A traditional warehouse management system (WMS) is a software application, to manage warehouse or distribution center operations. With the rise of e-commerce business, inventory is now beyond 4-walls of the warehouse. As a result, the next generation warehouse management system manages the fulfillment operations beyond 4-walls (e.g drop shipment, off-site receiving, locker boxes etc.). Today, best of breed WMS systems manage the whole order fulfillment process from the consumer clicking the “buy” button to all the way through delivery.
Q2. What are the main challenges of traditional warehousing?
Inaccurate transactions end up in higher costs in supply chain operations. When an inventory transaction is completed inaccurately, it means that it will be done twice if noticed right away. If not noticed, it will have bigger losses for the company such as shipping wrong item to the customer, locking down a location for counting. Doing transactions accurately in the first time brings cost efficiency to the supply chain transactions and obviously increases margins.
Seamless processes play a key role in fulfillment productivity. Warehouse Management System brings productivity to fulfillment operations. Although workforce is crucial to accomplish the customer experience, smart logistics systems play a key role to enhance customer service and reduce costs by guiding the workforce efficiently.
In the multi-channel model, many sales points and delivery options are offered to the customer in sync. Therefore, inventory and all processes should be shared and be in cooperation throughout all channels. At this point, especially correct figures, traceability and visibility of inventory is crucial.