Supply Chain

Management
(SCM)
PREPARED BY: ASSISTANT PROF. PURVAJ PIYUSH VAIDYA
(MTECH)
SYLL ABUS: MODULE 3

01/01/2025 R. N. G. PATEL INSTITUTE OF TECHNOLOGY

Core Functions of WMS
• A Warehouse Management System (WMS) is a crucial component of supply chain management, optimizing
warehouse operations for efficiency and accuracy

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Here are the core functions typically found in a WMS:

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Core Functions of WMS (Contd.)
• Inventory Management: WMS allows tracking of inventory in real-time, including receiving, put-away,
picking, packing, and shipping. It provides visibility into stock levels, locations, and movement

Assistant Prof. Purvaj Piyush Vaidya (MTech)

throughout the warehouse.
• Receiving: WMS manages the process of receiving goods into the warehouse, including verifying
quantities, inspecting for damage, and assigning storage locations.
• Put-away: After receiving, WMS directs the placement of items into the appropriate storage locations
within the warehouse based on factors like size, weight, and demand.
• Order Picking: WMS optimizes the picking process by generating efficient pick routes, organizing orders
to minimize travel time, and providing instructions to warehouse staff for accurate item selection.
• Packing: WMS facilitates the packing of items for shipment, including selecting appropriate packaging
materials, ensuring compliance with shipping requirements, and generating packing slips and labels.
• Shipping: WMS coordinates the shipping process, including carrier selection, generating shipping labels,
and managing the loading of goods onto outbound vehicles.

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Core Functions of WMS (Contd.)
• Cycle Counting: WMS supports ongoing inventory accuracy through cycle counting, where a subset of
inventory is counted on a regular basis to identify discrepancies and ensure data integrity.

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Returns Management: WMS handles the process of managing and processing returned items, including
inspection, restocking, and disposition.
• Cross-Docking: For high-velocity items, WMS can facilitate cross-docking, where goods are directly
transferred from inbound to outbound vehicles without being stored in the warehouse.
• Task Management: WMS assigns tasks to warehouse personnel, prioritizing activities based on
deadlines, resource availability, and operational efficiency.
• Labor Management: WMS tracks employee productivity, labor hours, and performance metrics to
optimize staffing levels and resource allocation.
• Reporting and Analytics: WMS provides insights into warehouse performance through reporting and
analytics tools, allowing managers to identify trends, monitor KPIs, and make data-driven decisions for
process improvement.

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Features and Capabilities of
Warehouse Management
Systems
• Warehouse Management Systems (WMS) offer a wide range of features and capabilities designed to
streamline warehouse operations and improve overall efficiency

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Here are some key features commonly found in WMS:

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Features and Capabilities of
Warehouse Management
Systems (Contd.)
• Inventory Tracking: WMS provides real-time visibility into inventory levels, locations, and movement
throughout the warehouse, enabling accurate inventory management.

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Barcode and RFID Integration: WMS integrates with barcode and RFID technology to facilitate accurate
and efficient tracking of inventory and assets.
• Order Management: WMS manages the entire order fulfillment process, from order receipt to picking,
packing, and shipping, ensuring orders are processed accurately and on time.
• Slotting Optimization: WMS optimizes warehouse layout and storage configurations to maximize space
utilization and minimize travel time during picking operations.
• Cross-Docking Support: WMS facilitates cross-docking operations, allowing for the direct transfer of
goods from inbound to outbound shipments without intermediate storage.
• Labor Management: WMS tracks labor productivity, assigns tasks to warehouse personnel, and
optimizes workforce utilization to improve operational efficiency.
• Wave Planning: WMS utilizes wave planning algorithms to group and prioritize orders for picking,
packing, and shipping, optimizing order fulfillment processes.
• Voice-Directed Picking: WMS supports voice-directed picking, where warehouse staff receive picking
instructions via voice commands, improving accuracy and efficiency.
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Features and Capabilities of
Warehouse Management
Systems (Contd.)
• Mobile Accessibility: WMS offers mobile applications or devices that enable warehouse staff to perform
tasks such as receiving, picking, and inventory management from anywhere in the warehouse.

