Pictured - United Kingdom Warehousing Association

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14 Information TechnologyInformed choiceWhen choosing a warehouse management system warehouse operators should know what internal andexternal factors affect their operations and what their specific workflow and optimisation requirementsare, as this will have a direct impact on the ROI, says Gursh Atwal of AEB (International) LtdChoosing a warehouse managementsystem (WMS) can be a daunting task.What should warehouse operatorsconsider before signing on the dotted line?To begin with, they should know what internaland external factors affect their warehouseoperations and what their specificworkflow and optimisation requirements are.This will have a direct impact on the returnon investment.While implementing a WMS can lead tosubstantial savings on manpower, it’s notsimply about headcount reduction, but aboutincreasing productivity with the same numberof people working more efficiently. This isbecause integrated warehouse solutionsimprove visibility, e.g. on current work load,peak phases, possible bottlenecks and goodsin transit, allowing both management andwarehouse staff to focus on their core tasks.Or, to put it differently: rather than the stockcontrolling the workforce, the workforce iscontrolling the stock.The right software should provide completevisibility of inventory levels in the warehouseand of goods in transit. Full transparencyof incoming and outgoing ordersenables companies to consolidate and timetheir transports and reduce inventory levels,keeping only the minimum amount requiredto respond to emergencies. A good WMSpromptly notifies suppliers and carriers wheninventory levels are close to falling below theminimum requirement, facilitating a continuousflow of goods and saving money.Warehouse operators should also look forend-to-end traceability of order items, particularlyin the food, pharmaceuticals andchemicals sectors, where product recalls canquickly turn into PR disasters. This can beprevented by having an audit trail thatshows, for example, who has logged on tothe system, where exactly they were insidethe warehouse, what they were doing, when,and why. This will also help to meet a company’skey performance indicators.Another crucial requirement is system integrationcapability: A WMS should integratesmoothly into a company’s existing IT environmentand communicate with both internaloperations and systems (e.g. procurement,customs, shipping and sales) and externalparties (e.g. suppliers, service providers andcarriers), leading to transparency and efficientwork flows – ideally in real-time. Thesoftware should have a modular architecturethat provides the functionalities required atthe time, with scalability, i.e. the option ofexpanding as a company’s requirementsgrow. This includes integration of transportas well as global trade management systems,facilitating comprehensive logistics executionas well as regulatory compliance withcustoms and global trade procedures.Which solution is right depends on the circumstancesand requirements of the companyusing it, making it difficult to reach any ‘onesize-fits-all’conclusions. That’s why it’s all themore important that the solution provider offersthe right portfolio, experience, and consultativeapproach to guide through the decision process.Ideally they should become a proactive partner,providing an outside view and asking questionsthat assist in-house teams to designimproved work flows and implement a warehousesystem accordingly.Warehouse management systems canhave a staggering impact on improving supplychain dynamics and performance. Anintegrated solution will help companies tobecome more efficient, increase delivery performance,streamline workflows, lower inventorycosts and gain a competitive advantage.Logistics experts looking to make the most oftheir current WMS, implement a new solution oreven introduce a WMS for the very first time arewell advised to carefully analyse their detailedrequirements and compare available providersand system options to ensure the new solutionsupports all their goals.August 2012www.ukwa.org.uk
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Pictured - United Kingdom Warehousing Association

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