How does the WMS system assist logistics operators?

21 June 2023

Discover the key features of WMS for logistics operators and understand how the system reduces costs and increases efficiency.

Logistics operators face a significant challenge: how to offer transparency and security to companies that entrust them with the major mission of storing and transporting their products to customers? This involves greater complexity: serving multiple segments in the same warehouse, ensuring organization and maximum efficiency, from receipt to shipment.

It’s not an easy task, is it? To achieve the desired performance, technology stops being a differentiating element and becomes a necessity. Fortunately, managers can rely on the WMS system, software designed to support inventory and process management, as well as making assertive decisions for the company.

In this article, we will help logistics managers optimize their work through WMS, showcasing the main advantages of the system for a logistics operation. Follow the topics below!

How does the WMS system help logistics operators overcome challenges?

There are many challenges that managers of a logistics operation face daily in their workday. Among the various responsibilities involved are managing warehouse operations, monitoring the workforce, controlling flows and processes, data analysis, developing new strategies, managing transportation, and so on.

Several functions require attention, which can overload teams, significantly delay the warehouse workflow, and reduce the efficiency and quality of services offered by the company. And, when we talk about a logistics operation, we must remember that the quality of services has a direct impact on the reputation of its clients. If a logistics operator delivers a wrong order, the buyer will file a complaint with the company represented by the operator, which means that a single failure can have disastrous consequences for the company.

Faced with these challenges, the WMS system proves to be a great ally for logistics operators. This is because the software automates manual activities and coordinates all processes quickly and accurately. In practice, this means that managers and their teams no longer have to worry about defining stock positions, sorting orders, distributing tasks, determining the right time to replace products, among other daily operational functions. The system assumes this role.

With WMS, it is possible to minimize costs through the optimization of processes and resources (people, equipment, and areas), have efficient control of incoming and outgoing goods from the warehouse, perform effective separation and agile shipping, and access real-time information, including cycle inventory data, productivity reports, and inventory records. The most interesting thing is that this information can also be shared with each client of the logistics operator, keeping managers aware of the entire workflow and generating autonomy in decision-making and in seeking the best strategies.

The advantages of WMS for logistics operators

We have separated some of the main advantages that a WMS system can offer to logistics operators and that make a difference in the results. Look:

Rapid implementation of changes

An important requirement for logistics operators is to keep up with changes, demands, and market needs, in order to apply improvements in the warehouse that follow the main trends and the pace of competition for each client. However, when work within distribution centers is managed manually or without resources capable of optimizing part of the processes, finding improvement points can be a challenging task, requiring a lot of execution time.

If flexibility and speed are decisive action words for efficiency and competitiveness, it is necessary to have resources capable of bringing insights and agility to logistics operations, so with the WMS system, it is possible, through historical data, team and activity monitoring, and productivity data, to recognize bottlenecks with greater speed and clarity. With this information at hand, combined with monitoring trends and the market, it becomes much simpler to promote changes in processes based on concrete data and develop productivity goals with employees. Ultimately, all improvements will directly impact the service provided to the logistics operator’s clients.

Intelligent use of storage space

Imagine if it were possible to identify every inch of stock, calculate product dimensions, organize them, and send them to the perfect addresses, to intelligently use every square meter of the warehouse. It may seem like a dream, right? And with the WMS system, it is possible!

To help logistics managers strategically use their inventory, the WMS system has numerous storage options, serving the most diverse products. This implies intelligent and efficient stock organization.

Once configured, the WMS system sends notifications to employees on where and how items should be stored, using, for example, size and seasonality criteria. With the automatic address suggestion, which occurs right after receipt, greater space savings, advanced product mobility strategies, and speed in order dispatch are guaranteed, especially for the picking area.

The advantages do not stop there. With WMS, logistics operations managers can monitor product levels in stock daily without the need for manual counts and controls. If a product reaches the minimum level, the system automatically issues a warning so that replenishment can be carried out.

Reduction of losses and damages

Loss, damage, and theft are serious problems in any warehouse. For logistics operators, this is even more critical because the stored products belong to their clients. How to justify the devaluation of stocks? And worse: how much money is lost replacing these items or paying a fine to the client?

