Warehouse management and control are two complex but essential concepts for guaranteeing a quality e-commerce order preparation and dispatch service. Technological support can help and/or optimize order preparation. Used by most logisticians and e-commerce giants, WMS (Warehouse Management System) are indispensable tools for the smooth running of a warehouse. But what exactly is a WMS? And above all, how do you choose the right e-commerce warehouse management software?

What is a WMS?

By definition, WMS, or Warehouse Management System, is a warehouse management software package. It’s the WMS that manages and optimizes everything that happens in your warehouse.

Its mission is to give you the visibility you need to make the right decisions: product availability, receipt of products ordered from your suppliers, tracking of order preparations and shipments. It will also ensure the reliability of prepared orders (compliance with delivery times and prepared products).

The WMS will also enable you to streamline your operations, saving you precious time and thus improving productivity and logistics costs.

What features does a WMS offer?

WMS functionalities are classified by family.

1. Product features

To manage logistics operations efficiently, the WMS must be able to handle different products with different constraints (product size, weight, dangerous products, perishable products, products with serial numbers, customs codes, etc.). Different management rules can be associated with each product sheet criterion. For example, for perishable goods, priority will be given to picking the oldest products in stock. For bulky products, orders will be prepared using an adapted picking process.

It’s very important to have an article database containing as much information as possible, so as to be able to create the management rules needed to save operators time.

Choose a WMS for hazardous goods with ShippingBo

When selecting a warehouse management system (WMS ) for hazardous goods, it’s imperative to choose a solution that prioritizes safety and compliance, while optimizing operational warehouse management. At ShippingBo, we understand the unique challenges of storing, handling, lead time and transporting hazardous products.

That’s why we offer WMS solutions that are specially designed to meet these rigorous and specific requirements. Our solutions not only guarantee the efficient and secure management of hazardous products, they also ensure seamless integration and adaptability to your company’s changing needs. So, by choosing ShippingBo’s WMS solutions, you can ensure your company’s unfailing compliance and optimum management of hazardous products.

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2. The reception function

This function is very important for entering products into stock and, above all, for checking supplier order conformity. As an e-merchant, you must constantly monitor your stock levels and manage your supplier orders. When an order is received, it’s important to have a process that enables you to trace all products received, so you can compare them with the initial supplier order. Some WMS (Warehouse Management Systems) offer the possibility of carrying out these operations using a PDA (mobile scanner with on-board application), which greatly facilitates the tasks to be carried out by operators.

3. The storage function

The storage function saves time in addressing the products you’ve just received. The question this function answers is: where should I put these products? The WMS can then suggest picking locations (for order preparation) or reserve locations (for storage) already existing in the warehouse, to save the operator time and complete the stock of products without using a new location. Also, to save time on these operations, it’s useful to have a PDA.

4. The stock management function

The stock management functionoptimizes storage space and provides real-time visibility of product location and availability. Standard WMS systems usually offer the ability to manage several different types of location: picking and reserve locations. The WMS is by far the best inventory management software available today.

Picking stations are usually located close to order-picking areas, to facilitate picking and operator movements.

Reserve locations usually accept pallets of products in stock. These stocks will supply the picking location when it is empty or almost empty. Most WMS offer modules for replenishing picking locations on the basis of a requirement calculated from all customer orders not yet served, or on the basis of a safety threshold (the quantity below which the WMS automatically generates a replenishment request).

Most WMS systems automatically update the products available for sale (i.e. those in stock and not reserved for a current or future order). This functionality is strategic and very important when the e-merchant sells to different order sources (BtoB, BtoC via marketplace, website, etc.).

5- The order-picking function

This is one of the most important functions, as it saves operators precious time. Order picking from e-commerce sites or marketplaces must be adapted to the order profile; in other words, the WMS must enable one or more retail order picking modes. For example, it is preferable to make one trip to the warehouse to pick the products needed to prepare a set of customer orders. This optimizes movements.

As with other functions, theuse of a PDA will make picking, product location and order preparationoperations more reliable and easier. Most WMS offer this possibility.

Warehouse order pickers using a PDA connected to a wms

6- The shipping function

The shipping function, meanwhile, facilitates the editing of carrier labels. Some WMS software packages, such as ShippingBo, have developed the necessary connectors for issuing transport labels, or use an external editor. In all cases, it is important to check the solutions offered by the WMS for issuing transport labels, because if the carrier is not referenced, this will require specific development and will result in a more or less long lead time and, above all, an unforeseen cost.

7- The return function

In e-commerce, the rate of returned orders varies from site to site. Whatever the case, the WMS must be able to manage these returns: tracking processed returns and products to be returned to stock.

8- The supervision function

This function provides visibility over all current and future actions. It allows you to take a bird’s eye view of operations, so you can decide on priorities, plan operations, make decisions, and so on. Some WMSs, such as ShippingBo, are multi-warehouse, giving you visibility over the different stocks.

What are the specific features of a Warehouse Management System for e-commerce?

Online sales are very specific from a logistical and strategic point of view, as the sources of orders are numerous. A company can sell online on several of its own sites, as well as on marketplaces and private sales sites. This is why the stock management function, which enables you to manage product availability, is so important.

The complexity of flows is also specific to online sales. E-tailers often have several stocks and physical stores, and also want to ship directly from their suppliers’ stock. That’s why choosing an omnichannel WMS like ShippingBo is essential for complex flows and inventories.

Online sales are also demanding in terms of the information made available to customers. Customers want to know how their order is progressing, when it will be delivered and by which carrier. Let’s not forget that delivery is a source of anxiety for customers whose credit card has been debited by the merchant and who are awaiting delivery of the product they have purchased.

Order returns are also a source of anxiety for customers. The process to be put in place must facilitate / fluidify the processing of returns to enable the customer to be reimbursed as quickly as possible.

How to choose your WMS?

First of all, when choosing a WMS, it’ s important to list the functionalities required for all the operations the e-retailer will need throughout the logistics process.

It’s often a good idea to enlist the help of a professional when you have to make a decision as far-reaching as choosing a WMS.

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But first, it’s essential to know your order profile and your products. An in-depth audit of your warehouse is also essential for logistics optimization. These two steps will help you to understand the areas for optimization, so that you can move towards the solutions best suited to your company and your market.

Florian LAILLET, Director of the Supply Chain Department at ShippingBo

The best solution for managing your e-commerce inventory