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Returns Management: WMS manages the processing of returned goods, including inspection,
restocking, and disposition, streamlining the returns process.
• Integration with ERP and Other Systems: WMS integrates with enterprise resource planning (ERP)
systems, transportation management systems (TMS), and other software solutions to streamline data
exchange and improve overall supply chain visibility.
• Reporting and Analytics: WMS provides reporting and analytics tools to monitor warehouse
performance, track key performance indicators (KPIs), and identify areas for improvement.
• Customization and Scalability: WMS platforms are often customizable to meet the specific needs of
different industries and scalable to accommodate growth and changes in warehouse operations over
time

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Streamlining Operations with
WMS
•Implementing a Warehouse Management System (WMS) can significantly streamline warehouse
operations in several ways:

Assistant Prof. Purvaj Piyush Vaidya (MTech)

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Streamlining Operations with
WMS (Contd.)
• Inventory Accuracy: WMS provides real-time visibility into inventory levels and locations, reducing the
risk of stockouts, overstocking, and errors in order fulfillment. This accuracy minimizes the need for

Assistant Prof. Purvaj Piyush Vaidya (MTech)

manual inventory checks and ensures that the right products are available when needed.
• Optimized Space Utilization: WMS utilizes slotting optimization algorithms to organize inventory within
the warehouse, maximizing space utilization and minimizing travel time during picking operations. By
storing products in the most efficient locations based on factors like size, weight, and demand, WMS
reduces wasted space and improves overall warehouse efficiency.
• Efficient Order Fulfillment: WMS automates and optimizes the order fulfillment process, from order
receipt to picking, packing, and shipping. By generating efficient pick routes, prioritizing orders based on
deadlines, and providing instructions to warehouse staff, WMS accelerates order processing and ensures
timely delivery to customers.
• Reduced Labor Costs: WMS optimizes labor management by tracking employee productivity, assigning
tasks based on workload and skill level, and streamlining workflows to minimize idle time. By improving
workforce utilization and efficiency, WMS reduces labor costs while maintaining high levels of service
quality.

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Streamlining Operations with
WMS (Contd.)
• Improved Accuracy and Quality Control: WMS incorporates barcode and RFID technology to enable
accurate tracking and verification of inventory and assets throughout the warehouse. By automating

Assistant Prof. Purvaj Piyush Vaidya (MTech)

data capture and validation processes, WMS reduces the risk of errors and ensures that the right
products are picked, packed, and shipped to customers with the highest level of accuracy and quality
control.
• Enhanced Customer Service: WMS enables faster order processing, accurate inventory management,
and on-time delivery, leading to improved customer satisfaction and loyalty. By providing real-time
visibility into order status and shipment tracking information, WMS enhances communication with
customers and enables proactive problem-solving to address any issues that may arise.
• Streamlined Returns Management: WMS manages the processing of returned goods efficiently, from
receiving and inspection to restocking and disposition. By automating returns processing and integrating
with other systems such as ERP and CRM, WMS reduces the time and effort required to handle returns
while ensuring that customers receive prompt refunds or replacements.

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Implementing WMS in Different
Business Environments
• Implementing a Warehouse Management System (WMS) can bring significant benefits to various business
environments across different industries

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Here's how WMS implementation can be tailored to suit the needs of different types of businesses:

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Implementing WMS in Different
Business Environments (Contd.)
• Retail and E-commerce: WMS can help retail and e-commerce businesses manage large inventories,
handle high order volumes, and meet customer demands for fast and accurate order fulfillment.

Assistant Prof. Purvaj Piyush Vaidya (MTech)

Implementation can focus on features such as inventory tracking, order management, and wave picking
to streamline warehouse operations and improve efficiency in processing online and store orders.
• Manufacturing: In manufacturing environments, WMS can optimize inventory management, facilitate
just-in-time (JIT) inventory practices, and support production scheduling. Implementation may include
features such as inventory visibility, material flow management, and integration with manufacturing
execution systems (MES) to ensure that materials and components are available when needed for
production.
• Wholesale and Distribution: Wholesale and distribution businesses can benefit from WMS by improving
inventory accuracy, reducing order processing times, and optimizing warehouse space utilization.
Implementation can focus on features such as order picking and packing, cross-docking support, and
integration with transportation management systems (TMS) to streamline distribution operations and
improve supply chain efficiency.

