At Johnston Logistics we operate a computerised Warehouse Management System that enables full stock traceability, from point of receipt to point of dispatch, for each and every item that moves through the warehouses.
For those who have not come across Warehouse Management Systems previously we have provided some notes below to explain what they are and the value they add to 3PL operations.
What is a Warehouse Management System?
A warehouse management system, or WMS, is more than a stock control system and more than a data collection system. It is actually a system that helps you ‘automate’ warehousing operations as much as possible. By automation we mean getting maximum productivity from people and equipment, getting maximum space utilisation and all but eliminating paperwork and manual record keeping. On top of this a WMS aims to give you near 100 per cent stock accuracy.
Stock put-away
Optimum put-away of stock is one of the key benefits of a WMS. A true WMS will work out the best location to put stock in the warehouse – i.e. a location which provides both optimum operational efficiency and optimum space utilisation. Extensive product definition enables a variety of storage and picking methods to be employed. User defined parameters allow us to define virtually any stock item regardless of shape, size, unit of measure or unit quantity. Stock can be palletised, un-palletised or both. Locations can be bulk stack, racked, pick-faces, quarantine; whatever is required.
Perpetual Inventory and Housekeeping
The WMS knows where everything is at any point of time – even whilst stock is being put away or picked. This means that stock can be counted and verified on an ongoing basis. Stock checks can be ‘interleaved’ with put away and picking operations – for instance one easy way of checking stock is to request a stock check when a location has been picked to zero.
Traceability and audit-ability
Every modern WMS provides traceability and audit-ability as part of the package. Every transaction is logged into the WMS database. This record will be time and date stamped. The WMS tracks receipts by batch, and then tracks where those batches have been despatched to. Therefore it can provide full ‘two way’ traceability – where stock has come from and where it has gone to.
Interaction with Customer’s Systems
A good example of adding value is where the WMS can be made to work seamlessly with the client’s internal systems. For example if the client’s system can send despatch requests electronically to the WMS, and the WMS in turn sends back despatch confirmations electronically, then significant benefits will be gained all round. The more links like this that can be developed then the more both parties will benefit. Getting these links in place is not ‘rocket science’ but does require a degree of skill and rigour – and a lot of testing. Clearly there are associated costs but these will be outweighed in the long run by the benefits.
Returns processing and reverse logistics
Much is being spoken of reverse logistics and returns processing. The truth is that in WMS terms (or a least in terms of a good, modern and flexible WMS) there is little difference between a return and any other receipt. The main difference is that a return may need to be associated with its original despatch / batch reference and will normally need to go through inspection and grading processes.