What Are The Key Elements Of A Warehouse Management Process?
A quick look into the fundamental elements included in the Warehouse Management System can help you get a better understanding of this innovative application and make the best of its deployment to gain substantial benefits.
Purchase Order—It is a legally binding document shared between a supplier and a buyer. It can be stated as the first official offer issued by a buyer to a seller, which indicates agreed types, price, and quantities for services and products. It holds a unique number, which helps both seller and buyer track delivery and payment. Particularly, it controls the purchasing of the products and services from any external supplier.
Manufacture Order—It is prepared as a manufacturing set of instructions, which state the order to manufacture items. It instructs on the order to be manufactured by the company as well as the order to be manufactured by the subcontractors.
Sales Order—It is a commercial document issued by a business or trader to a customer and states confirmation of sale. Also, it specifies the details about the service or product, such as price, quantity, shipping address, billing address, mode of payment, and terms and conditions. Generally, it is issued by the suppliers before delivery to its buyer.
What Are Warehouse Management Process Steps?
Billing—It is a process of generating an invoice to retrieve sales price from the customer. It covers purchases made or services delivered within a stipulated time to a customer.
Receive— This step involves transferring of ownership of goods, particularly financial responsibility by its nature. It ensures the accuracy of the documentation and prompts the availability of the materials to the customer as soon as possible. Particularly, this Warehouse Management System Receiving Process accelerates the movement of received goods from the shipping dock into the storage location.
Inventory— Forming a crucial part of the Warehouse Inventory Management Process, this step leads to supervision and control of the stock items for your company. It ensures the availability of materials needed and products required, maintaining low cost possibly.
Pick and Pack—It can be stated as using a picking list to find the proper commodity in its defined quantity from its location in the warehouse to placing the commodity into a box with adequate packing materials. Also, it should place the item with documentation before it is labeled, and shipping is initiated to the end customer.
Shipping—It is one of the most crucial steps of the Warehouse Management Process. Once the item is packed, measuring weight and dimensions is the next step. Further procedures involved in shipping steps include checking the essential documents, loading the items, and scheduling receiving as per the location and shifts and separating the receiving and shipping docks.
Invoice—Particularly, a statement of the sum due along with the list of goods and services rendered distinguishes an invoice from a bill. This step indicates generating a commercial statement, which is rather a record of the transaction than a mere document. Also, it states the name and address of the trading partners involved.
Is Warehouse Management System Same As An ERP?
You might get puzzled while searching for Warehouse Management System Vs Enterprise Resource Planning. This bemusement is obvious as Warehouse Management System is a robust application of ERP solutions and many service providers offer WMS in the name of Enterprise Resource Planning software solutions to fulfill industry-specific needs.You can deploy Warehouse Management System as a standalone application or as a part of the Enterprise Resource Planning solution. However, standalone applications stand for the conventional on-premise system and usually lacks the advantages of other integrated cloud-based Warehouse Management System. You can obtain benefits, such as increased warehouse productivity, greater space utilization, reduced labor cost, and reduced fulfillment time through a comprehensive warehouse management system.
On a conclusive note, improved flexibility, disaster recovery, scalability, security, automatic updates, and better technology competitiveness are key benefits attracting massive attention worldwide to deploy cloud-based WMS. You can also pick a robust ERP solution rendering such intuitive applications to transform your business and acclaim global recognition.
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