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Future-Proof Warehouse Management: What if.....?

09.12.2015

A WMS selection process is no easy task. When deciding on a WMS, the first thing considered is usually a system that fits the current situation, but it may be more important to consider the future situation. Questions that should be asked: ‘What are the company’s ambitions?' and ‘What kinds of trends will affect the requirements placed on a WMS?’

Warehouse management: time to get serious

Years ago, the transition to a paper-free warehouse was considered a novelty. This step alone is no longer enough to win the battle. Obviously, the basic advantages of switching to a digital warehouse system still apply, such as fewer picking errors, higher productivity and better inventory control. In other words, it is an important efficiency strategy. Donald Houben, Managing Director of Consafe Logistics in the Netherlands, explains, »It’s time to get serious. Logistics operations form the heart of an organisation. This is where promises made to customers have to be fulfilled.« According to Houben, when choosing a WMS, the organisation should not only consider the functionalities, but also the architecture and flexibility of a new system. He also believes that the supplier’s expertise and a good click between the two companies are very important.

Complex supply chain: e-commerce, multichannel, omnichannel

It is a well-known fact that e-commerce has become an integral part of numerous business sectors. The consequences for logistics operations are tremendous, especially combined with the changes in the chains to omnichannel and/or multichannel. These trends have resulted in various flows becoming interwoven. The number of orders is increasing, the volume per order is decreasing and the desired delivery times are becoming shorter and shorter. Houben adds, »The supply chain is becoming more complex. The more successful the pioneers, the more negatively people view the stragglers. In other words, not doing anything no longer means stagnation but a step backwards.«
According to Houben, a WMS supplier should help a customer make the right decisions. Will there be a separate e-commerce channel or will it be integrated into existing processes? Does a returned item simply get returned to stock or does it have its own process? A future-proof WMS should support these flows as effectively as possible, even if extra quality checks, for example, need to be carried out.

Consolidation trend: single EDC increasingly popular

Another trend that affects logistics operations is consolidation, says Houben. »Although many companies still use different distribution centers, this is often not the best choice considering developments. We see more and more often that large companies opt for a single EDC with a number of satellite DCs on the outskirts of Europe. This makes the logistics flows both more sustainable and flexible.« He believes that the possibility of satellite warehouses to scale up and down will be a deciding factor for the future of an organisation. A future-proof WMS needs to evolve along with these developments.

Flexibility: the key word

When asked what he believes are the requirements or characteristics of a flexible WMS, Houben responds, »A WMS can contribute to flexible operations in various areas. The user-friendliness and multi-language options of, for example, voice solutions make it possible to deploy personnel to various locations of the warehouse quickly and easily. This ensures that ‘people’ are not a limiting factor during peak loads.«
He believes that the system should also be able to meet the requirements of buyers by, for instance, prioritising the right orders. »The system decides what should be picked first in accordance with the delivery time, location of the items to be picked and composition of the order. If last-minute changes are made, such as a rush order is received in the meantime or because goods actually need to be picked from a different location, you want a system that is flexible enough to steer the employee in the right direction during a picking round in order to remain as efficient as possible.«
Obviously, a flexible WMS is configurable, but also easy to adapt to changes in the process or, for example, a new customer in the case of a 3PL service provider.

»A good WMS has the right insight«

According to Houben, transparency is of increasing importance nowadays, and not only with regard to where goods or a delivery are located. »Buyers are placing higher demands on transparency in the chain. Increasingly stringent safety and quality standards demand more knowledge of the origin of raw materials or product components. This is not only important in the food and medical industry, but also essential in, for example, the air cargo sector. A good warehouse management system enables the user to retrieve the desired information with one press of a button.« A WMS also has a wealth of management information that can serve as input for continuous improvements.

Future-proof supplier: knowledge, expertise and the right service

Houben has one final tip when selecting a WMS. »Ideally, you should only choose a WMS once. That is also why it is important that the supplier is a good match for your company in terms of culture. After all, the partnership does not end after implementation, but continues to exist. So service, support and expertise should absolutely also be considered in your selection process.«

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