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Companies need seamless inbound and outbound logistics to compete in today’s consumer marketplace. Fluctuating order volumes and stringent fulfillment expectations put pressure on supply chains across various industries. To meet these demands, fulfillment centers rely on software-driven automation, which requires a robust Warehouse Management System (WMS) that acts as the brain of the entire operation.
A WMS is a multi-layered solution that oversees and manages each step in an automated warehouse. It includes several types of software, each with a distinct role, such as inventory tracking and order management. Working together, these software solutions can speed throughput, improve order accuracy, cut operational costs, and create a streamlined logistics operation.
Let’s explore the different types of software involved in a Warehouse Management System and uncover how they work together to create a reliable supply chain.
Core Warehouse Management System
A WMS is like a living organism. It’s made up of different systems that control different functions. The core of a WMS is like the central nervous system, operating as the control center of all warehouse operations.
Key functions of the core Warehouse Management System include:
- Overseeing material flow
- Optimizing storage allocation and space utilization
- Supporting automated storage and retrieval systems (AS/RS)
- Tracking and managing inventory
- Seamless order fullfilment for large or small orders (omni-channel)
- Analyzing data insights like KPIs
- Streamlining manual workflows and reducing errors
- Integrating with and managing AI-driven warehouse robots
The core WMS starts working the second new material arrives at a warehouse. Workers or automation scan goods in the receipt area, automatically adding incoming items to the warehouse’s inventory. Once in the system, the WMS assigns items to the correct storage location based on size, shape, and product demand.
When processing customer orders, the WMS calculates the fastest picking route and assigns the order to a robot or human worker. The system manages movement of the item through the warehouse. This functionality supports optimal material flow, prevents misplaced inventory, and reduces the chance of order delays.
The core Warehouse Management System also provides valuable data insights that give companies real-time visibility of their end-to-end fulfillment operation. Analytics also make predicting future demand and anticipating supply chain challenges easy. This allows fulfillment centers to scale to meet their customers' needs and ensure optimal system efficiency.
Inventory Management Software (IMS)
Inventory shrinkage refers to the loss of a product that’s not attributed to sales. In a warehouse setting, this often happens due to incorrect stocktaking, data entry errors, or goods getting lost during the material handling process.
Regular inventory shrinkage has several consequences, including revenue loss, fulfillment delays, overstocking, and stockouts. It also creates operational inefficiencies, such as workers having to search for items or congestion along the material flow journey.
Inventory Management Software (IMS) helps companies avoid these complications. As part of the core Warehouse Management System, this software tracks inventory in real time to give logistics managers complete visibility of their stock.
Functions of IMS include:
- End-to-end tracking, from goods receipt to shipping
- Automated stock reordering and replenishment
- Tracking exchanges and returns
- Storage optimization
- Real-time inventory reporting
- Predictive analysis to ensure stock levels meet demand forecasts
IMS seamlessly integrates with automated systems like autonomous mobile robots (AMRs), storage and retrieval systems, and conveyors to ensure these tools facilitate optimal order processing and goods management. It also integrates with Radio Frequency Identification (RFID) scanners, barcode systems, and handheld or tablet devices to improve speed and accuracy while eliminating data entry errors.
Inventory Management Software is crucial in high-volume fulfillment centers and omnichannel warehouses. These environments are fast-paced and unpredictable, requiring automated product tracking to manage delivery expectations and reduce inventory shrinkage.
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Order Management Software (OMS)
A company’s ability to fulfill orders directly impacts its reputation. Consumers expect a seamless customer experience, including fast, accurate delivery. If a company doesn’t deliver, they risk losing customers to the competition.
Order Management Software synchronizes each function of the fulfillment process, from order placement to product delivery. It’s an essential tool in omni channel fulfillment centers.
Here’s a quick look at OMS in action for a multi-warehouse distribution operation:
- After a customer places an order, OMS identifies the best fulfillment center based on location and stock availability.
- The software sends picking instructions to warehouse staff or AI-driven robots.
- OMS communicates with third-party carriers and creates a shipping label.
- The system updates the customer with an order status and tracking information.
- It creates a new tracking label if a return or exchange is necessary.
