improved warehouse organization and accuracy enabled by warehouse management solutions
allow businesses to optimize resources, leverage opportunities and improveoverall business
operations and profitability.
Warehouse management improves decision-making
Real-time, accurate inventory and warehousing information enables every member of the
organization to gain the knowledge they need to make better decisionswhether dealing with
vendors, prospects, customers or employees.
Warehouse management increases customer satisfaction
Having the right products in stock for customers, properly identified and available to quickly
ship to customers is the key to customer satisfaction.
http://en.wikipedia.org/wiki/Automatic_identification_and_data_capturehttp://en.wikipedia.org/wiki/Automatic_identification_and_data_capturehttp://en.wikipedia.org/wiki/Automatic_identification_and_data_capturehttp://en.wikipedia.org/wiki/Automatic_identification_and_data_capturehttp://en.wikipedia.org/wiki/Barcode_scannerhttp://en.wikipedia.org/wiki/Mobile_computerhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Radio-frequency_identificationhttp://en.wikipedia.org/wiki/Radio-frequency_identificationhttp://en.wikipedia.org/wiki/Wireless_LANhttp://en.wikipedia.org/wiki/Mobile_computerhttp://en.wikipedia.org/wiki/Barcode_scannerhttp://en.wikipedia.org/wiki/Automatic_identification_and_data_capturehttp://en.wikipedia.org/wiki/Automatic_identification_and_data_capture -
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Warehouse Management
Warehouse management includes the control of inventory across one location or many and
the associated warehouse management tasks.
More precisely, warehouse management involves the receipt, storage and movement of
goods, (normally finished goods), to intermediate storage locations or to a final customer. In
the multi-echelon model for distribution, there may be multiple levels of warehouses. This
includes a central warehouse, a regional warehouses (serviced by the central warehouse) and
potentially retail warehouses (serviced by the regional warehouses)
Internal Pick/Put-Away-
Create pick and put-away orders for internal purposes, without using a source document
(such as a purchase order or a sales order). For example, pick items for testing or put away
production output.
The employee creates an internal put-away for items that have to be put away in the
warehouse (for example, production output), and enters quantity, zone and bin; from where
the items should be put away. The employee releases the internal put-away and the program
creates an internal put-away request.
Receive and put away items in a bin; pick items from a bin according to a put-away template;and pick items based on the zone and bin ranking. Move items between bins using a report
for optimizing the space usage and the picking process or move items manually. Warehouse
instruction documents are created for the pick and put-away process, which can be carried out
for sales, purchase, transfers, returns, and production orders. Service Orders is not included.
To effectively use this granule, it is recommended that you also purchase the Put Away,
Warehouse Receipt, Pick, and Warehouse Shipment granules.
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Evolution of Warehouse Management
Introduction- warehouse management consisted of manual processes written down on paper.
With the emergence of new technologies and ideas, warehouse management has evolved into
a much more automated process. Today, the primary focus of warehouse management is to
manage the movement and storage of inventory and other materials within warehouse
environments.
To control the flow of inventory into, out of and within a companys distribution center,
many companies have adopted warehouse management solutions. Over the past few decades,
warehouse management solutions have evolved from complex systems that required special
skills to operate and maintain the system to automated systems that do not require extensive
training.
Todays warehouse management systems are much more affordable than systems ofthe past,
much more convenient to use, and much more beneficial to companies. Warehouse
management systems now tie into other systems used by the organization, resulting in faster
response and delivery times as well as improved visibility. Todays systems also work to
automate warehouse processes and increase production efficiency so companies can focus
their attention elsewhere.
Do We Really Need this Warehouse System?
Not every warehouse needs a WMS. Certainly any warehouse could benefit from some of thefunctionality but is the benefit great enough to justify the initial and ongoing costs associated
with WMS? Warehouse Management Systems are big, complex, data intensive, applications.
They tend to require a lot of initial setup, a lot of system resources to run, and a lot of
ongoing data management to continue to run. Thats right, you need to "manage" your
warehouse "management" system. An often time, large operations will end up creating a new
IS department with the sole responsibility of managing the WMS.
