Challenged by the demands of e-commerce and omnichannel fulfilment, smaller orders, ever-shorter delivery times and a persistent labour shortage, new solutions are needed for warehouse managers.
Technology offers at least some relief. With automation, robotics, artificial intelligence (AI) and other advanced technologies making their way into global distribution facilities, the warehouse management system (WMS) is a reliable factor that has long served as a cornerstone for most distribution operations.
But even for all the benefits of which WMS is known, the software's acceptance rate hovers around 70 per cent, according to a 2018 WERC survey. "Although 30 per cent more facilities have implemented a WMS than in 2008," it says, "almost 35 per cent are still not using anything for warehouse management. They still rely on spreadsheets and manual records. This is particularly prevalent among SMEs, even though excellent midsized WMS packages are available for this sector.
Nevertheless, technology is advancing, driven by market pressures. Here are six key trends for the year ahead.
Systems that use machine learning to sense and adapt 2.
Although WMS has been around for decades, more and more algorithms are being added to handle order streaming properly and serve multiple customers and carriers. If a picking process underway suddenly turns to a series of hard-to-select items, the system can shift allocation accordingly and without human intervention.
Systems that can handle last-minute orders 2.
As the use of waveless fulfilment in fast-paced e-commerce gains momentum, an increasing number of companies are seeing them turn to warehouse control systems (WCS) and related automation to support those operations. These systems enable companies to bring in rush orders while they are still processing peak demand.
WMS vendors opening up their automation 3.
Cloud computing may have changed the way companies buy most of their software, from on-premise licence purchases to subscription fees. There are even more creative financing options for companies looking to deploy new technology in their warehouses.
Shippers trying to automate or investing in robotics, self-driving vehicles and other technology are working with their suppliers to come up with creative financing options. In an increasing number of cases, WMS suppliers are working increasingly closely with their OEMs to make procurement more affordable for a wider range of customers.
4. Focus on the user interface
Logistics managers do not have time to sift through a pile of data to find what they are looking for. Nor do they want to waste their time determining which nuggets of information are 'manageable', and which of them can be ignored.
WMS vendors are focusing more and on their user interfaces and coming up with ways to present data to users in a more logical format.
There are now a number of other WMS vendors asking: 'How can we enable managers in the warehouse, picking or packing area to do their jobs better?' The focus is on making systems more appealing and user-friendly, especially in a same-day shipping environment, where a field service employee or shop clerk can operate the system without any significant training.
Better and faster inventory management
Today's consumers lack understanding and patience for late, missing and incorrect orders. They also don't often think about returning products bought online and ask for replacements (or refunds).
Companies need to be able to manage perfection while managing individual items more economically. In the area of returns, for example, more companies are rushing to put in place the right business processes to deal with these different types of returns (i.e. those that can be returned to stock and sold).
Where the WMS needs to go is an inventory system. So while these systems help companies choose, pack and organise, they are also inventory systems. When items are returned, shippers need to be able to return those goods to inventory. The WMS must also be able to handle that task.
6. Simplify implementations
On the implementation side of WMS, more vendors are becoming aware that they have the in-house technical expertise to build system functionality that makes implementations better, faster and easier.
One example: in a perfect world, users will no longer manually code data into their WMS platforms. Instead, they will use vendor-created wizards and coaching tools to copy templates and then spread that process across multiple warehouses.
To wit
As the development of further WMS adoption slows, vendors will incorporate new capabilities and functionalities into their systems. As many existing warehouse positions are suitable for robotics and automation, it will make sense for even more WMS vendors to find ways to take advantage of the new 'automation wave' and devise capabilities that fit well with it.
Automation has been hot for a while, but the first wave of users discovered that it does not always pay for itself well. With its many repetitive tasks, the warehouse is where we will see a fairly clear increase in robotics and automation.
