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There are many choices for warehouse management systems (WMS) in the world of industrial software today, yet most were not developed specifically to meet the needs of cold storage providers. Working in harsh environments, public refrigerated warehouses must have special functionality to deal with the range of inventory housed, often in multi-locations with differing temperatures.
Warehouse management systems developed for dry storage often cannot meet these needs. Cold storage warehouse operators should consider not only the type of inventory handled but also future potential client needs, regulatory requirements and other factors when evaluating warehouse management systems. For example, when handling meat, fish or produce, it is often necessary that a WMS has the ability to handle variable or “catch” weight effectively. This is not always common to warehouse management systems developed for dry storage.
Top end warehouse management systems developed for cold storage warehouses typically have specific features designed to deal with temperature capture and locations in order to minimize costly damage to inventory that must be stored in specific temperature zones. This can be a business essential and help the cold storage provider attract new clients to their business.
To aid in the search for and evaluation of WMS software, here is a list of features that can be highly desirable in warehouse management systems (WMS) for cold storage warehouse operators:
Because third party logistics providers (3PLs) manage inventories for multiple customers at multiple warehouse facilities often at multiple locations with multiple users, the warehouse management system must be able to handle this level of complexity. Each 3PL client is unique, with specific billing criteria, contracts, business processes and requirements making operations extremely complicated. It is critical to select a flexible software that can adapt to the needs of your business and customers, not require conformity to the software.
Multiple ownership of the same item type occurs frequently and must be supported by the WMS software. Billing for each 3PL customer, based upon their own contracts and specifications adds an extra layer of complexity. In addition, each customer handles the payment of 3PL services in their own way and on a different schedule.
Warehouse management systems are linked or interfaced to other systems such as material handling equipment, Enterprise Resource Planning (ERP) systems, Manufacturing Resource Planning (MRP) systems, Transportation Management Systems (TMS) and accounting systems to interchange data that each system needs to complete operational processes.
The warehouse management system is also linked to a server, host computer and access points within the warehouse to allow the flow of real time information. Information is conveyed from mobile devices such as handheld computers, voice, wearable and vehicle mounted mobile computers or tablets from the device to the warehouse management system via the radio frequency (RF) access points.
Total cost of ownership for a warehouse management system (WMS) software purchase refers to all the costs associated with implementing the system, including all hardware costs, software, services, etc. In other words, the total cost of ownership (TCO) refers to all the costs associated with implementing everything necessary to make a warehouse management system totally operational to meet the client needs.
If your business is a third party logistics provider, you will need warehouse management software (WMS) that handles 3PL billing. Not all WMS software is designed for multiple clients. If your company is a third party logistics provider (3PL), you will need software that can capture and bill for accessorial charges and bill according to the specific contract terms established for each client. If your business does not use 3PL WMS software, your business will not be able to bill accurately, reducing your ability to capture revenue, lessening profitability.
WMS software licenses can be sold as named users or on a concurrent license basis. Selecting a WMS software company that sells licenses on a concurrent basis can save your business money. The term “concurrent user” refers to the total number of people (software users) using the WMS software within a predefined period of time. A “named user” software license means that the license is sold to be used by only that person named on the license.
Have an open mind. Consider a range of options when looking for a warehouse management system. Just because SaaS systems are less expensive does not mean that this is always the best solution for every business. Consider off-brand alternatives. Not every enterprise needs a Tier 1 solution with name brand recognition. There are state-of-the-art software solutions from companies who invest more in their software than in costly advertising to promote their brand.
Get buy in from both the users and the decision makers. Make a list of features, functionality and factors to consider and rate each according to its level of importance for ongoing use, return on investment, etc. Ask each department for help in compiling and rating items on the list. Keep in mind that what is important to one department may not be as critical to another. Decide on a target timeline and budget and stick to it as much as possible.
Determine the projects team and team leader. As this is something used by multiple departments, operations, finance, customer service, etc., it would be ideal to have one representative from each to advise the team leader on issues involving each particular department.
Using an automated WMS as well as real time information provided from mobile computers can increase accuracy, efficiency and productivity tremendously and decrease labor. Evaluation and implementation of a warehouse management system is the ideal time to evaluate current warehouse processes. Installing a new WMS without doing so will not necessarily lead to increased efficiency. The warehouse management system will make current warehouse processes run faster but if the current processes are flawed, greater efficiency will not be the end result.
A warehouse management system (WMS) is computer software that automates processes and inventory flow throughout the warehouse environment. Many warehouse operations use other software such as Enterprise Resource Planning (ERP) Systems which handle finance/accounting, sales, service, manufacturing, customer relationship management and other functions. The warehouse management system software would need to integrate with the software used in the warehouse, such as ERP systems, shipping and other software as well as the host computer system and other computerized and automated systems in order to provide a seamless flow of information throughout the enterprise.
