Warehouse Management Solution: Putting the Ideas into Practice

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Table of Contents

Introduction
Waterhouse Management Definition
Conclusion
Reference List

Introduction

A warehouse management is the management type which contains a number of various elements that help to computerize the company processes, such as the inner and outer processes of the enterprise and the warehousing processes, at the same time allowing to upgrade the company performance, the location of the products and the customer’s impression (Consona Corporation, 2011). To be more precise, the warehouse management system, or WMS, allows to improve the company operations.

As a rule, the given operations start with obtaining the money from the provider and results in the delivery of goods to the customer. In addition, the process involves the required actions to be taken and the data package used for the production and delivery of the goods.

It has been proven that, within a certain range of time, not only grand entrepreneurships, but also smaller and less influential companies can accept and implement the given system of management with major success, since the WMS touches upon such important elements of an efficient company performance as immediate supply, incorporated logistics and e-commerce accomplishment (Eclipse Systems Pvt. Ltd, 2004; Ayub, 2007).

The given report offers the analysis of warehouse management system and its implementation, pointing out both the advantages and disadvantages of WMS.

Waterhouse Management Definition

Having the same roots as other software applications, WMS was supposed to constitute a significant part of managing the space for storage of raw materials and the technical supply (Piasecki, 2011; Eclipse Systems Pvt. Ltd, 2004). At present, however, the question whether a WMS should become the so-called warehouse-specific ERP system remains open.

In addition, the research results state clearly that once the course of processing within the spheres of Advanced Planning and Scheduling, Enterprise Resource Planning, Manufacturing Execution Systems, Warehouse Management Systems, Supply Chain Planning, Transportation Management Systems and Distribution Management Planning will definitely spawn the increase of complexity raising between enterprises which are looking for the software which will supposedly improve their business process management (Piasecki, 2011; Eclipse Systems Pvt. Ltd, 2004).

In addition, a successfully applied WMS is usually aimed at incorporating not only he existing devices and equipment, but also the entire computer hardware and software by the means of increasing the working operations; thus, the improvements in organization of such elements of company operation as storage, supply and delivery, raw materials and labor.

Once the above-mentioned WMS strategy is applied, the company can possibly enter even tougher competition in the existing market; however, such actions as the reduction of staff expenses, supply accuracy improvement, making sure that the quality of the product meets the clientele’s expectations, as well as improving the flexibility of the company, must be undertaken.

Allowing the managerial to address the problem of stock management by applying the synchronized approach, obtaining the newest data concerning the current order or its delivery, as well as any other detail concerning the given order, the WMS offers considerable advantages to the company in terms of withstanding the market competition (Eclipse Systems Pvt. Ltd, 2004; Murray, 2011).

Waterhouse Management System Advantages

The system has a number of positive aspects (Eclipse Systems Pvt. Ltd, 2004; Murray, 2011), among which the most important are the ones mentioned below.

Enhanced supply and delivery transfer

With the help of WMS, the lead duration is minimized due to the fact that the supply and delivery transfer takes the minimum of time as well. In addition, the stock information is verified, which allows to practice the JIT strategy. Therefore, the safety store is no longer demanded, as the latter increases the use of working capital and the inventory.

Efficient use of current warehouse storage

It is important to add that the WMS not only decreases the need in a safety stock, but also allows an enterprise to enlarge the material storage space with the help of object-finding techniques, such as the methods of obtaining, collecting, wrapping and delivery locations.

Reduced necessity in paper-keeping

It is practically possible to make the traditional process connected with the material storage procedures faster by the usage of the WMS, once the latter is synchronized and automated, once the supply data transfer is established. In the given case, it becomes possible to keep all the information concerning the storage of the material, e.g., the data concerning the packaging lists, receipt reports, etc., can be transferred from the standard paper form to the form of digital data.

Cycle counting brought to its maximum

With the help of WMS, the company data, such as the certain supply and delivery points, the order transfer frequency, etc., for the previously arranged cycle counts. In the given strategy, the provided type of cycle counts not only increases the accuracy of the final results, but also helps to decrease the necessity in the overall substantial supply, since the latter is inordinately expensive for the enterprise.

