WMS
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Components of a WMS
ROI
Hidden Cost
Which one is right for you
WMS Definition
• Warehouse Management Systems - Software that
integrates mechanical and human activities with an
information system to effectively manage warehouse
business processes and direct warehouse activities. These
systems automate receiving, put away, picking, and
shipping in warehouses and can prompt workers to do
inventory cycle counts. Most support radio-frequency
communications, allowing real-time data transfer between
the system and warehouse personnel.
WMS Modules
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Packing Station - This application consists of a fixed position PC, often with a tether scanner,
which is used for non RF picking and packing. It gives users the ability to create carton level
ASNs, it supports wave-batch collection in the warehouse, repacking to multiple orders in
addition to many other features.
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RF Picking - This core module supports multiple styles of RF picking, picking stations, split
pack-sizes, batch-pick and repack, shipment labels, and warehouse packing slips. Pick bins are
replenished using Hot Replenishment, which is the process of requesting that inventory be
replenished to pick bins to meet current sales order requirements.
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RF Receiving - This core module supports paperless check-in, product and carton labeling. It
also supports non-PO receiving, for warehouses that allow receipt of products into the warehouse
that do not appear on a purchase order.
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RF Locator - This core module supports bin labeling, real-time multi-bin stock locator,
paperless adjustments, and real-time cycle counting.
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UPS Shipping - Full two way integration to a high-performance Multi-Carrier Shipping system,
with UPS shipping enabled. This is easily upgraded to Multi-Carrier Shipping.
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Multi-Carrier Shipping - Rate shopping, pre-release verification, and pre-rating are provided
through an integrated Multi-Carrier Shipping System.
WMS Modules
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Order Management- Allows you to plan your warehouse activities, allocate stock to specific
customers according to your corporate policies, and manage your fill rate and backorders.
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Multi-Zone - A zone is an area within a physical location where inventory is stored or different
activities are performed. A zone serves to organize stock and warehouse staff workloads. The
Multi Zone module allows you define up to 26 zones. This module enables zone picking, pick and
pass picking, multi-zone simultaneous and sequential picking, and replenishment by zone.
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EOL & Shipping - This module provides Bills of Lading and lets you configure end of line
(EOL) settings. EOL is a set of automatic processes that are to be executed once a sales order is
completed. These processes include packing slips, carton content labels, communication with
integrated shipping systems, and other functions.
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Lots/Serial/Expiry - This functionality allows attributes to be assigned to a product. An attribute
is characteristic of a product that differentiates it from other products of the same type, such as lot
number, serial number, expiry date, color, size, and so on. The attribute number appears in a field
after the main product number, separated by a character delimiter such as a slash (/). This module
tracks attributes through the warehouse and provides advanced allocation and inventory controls
for attributes.
WMS Modules
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Advanced Replenishment - This module supports Advanced Replenishment, which is
the process of requesting that inventory be replenished from overstock bins to pick bins
before the products are actually required to fill sales orders. Warehouses are configured
to use of one two types of advance replenishment: min/max, or days on hand. Min/ max
replenishment is based on a predefined minimum quantity of product that must be in
pick bins. Days on hand replenishment is based on a defined minimum number of days
that the product must be available in pick bins. When a dispatcher runs the Advanced
Replenishment function in Web Dispatch, the system issues replenishment requests for
any bins that are found to be below this minimum.
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Kitting - A kit is a unique product composed of a number of other products, sold as a
single unit. The kitting functionality enables the collecting and assembling of individual
products to create a new, saleable product unit.
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Putaway/Slotting/Cube/Weight - This module enables directed putaway, which allows
a putaway driver to search for an appropriate bin to which to move a product during
Receiving, Fill Bins, and Direct Move functions. Suggestions provided to the user are
based on empty bins, or current bin locations. The module also allows slotting reports
and cube and weight measurement to improve slotting and cube utilization.
WMS Modules
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Remote Monitoring - Remote monitoring is a method of monitoring your warehouse network
using your SNMP-enabled switches, to keep your network and hardware running error free and at
top performance. Using a secure VPN, our remote monitoring partner, Adeste, connects to your
network, and by using just two ports (Ping and SNMP), confirms that all devices are performing as
expected.. If any irregularities are discovered (including possible intruders), your IT staff are
notified instantly by email.
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Web Dispatch - This is the web-based user interface for RADIO BEACON WMS, accessed with
Internet Explorer from any client PC. The Web Dispatch core module provides reporting
capabilities to monitor daily warehouse operations in real time, and to generate historical reports.
Web Dispatch also displays sales, work and purchase orders in the warehouse. To allow warehouse
managers to control order processing in the warehouse via Web Dispatch, you should purchase the
Order Management module.
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Container Receiving - This module enables the process of receiving products into the warehouse
against the inbound manifest rather that individual purchase orders. This simplifies check-in,
improves accuracy, and speeds your operations. This module also provides the ability to break
outbound sales orders into deliveries.
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Multi-Location/Site Transfer - The Multi-Location/ Site Transfer module allows a single RADIO
BEACON WMS installation to manage multiple locations, controls visibility between locations,
and provides tools for efficiently transferring stock between locations.
