LCAP, Composable Architecture, Gamification, and Microservices
Introduction
Industry studies indicate that over 80% of warehouses are using WMS, yet many continue to use legacy systems. Traditional WMS is based on outdated technology. These systems often cannot provide real-time data involving inventory and operations. Most, if not many, were deployed on local servers, limiting scalability and flexibility.
Built as rigid, monolithic systems, information is often isolated within the system. This typically makes it more difficult, costly and time-consuming to integrate with other supply chain management tools. Use of outdated technology limits support of advanced data analysis needed to optimize operational processes. In addition, upgrades are often costly in terms of time, labor, and fees.
The Transition to Modern WMS
Over the past ten years, warehousing and warehouse management software have undergone substantial changes. Forward momentum in innovative technologies, the ramp up of e-commerce, and the dynamics and evolution of consumer demands have necessitated new methodologies, strategies, and technologies for warehousing.
As the demand for e-commerce has increased, so has the demand for warehouse space. A decade ago, warehouses primarily handled bulk shipments and dealt with palletized or case goods. Today, consumers demand to be able to order online. The larger volume of smaller, individual orders has resulted in many changes in the warehouse. This includes implementing material handling solutions, changes to warehouse management systems, implementation of new picking tools and much more.
To deal not only with the increasingly popular e-commerce trend but also with the labor shortage, warehouse operators have escalated their adoption of automation and robotics. This has fueled efficiency and labor cost reductions in the warehouse as well as the need for integration of these technologies. Today, options such as Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs) and robotic picking systems are now commonplace in U.S. warehouses.
With other issues such as COVID-19, geopolitical instability, climate change, regulatory changes, tariff and trade policy changes, supply chain businesses including warehouses have a greater need than ever before for end-to-end visibility, predictive analytics, and better forecasting. Keeping in mind that often components are made in one country and finished goods in another, warehouse operators and other supply chain businesses must have more robust inventory management, inventory control, and business intelligence capabilities. Today, warehouse operators are incorporating AI, machine learning, and IoT into warehouse operators. This is also fueling the need for integrations and cloud-based WMS solutions.
Did you know that the number of employees in the warehousing and storage industry has nearly tripled since 2015? Today’s warehouse worker needs to be able to work alongside and manage automated systems and operate advanced technologies.
Previously, warehouses were built outside of cities and towns on land that was not as valuable or highly taxed. Today, consumers expect fast, low cost or free delivery. As populations have surged in urban areas, it has become problematic to situate warehouses closer to population centers, especially as the demand for warehouse space has grown. Today warehouses tend to incorporate more technology so to plan for this, warehouses are being built taller with higher ceilings to provide more storage capacity within the same footprint. In addition, multi-story warehouses are also being built to maximize storage capacity within the footprint.
Modern WMS Explained
Today warehouse operators need flexible, scalable WMS. They need to be built to provide real-time data, be able to handle high volumes of data faster, including inventory and orders, and easily handle businesses with varying levels of complexity. Some industries, including pharmaceuticals, have a greater need for large volumes of data storage, with quick access to data to deal with regulatory compliance issues, as well as the complexity of serialization with aggregation.
Because of the need to deal with labor shortages, peak seasons, supply chain disruptions and other issues, warehouse management software needs to be readily scalable, and easy to customize without costly changes or time delays.
WMS need to be readily accessible from anywhere in the world. Onboarding new clients, third party logistics customers, and employees requires faster onboarding to shorten the time to revenue. Because of this and other factors, WMS vendors have turned to newer technologies, strategies and development methodologies for assistance in making systems more flexible, scalable, and responsive.
Composable Warehouse Management Software Architecture
Composable architecture in WMS takes a modular approach to building applications. It uses individual components which can be combined, rearranged and scaled, providing warehouse operators with the flexibility to rapidly adapt to changing needs and market conditions.
Utilizing composable architecture can produce significant cost savings, reducing the cost development and adaptation as well as accelerating the software development process.
Extensible Warehouse Management Systems
Developed to manage and optimize warehouse operations, adapting and expanding its functionalities as needed, extensible WMS is designed to scale so that it grows with your business, enabling your WMS to be able to handle increased volume and complexity without an overhaul. An extensible WMS is able to seamlessly integrate with transportation management and ERP systems as well as a myriad of technologies, shipping carriers, e-commerce platforms and other solutions.
Using an extensive warehouse management system can help users tailor workflow and processes to meet business needs. The extensible WMS software enables processes such as billing, dock scheduling, barcode scanning can be automated and real-time visibility of information on inventory, orders, and warehouse activities can be provided.
Cloud-Native and Microservices Architecture
Today, cloud-based WMS are quite popular. After cloud TMS provided successful, WMS vendors ramped up development of cloud WMS. Introducing SaaS models has helped to make WMS more approachable and affordable.
Some modern WMS have been adopting cloud-native architecture built on microservices to increase scalability, flexibility, and make updates easier. By using a cloud-native WMS, companies can scale their warehouse operations seamlessly. By building on microservices, new features and updates can be deployed without disrupting the entire warehouse management system.