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Implementing WMS in Different
Business Environments (Contd.)
• Third-Party Logistics (3PL) Providers: WMS implementation for 3PL providers should be flexible to
accommodate the unique requirements of multiple clients and diverse inventory types. Customization

Assistant Prof. Purvaj Piyush Vaidya (MTech)

may include features such as multi-tenant support, client-specific configurations, and billing and
reporting capabilities to effectively manage inventory and provide value-added services to clients.
• Cold Storage and Food Distribution: In cold storage and food distribution environments, WMS
implementation should address temperature-controlled storage requirements, traceability, and
compliance with food safety regulations. Features such as temperature monitoring, lot tracking, and
expiration date management can help ensure product quality and compliance with industry standards.
• Pharmaceutical and Healthcare: WMS implementation in pharmaceutical and healthcare environments
must comply with strict regulatory requirements for inventory control, traceability, and security.
Features such as lot and serial number tracking, expiration date management, and secure access
controls can help ensure product safety and regulatory compliance while streamlining warehouse
operations.

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Implementing WMS in Different
Business Environments (Contd.)
• Automotive and Parts Manufacturing: WMS implementation in automotive and parts manufacturing
environments should focus on optimizing inventory management, handling high SKU counts, and

Assistant Prof. Purvaj Piyush Vaidya (MTech)

supporting lean manufacturing practices. Features such as bin management, kitting and assembly
support, and integration with enterprise resource planning (ERP) systems can help improve inventory
accuracy and production efficiency.
• High-Tech and Electronics: In high-tech and electronics environments, WMS implementation should
address the challenges of managing fast-moving, high-value inventory with complex supply chains.
Features such as serialization, product traceability, and quality control can help ensure product
authenticity and compliance while optimizing warehouse operations.

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Customization of WMS to
Industry-Specific Requirements
• Customizing a Warehouse Management System (WMS) to industry-specific requirements is crucial for
maximizing its effectiveness and ensuring that it meets the unique needs of different industries

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Here's how WMS can be customized to address industry-specific requirements:

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Customization of WMS to
Industry-Specific Requirements
(Contd.)
• Retail and E-commerce:
• Customized order processing: Implement features such as batch picking and packing to handle high

Assistant Prof. Purvaj Piyush Vaidya (MTech)

order volumes efficiently.
• Integration with e-commerce platforms: Integrate WMS with online marketplaces and shopping carts
to automate order import and processing.
• Multi-channel fulfillment: Enable fulfillment of orders from multiple sales channels (online, in-store,
mobile) while maintaining inventory accuracy.
• Manufacturing:
• Just-in-time (JIT) inventory management: Customize WMS to support JIT inventory practices,
ensuring that materials are available for production as needed.
• Work-in-progress (WIP) tracking: Implement features for tracking materials and components as they
move through the production process, providing visibility into WIP inventory.
• Integration with manufacturing systems: Integrate WMS with manufacturing execution systems
(MES) to synchronize inventory movements with production schedules.

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Customization of WMS to
Industry-Specific Requirements
(Contd.)
• Wholesale and Distribution:
• Vendor-managed inventory (VMI): Customize WMS to support VMI arrangements, allowing suppliers

Assistant Prof. Purvaj Piyush Vaidya (MTech)

to manage inventory levels and replenishment schedules.
• Cross-docking and transloading: Implement features for fast transfer of goods from inbound to
outbound shipments to minimize storage time and handling costs.
• Advanced shipping notices (ASN): Enable suppliers to provide ASN information electronically to
streamline receiving and put-away processes.
• Third-Party Logistics (3PL) Providers:
• Multi-tenancy support: Customize WMS to support multiple clients with separate configurations,
workflows, and billing structures within a single instance.
• Client-specific reporting: Implement custom reporting capabilities to provide clients with real-time
visibility into inventory levels, order status, and performance metrics.
• Value-added services: Customize WMS to support additional services such as kitting, labeling, and
packaging based on client requirements.

