Monday, June 16, 2014

What Are The Benefits of WMS Package and the Caution Points on Implementation?

As one of the ways of improving logistics, we have warehouse management system (WMS). By automation of managing operation process of work progress and stock, improvement of quality or productivity, and as the benefits of above all, efficiency such as visualization of stock or work are expected.

However on the other hand, there are caution points at the implementation. This time we will introduce the subjects which apt to occur at the implementation and it’s solutions as well as the benefit of WMS.




About necessity of promoting personnel training at the implementation period of WMS.

By implementing WMS, it’s going to be advanced all at once, from personnel overemphasis operation depending on the ability of operators, to the system that anyone can operate easily and does not depend on individual ability. Therefore, personnel fluidity gets improved and also operating efficiency develops remarkably.

However, what will be important at the implementation is the ability to respond to the new system at the work site. No matter how good the WMS is, without common purpose to utilize it at the work site and the skill about the operation, it will be hard to find out the benefit. There will be a necessity of personnel training as the purpose of improving skills ahead of implementing WMS.

So once again, we would like to describe about the benefits of personnel fluidity by implementing WMS.

WMS Benefit #1: Reduction of work = Increase of human resources.

The first thing to pick up is to reserve human resources by reduction and efficiency of human work. By utilizing WMS, the operations which always require numbers of people are streamlined, and it enables to distribute excess human resources to other operations by reduction of mistakes such as inputting data associated with man-hours and operations.

WMS Benefit #2: Improvement of efficiency by standardizing operational processes.

Next, because operations can be standardized by implementing WMS, even in case of having multiple warehouses, it’s possible to manage them with the same methods. If without WMS, it is common that the work process have firmed because of the work site custom, the cases can be seen here and there of which all the managing methods are inconsistent.

Standardizing of operation by implementing WMS. Because of not only enabling anyone to operate with constant levels but also saving time of sparing irregular support, it will be possible to improve efficiency in the entire operations.

WMS benefit #3: Improvement of visibility.

After implementing WMS, it’s going to be possible to either check stock status in real time or manage multiple warehouse status. By implementing WMS, not only stock status, of course, but also achievement for “visualization (‘how it is going?’ or ‘where the improvement points are?’)” of warehouse status for business-wise, such as indicating the progress of each warehouse operation and difference between target and results, will be able to be seen.

One of the biggest benefit point of WMS, “Visualization”. There are indicators for visualization, “Key Performance Indicator (KPI)” for measuring work progress status and “Key Goal Indicator (KGI)” for measuring achievement level of operations. By using WMS including these functions, it’s going to be possible to run improving cycles as the results of systemized operations, as well as to be possible to check the stock status in real time, or manage the status of multiple warehouses.

What are the caution points at implementing WMS and the solutions?

As we mentioned above, WMS shows us advantage for reducing labor costs or efficiency of warehouse management. However there are some caution points for the implementation.

Caution Point #1: Whether it’s possible to customize.

Even with actual implementation of WMS, it doesn’t always perfectly fit to the business policy or IT literacy of workers. It’s necessary for ensuring whether it’s possible to do WMS customizations which suit the requirement of the company such as screen configurations or what kind of numbers to measure.

Caution Point #2: Whether the continuous operational supports are provided.

It is important to select the vendor who provides WMS which is guaranteed for operational support. Especially at the term of implementation, there are some cases that troubles by unfamiliar operations or unexpected necessary (or unnecessary) functions are found during operations.

If it happens to innovate (contract with vendor) unsupported WMS because of low cost of implementation at that time, it’s going to be hard to respond flexibly. LSM also provides continuous operational support, adjusting WMS depending on the situation of the work site or enabling to be adaptive to business changes.

Caution Point #3: There is a case of decreasing productivities at the implementation

We would like to pay attention for productivity decrease which apt to happen just after implementing WMS. Unfamiliar operations for the new system can’t help to be continued, or there can be the case which problems occur in the system. The structure, which recovering operation such as quick change of specifications or operations are smoothly held, will be necessary. 

By anticipating this caution point, it is also effective, of course, to set up personnel structure with a little more capacity just after WMS has been introduced. Before and just after implementing WMS, we would like to prevent the affection to the general operations by considering personnel assignment in advance as well as understanding system status and operation flow cooperating with the WMS vendor.

Streamlining entire logistics business with WMS.

It costs a lot for implementation and also there are those caution points as above. However it’s also the fact that WMS is essential for reduction of labor costs, efficiency of personnel assignment, or improvement and acceleration of operations. How about implementing the warehouse improvement which gives the impact to the entire logistics operations (business) cooperating with highly experienced consultants or system vendors.

References

6 Tips to Avoid a Failed WMS Implementation

Solving Common Problems in Warehouse Management



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