A Warehouse Management System(opens in new tab) (WMS) refers to the combination of people, technology and other resources that handle the receipt and distribution of inventory to meet customer demand at appropriate service levels. The WMS will identify appropriate activities or tasks, monitor performance and simplify operations. The system is designed for optimization of inventory, space, equipment and labor.
An efficient WMS can reduce fulfillment costs and improve customer service levels, which lead to higher profitability and more business. Other benefits of a WMS system include:
- Improved supply chain(opens in new tab) visibility increases confidence of customers, aiding loyalty and retention
- Real-time reporting on all aspects of supply-to-distribution processes gives management added flexibility for logistics planning and maximizes cost effectiveness of shipping
- Improved inventory management efficiency by eliminating redundant labor processes associated with inventory shortages (“short picks”)
- Improved order accuracy
- Reduced order-to-shipment cycle time by as much as 70%
- Reduction of delays and back-orders by as much as 90%
- Reduction in labor costs by as much as 40%.
NetSuite customers or prospects that have one or more warehouses with aggregate space exceeding 20,000 square feet are ideal candidates for a WMS solution. Generally, companies with warehouse space under 10,000 square feet are not a fit for this solution. Most likely, they can use existing core NetSuite functionality to satisfy their needs. The WMS solution is a fit for several of the vertical markets that NetSuite serves, especially wholesale and distribution (WD), manufacturing and ecommerce, as well as other companies that store inventory in warehouses or distribution centers.
The WMS offering was developed by NetSuite partner eBizNET Solutions(opens in new tab), a leading supply chain execution and collaboration software provider. Built natively on the NetSuite platform, the WMS solution extends the NetSuite’s core capabilities and supports our goal of delivering vertical solutions that meet customer needs–no matter the size of their business.
If you’d like to learn more, tune in to this brief overview presentation(opens in new tab) on NetSuite’s WMS solution.
- Tom Buffo, Director, SuiteCloud Developer NetWork