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WAREHOUSE MANAGEMENT SYSTEM

WAREHOUSE MANAGEMENT SYSTEM. EGEMEN MUTLUAY 2009503045 Industrial Engineering Deparment Dokuz Eylül University. Definition of WMS.

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WAREHOUSE MANAGEMENT SYSTEM

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  1. WAREHOUSE MANAGEMENT SYSTEM EGEMEN MUTLUAY 2009503045 Industrial Engineering Deparment Dokuz Eylül University

  2. Definition of WMS • Warehouse Management is a proven, advanced WMS software solution for manufacturing, distribution, and retail enterprises and third-party logistics providers (3PLs) that can be used by enterprising organizations of all sizes. It helps companies maximize product placement strategies, prioritize tasks, implement fair productivity standards, and increase logistics efficiency.

  3. WarehouseManagementSystems (WMS) • The evolution of warehouse management systems (WMS) is very similar to that of many other software solutions. • To use the grandfather of operations-related software, MRP, as a comparison, material requirements planning (MRP) started as a system for planning raw material requirements in a manufacturing environment. • The expansion of the overlap in functionality between Warehouse Management Systems, Enterprise Resource Planning, Distribution Requirements Planning, Transportation Management Systems, Supply Chain Planning, Advanced Planning and Scheduling, and Manufacturing Execution Systems will only increase the level of confusion among companies looking for software solutions for their operations.

  4. I.Necessity of WMS • Not everywarehouseneeds a WMS. Certainlyanywarehousecouldbenefitfromsome of thefunctionality but is thebenefitgreatenoughtojustifytheinitialandongoingcostsassociatedwith WMS? WarehouseManagementSystemsarebig, complex, data intensive, applications. • Youneedto "manage" yourwarehouse "management" system. Oftentimes, largeoperationswillendupcreating a new IS departmentwiththesoleresponsibility of managingthe WMS.

  5. The Claims

  6. The Reality • 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. • While increased accuracy and efficiencies in the receiving process may reduce the level of safety stock required, the impact of this reduction will likely be negligible in comparison to overall inventory levels.

  7. Thepredominantfactorsthatcontrolinventorylevelsare lot sizing, leadtimes, anddemandvariability. It is unlikelythat a WMS willhave a significantimpact on any of thesefactors. • Beyondlaborefficiencies, thedeterminingfactors in decidingtoimplement a WMS tendto be moreoftenassociatedwiththeneedto do somethingto service yourcustomersthatyourcurrentsystemdoes not support (ordoes not supportwell) such as first-in-first-out, cross-docking, automatedpick-replenishment, wavepicking, lot tracking, yardmanagement, automated data collection, automatedmaterialhandlingequipment, etc.

  8. II. Setup • Thesetuprequirements of WMS can be extensive. Thecharacteristics of eachitemandlocationmust be maintainedeither at thedetaillevelorbygroupingsimilaritemsandlocationsintocategories. An example of itemcharacteristics at thedetaillevelwouldincludeexactdimensionsandweight of eachitem in eachunit of measuretheitem is stocked (eaches, cases, pallets, etc) as well as informationsuch as whether it can be mixedwithotheritems in a location, whether it is rackable, maxstackheight, maxquantityperlocation, hazardclassifications, finishedgoodsorrawmaterial, fastversusslowmover, etc.

  9. Althoughsomeoperationswillneedto set upeachitemthisway, mostoperationswillbenefitbycreatinggroups of similarproducts. Forexample, ifyouare a distributor of musicCDsyouwouldcreategroupsforsingleCDs, anddoubleCDs, maintainingthedetaileddimensionandweightinformation at thegrouplevelandonlyneedingtoattachthegroupcodetoeachitem.

  10. Inrealitymostoperationshave a muchmorediverseproductmixandwillrequiremuchmoresystemsetup. • Settingupthephysicalcharacteristics of theproductandlocations is onlypart of thepicture. • It’sverycommontocombinemultiplelogicmethodstodeterminethebestlocation. Forexampleyoumaychosetousepick-to-clearlogicwithinfirst-in-first-outlogicwhentherearemultiplelocationswiththesamereceiptdate. Youalsomaychangethelogicbaseduponcurrentworkload. Duringbusyperiodsyoumaychoselogicthatoptimizesproductivitywhileduringslowerperiodsyouswitchtologicthatoptimizesspaceutilization.

  11. III. OtherFunctionality/Considerations

  12. WavePicking/BatchPicking/ZonePicking: Supportforvariouspickingmethodsvariesfromonesystemtoanother. Inhigh-volumefulfillmentoperations, pickinglogic can be a criticalfactor in WMS selection. • TaskInterleaving:Taskinterleavingdescribesfunctionalitythatmixesdissimilartaskssuch as pickingandputawaytoobtainmaximumproductivity. Usedprimarily in full-pallet-loadoperations, taskinterleavingwilldirect a lift truckoperatorto put away a pallet on his/her waytothenextpick. • IntegrationwithAutomatedMaterialHandlingEquipment:Ifyouareplanning on usingautomatedmaterialhandlingequipmentsuch as carousels, ASRS units, AGVs, pick-to-lightsystems, orsortationsystems, you’llwanttoconsiderthisduringthe software selectionprocess. Since thesetypes of automationareveryexpensiveandareusually a corecomponent of yourwarehouse, youmayfindthattheequipmentwilldrivetheselection of the WMS.

  13. 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. • Cycle Counting:Most WMS will have some cycle counting functionality. Modifications to cycle counting systems are common to meet specific operational needs. • 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). 

  14. Pick-to-Carton:Forparcelshipperspick-to-cartonlogicusesitemdimensions/weightstoselecttheshippingcartonpriortotheorderpickingprocess.  Itemsarethenpickeddirectlyintotheshippingcarton.  • Slotting:Slottingdescribestheactivitiesassociatedwithoptimizingproductplacement in picklocations in a warehouse.  Thereare software packagesdesignedjustforslotting, andmany WMS packageswillalsohaveslottingfunctionality.  • Yardmanagement:Yardmanagementdescribesthefunction of managingthecontents (inventory) of trailersparkedoutsidethewarehouse, ortheemptytrailersthemselves. Yardmanagement is generallyassociatedwithcrossdockingoperationsandmayincludethemanagement of bothinboundandoutboundtrailers. • Activity-basedcosting/billing:Thisfunctionality is primarilydesignedforthird-partylogisticsoperators. Activity-basedbillingallowsthemtocalculatebillablefeesbaseduponspecificactivities.

  15. THANKS FOR LISTENING

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