Warehouse Management System (WMS)---Simulate Before Selection (Part-I)

A case study on how to plan and select a Warehouse Management System to move the product
faster and more efficiently
The warehouse is no longer just a storage place. It is becoming the key to a seamless supply
chain. The mission of todays warehouse is changing from receipt, storage and shipping to valueaddition in the supply chain. Therefore every company needs an effective plan to move the
product faster and more effectively.
In todays world of rapid business changes, major growth, consolidation of distribution centres or
a 95% order-accuracy rate are not sufficient to capture the market. Adoption of new technology
may seem to be an easy answer. But before spending millions on new technology every company
must outline exactly what and how much technology is required to create a state-of-the-art
warehouse.
Companies need to look at where they are, where they want to be, what technology they have,
and what they may need, to achieve their goals. According to the director of logistics for CFT
Consulting, before spending on technology, warehouse mangers and other decision makers must
ask themselves the following questions:
What is the quantity of product being handled in the warehouse?
What quantity is being stored?
How much selection is done?
Whether workers select partial or full shipments?
What is the shape or design of the warehouse?
What type of packing is required?
Can incoming product be bar-coded or should it all be checked?
Can vendors check 100% of whats leaving the warehouse or can they do spot checking?
Are trucks scheduled for pickups and deliveries or do they just turn up in a random manner?
Is there any automation in operation?
Is there one or more distribution centres (DCs) to be managed with one WMS system?
How is the inventory tracked?
Before purchasing any type of technology ---- hardware or software, ponder over the above
questions.
Warehouse Management Systems (WMS) is the buzzword today. Most of the available WMS are
complex and must be selected only after careful consideration. While purchasing a WMS, every
company must determine how purchased equipment will interface and work together. How the
new system will work within the existing system should also be determined.
Before implementing a WMS, Manhattan Associates in the US, examined a potential customers
order and shipment volume, labour allocation and payment, loading picking, receiving. An
analysis of all these factors helped Manhattan Associates to tailor a WMS implementation to
achieve maximum efficiency.
Companies can also take advantage of simulation software, which can demonstrate the effect of
technology on warehouse management. AutoSimulations is a company that uses software to
build a simulation model of a warehouse management. This model helps employees to
understand what will happen in varying conditions.

To make effective use of the simulation software, a warehouse manager should be able to
provide a detailed layout and information on picking, receiving, shipping and other vital aspects
involved in warehouse operation.
Simulations can be done on how a conveyor, automated trucks or WMS can run a warehouse.
Without simulation, warehouse managers have to make decisions on the basis of intuition or
experience, which is not advisable.
The simulation software costs around $25,000- $50,000.When compared to the results it gives
the investment is small.
A detailed case study on the selection and implementation of WMS is discussed in the next
article.
Related Reading: Is technology the answer? Small, S., Warehousing Management, 03/1999

How To Select And Implement---- Warehouse Management System (WMS) (Part-II)

A case study on how to select and implement a Warehouse Management System to move the
product faster and more efficiently
The Trane Co., in the US is a manufacturer and distributor of air-conditioning and heating
devices. It wanted to replace its existing business system for supplying replacement parts and
also re-engineer its packing operations. Its main objective was to provide excellent customer
service. It targeted its 180,000 sqft and 100,000 sqft Distribution Centres (DCs) at two different
locations for the new technology (software and hardware) to ensure operational consistency.
Trane needed a system based on Radio-Frequency (RF) because it had to work with carousels (a
circular conveyor that moves objects) in both DCs. To eliminate a lot of data entry Trane decided
to buy a shipping system. Inputs were taken from warehouse managers, floor workers,
executives, consultants and vendors to decide on the shipping system.
According to the president of an international logistics-consulting firm, the vendor chosen for
WMS should not only have the necessary equipment but also the knowledge required to make
the equipment work for the company. To evaluate and select the potential vendors a list of
questions should be prepared addressing competencies and support. Simulation can help to
demonstrate some of the potential vendors competencies.
A technology acquisition team was assembled by Trane to select the required Warehouse
Management System (WMS). The team identified a list of requirements based on the desired
functionality. The team short listed WMS vendor choices to meet the needs of Trane. The team
interviewed and visited various companies, which used vendor products they are interested in.
Finally, Trane selected Catalyst of Milwaukee.
After selecting the WMS, a pilot of the system was run in a conference room. Then team
members had a trial run of the system in the DCs. A detailed description of the every business
that had taken place in the DC was recorded. This phase helped to find out if any modifications
were required. It also helped Trane to identify if any additional software or hardware had to be
purchased to work with WMS. The team also found vendors for an RF system; software to run
carousels, labelling software and a shipping system that integrated and complemented the
selected WMS.
On examining the features, functions and connectivity of several types of high-tech equipment the
team chose shipping, carousel and labelling software and a host Oracle application. The team
also spotted the best methods to convert data and design interfaces.
Warehouse is becoming the key to a seamless supply chain. The mission of todays warehouse is
changing from receipt, storage and shipping to value-addition in the supply chain. WMS has
altered warehouse managers job substantially and has driven logistics to the forefront, for a
bigger push towards customer service.
Related Reading: Is technology the answer? Small, S., Warehousing Management, 03/1999