The Claims
WMS will reduce inventory! WMS will reduce labor costs! WMS will increase storage capacity! WMS will increase customer service! WMS will increaseinventory accuracy!
The implementation of a WMS along with automated data collection will likely give you
increases in accuracy, reduction in labor costs (provided the labor required to maintain the
system is less than the labor saved on the warehouse floor), and a greater ability to service the
customer by reducing cycle times. Expectations of inventory reduction and increased storage
capacity are less likely. While increased accuracy and efficiencies in the receiving processmay reduce the level of safety stock required, the impact of this reduction will likely be
http://www.inventoryops.com/guide_inv_acc.htmhttp://www.inventoryops.com/guide_inv_acc.htm -
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where products are not stored in designated fixed locations. Like zone logic, you will need
some additional logic to determine exact locations.
First-in-first-out (FIFO)- Directs picking from the oldest inventory first.
Last-in-first-out (LIFO)- Opposite of FIFO. I didn't think there were any real applicationsfor this logic until a visitor to my site sent an email describing their operation that distributes
perishable goods domestically and overseas. They use LIFO for their overseas customers
(because of longer in-transit times) and FIFO for their domestic customers.
Quantity or Unit-of-measure-Allows you to direct picking from different locations of the
same item based upon the quantity or unit-of-measured ordered. For example, pick quantities
less than 25 units would pick directly from the primary picking location while quantities
greater than 25 would pick from reserve storage locations.
Fewest Locations- This logic is used primarily for productivity. Pick-from-fewest logic willuse quantity information to determine least number of locations needed to pick the entire pick
quantity. Put-to-fewest logic will attempt to direct putaway to the fewest number of locations
needed to stock the entire quantity. While this logic sounds great from a productivity
standpoint, it generally results in very poor space utilization. The pick-from-fewest logic will
leave small quantities of an item scattered all over your warehouse, and the put-to-fewest
logic will ignore small and partially used locations.
Pick-to-clear- Logic directs picking to the locations with the smallest quantities on hand.
This logic is great for space utilization.
Reserved Locations-This is used when you want to predetermine specific locations to put-
away to or pick from. An application for reserved locations would be cross-docking, where
you may specify certain quantities of an inbound shipment be moved to specific outbound
staging locations or directly to an awaiting outbound trailer.
Nearest Location- Also called proximity picking/put-away, this logic looks to the closest
available location to that of the previous put-away or pick. You need to look at the setup and
test this type of logic to verify that it is picking the shortest route and not the actual nearest
location. Since the shortest distance between two points is a straight line, this logic may pick
a location 30 feet away (thinking its closest) that requires the worker to travel 200 feet upand down aisles to get to it while there was another available location 50 feet away in the
same aisle (50 is longer than 30).
Lot Sequence- Used for picking or replenishment, this will use the lot number or lot date to
determine locations to pick from or replenish from.
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Other Functionality/Considerations of Warehouse Management
Wave Picking/Batch Picking/Zone Picking-
Support for various picking methods varies from one system to another. In high-volume
fulfilment operations, picking logic can be a critical factor in WMS selection.
Batch picking / Multi-order picking In batch picking- multiple orders aregrouped into small batches. An order picker will pick all orders within the batch in
one pass using a consolidated pick list. Usually the picker will use a multi-tiered
picking cart maintaining a separate tote or carton on the cart for each order. Batch
sizes usually run from 4 to 12 orders per batch depending on the average picks perorder in that specific operation. Batch picking systems may use extensive logic
programmed to consolidate orders with the same items. In operations with low
picks per order, batch picking can greatly reduce travel time by allowing the picker
to make additional picks while in the same area. Since you are picking multiple
orders at the same time, systems and procedures will be required to prevent mixingof orders. In very busy operations, batch picking is often used in conjunction with
zone picking and automated material handling equipment. In order to get maximum
productivity in batch pick operations, orders must be accumulated in the system
until there are enough similar picks to create the batches. This delay in processing
may not be acceptable in same day shipping operations.