This level of automation reduces processing times, minimizes errors, and lowers operational costs.
In addition to improving the fulfillment process, OMS integrates with other software to streamline the workflow in a warehouse. For example, it allows fulfillment centers to facilitate a significant uptick in orders without delays or interruptions. It can also adapt quickly to new sales channels, making it invaluable to ecommerce businesses or companies that plan on expanding their operations.
Warehouse Control System (WCS)
Automated warehouses have many complex moving parts. For a fulfillment operation to succeed, they all must work together, which requires some technical direction.
This is where a Warehouse Control System comes into play. This software acts as a traffic controller, ensuring all automated systems run smoothly. Think of it as the intermediary between physical automated tools and the Warehouse Management System.
A WCS monitors and controls conveyor systems, AS/RS, warehouse robots, and picking stations. It ensures these systems operate independently and work together.
In addition to controlling all automated systems in real time, a WCS optimizes the material flow by adapting to changes in the warehouse. For example, it assigns orders to the most logical picking station to increase speed and efficiency. It also reroutes orders to avoid bottlenecks if a conveyor becomes congested.
These solutions are invaluable to high-volume fulfillment centers, where a single interruption can have a domino effect, throwing everything out of sync.
Other critical functions of a Warehouse Control System include:
- Monitoring automated sorters so products make it to the correct location
- Optimizing routes for AMRs to speed the material flow
- Detecting system issues and alerting support teams
- Supporting accurate order tracking by integrating with the WMS
- Routing orders to the proper third-party carrier
- Adapting to sudden spikes in demand so a warehouse can handle more volume without slowing fulfillment speed
This extensive functionality results in a faster, more efficient fulfillment operation. A WCS also cuts labor and operational costs and allows for scalability.
Warehouse Execution System (WES)
Most warehouses employ a hybrid approach to fulfillment, combining human workers and automation. A Warehouse Execution System creates a healthy balance between the two. This software performs several functions to ensure tasks get appropriately allocated and the warehouse maintains optimal efficiency.
For example, a WES assigns tasks based on priority and the availability of human workers. If workers are occupied and the task must be completed immediately, it reassigns it to a warehouse robot. The system can also communicate with automated conveyors, pickers, and sorters to streamline the material handling process.
Warehouse Execution Systems help companies spot inefficiencies and work toward a faster, more efficient operation. Some advanced WES platforms leverage AI to monitor warehouse productivity and suggest ways to optimize labor management. They also pinpoint where time is being wasted during the material flow.
Finally, a WES tracks real-time inventory levels, reduces bottlenecks, and supports a seamless inbound and outbound process. A WES creates a flexible and responsive environment by bridging the gap between the Warehouse Management System and Warehouse Control System.
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Technologies That Support Automation Efficiency
A core Warehouse Management System and automation software put companies on a fast track to operational success. However, there are technology add-ons that help boost efficiency even further. Companies can integrate these tools into their automated system to enhance warehouse capabilities and reach business goals.
Real-time inventory tracking is crucial In high-volume warehouses. Without it, a company risks inventory shrinkage, operational bottlenecks, shipping delays, and revenue loss.
Automated data collection technologies like RFID and barcode scanning keep inventories in check and eliminate the need for manual stock counts. For example, RFID tags allow workers to locate products in the warehouse, minimizing search time. RFID software also makes it easy to log incoming items into the warehouse’s inventory and log them out when they’re shipped.
A product’s journey isn’t over when it leaves the warehouse. It must make it to the customer in the most efficient, cost-effective way possible.
A Transportation Management System is software that helps companies streamline their outbound logistics. It does this by planning optimal delivery routes, finding the best carrier rates, tracking deliveries, and optimizing shipping loads to maximize truck space utilization.
Rising labor costs require companies to take proactive action to improve productivity in their warehouses. Labor Management Software makes this process easy and transparent by monitoring workforce performance and adjusting shift schedules.
Tools like PLANCISE, which was launched by TGW Logistics in 2023, make efficient workforce management easy. This software provides performance insights that allow logistics managers to optimize resource allocation and adapt quickly to workforce absence and seasonal demand fluctuations in real time.
