Warehouse Management System WMS

Specification Generation Process

This document steps through the process the QSSI Consulting Group uses during a PowerHouse/ WMS Requirements Study. You can use this same process to formulate the criteria you need to understand how your warehouse operates and to choose the proper warehouse management system (WMS). Remember that you want to map your current or planned business operations to the functions the system performs.

I. Project Team

Create a Functional Requirements Team. This team must consist of members from the following the disciplines:

• Project Manager (From either Operations or IS)
• Warehouse expert
• Technical expert from IS
• System Administrator

Below are the typical employee profiles that team members are drawn from:

• Warehouse Supervisor/Manager
• Shipping Supervisor/Manager
• Traffic Supervisor/Manager
• Manager of Information Services or Systems Analyst
• Customer Service Specialist

II. Assess the Current Operating Characteristics

Review the physical layout, create a flowchart and describe the data flow for each cost center (e.g. Receiving, kitting, shipping etc.) in the warehouse.

• Develop recommendations for the use of radio frequency (RF) terminals, scanners and other material handling equipment at your warehouse.
• Review external warehouse needs and inventory transfer requirements between warehouses.
• Assemble bar coding, special packaging and palletizing requirements.

III. Recognize your needs from the following functionality listing:

• Appointment Scheduling
• Receiving
• Quality Control
• Putaway
• Serial Number Tracking
• Lot Control
• Multiple Inventory "Owners"
• Order Processing
• Manufacturing Needs
• Raw Material Tracking and Usage
• Replenishment
• Scouting
• Order Picking
• Shipping
• Multiple Warehouses
• Cycle Counting
• Documents/Reports
• Labor Monitoring
• Bar Code Compliance Labeling
• Slotting Support
• Returns Processing
• Flexibility/Configurability
• Future Growth and System Scalability

IV. Analyze Monthly Sales Transaction Characteristics

Analyze a year or two of monthly sales transactions. Review by type during the same period in order to get a sense of receipts, putaways, and picks per person per hour. In addition, analyze:

• Change in warehouse work by types by month
• Daily work detail
• Distribution of orders processed per week by a year profile
• Units shipped
• Unit storage profiles

V. Analyze the Flow of Information for various processes:

• Receiving, quality audit and returns processing
• Storage location management/putaway
• Pick list generation/picking
• Special customer processing requirements
• Order completion
• Shipment documentation
• Inventory management/cycle counting
• Systems interfaces (these are the uploads and downloads between the host and WMS)

VI. Evaluate the Current Operations

Review the current operations and list deficiencies. Define the requirements necessary to remedy these deficiencies. Within each operation consider:

• Systems interfaces
• Current practices
• New Systems practices
• Productivity impact
• Space utilization impact
• Accuracy impact
• Turn-around impact
• Multiple incidences of re-handling

Operations to evaluate:

1. Facility Engineering

Labor management
Layout, inventory/location management and process flow
Designation of fixed or random primary storage locations to improve efficiency of picking and space utilization
Methods of selecting secondary storage locations in the event the primary is full
Need for and method of cycle counting
Method of restocking primary pick locations
Special storage requirements for security, hazardous materials and perishable merchandise

• Receiving

Receiving, quality audit and returns processing
Quality Control item staging at receiving or immediate storage and hold designation

• Putaway and Restocking

Directed putaway to different location types
Manual putaway via store sheets
Manual putaway with tracking
Automatic restocking as needed with min/max levels
Manually requested restocks (scouting)

• Order Processing

Picking
Shipping
Generation of pick lists
Orders requiring special handling
Putaway of high volume "A" items in away that increases pick efficiency.
Carrier schedules

VII. Review Team Members’ Knowledge of WMS Systems

If necessary, training in WMS methodology at the beginning of the project, will significantly improve the efficiency of the installation.

• Reading and discussion groups
• Computer demonstrations with some hands-on
• Hands-on. This is a combination of one and two
• Train the trainer by the vendor
• Supervisor training
• End user training
• Cross training—multiple functions

VIII. Post Project Personnel Planning

Discuss possible personnel additions, an early involvement in the project can virtually eliminate the need for training, consider positions such as:

• WMS Administrator
• Wave Planner Administrator
• Server/PC, hardware, software, maintenance technicians.

IX. Discuss the Interface Requirements

Review the data transfer between WMS, the host system and any third party systems. Consider the needs of the following items:

• Order Entry
• Expected receipts (Purchase orders)
• Advance shipping notice detail (ASN)
• Order Releases/changes
• New items/changes
• Quality Control standards
• Order status/results
• Item status changes
• Receipts/transfers
• Adjustments
• Quality Control status data

X. Special Handling Requirements for Customers

Several reasons to make a Requirement Study a necessity and not a luxury.

• Your organization must create a cross functional "buy in" and/or ownership of the new system and procedures. It is important that all departments, potential end-users, and your customers have involvement in the planning and implementation. 
  
• Your organization must do the homework necessary to create a smooth transition to the new system. It is important that you discuss all available information about current and proposed system requirements. Ultimately, it is your system. 
  
• Your organization needs to define a clear structure for the involvement of vendor personnel during the planning and implementation phases of the project. 
  
• Your organization needs to create a cross-functional and well-organized Project Team. 
  
• Your organization needs to develop a realistic schedule, budget objective, and expectation for the project and its effect on productivity and efficiency. 
  
• Your organization needs to have strong executive sponsorship for the project. 
  
• Your organization needs to realize that consistent and open communication among all parties is vital to install and start-up a WMS. The implementation of a WMS system is a "Team" effort involving the WMS supplier and the client.

The QSSI Consulting Group can assist your company to define the requirements for your Warehouse Management System. In order to prepare for the installation of your PowerHouse/WMS, QSSI believes that it is vital to perform a valid and realistic Requirements Study.

IDII thanks QSSI for permission to use their white paper. To contact them: Qualtiy Software Systems Inc. 200 Centennial Avenue Piscataway, NJ 08854 Ph: (732)885-1919 Fax: (732)885-1872 Email: wmbrown@qssi-wms.com www.qssi-wms.com

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