Zone picking- Zone picking is the order picking version of the assembly line. Inzone picking, the picking area is broken up into individual pick zones. Order pickers
are assigned a specific zone, and only pick items within that zone. Orders are
moved from one zone to the next as the picking from the previous zone is completed
(also known as "pick-and-pass"). Usually, conveyor systems are used to move
orders from zone to zone. In zone picking its important to balance the number of
picks from zone to zone to maintain a consistent flow. Zones are usually sized to
accommodate enough picks for one or two order pickers. Creating fast pick areas
close to the conveyor is essential in achieving high productivity in zone picking.
Zone picking is most effective in large operations with high total numbers of skus,
high total numbers of orders, and low to moderate picks per order. Separate zonesalso provide for specialization of picking techniques such as having automated
material handling systems in one zone and manual handling in the next.
Wave picking- A variation on zone picking and batch picking where rather thanorders moving from one zone to the next for picking, all zones are picked at the
same time and the items are later sorted and consolidated into individual
orders/shipments. Wave picking is the quickest method (shortest cycle time) for
picking multi item orders however the sorting and consolidation process can be
tricky. Operations with high total number of SKUs and moderate to high picks per
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order may benefit from wave picking. Wave picking may be used to isolate orders
by specific carriers, routes, or zones.
Automated Data Collection (ADC)-
It is generally assumed when you implement WMS that you will also be implementingautomatic data collection, usually in the form of radio-frequency (RF) portable terminals with
bar code scanners. I recommend incorporating your ADC hardware selection and your
software selection into a single process. This is especially true if you are planning on
incorporating alternate technologies such as voice systems, RFID, or light-directed systems.
You may find that a higher priced WMS package will actually be less expensive in the end
since it has a greater level of support for the types of ADC hardware you will be using. In
researching WMS packages you may see references like supports, easily integrates with,
works with, seamlessly interfaces with in describing the softwares functionality related
to ADC. Since these statements can mean just about anything, youll find it important to askspecific questions related to exactly how the WMS system has been programmed to
accommodate ADC equipment. Some WMS products have created specific versions of
programs designed to interface with specific ADC devices from specific manufacturers. If
this WMS/ADC device combination works for your operation you can save yourself some
programming/setup time. If the WMS system does not have this specific functionality, it does
not mean that you should not buy the system, it just means that you will have to do some
programming either on the WMS system or on the ADC devices.
Advanced Shipment Notifications (ASN)-
If your vendors are capable of sending advanced shipment notifications (preferably
electronically) and attaching compliance labels to the shipments you will want to make sure
that the WMS can use this to automate your receiving process. In addition, if you have
requirements to provide ASNs for customers, you will also want to verify this functionality.
Implementation Tips-
. As with the selection process, the implementation may also require outside assistance.
Whether you use consultants from the software vendor, a business partner, or an independent
firm, the implementation plan will likely be the same. Its very important to listen to your
consultants and be prepared to dedicate the resources outlined in the implementation plan. A
common mistake made by companies going through their first major implementation is to
underestimate the complexity of their operations, the extent of system setup and testing, and
the impact the implementation will have on their operation. The only things you can assume
about the implementation is that it that it will be much more difficult than you expected, it
will take longer than you expected, and it will cost more than you expected.
the success of a software implementation will be based upon the skill of the people involved,
training, planning, and the effort put forth. You should plan to have your most knowledgeable
employees heavily involved in the system setup and testing.
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Receiving and Shipping Operations
Problems occurring in planning-
Problem can occur in planning and shipping facilities if the carriers that interface with
receiving and shipping activities are not properly considered. Positioning of the carriers and
their characteristics are important to receiving and shipping operation. It is useful to think of
the carriers that interface with the receiving and shipping functions as a portion of receiving
and shipping facility. Hence, all carrier activities on the site are included in receiving and
shipping facility planning.
Cross-docking-
In its purest form cross-docking is the action of unloading materials from an incoming trailer
or rail car and immediately loading these materials in outbound trailers or rail cars thus
eliminating the need for warehousing (storage). In reality pure cross-docking is less common;
most "cross-docking" operations require large staging areas where inbound materials are
sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If
cross docking is part of your operation you will need to verify the logic the WMS uses to
facilitate this
World Class Warehousing-
Homeshop18 has become one of the most trusted names in providing the most reliable
Warehousing Services. The warehousing facility includes multiple loading docks with ample
space for staging of materials for receiving and shipping. They know the importance of safety
of freights while forwarding them to a different destination. They realize that any damage to
freights can cause a significant loss to our customer. Therefore we take essential safety
measures to ensure that no harm is incurred while transportation. For this purpose, they also
provide warehousing services to our customers.