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WMS Modules
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RMAs - This module enables Returned Materials Authorizations (RMAs), which allows
customers to return products to the warehouse. It automatically generates purchase order
for the returned goods, with the appropriate RMA codes.
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Packaging - The packaging functionality supports warehouse with substantial
repackaging operations. It helps prioritize and manage the repackaging lines.
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Carousels/Conveyors - This module supports various brands of horizontal carousels and
vertical lift modules (VLM), plus provides support for conveyor automation.
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Click Billing - Allows third-party logistics (3PL) providers to bill their customers based
on activity. It also provides tools to determine and model the costs of warehouse
activities.
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Multi-Company/3PL - This functionality supports distribution centers that service
multiple companies or are third-party logistic (3PL) providers, and multi-company
warehouses. 3PLs are specialized ‘outsource’ warehouse operators
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Web Order Entry - This module enables purchase orders to be entered into RADIO
BEACON WMS through Web Dispatch. Web order entry is used by warehouses that do
not have a host system, by third-party logistics (3PL) providers that do not use a single
host system, or to provide a web order-entry portal suitable for B2B sales.
WMS Modules
• Advanced Web Order Entry - A complete B2B solution, which
integrates a web-based interface for customer ordering with your
WMS. A great tool to improve your customer relationship management
by providing:
• automatic emails to confirm receipt of order and upon
shipment with tracking information;
• allowing customers to enter their own PO numbers;
• allowing customers to see current order status in real
time, as well as ordering history.
Demand Forecasting -This module activates the future demand
forecasting component of RADIO BEACON’s demand management
system. By analyzing past sales records and using basic replenishment
and safety stock calculations, RADIO BEACON automatically
generates monthly forecasts of the products and quantities that are
expected to be ordered in the next forecast period
Cost Savings Major Categories
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Improved Inventory Accuracy
Reduced Inventory levels
Space Utilization
Labor Cost
Physical Inventories
Reduce/Eliminate Errors
Eliminate chargebacks
Increased Sales
ROI
• Payback worksheets
ADP
• ADP, the world’s largest processor of shareholder
communications to corporations, banks, brokerage firms
and mutual funds, distributes more than 800 million
documents to investors worldwide each year.
• Reduced labor costs by $150,000 during the first quarter
after implementation
• Increased throughput by 30 percent without adding costs or
personnel
• Increased average number of pallets processed/week by 43
percent
• Decreased delivery truck wait time by 60 percent
Direct Fulfillment
• Direct Fulfillment is a third-party logistics provider (3PL)
based in Robbinsville, N.J. The company’s services
include direct mail marketing, inventory management and
order fulfillment, geared primarily toward pharmaceutical
companies.
• Increased average quality performance accuracy to 99.5
percent
• Reduced labor costs 10 percent
• Reduced per-order pick time 12 percent
• Streamlined put-away to its 50,000 locations
Standard Process
• Standard Process has been a leader in the field of
nutritional supplements for 75 years. The company
is committed to a whole food philosophy first
introduced by its founder, Dr. Royal Lee. The
company processes between 600 and 700 orders
per day for a customer base of 20,000 qualified
healthcare professionals nationwide.
• Reduced finished goods inventory by 16.5 percent
• Improved shipping efficiency by 35 percent
• Reduced shipping expenses substantially
Djangos.com
• Djangos.com is the world’s largest new and used music
and movie website offering more than 1 million titles, with
19 stores in five major markets and a network of kiosks in
four states, all linked with Djangos.com proprietary "real
time" technology.
• 99% accuracy rate
• Orders processed within 4 hours
• 97% fill rate, best in industry
• Best customer service and return rate in the business
• Provided capacity to fill 20,000 orders daily
Cost Comparison
50-100 Users
Lower Tier
Middle Tier
Upper Tier
Software
$ 17,000
$ 85,000
$ 140,000
$ 49,900
$ 4,500
$ 66,000
$ 17,000
$ 80,000
$ 30,000
Total Software $ 71,400
$ 168,000
$ 250, 000
Hardware
Total
$ 200,000
$ 368,000
$ 200,000
$ 450,000
Professional
Services
Maintenance
$ 200,000
$ 271,000
Hidden Costs
• Integration – Scope Creep
• Custom Code is expensive, time-consuming
and risky
• Modules add up
• Total Cost of Ownership
– Maintenance fees
– Process Changes => Programming Changes
– Customer Compliance Demands
5 Common Mistakes Made in Choosing a WMS?
Mistake 1: Not doing enough homework
Analyzing and then selecting a warehouse management system takes
time and effort.
Mistake 2: Misunderstanding the benefits of automation
Automation does not fix poorly designed processes It only makes them
happen faster.
Mistake 3: Ignoring hard-to-quantify benefits
Difficult to calculate possible future gains such as increased
productivity, better warehouse efficiency, improved customer
service should not be overlooked.
Mistake 4: Passing the buck
Top management and other key personnel within the organization
must be involved in the selection and the implementation process.
Mistake 5: Underestimating the ramp-up and debug phases
of a project
Which WMS is right for you?
• Developed for your industry
– Fits your core business process
• Bolts on to your Business Systems
Back Office/ERP/CRM/SCM
– Seamless Integration
• Standard database ( SQL, Oracle, DB2,
etc.)
• Inherently flexible
• Scalable – The right size
Questions?