What is a WMS, and how does it work in a warehouse?

Where should goods arriving at the warehouse be placed? Which employee should prepare an order, and from which location should the product be picked? When dealing with a high volume of operations, a WMS is needed to organize the flow of goods and warehouse workflows.

Większa ilość produktów, zamówień, pracowników i procesów magazynowych sprawia, że zachodzi potrzeba wprowadzenia rozbudowanego systemu kontroli gospodarki magazynowej. Trzeba wiedzieć nie tylko, ile towaru jest na stanie, ale też gdzie się znajduje, jakie zadania czekają na realizację, które mają priorytet i kiedy należy przyjąć kolejną dostawę.

Spis treści

Co to jest system WMS i jak działa na magazynie?
  WMS – what is it? 
  How does a WMS work?
    Goods receipt
    Storage and location management
    Stock movements and inventory control
    Order picking
    Goods dispatch
  WMS and inventory support
  WMS vs. ERP – how can they work together?
  What are the benefits of a WMS?
  When should you implement a WMS? 
  Examples of WMS systems
  Implementing a WMS
FAQ

A WMS supports warehouse operations ranging from goods receipt, storage, and internal transfers to picking, dispatch, and inventory management. Data on the physical flow of products is recorded within a single environment, significantly simplifying warehouse management.

WMS – what is it? 

WMS stands for Warehouse Management System. A WMS automates warehouse processes, thereby reducing operating costs, improving customer service through faster order fulfillment, increasing warehouse operational efficiency, and reducing the number of order errors.

Modern WMS systems can handle, among other things:

  • receiving deliveries,
  • locating and storing goods,
  • warehouse transfers,
  • order picking,
  • dispatch,
  • inventory taking,
  • stock level monitoring,
  • staff tasks,
  • automatic document generation,
  • reporting.

WMS is advanced software that links inventory information with actual warehouse operations.

How does a WMS work?

The process is best understood by tracing the movement of goods from receipt to dispatch. Modern WMS systems not only record information about individual operations but can also assign subsequent tasks to workers and organize their execution.

Goods receipt

An employee records the delivery, for example, using a mobile terminal and a barcode scanner. The system allows for the verification of product types and quantities and links the receipt to the relevant documents. Data is transmitted to the WMS in real time, eliminating the need to transcribe information from paper delivery forms. This also facilitates the close monitoring of discrepancies between the order and the goods actually delivered.

Storage and location management

The software mirrors the warehouse layout, enabling the WMS to pinpoint the location of a specific product, batch, or logistics unit. Thanks to the WMS, employees do not need to memorize the location of specific goods, as this information is stored within the system.

Stock movements and inventory control

Products can be moved between zones, racks, or locations. The WMS records these operations and updates storage location data. This helps minimize discrepancies where the physical location of goods differs from the records. Every movement is automatically logged, and the operation can be assigned to a specific employee, making it easier to reconstruct the sequence of events.

Order picking

The WMS can provide the warehouse worker with a list of products to be picked and their locations. Tasks can be prioritized and assigned accordingly. The system can also sequence the tasks so that the warehouse worker carries them out in accordance with established work procedures.

Goods dispatch

Once an order has been assembled, the system supports the release of products and the updating of inventory levels. Information regarding the physical flow of goods remains linked to the data within the system. The WMS can also handle FIFO, LIFO, and FEFO strategies, tailoring the stock release method to the specific type of product.

WMS and inventory support

Inventory taking is often one of the most labor-intensive warehouse processes. It involves counting stock, comparing the counts against records, and reconciling any discrepancies. A WMS allows results to be recorded directly during warehouse operations. Staff can use mobile devices, thereby reducing the need for additional paperwork and the subsequent manual entry of data.

Comarch WMS also enables the monitoring of warehouse process execution and inventory control. Managers can track work progress and respond more quickly to any discrepancies detected.

WMS vs. ERP – how can they work together? 