Warehouses can safely and conveniently store Computers, Documents, Home furnishings,
Antiques, Furs, Linens, Mattresses, Electronic Equipment, Musical Instruments and
innumerable other stuff. Company provides the best warehousing and storage services for
storing goods for a specified time frame. They provide excellent corporate warehouse facility
and storage go-downs with comprehensive security at very reasonable rates. They also
provide round the clock security of goods in the warehouse and all necessary support required
for clients to reduce overheads, increase efficiency and cut down valuable management time.
Offer our clients an advanced Warehousing services, which are appreciated for advantageslike cleanliness, safety and temperature controlled. This warehouse is established by us
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keeping in mind all the safety aspect so that the stored items can be protected from an
unexpected damage. Spread over a large area, Our warehouse has a large storage capacity,
due to which, we are able to store different items separately for the easy retrieval.
Order Picking Operations
Piece-picking methods-
Piece picking, also known as broken case picking or pick/pack operations, describes systems
where individual items are picked. Piece pick operations usually have a large sku base in the
thousands or tens of thousands of items, small quantities per pick, and short cycle times. Mail
order catalog companies and repair parts distributors are good examples of piece pick
operations.
Basic order picking- In the most basic order-picking method, product is stored infixed locations on static shelving or pallet rack. An order picker picks one order at a
time following a route up and down each aisle until the entire order is picked. The
order picker will usually use some type of picking cart. The design of the picking
flow should be such that the order picker ends up fairly close to the original starting
point. The picking document should have the picks sorted in the same sequence as
the picking flow. Fast moving product should be stored close to the main cross aisle
and additional cross aisles put in to allow short cuts. Larger bulkier items would bestored towards the end of the pick flow. This basic order picking method can work
well in operations with a small total number of orders and a high number of picks per
order.
Batch picking / Multi-order picking In batch picking Zone picking Wave picking
Case Picking methods-
Case picking operations tend to have less diversity in product characteristics than piece
picking operations, with fewer SKUs and higher picks per SKU.
Basic case-picking method. This is the most common method for case-pickingoperations. Rather than product stored on static shelving, case-pick operations will
have the product stored in pallet rack or in bulk in floor locations. The simplest
picking method is to use a hand pallet jack (or motorized pallet truck) and pick cases
out of bulk floor locations however many operations will find that going to very
narrow aisle (VNA) pallet racking and using man-up order selectors or turret trucks
will provide high storage density and high pick rates.
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Batch picking. Batch picking is rarely used in case pick operations primarilybecause of the physical size of the picks. You are unlikely to have enough room on
a pallet to pick multiple orders.
Zone picking. Zone picking can be used in case-picking operations, however, likebatch picking, the size of the picks and the size of the orders in most case-pick
operations do not lend themselves well to zone picking. If you do have a case pick
operation where you have a large number of SKUs, and orders with small quantities
per SKU, or where you have enough cases per order per zone to fill a pallet, you
may find zone picking applicable.
Wave picking. Wave picking can be applied to case picking operations where youhave very large orders with many picks per order and are looking for ways to reducecycle time.
Pallet picking methods-
Full-pallet-picking methods-
Full-pallet picking is also known as unit-load picking. The systematic methods for full-pallet
picking are much simpler that either piece pick or case pick, however, the choices in storage
equipment, storage configurations, and types of lift trucks used are many
Basic pallet picking- This is the most common method for full-pallet picking. Ordersare picked one at a time. The order picker will use some type of lift truck, retrieve the
pallet load and stage it in a shipping area in a staging lane designated for that order, or
just pick and load directly into an outbound trailer or container.
Batch picking- Since the nature of pallet picking is a single pick per trip, batchpicking has no application in pallet-picking operations.