The good news is that WMS allows for much greater control, ensuring greater stock security through the registration of every movement of items, pallets, and goods, all confirmed by the employee responsible for the activity.

It is possible to follow every step of the product, from the moment it enters the dock, to receipt, to shipment and delivery to the final customer. With the WMS system, you can quickly recognize and identify any deviation or irregularity in the items in the warehouse, increasing security and avoiding losses to the warehouse.

It is worth adding that the system offers strict shelf-life control, at the time of receipt, in addition to setting rules to prioritize output, following FIFO, FEFO, or LIFO. Additionally, if a stored product is nearing expiration, the WMS issues a warning so that decisions can be made before there is a risk of loss.

Cost reduction

Managing multiple stocks can result in high logistics costs. And we’re not just talking about the costs of maintaining products in the warehouse, but also other expenses related to the operation as a whole, such as labor and equipment. A poorly planned pick, for example, will cause your employee to spend more time than necessary and will certainly cost your business.

In this scenario, the WMS system represents a fundamental strategic choice to ensure the best use of resources, whether people, equipment, or infrastructure. The system can direct activities to be executed with the correct priority and resources.

In picking, for example, in addition to automatically generating pick orders and prioritizing orders, the system defines the best route the employee should follow, aiming for agility and high precision.

With WMS, it is possible to plan processes, monitor team activities, execution times for each task, integrate with external systems, and reduce manual operations for both logistics managers and other employees.

Visibility of information and real-time monitoring

The manager of a logistics operation and their clients need to have, literally at their fingertips, information about the operation, such as KPIs and reports showing how things are going and what needs improvement. With WMS, this is not a problem, as the system offers a series of KPIs that can be shared with each client.

Having information always at hand is crucial in managing logistics operations. Leaders and their teams can quickly identify delays and failed orders, making timely corrections. Similarly, it is possible to monitor sales requests and organize stock replenishment, preventing the warehouse from stopping or having issues that interfere with its productivity.

The most incredible thing is that all of this is available instantly. The WMS provides managers with all the information and reports regarding management, the lifecycle, operational functions, structure, employee activities, order tracking, and geographical positions in real-time, ensuring greater visibility of the operation, both for the logistics operator and the client.

Acquiring new clients

Some logistics operators face the difficulty of increasing their client base because they lack resources capable of managing, administering, and organizing the different products in the warehouse. With the WMS system, acquiring new clients ceases to be a problem and becomes an opportunity for growth.

The system helps logistics managers manage simultaneous operations within the distribution center, organizing each client’s stock according to its particularities and defining the best forms of storage and separation. What could represent a challenge, for example, the fact that each client has its own assignment rule, is no longer a dead end, as the WMS system ensures process efficiency and strictly follows the required specificities.

How to apply a WMS system in your business?

There are multiple advantages offered by the WMS system to logistics operators, and its application must meet the different warehouse processes, offering reliability to the team, promoting optimization, detailed analysis of activities, and efficiency in the workflow.

Therefore, it is essential that, when choosing the ideal system for the operation, managers know exactly what their company needs. It is important to map the operation well, as well as define goals and objectives, to find a solution that accurately offers the expected capabilities and is configured in accordance with the expectations of management and their teams. If a process is poorly defined or poorly executed, a cascading effect occurs that can damage processes and the brand image among clients.

Find the right partner for the success of your operation

As we have seen in this article, logistics operators have a series of responsibilities and are decisive actors in facing the major changes in the market. To ensure that everything can be carried out efficiently, guaranteeing the best service to each client, managers working in this sector need to adapt to changes and have cutting-edge technologies capable of bringing numerous advantages to the workflow.

We have also seen that having a robust WMS is essential to achieve each of the advantages presented above. Therefore, value partners who constantly seek new strategies and technologies capable of helping you optimize your processes. Here at DEAGOR, you will find a team prepared to meet the specificities of your warehouse, with extensive experience in WMS projects for logistics operators and ready to assist you in the current scenario, where the complexity of operations and market competitiveness are increasing.