Considerable independence from warehouse employees

Once the WMS is implemented, the company becomes capable of bringing the enterprise supply actions and the delivery procedure to the standard, adjusting the processes to the company’s features. Therefore, the organization deliberately picks the official methods, thus, reducing the dependence on the warehouse employees.

Enhanced customer satisfaction

Streamlining the production is the key asset of the WMS methods, since it presupposes that the company locates the product and delivers it to the customer in a more efficient manner. Because of the ability to check the process for the back-ordered delivery and to discharge the latter immediately, the given system improves the accuracy of the product delivery and, therefore, improves the company score.

Increased labor performance

With the help of such innovative approaches as cross docking, a WMS makes it possible for the company to bring the transfer of the raw material to its maximum efficiency. Known as the technique allowing to pick the shortest routes for the inward consignments to be delivered, the given system helps to make the warehouse management considerably easier.

The Ideas Offered by SAP

It is also important to keep in mind that the WMS works in correspondence with the ERP acquisitions, production, general financial management capability and the management of raw materials and the orders made by the clientele.

With the Application of the WMS, it is guaranteed that the company will not obtain any conflicting data concerning the product, its location, etc. once the data is transmitted with the help of different computer applications. Thus, it can be arranged that the operations carried out in various departments of the organization are implemented basing on the newest data and the most up-to-date information (Consona Corporation, 2011).

According to SAP, there is a certain way to handle the demands and the peculiarities of the warehouse management, as well as the corresponding issues, which is applying the fully integrated tools developed by SAP.

Moreover, with the help of the offered solution, all the functions previously performed previously by the business executives, namely, the planning, source search, storage, transportation and delivery of the products in question, can be carried out as a single logistic action (SAP AG., 2011), which is known as the SAP Enterprise Warehouse Management (SAP EWM) solution existing in four versions.

EWM combines all the necessary elements which are bound to lead the company to prosperity and at the same time helps to survive the competition (Consona Corporation, 2011; SAP AG., 2011).

Positive Aspects of SAP Solution

It must be noted that the given solution offers flexible system of the operating materials transportation, as well as the organization of the material. As for the positive aspects of the solution, one must mention that

It raises the warehouse capability by improving the materials transportation
It increases the ability of the warehouse to select the most reasonable locations for the products, managing the transfer operations, and at the same time make certain that the employees maintain the same high level of productivity and quality
It makes the production completely transparent, distributing the information between the clientele, the suppliers and all those concerned so that there could be no information gaps
It makes the organization capable of entering the market competition and improve the quality of the products, responding timely and adequately to the changes in supply and demand (SAP AG., 2011).

Two Entrepreneurships Testing the SAP Solution

In the first instance, the SAP strategy is put into practice for ESCO, a European salt company. Nowadays taking the first place worldwide, it adopted a near-synchronized strategy (SAP, 2011). As for the second instance, Deloitte Consulting managed not only to refine the production process, but also to introduce MS Access databases to the staff for a faster information processing (Deloitte Consulting, 2011).

Conclusion

Judging by the above-mentioned examples and the analysis of the WMS process, one must admit that the WMS approach is doubtlessly efficient and must be encouraged in various organizations. The given report shows that, organizing the processes of delivery, supply, storage and labor, the system in question works impeccably and helps raising the revenues of the company.

Reference List

Ayub, N., 2007. Warehouse Management Systems (WMS) Essentials. Web.

Consona Corporation, 2011. Warehouse Management. Web.

Deloitte Consulting, 2011. Warehouse Management at Ford with SAP EWM. Web.

Eclipse Systems Pvt. Ltd, 2004. Warehouse Management System (WMS). Web.

Murray, M., 2011. Implementing a Warehouse Management System (WMS). Web.

Piasecki, D., 2011. Warehouse Management Systems (WMS). Web.

SAP AG., 2011. ADVANCED WAREHOUSING WITH SAP® EWM. Web.

SAP, 2011. The Start of a New Era in Logistics. Web.

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