Journal of Logistics, Supply Chain and Retail Management

Volume 2 Issue 1

Implementing Warehouse Management Systems in Logistics: A

Case Study

Natesan Andiyappillai*, Dr. T. Prakash**

Senior Business Analyst*, Professor**
Department of IT*, Department of Mechanical Engineering**
NFI Industries, 1005 Laurel Oak Rd, Voorhees, NJ, 08043, USA*
SNS College of Technology**
Corresponding author’s email id: [email protected]*, [email protected]**

Abstract
As we see the technological developments evolve in the recent arena, it is
contributing to Warehouse Management Systems (WMS) Implementations
implementation as well in the Logistics industry. Though there have been a
number of researches done in the past decade or so on WMS
implementations, it appears that there is a huge gap between the number of
recent researches against the number of recent technological developments
as the technological developments advances heavily. Hence, it is attempted
to understand the latest trends and developments in WMS implementations
in this research based on a case study conducted in a leading Logistics and
Supply Chain enterprise. The benefits and challenges that the businesses
have at the recent times have been discussed. As the technological
developments are tremendously changing the business operating models,
this study can be extended periodically to understand the latest and
greatest in WMS implementations at any given time.

Keywords: Logistics and Supply Chain, Warehouse Management Systems

and WMS Implementations.

INTRODUCTION enterprise or business entity. This process

Supply Chain Management is a process of ensures the seamless flow of materials
managing the supplying partners of an from supplier to customer and provides the

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 Journal of Logistics, Supply Chain and Retail Management
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visibility of material movement more another per business requirements.

closely on the entire supply channel. In Managing the warehouse processes
order to manage the entire supply chain, become complex for businesses with no
organizations have been using Enterprise sophisticated IT systems, especially when
Resource Planning (ERP) applications as the business requirements are complex.
part of their IT strategy and model. A The combination of low business
typical supply chain model is shown in complexity and low business volume may
figure. 1 to depict how the materials flow not require the advanced Warehouse
from one end to another through different management systems but it is much
business partners involved with (See needed to manage the business when it has
Figure1) the complex requirements and the high
volume profile. A sample logistics
And, Logistics is an important process of diagram is shown in figure. 2 to depict
storing/warehousing and/or distributing the how these inter-units are integrated into
materials from one business partner to Logistics;

Figure:-1 A Typical Supply Chain Model

Fig 2 A Typical Logistics Model

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 Journal of Logistics, Supply Chain and Retail Management
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Logistics businesses use the Warehouse LITERATURE REVIEW

Management Systems (WMS) to facilitate Managing the material movement from
the warehouse operations through IT one entity to another in an enterprise
systems for better tracking and managing business at right time, right inventory and
the inventory effectively. The Warehouse at the right place is critical for the success
Management Systems can be categorized of Logistics and Supply Chain business.
into different groups based on a numerous And, there are many entities involved in a
factors but in general they are categorized supply chain process such as; Marketing,
into Tiers such as Tier-1, Tier-2 and Tier- Sales, Sourcing, Manufacturing,
3. This categorization is based on the built- Warehousing, Distribution and
in functionality and flexibility of the WMS Transportation etc. The more channels that
product. The WMS product vendors are are on a supply chain the more business
incorporating the technological parameters involved in the business. The
developments and advancements into the more variables to the business require the
core function of WMS Implementations to more sophisticated IT systems to manage
support the Logistics and Supply chain and control the supply chain. Hence, the
businesses better. The chart shown in businesses are implementing the
figure.3 depicts the relationship between Enterprise Resource Planning (ERP)
the Logistics business complexity and the systems in providing the better and clear
WMS product capability; supply chain visibility to their
stakeholders.

Logistics is a key program in a supply

chain when it comes to deliver the right
product right time and to the right place.
And, some of the primary services include
in the Logistics business are; Receiving,
Putaway, Picking, Packing, Shipping,
Fig 3 The Chart of Complexity Vs
Replenishment, Materials movement,
Capability
Customer Compliance and Value Added
Services. It becomes impossible in
managing all these processes without any
IT systems when the business model is

