WMS WATCH

Some other compelling reasons to acquire a WMS: You need kitting and assembly (MRP) functions that are more flexible or complex than what you currently have.

You may need support for EDI, you require more options than you have for cycle counting, you need a greater range of picking options (wave, zone, consolidated), you must do retail (bulk) distribution as well as direct-to-consumer fulfillment, you have trouble managing “cross-docking” for backorder fulfillment (picking at receiving without item put-away).

Or maybe your current system can't provide the workforce management and productivity tracking tools you feel your operation needs.

If your decision to acquire a WMS is not driven by the goal of efficiency for its own sake, it may be driven by order volume. When you have reached the point where your order management system simply cannot handle the movement of inventory required to support your order volume in a timely fashion, it's time for a WMS.

	Making a list

To evaluate which WMS will best suit your needs, you have to consider several factors. At the top of the list is support for multiple divisions, companies, and warehouses.

You should also look at both merchandise storage types supported and material handling equipment supported. And can the system handle multiple SKUs per location? How about multiple locations per SKU?

What else do you need to think about when considering a system? Here is an abbreviated checklist of other important features and functions you should look for in a WMS:

• ASNs (inbound, outbound)
• Planned and unplanned receiving
• Vendor performance tracking
• Support for technology including EDI, RFID, and radio frequency (what RF type, which functions)
• Barcoding symbologies supported
• Package labeling
• Random, directed putaway (with “top-off” capability)
• Slotting management, space usage evaluation tools
• Pick batch functionality
• Picking methods supported
• Replenishment methods
• Demand tracking and analysis
• Warehouse transfers
• Backorder management
• Cross-docking
• Inventory consolidation
• Hazmat management
• QC functions (receiving, picking, packing)
• Manifest interfaces
• Rate shopping
• Packing list, shipping label options
• Logistics management, carrier interfaces
• Shipment tracking
• Returns handling

You should also look for a warehouse system that provides productivity analysis, as well as reporting tools and flexibility.

Many WMS applications these days offer the option of a browser interface, which allows you to support authorized access to the system from remote locations. This feature can add significant value to the WMS investment.

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Ernie Schell is director of Ventnor, NJ-based consultancy Marketing Systems Analysis, and author of The Guide to Catalog Management Software.

	Slotting for dollars

Many merchants acquire a WMS to improve slotting, or determine the optimal placement of inventory for picking efficiency. But you first have to figure out what you want to optimize (put-away, storage, picking, a combination of these tasks? The challenge can be so complex that there are actually separate slotting systems you can acquire. But most WMS applications support slotting as part of their suite of functions, and it is certainly one of the biggest benefits they offer.

The trick to slotting is to provide a way to manage a multitude of variables that are in constant flux. Any slotting tool should allow you to establish, define, and manage warehouse zones; assign item, package, or pallet types (and sizes) by zone or location; use assigned random put-away; optimize picking locations by item demand velocity (and assign A/B/C velocity codes); and minimize picker travel distances and balance these with put-away travel distances. A slotting system should also let you assign items to multiple locations; optimize carousel bin assignments (including assignment of an SKU to multiple bins); and report on workforce efficiency on a user-designated basis.
— ES

	Some of the WMS systems

While there are dozens of available WMS systems, the vast majority were designed for wholesale distribution or retail store replenishment, with relatively low volumes of high-value shipments in case lots or pallet loads. Only a handful have been configured to handle high volumes of low-value orders, which is the typical profile for direct commerce.

The following are widely adopted WMS applications within the direct commerce, multichannel fulfillment, and distribution environment. Note that most of these vendors offer a multitude of related solutions or “modules” in the inventory management and logistics arena.

Highjump (www.highjump.com): a Web-enabled, highly configurable solution with a comprehensive training program, “HighJump University” (used by Fingerhut and Overstock.com).

Integrated Warehousing Solutions, the IRMS system (www.iws-irms.com): includes interfaces to several order management and ERP systems (used by Danbury Mint, Overton's, and Woodwind & Brasswind).

Manhattan Associates, Warehouse Management (WM) and WM for Windows (www.manh.com): This widely installed market leader now supports Web services on its powerful new Windows version. Users can expose key application components and data as Web Services to share with other systems. Good at handling very high volumes.

Phoenix Systems Group, Horizon WMS (www.phoenix-sys.com): the only WMS specifically for direct commerce, developed in partnership with major catalog companies by Phoenix Systems Group, specialists in multichannel integration as well as e-commerce, retail, and direct commerce systems.

QSSI, PowerHouse WMS (www.qssi-wms.com): a Windows-based system that integrates to Great Plains. Also available: ePowerHouse (browser interface) and PowerHouse FastTrack (PHFT), a scalable entry-level version (used by Museum of Modern Art and Pets.com).

Radio Beacon WMS (www.radiobeacon.com): with a browser interface, runs on SQL/Server and integrates with Microsoft Dynamics and Sage Software accounting packages. Can support up to 100,000 order lines per day (used at Sports Giant and Caribou Coffee).

Red Prairie, E2e Solutions (www.redprairie.com): available on a software-as-a-service (hosted) basis, Red Prairie uses a services oriented architecture to facilitate systems integration in conjunction with its sophisticated integration suite (used by Harry & David, The Container Store, Dick Blick).

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You might also consider systems from these other vendors: Argos, Cadre, Catalyst, Fascor, InfoSite (for third-party logistics providers), Logility, Swisslog, and Tecsys.