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In a cut-throat business environment, characterised by the relentless drive for omnichannel order fulfilment and the burgeoning world of e-commerce, the demand for efficient and agile warehouse management has never been greater. This glossary provides a deep understanding of the critical components of warehouse management systems and their significant impact on supply chain and logistics.
A warehouse management system (WMS) is a software solution designed to facilitate and optimise daily warehouse operations, from entering goods and materials into a distribution or fulfilment centre until they depart. A WMS is integral to supply chain management, offering real-time visibility into a company's inventory within the warehouse and during transit. Beyond inventory management, a WMS encompasses tools for streamlining picking and packing processes, resource allocation, data analysis, and more.
Some of the key terms used in a WMS are:
A method of inventory classification that groups items based on their value and usage. A-items are the most valuable and have the highest usage; B-items are less valuable and have lower usage; and C-items are the least valuable and have the lowest usage. ABC classification optimises inventory management and ensures that the most important items are always in stock.
A physical location in a warehouse where inventory is stored. You can organise bins by item code, product category, or other criteria.
A process of regularly counting inventory to ensure accuracy. Depending on the business's needs, cycle counting can be done daily, weekly, or monthly.
A process of receiving and shipping goods out again without storing them in the warehouse. Cross-docking can reduce inventory costs and improve shipping times.
A picking process where the WMS instructs warehouse workers on which items to pick and where to find them. Directed picking can improve picking accuracy and efficiency.
First-in, first-out (FIFO) inventory management system involves picking and shipping the oldest items first. This approach applies to perishable goods or items with a limited shelf life.
Last-in, first-out (LIFO) is an inventory management system that prioritises picking and shipping the newest items first. This method is ideal for items expected to appreciate over time.
The process of picking, packing, and shipping orders to customers.
The process of selecting items from the warehouse to fulfil orders.
Preparing items for shipment, including boxing, wrapping, and labelling.
The process of storing items in the warehouse after receiving them.
The process of accepting and inspecting incoming shipments.
The process of restocking inventory levels to meet demand.
Stock Keeping Unit. A unique identifier for a product or item.
The process of assigning items to specific locations in the warehouse. Slotting optimises picking and put-away efficiency.
A picking process divides the warehouse into different zones and assigns a picker to a specific zone. Zone picking can help to improve picking accuracy and efficiency.
There are many benefits to using a WMS, including:
Smart warehousing technology includes various innovative technologies for enhancing warehouse operations' efficiency, accuracy, and scalability. These technologies automate tasks, improve data collection and analysis, and provide real-time visibility into inventory and operations.
Some of the most common smart warehousing technologies include:
Warehouse automation technologies include automated guided vehicles (AGVs), autonomous mobile robots (AMRs), robotic picking systems, and automated storage and retrieval systems (AS/RS).
Voice-picking technology allows warehouse workers to pick orders using voice commands. This can help improve accuracy and efficiency, as workers can focus on picking items without looking at a screen or paperwork.
Mobile devices such as smartphones and tablets are widely used in warehouses to improve communication, data collection, and task management.
AI and IoT technologies help collect and analyse warehouse sensors and device data to improve inventory management, optimise order fulfilment, and predict future demand.
In warehouses, AR and VR technologies are increasingly used to provide workers with real-time information and guidance.
Logistics challenges can be unpredictable and can significantly impact your business. External factors such as fuel prices, weather, and global events can disrupt your supply chain, increase costs, and lead to poor customer experiences.
Infosys BPM delivers a complete array of logistics process outsourcing solutions customized to match your unique operational requirements, expansion objectives, and internal team preferences. Through the utilization of cutting-edge technology and collaborations with top-tier logistics partners, we assist you in achieving business objectives and maintaining superior delivery standards.
Find out more about how we can help your organization navigate its next. Let us know your areas of interest so that we can serve you better