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 Journal of Logistics, Supply Chain and Retail Management
Volume 2 Issue 1

complex and every changing due to the found to eliminate any waste from the
market behavior. And, one of the IT warehouse, to streamline its operations,
systems which help facilitate these and improve efficiency in every aspect of
Logistics processes seamlessly is the warehousing activities. One of the most
Warehouse Management Systems. proactive ways of doing so is the use of a
warehouse management system (WMS)
There are researches in the Warehouse that is designed to speed up order
Management Systems which reveals the turnaround time, improve inventory
benefits attained by the businesses. accuracy, provide instant order status
Warehouse Management Systems (WMS) information, manage warehouse space and
helps the Logistics business in managing enhance labor productivity [2,10].
and tracking the Inventory [5,8]. A
warehouse management system or WMS The WMS application is built based on
primarily aims to control the movement different factors such as Industry specific
and storage of materials within a requirements, General Logistics
warehouse and process the associated Requirements etc. Any WMS application
transactions, including shipping, receiving, regardless of the business complexity
put-away and picking. A warehouse should be able to support some basic
management system (WMS) is a database logistics functions. The WMS must have
driven computer application, to improve tools and functions to support the main
the efficiency of the warehouse by steps and logistic processes of inbound,
directing cutaways and to maintain production and outbound, such as: pre-
accurate inventory by recording warehouse receiving of materials, concierge
transactions. The systems also direct and management, receiving, inbound quality
optimize stock based on real-time control, storage, transfer, picking, cyclic
information about the status of bin counting and shipping [3,6].
utilization [1,9].
Businesses have been taking advantage of
Warehouse Management Systems helps using WMS and are getting benefited in
the businesses to maximize their many different ways and also to be able to
operational efficiency in different areas in meet the Metrics and SLAs. WMS
the processes. To meet these high provides optimization, monitoring and
performance goals, a way needs to be control of complex warehouse and

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distribution activities such as yard WAREHOUSE MANAGEMENT

management, dock scheduling, order SYSTEMS IMPLEMENTATIONS
management, inventory management, and The logistics businesses implement the
others in an efficient manner [4, 7]. Warehouse Management Systems for
process efficiency, improvement and
Based on the research works published in transparency. And, a WMS
the journals, conferences and on the other implementation would normally require
modes, it is clearly seen that only limited the four important phases for a successful
researches have been done in the past on implementation as per diagram shown in
WMS Implementations and those figure. 4 to be able to ensure the business
researches have revealed both the benefits requirements are completely met by the IT
and constraints of using the system. And, solutions;
there are very few attempts in the recent
times on researching and investigating the A WMS implementation requires various
recent trends in WMS implementations to business partners to be engaged and
understand the latest happenings or issues contributed at all times for a successful
or challenges. Hence, it is attempted in this project delivery. There are challenges and
research article by conducting a case study issues in every WMS implementation
to analyze the issues/challenges on these project based on the resources and data
WMS implementations and finding the available for the successful delivery of the
best possible solutions for those respective project.
issues/challenges.

Fig 4.The phases of a WMS Implementation

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RESEARCH METHODOLOGY the different resources and through project

The methodology that has been used in documentations.
this research is shown in Figure 5 and a This company implements a Tier-1 WMS
variety of data and a lot of necessary data application across their facilities in an
have been collected through different effort to bring the unified IT WMS
sources within the organization and solutions across the organization. This
analyzed and the findings are published strategy also helps the organization to save
appropriately. In simple terms to say, this the resources by eliminating the other
case is analyzed in a qualitative approach. legacy WMS applications that have been
used in the past decades.
A CASE STUDY ANALYSIS
Every business model is unique in the This company has a well-structured IT
Logistics industry hence every WMS organization which comprises of different
implementation too. In order to understand internal entities as shown in figure. 6 to get
and analyze the latest trends in WMS participated and contributed to a WMS
implementations, a case study has been implementation. And, the roles and
conducted in a leading Logistics and responsibilities of each team are well
Supply Chain company. And, this case defined and managed appropriately. Every
study is done based on the observations in entity in the project is an important
WMS implementations, discussions with stakeholder and committed to deliver the
better possible WMS solutions.

Figure:-5 The Research Methodology

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Figure:-6 The major entities in a WMS Implementation

The primary roles of each entity in a  Development – To develop any

WMS implementation project are listed functionality that is needed for the
below; business and provides the respective
 Project Management - To manage the solution through WMS platform.
project from start to end and ensure the
smooth and successful WMS  Training – To train the resources to be
implementation. able to execute the WMS functions in
the application.
 IT Solutions - To understand the
business requirements from customer, Based on this research, the key factors that
configuring the WMS application per are influencing the WMS implementations
requirements, installing/managing the are categorized into four groups and each
application and database. of them is detailed out in figure.7with the
actions/pro-active measures that are being
 EDI Integration – To integrate the taken to accomplish a very successful
Customer systems and any other WMS implementation.
external systems with WMS systems
and develop the EDI interfaces as per
requirements.

