Warehouse Management System (WMS): understanding, concepts and strengths

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Warehouse Management System (WMS): understanding, concepts and strengths

Warehouse Management System WMS understanding concepts and strengths 1

Warehouse Management System or WMS is something that has an important role to make warehousing operations can run smoothly and also according to what has been planned.

Its function is as a place to store goods for production materials or production products. Then, it will be stored in a certain period of time and will be channeled to the location of the request.

WMS is also included in the warehouse management system which has a major role in supply chain. The main objective of WMS is to control and monitor various kinds of processes that occur such as shipping, receipt and storage.

In addition, the Warehouse Management System also serves to monitor and take goods.

However, today the Warehouse Management System is equipped with a variety of advanced features such as barcode scanners, emails, and other technologies.

The aim of the WMS equipped with sophisticated technology is to become a computerized procedure provider so that it can handle various acceptance and acceptance of goods automatically.

In addition, the computerized WMS is also able to manage various storage facilities and also management of stock stocks.

Concept Warehouse Management System

There are several concepts of warehouse management that you can apply. The first concept is the concept of FIFO or First in First Out, in which this concept will make the first item enter must be the first to come out, or the first step in line is the first to be served.

While the second concept is LIFO or last in last out which means the last time it must be the last time to come out. Examples of goods that use concepts like this are sand, which is the upper part that must be taken first.

The last concept is the concept of FEFO or First Expired First Out, where items that are faster experiencing expiration must be the first time out, such as drugs, supplements, food and drinks.

Well, basically WMS must use a barcode or unique code where the main function is to identify goods and goods that have been integrated throughout the branch. WMS will be able to provide the location of goods and placement of goods which will then be recorded using the location barcode scan system so that no more items left behind.

Advantage of Warehouse Management System

There are several advantages that you can feel when using the Warehouse Management System, some of them are as follows:

1. Speed ​​in handling process

The first advantage that you will feel when implementing the Warehouse Management System is speed in terms of handling processes. The implementation of the Warehouse Management System in warehousing will be able to increase the speed of the lead time process because it is done in a computerized one which was previously done with a manual system.

The use of WMS will also make all transactions and warehousing can be done faster and more accurately.

2. Easily set the storage area

The Warehouse Management System that you will apply will make it easier for you to set up the more optimal item storage location, each amount of goods that goes into the warehouse will be easier to set the storage system using the equipment contained in the system.

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The Warehouse Management System will also make it easier for you to implement the FIFO system.

3. Minimize the budget for employee salaries

With the application of a more appropriate warehousing management system, it will help companies to minimize the budget that they must spend to pay employees, especially employees who work in the warehousing section.

4. Reduce spending on buying equipment

The WMS system carried out in a computerized basically only uses computer or laptop devices, so it will make it easier for companies in processing various data related to stock items in the warehouse.

In the end, this will reduce the company in terms of dependence on the use of a manual tool. Thus, the company does not have to spend a lot of funds for purchases and maintenance of tools that are less able to help the system.

5. Improve employee performance and productivity

A company will be able to improve the performance and productivity of its employees, if they are able to implement the right warehousing management system. This system is able to provide information on employees about what work they have to prioritize when they are inside the warehouse.

So, they don’t need to waste a lot of time in the warehouse because each employee already understands correctly about what they have to do.


6. Improve service for customers

The right warehousing management system will be able to streamline each order process until the delivery of goods, because everything has been done electronically. So, the company will be even easier to determine the date of shipping to the customer.

This will be able to increase the level of service to customers.

Difference between SCM and WMS

Most of us haven’t known the difference between SCM and WMS. Basically, the WMS or Warehouse Management System is part of SCM or Supply Chain Management.

The SCR has a wider coverage than WMS, which can be seen from the way it works on both systems, even though they are related to WMS experiencing obstacles that will affect SCM.

This SCM will be more focused on terms of distribution, manufacturers, and also retailers, while WMS is more focused on logistics in the warehouse, inventory, and also the movement of goods.

The Warehouse Management System can be used as the key to success in terms of supply chain management, hampered warehousing activities will be able to make the supply chain also be hampered. For this reason, using the WMS application will be needed for a more smooth warehousing system and so that SCM can also run without obstacles.

Standard processes in the Warehouse Management System

Receiving and Put Away

Receiving and Put Away is one of the processes in the Warehouse Management System, which will begin when the goods arrive in the warehouse. The new item comes must be inputted first in the warehousing management system.

This will be able to facilitate employees in terms of updating the database of goods contained in warehouse storage.

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Later, the process of entering new comes will use the PM data input system or Purchase Order that can be done automatically or manually by the purchase team. The main principle of this process is the suitability of data on goods that come with the needs in the warehouse.

After the receiving process or receipt of goods is completed, the item will be placed in a certain location in the warehouse, this term is further known as Put Away.

This process will be considered important in the warehouse management process because it is able to provide accurate information related to the items that will be received will be placed. This process is also able to support the FIFO or FEFO system.


The dispatching process is carried out to help operate the expenditure of goods from within the warehouse in various other items that will be sent to the consumer. This process is able to help each warehouse operator in terms of finding various items to be issued.

Every employee who works inside the warehouse must only see various information that is already on a computer device, so it will make it easier for them to find the layout of goods in the warehouse. Then, they can start the picking process and also a barcode scanner contained in the sticker on the pallet.

Stock Take

Stock Take is a process contained in the Warehouse Management System whose purpose is to adjust physical stock and stock on the computer. The existence of a warehousing management system will be able to help the Stock Take process.

Without the help of the right management system, this process will feel very tiring. Basically, Stock Take is an activity that really needs a lot of energy, time and the number of human resources.

Why? Because they have to calculate all goods one by one in the warehouse to ensure the suitability between physical goods and data on the computer.


Reporting process is also considered to have an important role in warehouse management management. The report in the shrimp system must be explained on many things related to stock items in the warehouse for sure. The report can later be used by companies to be able to make certain decisions or policies.


Thus an explanation of the Warehouse Management System. So, it can be concluded together that the Warehouse Management System is able to help manage the stock of goods in the warehouse easier to do.

In addition, the Warehouse Management System will also be able to help other divisions as well, such as marketing, finance, etc. in knowing the number or price of goods.

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