WMS WCS Integrations

What Are the Main Considerations for Implementing A WMS?

What Are the Main Considerations for Implementing A WMS?

Before implementing a WMS, it is critical to consider a few key factors. Most notably, a WMS must be thoughtfully integrated with existing external systems, any WCS already in place, and all other relevant peripheral systems.

What does the word “integration” mean in the warehouse and distribution center environment?

In the warehouse and distribution center environment, the word “integration” refers to communication between systems. Those systems could be software systems, hardware controls, or any other type of peripheral. When integrated successfully, these systems are able to work together using a well-defined language that consists of a specific set of questions and answers. Integrations provide a variety of business benefits. They allow applications from different suppliers to be combined to create the most effective implementation.

What systems do WMS and WCS integrate with and what is the role of each?

WMSs and WCSs can integrate with upstream and downstream external business systems. Most commonly, the external business system they integrate with is an upstream enterprise resource planning (ERP) system; however, in manufacturing environments, there may also be integrations with downstream external systems, such as material requirements planning (MRP) systems, shipping systems, or transportation management systems (TMS).

Generally speaking, an ERP is designed to manage processes across the entire business. It is the system of record for a wide range of processes, including financials, forecasting, procurement, order management, production planning, and resource management. Although highly effective for managing those processes, ERPs are usually not optimal for real-time workflow optimization within a distribution center or stockroom.

A warehouse management system (WMS) is a specialized application used to manage all of the inventory activity within a distribution center or manufacturing facility. Typically, a WMS interfaces with an ERP system, using information from the ERP to manage workflow and optimize processes. It tracks inventory, regardless of where that inventory is stored. For example, a warehouse might have inventory stored in carousels, VLMs, flow racks, and other shelving locations. A WMS can manage inventory in all of these areas and provide a fluent, fluid, and seamless transaction going from one to another. A WMS can also interface downstream, integrating with other systems, such as a TMS.

WCS stands for warehouse control system. Unlike a WMS, a WCS cannot manage all storage areas within a distribution center or manufacturing facility. Instead, it can only manage automation. This automation can take many forms, ranging from routing cartons or totes on a conveyor system to material handling equipment, such automated storage retrieval systems (ASRS), vertical carousels, or vertical lift modules (VLMs). A WCS integrates with, communicates with, and controls these various automated material handling components within the overall solution. Any inventory in non-automated storage areas needs to be managed by an independent and separate WMS or ERP.

A WMS/WCS is typically more agile than an ERP. That is because a WMS/WCS has more tools and business logic available to manage and optimize workflows within a distribution center or stockroom. As a result, they are able to make localized improvements with far-reaching benefits for inventory control, customer service, assembly, QA, etc. Generally speaking, a WMS/WCS is also easier to change for adaptation to fluctuating business conditions.

WMS WCS Integrations

What Are the Current Trends Impacting Supply Chains and Warehouse And Distribution Space?

Current Trends Impacting Supply Chains and Warehouse And Distribution Space

There are three significant trends currently impacting supply chains and warehouse and distribution space. These trends are: the shortage of warehouse and distribution space, labor availability, and accelerating e-commerce growth.

The shortage of warehouse and distribution space

Consumers are increasingly turning to online shopping and research suggests by 2025, an additional 1 billion square feet of warehouse and distribution space will be needed to keep up with this growing demand. But shoppers cannot wait for the build out of infrastructure; they want their orders fulfilled today. That is why more and more distribution center managers and supply chain leaders are working to maximize space in their current facilities. They are reconfiguring layouts to maximize vertical space and increase storage density while also implementing goods-to-person technologies including robotics, autonomous mobile robots (AMRs), and automated storage retrieval systems (ASRS).

Labor availability

The pandemic, competition from Amazon, and changing workforce expectations are all effecting labor availability. As a result, distribution center management and supply chain executives are seeking labor-saving solutions such as automation. In addition, they want to shorten the training time required to get their labor to productive rates sooner.

Accelerating e-commerce growth

Before the pandemic, e-commerce was growing steadily, but somewhat modestly. Then, in May 2020, e-commerce spending skyrocketed $82.5 billion—an increase of 77%. That expansion has continued and now nearly equals what was projected for the next four to six years’ growth combined. This unprecedented growth, coupled with the shortages in warehouse/distribution space and labor, is creating extraordinary challenges for supply chain leadership. Many are considering implementing a warehouse management system (WMS) and/or a warehouse control system (WCS) to meet these challenges.