AI and Machine Learning
Some WMS vendors are incorporating AI and machine learning as integral components of the WMS, while others integrate with these solutions, freeing up clients to choose the vendor they think is the best fit for their operation. AI and machine learning enable advanced analytics, real-time decision making, and predictive maintenance and can help to optimize inventory management, enhance demand forecasting and improve overall operational efficiency.
Generative AI and Conversational Chatbots
They seem to be everywhere, on nearly every website. You’ve probably noticed that web chats have become digital agents with or without personalities and manners. Many websites have incorporated chatbots to at least answer common questions and/or to route web chats to the correct human team member.
Warehouses today are beginning to use AI-powered chatbots to provide intuitive, conversational interfaces to simplify common tasks and enhance the user experience. Chatbots can help with inventory inquiries, help process orders and handle other tasks including troubleshooting.
Robotics, Flexible Automation and Multiagent Orchestration
Many warehouses now use different types of robotics, including AMRs and AGVs. Multiagent Orchestration, or MAO, is a sophisticated software including AMRs, AGVs, as well as automated systems such as doors and elevators. MAOs make all these components work together seamlessly and optimize workflow and efficiency. Warehouses can improve safety, reduce labor costs and achieve higher levels of automation by leveraging multiagent orchestration.
Real-Time Monitoring
As warehouse management systems have continued to evolve, real-time monitoring and reporting have become increasingly important in providing the data needed for making decisions. Use of real-time data is essential for inventory tracking, optimizing warehouse processes, such as labor management, order fulfillment and more.
WMS Software: Advanced Analytics Provide Business Insights
Enhanced analytic capabilities are now considered to be a hallmark of modern WMS, enabling warehouse operators to track KPIs, identify bottlenecks and optimize processes to improve efficiency.
Wearable Technologies
Manufacturers of industrial hardware solutions have focused on developing hardware that helps to reduce labor costs and improve workforce productivity. Introducing wearable devices including smart glasses, ring, and wrist scanners help workers do their work without having to hold the device. This reduces discomfort, minimizes injuries and keeps workers productive. The wearable devices capture vital information needed for warehousing processes in real-time. Wearables provide real-time data and alerts, enhancing operational efficiency.
WMS Gamification
As Baby Boomers exit the warehouse workplace, younger workers have entered with differing expectations. Younger generations have grown up using cell phones and are accustomed to engaging with game user interfaces and rewards for simple achievements. A study by Lucas Systems of 750 warehouse workers in the U.S. and UK found that 84% of warehouse workers reported that they would be more likely to remain working with a company that included a program featuring competition in the workplace. 94% of respondents reported that they play games in their daily lives, 71% of which play games on a mobile phone, tablet or gaming console.
Incorporating game mechanics in warehousing has become increasingly popular and useful in keeping labor resources engaged with a sense of measurable accomplishment. Gamification can take a variety of forms from programs and incentives to recognize work performance; technology or tools to provide performance feedback; public leaderboards to showcase KPIs; and competitions.
Centralized Inventory Management
To gain a single source of truth and ensure consistent, accurate information across all platforms, integrating order management systems with warehouse management systems has become increasingly popular. By integrating a OMS with a WMS, inventory management can be centralized. Sales channels can be unified with customer data and inventory information.
Advanced Security Protocols
Warehouses today are much more technologically advanced. With so many different solutions and supply chain technologies at work, warehouses need to pay more attention to security. Modern WMS platforms have invested in upgrading security protocols for not only data but also for physical assets to safeguard against cyber threats and help ensure the integrity of warehouse operations.
Conclusion
Gone are the days when a warehouse operator could use enterprise resource planning software with a warehouse management module to meet the needs of his operation. Today, modern WMS can handle all different kinds of inventory from swimsuits to televisions, and all the varying levels of complexity in between. Integrations are critical to enable connection to a variety of new technologies as well as systems, shipping carriers, marketplaces, e-commerce platforms and more.
Meeting customer demands, detailed inventory tracking and enabling a wide variety of warehouse operating processes is all part of warehouse management software basic capabilities. Warehouse management systems are instrumental in helping to lower costs in distribution centers and warehouses, including labor costs. From labor resource planning to scheduling and planning for peak seasons, warehouse management systems make a significant difference in operational efficiency. Warehouse operation integrated with WMS software can ensure that work is carried out efficiently and accurately without total dependence on human workers. Some WMS software includes some labor management capabilities, further enhancing visibility, control, and workforce productivity.
With real-time data available and advanced analytics, warehouse operators benefit from the business insights it can provide and use this to make more effective decisions to make their operation grow and become more profitable. Real-time data also helps inventory accuracy, ensuring a better fulfillment process, optimizing warehouse pick, pack and ship capabilities to ensure customer demands are met on time.
No matter the type of warehouse, including third party logistics, warehouse operators all need solid, reliable technology, real-time accurate data and a level of flexibility to tailor the WMS as needed to deal with market dynamics and changing customer requirements. Supply chain operations are challenging. Warehouse management and logistics now often rely on warehouse automation to keep costs under control and supplement for human workers. Some WMS incorporate yard and dock management capabilities, eliminating the need for a third party solution.