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Volume 2 Issue 1

Figure:-7 The Key Factors influencing the WMS Implementation

Systems Integration this helps to do the better rate shopping

Integrating the WMS to the external with different parcel carriers and route
systems such as Host and other IT the shipping accordingly based on the
Logistics systems is always a challenging order data. This also helps to route the
and very important task in any WMS Shipments in the best network possible
Implementation project as the data flow through network optimization.
across all the systems should be seamless
and efficient with no interruption. And, the  Automated EDI Alerts - the EDI
following processes help to mitigate the failure or delay at any point in the
challenges reside in the systems entire communication platform would
integration; be reported automatically to be able to
resolve any such issue pro-actively and
 API Integration – Application quickly. This also would help alert the
Programming Interface helps to business or operations to prioritize a
automate the interactions between the specific customer or order.
supply chain partners by creating a
common or shared platform. This also  Alignment – It is very important that
changes the traditional way of systems all the parties involved in the
communication and expedite the Integration are aligned on all the
process dramatically. factors such as Mode of
communication, Systems security, EDI
 TMS Integration – Transportation file formats, Mapping guides (with
Management System is integrated with each field attributes), Frequency and
Warehouse Management System and Volume.
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 Journal of Logistics, Supply Chain and Retail Management
Volume 2 Issue 1

WMS Product Capacity and Capability  Network / Devices – studying the site
Determining the hardware / software or facility thoroughly at the initial
capacity and capability at the early phases phase and also on regular basis based
of the project is another important on the business growth is important in
challenge in the WMS implementation providing the right network
project as this plays a vital role in ensuring connectivity and the necessary devices
the hardware and software compatibility to perform the operational processes as
for the business and the usage of those expected. This might include in
resources to its maximum extent. The increasing the network speed,
below decisions and determinations providing new AP’s, adding new RF
alleviate the challenges with respect to and other devices to meet the customer
these factors; expectations.

 Database architecture – determine the  Automation – there are two types of

capacity of the database and the automations can be extensively looked
number of virtual machines based on into; i) setting up the multiple virtual
the complexity and volume of the instances for the application install is a
customer. And, also to look at the other key for load balancing and running the
tools such as Data Analytics, systems with little to no impact for the
Reporting and Dashboards etc. business. And, making the code
deployments automated to all these
 Standardization – Running the virtual instances would help to avoid
business with the standard IT system any errors. ii) Automating the
solutions is easy as it has impact to the warehouse processes through MHE
systems configuration, customer setup and configuration would help
compliance, reporting etc. Hence, increase the operational efficiency.
implementing the standard IT solutions
is always recommendable for better, Business Partners / Stakeholders
faster and cheaper implementations Aligning all the business partners /
and also to manage the project with stakeholders involved in the business is
ease in the long run. one of the biggest challenges in any IT
systems implementation and WMS is no
exception to that. And, any misalignment
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(includes the business requirements) with stakeholders and then providing the
any of the stakeholders would derail the Solution Design Document with the
project if not fixed as soon as it was expected IT solutions.
identified. Below are the solutions to
mitigate these risks; Visibility
Providing the visibility on the project
 Key Partners / Stakeholders – timeline and all the tasks involved in a
Identifying and working closely with project is crucial not just for monitoring
the key business partners / stakeholders the progress of the project but also be
are inevitable for the success of the prepared for the consecutive activities pro-
project. And, the key partners / actively. The below tools help in providing
stakeholders include the the project visibility;
representatives from the customer,
operations and IT and making the  Project Timeline – This details out the
collective decisions would ensure the tasks involved in a WMS project and
smooth and a very successful the corresponding timeline on each
implementation in the entire project activity. This should be approved by
life cycle. Some of other stakeholders the customer and any change to this by
involved in the project are; the product any partner would impact all the
vendor, training & support and any partners on the timeline of the
other external partners involved. deployment of the project or
deployment cost or both.
 Requirements – understanding the
requirements from the customer /  Network Diagram – This helps to
business in detail and documenting easily visualize the activities and tasks
those requirements into an acceptable involved in a project. It also displays
WMS solution is mandatory for the interdependent relationship
running the project in Green. These between the activities and tasks. And,
could be done in having customer / also to see the predecessors in each
operations provide the Business activity to ensure an activity is
Requirements Document / Operational complete before proceeding to the next
Requirement Document and task.
conducting the Design sessions with
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CONCLUSION research can be extended to understand the

It is so evident that Logistics and Supply latest trends in WMS implementation
Chain businesses want to implement the projects at any given time.
Warehouse Management Systems (WMS)
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http://doi.org/ 10.5281/zenodo.2576011
structure: an exploratory study of
the use of warehouse management

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