Warehouse operations must align with a company's broader, long-term goals. Enterprise Resource Planning software makes this possible by connecting warehouse operations with other business functions such as finance or procurement.
Integrating ERP software with a Warehouse Management System enables real-time cost tracking, demand forecasting, and automated reordering based on sales trends. This functionality creates a unified supply chain and keeps a warehouse in lock-step with business goals.
The Future of Warehouse Automation
Automated technology has transformed the way warehouses operate. It allows companies to streamline every step in the material flow and create a flexible operation that can adapt to market trends. This technology is evolving–and exciting advancements are on the horizon.
How WERX Warehouse Management System Delivers Operational Control
TGW Logistics’ WERX software is a perfect example of a comprehensive WMS designed to address the ever-changing needs of automated warehouses and fulfillment centers. It’s a highly adaptable, scalable solution that delivers end-to-end operational efficiency.
WERX offers fulfillment solutions with software that integrates with all automated systems. It not only monitors warehouse operations but also provides KPIs and key metrics so companies can pinpoint inefficiencies and work toward a seamless fulfillment process. It also monitors automated systems and identifies issues, which supports system continuity.
Here are some of the innovations shaping the future of warehouse automation:
- AI-powered predictive analysis will allow companies more freedom to adapt to demand fluctuations.
- The evolution of warehouse robotics will facilitate a more scalable fulfillment environment and continue to replace outdated systems.
- Machine learning algorithms will help optimize picking routes.
- The advancement of modular software solutions will help companies future-proof their operations.
- Fully autonomous warehouses will speed throughput and allow companies to increase efficiency and reduce costs.
TGW Logistics strives to provide innovative solutions so companies can adapt to new industry challenges. Our WERX Warehouse Management Software offers high scalability with customizable modules that meet the needs of modern warehouse environments.
TGW Logistics provides a reliable Warehouse Control System with WERX Operational Software. This software seamlessly connects with TGW’s mechatronic solutions to support dynamic warehouse operations and allow companies to maintain full control over their fulfillment centers.
This suite of WMS tools includes:
- Warehouse Orchestration — Allows for the holistic management of all warehouse processes, systems, and resources
- Warehouse Execution — Facilitates the management of day-to-day tasks, including inventory movement and order fulfillment
- Automation Management — Supports high-performance logistics through technology maintenance and system oversight
These components work together to create a cohesive approach to warehouse management, allowing companies to maximize productivity and throughput.
Operational growth requires data-based insights that inform the decision-making process. WERX Analytics offers tools that help companies monitor their warehouse operation and leverage metrics to predict future trends.
This functionality promotes better stock rotation, fewer misplaced goods, and a more agile supply chain. WERX Analytics also gives TGW Logistics’ support teams the information they need to identify issues and develop informed solutions.
When a company implements WERX, it gets more than a WMS—it enjoys ongoing support from TGW Logistics’ experts. WERX Services include:
- Remote Services — Our teams monitor each system remotely and deliver real-time support that drives optimal performance.
- Retrofit and Extension Services — We help future-proof warehouses by identifying ways to enhance a system and making modifications that support long-term business goals.
Our Service Portal makes it easy for companies to access support services and get the most out of our automated solutions.
TGW Logistics’ WERX platform makes smarter, more efficient order fulfillment possible. It integrates order management and warehouse automation, ensuring seamless coordination between a WMS, picking systems, and shipping carriers. The result is a frictionless fulfillment experience.
TGW Logistics strives to provide innovative solutions so companies can adapt to new industry challenges. Our WERX Warehouse Management Software offers high scalability with customizable modules that meet the needs of modern warehouse environments.
Revolutionize Your Operation With an Industry-Leading Warehouse Management System
The right software can transform a simple warehouse into a highly efficient fulfillment center. Whether it’s by introducing Order Management Software or a Warehouse Execution System, an integrated system paves the way to a faster, more accurate operation.
TGW Logistics’ WERX WMS is designed to give you complete control over your logistics process. Our software suite offers a diverse range of products tailored to meet your unique industry challenges.
Contact TGW Logistics today for a consultation and discover how the WERX Warehouse Management System can optimize your supply chain efficiency.