ERP covers various areas of business operations, such as sales, finance, accounting, purchasing, production, and warehouse management. WMS, on the other hand, focuses primarily on operations taking place within the warehouse.

An ERP system might record that the company holds a specific quantity of a product. A WMS goes further by indicating the product's exact location, the required actions, the assigned personnel, and the task sequence.

The two systems can work together to provide comprehensive control. Data from the WMS can be transferred to the ERP system for use in sales, purchasing, planning, and accounting. Conversely, order and delivery information from the ERP system can serve as the basis for warehouse tasks. Integration eliminates the need to maintain two separate sets of records, as key data flows between the systems according to established rules.

What are the benefits of a WMS? 

The most important benefit is greater control over warehouse operations. The manager can check inventory levels, tasks, and ongoing operations without having to gather information from multiple sources—a single advanced tool is all that is needed.

A WMS can streamline:

  • locating goods,
  • organizing warehouse staff workflows,
  • order picking and goods dispatch,
  • managing returns,
  • monitoring stock levels at each location,
  • tracking available warehouse space,
  • inventory management,
  • reporting,
  • information flow,
  • tracking completed operations.

Automation reduces the number of manual tasks and enables faster recording of changes occurring in the warehouse.

When should you implement a WMS? 

It is worth considering the implementation of a WMS when the following arise:

  • problems with locating goods,
  • inventory discrepancies,
  • a high volume of manual operations,
  • increasing order picking times,
  • difficulties in task organization,
  • a growing number of orders,
  • an increasingly complex storage structure,
  • the need for more precise tracking of operations.

The larger the scale of the warehouse, the more important it is to have up-to-date information on the location of goods and tasks to be performed. WMS systems prove effective in sectors such as e-commerce, distribution, logistics, and manufacturing.

Examples of WMS systems

Comarch WMS is a solution worth considering when looking for a suitable warehouse management system. It supports the management of warehouse processes, task assignment and monitoring, inventory control, goods receipt and issue, and stocktaking. It is complemented by Comarch Warehousman, an application designed to support warehouse staff in their mobile operations. The app enables tasks to be performed directly at the location of the goods—such as receipts, issues, transfers, and stocktaking.

Dzięki temu kierownik otrzymuje narzędzia do organizowania i kontrolowania pracy, a magazynier – informacje potrzebne do wykonania konkretnego zadania. Dane z wykonanych operacji trafiają do systemu w czasie rzeczywistym, więc osoba zarządzająca magazynem ma aktualny obraz sytuacji.

Implementing a WMS

The cost of implementing a WMS depends on the specifics of the company. Additionally, costs vary based on the licensing model. The process should begin with an analysis of operations. Other significant factors include:

  • warehouse layout,
  • type of goods,
  • number of users,
  • method of goods labeling,
  • existing systems with which the WMS is to integrate.

With this information, the system can be deployed, configured, and integrated with other solutions, and users can be prepared for operation. Professional providers offer process analysis, implementation, configuration, integration, and technical support for WMS systems.

FAQ

1. What is a WMS?

It is an IT system for managing warehouse processes, goods locations, inventory, and employee tasks.

2. What is a WMS used for?

It supports receiving, storage, transfers, picking, dispatch, stocktaking, and inventory control.

3. How does a WMS differ from an ERP?

ERP covers a wide range of company processes, whereas WMS focuses on operations performed within the warehouse.

4. Can a WMS integrate with an ERP system?

Yes. The systems can exchange data regarding inventory levels, goods receipts, shipments, orders, and other operations.

5. When is it worth implementing a WMS?

When the volume of orders, goods, and operations increases, and current tools are insufficient to ensure adequate control over warehouse operations.

6. Does a WMS help with inventory taking?

Yes. It enables the recording of stock levels and audit results directly while working in the warehouse.

7. How do you begin implementing a WMS?

By analyzing warehouse processes, issues, and needs, followed by system configuration and integration with the existing IT environment.


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