A research paper about:

Best practices associated with WMS’s

with comparing 3 Software packages
 ORACLE WMS
 MICROSOFT WMS
 SmartTurn WMS

WAREHOUSE MANAGEMENT SYSTEM

A tour with:
Nitin Marwal - 07030141022
Manish Kamal - 07030141026
K. R. Alok - 07030141027
Aditi Soni - 07030141027
Warehouse Management System
A warehouse management system, or a WMS, is a key
part of the  supply chain  and primarily aims to control
the movement and storage of materials within
a warehouse and process the associated transactions,
including shipping, receiving, putaway and picking. The
systems also direct and optimize stock putaway based
on real-time information about the status of bin
utilization.
TEXT, GRAPHICS & PICTURES
Rationale for Warehouse Management
To achieve economies in transportation by moving higher
volumes
To obtain quantity purchase discounts

To keep a supplier

To meet changing market conditions

To support JIT programs throughout the integrated logistics

system

If forecasting was perfect and production was

instant, the need for inventory and
warehousing would vanish.
The Role of Warehouse
A warehouse plays a multifaceted role in the integrated logistics system. It can serve
as
a transportation consolidation facility:
Companies can transport less than loads into the warehouse, consolidate them
into full loads, and then transport them out again.
Reservoir for production overflow. Known as Stockpiling:
Seasonal Production – level demand
Level Production – seasonal demand
Product mixing sites:
Stock a variety of product lines.
Safety valves in plant strikes, supplier stock outs or transport delays.
Forestall production line shutdowns by storing additional raw material.

Effective warehouse system means:

Quicker delivery
Fewer stock outs
Better customer service
Components of a warehouse
Three basic components of a warehouse are:
Space
Space allows for the storage of goods when demand and supply are unequal.
Equipment
Help in product movement, storage and tracking.
Types of equipment depends on the type of product and interaction between
the equipment and other components of the warehouse.
People
Most critical component of the warehouse.
Space and equipment mean nothing without component people.
Individual attention on the special customer requests like final subassembly,
specialized packaging, or price marking of shipments.
SMARTART
Basic Functions of a Warehouse

Warehou
Warehou
se
se
Functions
Functions
 Types
Typesof
Types of a Warehouses Warehou
Warehou
of

ses
ses

Contract
Contract
Warehousin
Warehousin
gg

Public
Public Private
Private
Warehousin
Warehousin Warehousin
Warehousin
gg gg
 Best Practices in WMS Packages
Reducing Receiving Efforts
EDI capabilities and Advanced Shipment Notification (ASNs)
provides a simple solution that can reduce the receiving
efforts by 70 percent.
Putting a product away
A WMS will prioritize hot receipts – those that need to be
immediately replenished or cross docked -- and help
monitor and manage zone congestion.
Order selection methods and the allocation process
It’s best to keep this process simple by reducing the number
of selection methods we use and working on a regular
schedule.
For larger groups of orders, a WMS can select the right
assignment size and group orders to optimize pick paths.
 Best Practices in WMS Packages cont….
Avoiding an overflowing storage area
A WMS applies storage and picking strategies to reorganize
the warehouse and free up space. It also identifies
opportunities to consolidate product.
Product slotting
Enabling the warehouse managers to adapt to changing
product demands through re-slotting – moving product to
optimal location, for example – as a part of normal
picking/put away processes.
Picking productivity
To Improve picking productivity, it has to be ensured that the
product is ready to be picked and use a WMS to slot
product based on ergonomics and demand/velocity.
A WMS also minimizes travel time, and establishes and
monitors key performance metrics.
 Best Practices in WMS Packages cont….

Product labeling
WMS streamlines, simplifies, and eliminates steps that do not
add value.
Mapping the processes is a great way to identify unnecessary
activities.
Replenishment deadlines being met
A WMS help us prioritize replenishment tasks, avoid fit
problems, and employ the correct replenishment model –
whether real time, allocation-based, or scheduled – zone.
 Best Practices in WMS Packages cont….
Accuracy reporting
Ensuring accuracy on the front of the process reduce
dependence on cycle counts to reduce errors.
Standardizing the accuracy reporting, enables leveraging the
exceptionally high accuracy rates of the WMS to persuade
auditors to agree to more reasonable inventory counting
requirements.
Improving Productivity
With the advanced capabilities of the warehouse software,
one has numerous options for improving productivity and
gaining better control of our operations.
 Number of warehouses
The more warehouses in or near market areas, the higher the customer service
levels because goods can be delivered to the consumer faster.
As the number of warehouses increases, transportation costs and stockout costs
tend to decline, but inventory and warehouse cost increase.
Number of warehouses Cont…
Some factors to consider when evaluating the optimal number
of warehouses include:
The level of customer service required.
The number of customers, their location, and buying habits.
The amount and type of electronic data interchange (EDI)
taking place between producers and consumers

The recent trend is to use fewer warehouses to reduce total

costs.

More warehouses mean higher inventory and more frequent,

smaller shipments and higher costs.
Warehouse Design
In warehouse design, five inter related variables should be considered.
They are:

Land
Landand
andBuilding
Building

Management
Managementand
andStaff
Staff

Storage
Storageand
andHandling
HandlingEquipment
Equipment

Computers
Computersand
andSoftware
Software

Operating
OperatingMethods
Methodsand
andProcedures
Procedures
Warehouse Productivity
There are three approaches to warehouse measurement:
Productivity
Productivity is the ratio of the real output to the real input.
E.g.-- The number of cases handled per labor hour.
Utilization
Utilization is the ratio of capacity used to available capacity. This could
refer to the amount of space used by pallets, the number of employees
hours logged, or even the amount of cubic space used compared to the
amount available.
Performance.
Performance is the ratio of the actual output to standard output.
Examples could include cases picked per hour versus estimated cases per
hour and/or equipment hour run compared to estimated equipment hours.
 Warehouse Productivity Cont…
productivity measurement is evolutionary process. TABLE Stages in Warehouse
Productivity represents the stages in the evolution:
Warehouse Information System
Information technology EDI, automatic data collection, and radio
frequency systems have created advantages in warehousing, including
improved customer service, lower costs, and improved operations
These advantages come from computer interfaces in receiving,
storing, quality control, order picking, error control,
packing, and shipping.

Substituting
information for
real inventory
raises service
levels :
Warehouse Information System
Technologies used in WISs:

Electronic
ElectronicData
DataInterchange
Interchange

Automatic
Automaticdata
datacollection
collection

Radio
RadioFrequency
FrequencySystems
Systems
 Interfacing with the Enterprise Systems
A Case Study – Diageo: Warehouse Management System
Integration

Problem - Context
Diageo’s complex wine and wholesale division in the Republic of Ireland had
outgrown its current warehouse facility and so a decision was made to outsource the
warehousing operations to a 3rd party vendor.
This involved a significant degree of systems integration, interfacing Diageo’s IT
systems and processes with those of the warehousing supplier.

The objectives of the project were:

Build a real-time interface between Diageo’s IT systems and the 3rd party vendor.
The transfer of all stock to the new warehouse while maintaining a quality delivery
service and minimum number of “stock-out” situations.
The transfer of staff from Diageo to the external logistic provider.
And of course, all of the above to be completed on-time, within budget, and with
minimal disruption to Diageo’s operations.
Various Reports:
using MAGAYAWarehouse ManagementSoftware:--