Warehouse Management System
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1 .. Warehouse Management System Oran Kittithreerapronchai 1 1 Department of Industrial Engineering, Chulalongkorn University Bangkok THAILAND last updated: May 30, 2013 Warehouse v2.0: WMS 1/ 18
2 Outline. 1 Introduction to WMS. 2 WMS in Warehousing Management. 3 Warehouse Activity via WMS Warehouse v2.0: WMS 2/ 18
3 What is WMS? Information System: IT/IS for operational in warehouse Integration: collect, analyze, & report all activities Important: strategic decision to modernize WH Industry: high transaction, require tracking Standard Function: search & track SKU, batch processing, individual report Advance Function: cycle count, profiling, RF, data transfer Warehouse v2.0: WMS 3/ 18
4 History of WMS 1975 First WMS installed at J.C. Penney s Hundreds of new stock locators & WMS systems; enable RF; Windows NT platform emerges become $100 million business 2000 Expanded suites with TMS. Today User-configurability & scalability remain key differentiator source: Brett Peters. Collect-Industry Council on Material Handling Education Thailand 1997 introduce by modern trade 2000s adopted by large retailers Today more adoptees, niche market Warehouse v2.0: WMS 4/ 18
5 Evil cycle in a warehouse Business growth: fear of lost sale more SKUs & qty Warehouse managing: inaccuracy, miss delivery no space, long cycle time Warehouse expansion: deadstock, seasonality expansion, more equipments & workers Costs increasing: more capital economy of scale How to break this cycle? better management with WMS Efficiency: 1 st step of automation & modern Warehousing Mgt. Transparency: enabler to change less flexible to do thing Warehouse v2.0: WMS 5/ 18
6 Minimum Requirement of WMS Access & Tracking Control: multi-users, roles & authorization Radio Frequency: realtime access, hand held device (Villa Grocery) Flexility : unit-change, adjust picking policy, manual overwrite, export data Management: cycle count, picker KPIs, report, integration Warehouse v2.0: WMS 6/ 18
7 World of WMS WMS market is niche IT market equipment, trading, data sharing In US, many new & extinct vendors Thailand limited in big company, high volume Warehouse v2.0: WMS 7/ 18
8 ERP/WMS/TMS source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 8/ 18
9 Receiving with WMS source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 9/ 18
10 Put-Away with WMS source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 10/ 18
11 Picking with WMS source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 11/ 18
12 Components in WMS Product Files: (Item Master): SKU ID, descriptions, dimensions, date, lot, units, bills of material, substitutions Location Files: (Location Master): address ID, layout, quantity, sequencing, dimensions, capacity History Files: (Order Master): date, customer/supplier, document ID, quality, unit Equipment Files: equipment ID, location, status, capacity Employee Files: worker ID, labor standards, operator-equipment matrices, incentive, Customer Files: customer ID, contact, term of payment, evaluation source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 12/ 18
13 WMS Cost breakdown Components % Total Costs Hardware Computer 6 RF Data Comm 24 Bar Code Applicator 8 Software WMS Licence 8 WMS Enhancements 10 Host Interface 6 Other Software Licence 4 Implementation Location Labels 6 WMS Installation Service 21 Project Team Cost 6 Warehouse v2.0: WMS 13/ 18
14 Signs for WMS consideration Complaints: ship accuracy, # checker, Data management: cycle count, multi-crowded, picker KPIs Productivity: 1000 line/ man-hr Cycle time: hot released for truck Business: short cycle or long cycle count, high turnover Warehouse v2.0: WMS 14/ 18
15 WMS Justification Task Related Cost Direct labor: better measure/control individual performance Indirect labor: reducing training & supervising Administration: automate collecting & analyzing data Possible saving Tangible savings: space utilization, paperwork, expedited delivery Intangible savings: customer service,inventory turnover, performance measurement source: Brett Peters. Collect-Industry Council on Material Handling Education Warehouse v2.0: WMS 15/ 18
16 Choosing WMS providers Complete package: limited target group, special functions in modules State-of-Art technology: text-interface VS GUI, web-browser, shorter life cycle Implementation capabilities: adjustable parameters, experienced consultants Considerable customer base: recommendation, match with equipments or operations, best practice, Professional organization: trustworthy, after-sale service, stay in business source: Jeroen van den Berg Consulting Warehouse v2.0: WMS 16/ 18
17 WMS Trends Connectivity: RFID, other information system (e.g., supplier ERP) Costing analysis: activity based costing & management of individual picker Embedded profiling: facilitate re-layout & inventory slotting Leveraging data: utilizing more data/information Sharing data: accessing data by other parties, including consumer Software as a Service (SaaS): rented on-demand at low monthly cost per user Warehouse v2.0: WMS 17/ 18
18 Questions Warehouse v2.0: WMS 18/ 18
19 Reference [BH09] [Fra02] J. J. Bartholdi and S. T. Hackman. Warehouse & distribution science. Suply chain and logistics institute, Georgia institute of technology, E. Frazelle. World-class warehousing and material handling. McGraw-Hill Professional, [Mul94] D.E Mulcahy. Warehouse distribution and operations handbook. McGraw-Hill New York, Warehouse v2.0: WMS 19/ 18
![World-class warehousing and material handling. McGraw-Hill Professional, 2002. [Mul94] D.](/docs-images/48/18640344/images/page_19.jpg "E Mulcahy. Warehouse distribution and operations handbook. McGraw-Hill New York, 1994.")
Lecture 06 Warehouse Activity Profile
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