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Customization of WMS to
Industry-Specific Requirements
(Contd.)
• Cold Storage and Food Distribution:
• Temperature-controlled storage: Customize WMS to monitor and maintain temperature conditions

Assistant Prof. Purvaj Piyush Vaidya (MTech)

for perishable goods, ensuring compliance with food safety regulations.
• Lot and batch tracking: Implement features for tracking lots and batches of products from receipt to
distribution to facilitate traceability and recall management.
• Expiration date management: Customize WMS to manage expiration dates and shelf life of products,
enabling proactive inventory management and reducing waste.
• Pharmaceutical and Healthcare:
• Regulatory compliance: Customize WMS to comply with industry regulations such as FDA's Drug
Supply Chain Security Act (DSCSA) and Good Distribution Practice (GDP) guidelines.
• Serialized tracking: Implement features for tracking serialized products and maintaining detailed
records of each unit's movement and transaction history.
• Secure access controls: Customize WMS to enforce access controls and authentication mechanisms to
protect sensitive healthcare data and ensure data integrity.

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Customization of WMS to
Industry-Specific Requirements
(Contd.)
• Automotive and Parts Manufacturing:
• Serialized part tracking: Customize WMS to track serialized parts and components through the

Assistant Prof. Purvaj Piyush Vaidya (MTech)

manufacturing and distribution process to ensure product authenticity and traceability.
• Just-in-sequence (JIS) delivery: Implement features for sequencing and delivering parts to assembly
lines in the order required for production.
• Quality control checks: Customize WMS to incorporate quality control checks and inspections at
various stages of the manufacturing and distribution process to ensure product quality and
compliance with industry standards.

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Challenges and Best Practices in
WMS Implementation
• Implementing a Warehouse Management System (WMS) can be a complex process, often involving various
challenges

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• However, by following best practices, businesses can overcome these challenges and ensure a successful
WMS implementation
• Here are some common challenges and best practices:

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Challenges and Best Practices in
WMS Implementation (Contd.)
• Challenges:
• Data Accuracy and Cleanliness: Inaccurate or incomplete data can lead to errors and inefficiencies in

Assistant Prof. Purvaj Piyush Vaidya (MTech)

WMS operations.
• Integration with Existing Systems: Integrating WMS with existing systems such as ERP, TMS, and MES
can be challenging due to differences in data formats and processes.
• Change Management: Resistance to change among employees can hinder the adoption of new WMS
processes and workflows.
• Training and Skill Gaps: Inadequate training and skill gaps among warehouse staff can impact the
effective use of WMS functionality.
• Scope Creep: Expanding the scope of WMS implementation beyond the initial requirements can lead
to delays and budget overruns.
• Vendor Selection: Choosing the right WMS vendor with the appropriate features, scalability, and
support can be challenging.
• Performance and Scalability: Ensuring that WMS can handle increasing volumes of data and
transactions as the business grows.

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Challenges and Best Practices in
WMS Implementation (Contd.)
• Best Practices:
• Data Cleansing and Migration: Start with a comprehensive data cleansing process to ensure data

Assistant Prof. Purvaj Piyush Vaidya (MTech)

accuracy and completeness before migrating data to the new WMS.
• Thorough Requirements Gathering: Conduct a thorough analysis of business requirements and
workflows to ensure that WMS functionality aligns with business needs.
• Change Management and Communication: Engage employees early in the process, communicate the
benefits of WMS implementation, and provide adequate training and support to facilitate adoption.
• Phased Implementation: Break down the WMS implementation into manageable phases to minimize
disruption and facilitate testing and troubleshooting.
• Collaboration with Vendors and Partners: Work closely with WMS vendors, implementation partners,
and other stakeholders to ensure smooth integration and timely resolution of issues.
• Customization vs. Standardization: Strike a balance between customizing WMS to meet specific
business needs and leveraging standard functionality to minimize complexity and ensure ease of
maintenance.

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Challenges and Best Practices in
WMS Implementation (Contd.)
• Performance Testing and Optimization: Conduct thorough performance testing to identify and
address any performance bottlenecks or scalability issues before full deployment.

Assistant Prof. Purvaj Piyush Vaidya (MTech)

• Continuous Improvement: Implement processes for ongoing monitoring, evaluation, and optimization
of WMS performance and functionality to adapt to changing business needs.
• Project Governance and Stakeholder Engagement: Establish clear project governance structures,
roles, and responsibilities, and ensure ongoing engagement and alignment with key stakeholders
throughout the implementation process.
• Post-Implementation Support and Maintenance: Plan for ongoing support and maintenance of the
WMS post-implementation, including regular updates, patches, and enhancements to address
evolving business requirements and technology advancements.

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