Zone and wave picking- Although the normal definition of zone picking where anorder is moved from zone to zone as picks are accumulated doesnt apply to pallet
picking, pick zones are used in wave picking in pallet-picking operations. The
storage area is broken into zones to eliminate multiple lift-truck operators from
picking in the same aisle. The lift truck operator may pick the pallet and deliver it
directly to the designated staging lane or place it on a unit-load conveyor that will
deliver it to the sorting/staging area.
Task interleaving- Task interleaving is a method of combining picking and put-away. WMS use logic to direct a lift truck operator to put away a pallet en route to
the next pick.
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Order Picking Operationsin Warehouse Systems
Order picking operations in warehouse systems-
Of all warehouse processes, order picking tends to get the most attention. Its just the nature
of distribution and fulfilment that you generally have more outbound transactions than
inbound transactions, and the labour associated with the outbound transactions is likely a big
piece of the total warehouse labour budget. Another reason for the high level of importanceplaced on order picking operations is its direct connection to customer satisfaction. The
ability to quickly and accurately process customer orders has become an essential part of
doing business.
The methods for order picking vary greatly and the level of difficulty in choosing the best
method for your operation will depend on the type of operation you have. The characteristics
of the product being handled, total number of transactions, total number of orders, picks per
order, quantity per pick, picks per SKU, total number of SKUs, value-added processing such
as private labelling, and whether you are handling piece pick, case pick, or full-pallet loads
are all factors that will affect your decision on a method for order picking. Many times acombination of picking methods is needed to handle diverse product and order
characteristics.
Key objectives in designing an order picking operation include increases in productivity,
reduction of cycle time, and increases in accuracy. Often times these objectives may conflict
with one another in that a method that focuses on productivity may not provide a short
enough cycle time or a method that focuses on accuracy may sacrifice productivity.
Key Factors In Warehouse Design-
Construction
A set of typical drivers commonly affects the construction of a warehouse - the height of the
building, its plot size, service requirements and structural complexity. It may be a surprise to
learn aspects such as height not also affect concrete slab specifications but determine the fire
fighting system required as well.
Location
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Selecting a location is of course fundamentally subject to where a company's main source of
business lies. Yet a number of general requirements must be kept in mind.
Access to roads, ports, airports or even dry ports must play heavy on a potential warehouse
operator's mind. Growth possibilities, costs, rules and regulations share similar importance.
Racking
A concern ranking high for any new warehouse is that of racking. Whilst many might not
think the building structure and racking design are so intricately linked, all factors of the
building will affect the design of the racking system, which will in turn have a direct effect on
operational criteria such as picking efficiency, cross docking and container handling.
Doors
A door seems a simple thought compared to the complexity of say automation or racking, butit is nevertheless a worthy consideration when designing a warehouse. Before selecting a
door type, thought must be given to how much operation per day or even per hour it will
function.
Health and safety
Like many aspects of warehouse design, health and safety considerations need to be
integrated right from the start of the planning process. Safety factors initially focus on the
location, anticipated function, occupancy, processes and potential hazards of a proposed
warehouse.
Technology
A useful indicator of the need for a WMS within a warehouse operation is the volume of
goods entering and leaving the premises as well as the complexity of the business - the higher
the turnover the greater the need for a WMS.
Automation
Advantage of automation, if implementation is opted it must be involved in the design
process. Like many aspects of warehouse design, optimising space is key. The column layoutand height of the facility are in particular paramount to an automation solution. "It also might
be that flooring needs to be built in different levels.
Flooring
The emphasis on warehouse flooring has undeniably increased due to modern building
techniques. The quality and durability of a floor slab can affect, for good or bad, all elements
of the process in a warehouse. "With many warehouse and logistics operators now taking full
advantage of new technology that often requires bigger and taller buildings, the demand for a
flatter floor is significantly higher.
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Forklift
Although very rarely would a warehouse be designed around the forklift model, a potential
customer should bear in mind a number of factors that will ultimately mould the forklift
selection. Aspects such as the minimum space required between aisles and turning aisles in
order to accommodate for forklifts has a direct effect on racking layout.
Temperature control
The choice of which temperature controlled option to select is of course fundamental to the
product involved. Some work on specific temperature intervals, for example pharmaceutical
products require a temperature of between four to eight degrees, whilst a more common
system is to set a fixed temperature restriction for an area.