Panatrack recently exhibited at Microsoft Convergence in New Orleans. As people stopped to talk with us about our solution, we noticed that many people were looking for a WMS system. One of the first questions we ask is ... are you looking for a "traditional" Warehouse Management System or are you looking for a data capture solution? Many aren't sure of the difference. Understandably so since often a WMS and data capture solution can both be categorized under WMS. The one thing in common... both offer adding efficiency to inventory management using barcode data capture and mobile computers.
The most common definition I found for WMS (Warehouse Management System) is a system to control movement and storage of materials within an operation and process the associated transactions. Those "associated" transaction include receiving, putaway, moves, and picking. To make this even more confusing, WMS often overlaps in functionality of ERP (Enterprise Resource Planning), MRP (Materials Requirement Planning), and Manufacturing systems. (By the way, Microsoft Dynamics is by technical definition, an ERP system and has overlap functionality of MRP and Manufacturing.)
Based on the this definition, there are two specific types of WMS solutions available. Both will offer automated data capture for your inventory transactions using handheld computers and barcode technology. What I classify as a "traditional" WMS system is an independent host system with the functionality to manage warehouse operations. Typically some level of integration back to the ERP or accounting system (such as Dynamics) will need to be maintained. The second type is a data capture solution which leverages the existing inventory database and management within the ERP system. Take Dynamics GP for example. The ability to set up inventory items, purchase, receive, transfer inventory, and process sales orders exists here. (This is that "overlap" referenced above.) A data capture solution will extend the ability to capture the transactions using handhelds and barcode technology supporting inventory transactions such as receiving, moves, stock counts, and order picking.
So why would someone need a traditional WMS instead of a data capture solution? A traditional WMS will typically support more complex warehouse operations. These might include multi-tier location management (more than a site and bin level), cube logic, slotting, complex wave picking, and cross-docking. If these terms are foreign to you or you just aren't sure if you need it, take a look at data capture solutions first. Often a provider of a data capture solution (such as ourselves) will have tips how to best utilize what is offered in the current ERP system. We have also added some additional features and enhancements that may meet some of the more complex requirements as well as integration to other solutions. For example we support recording items used for projects and jobs, fixed asset tracking, and management of consignment inventory. For this reason, l prefer to consider this type of a WMS an inventory management or inventory control solution since managing inventory doesn't necessarily require it to be in a warehouse.
Whether evaluating a true WMS or a data capture solution, it is important to analyze what functionality is critical to your business. This will arm you with the ability to ask the right questions during your evaluation process. When comparing a traditional WMS to a data capture solution, you will obviously see more features within a WMS system. It becomes important to categorize the "must haves" from the "nice-to-have" and the "probably will never use" functionality. As you probably would expect a traditional WMS will cost significantly more than a data capture solution making it important to analyze the benefits for any of the "nice-to-have" features and to determine what features you will really need and use. With this type of investment, we feel it is important to evaluate several solutions so you can select the one that is right for your organization. You don't want to invest 5x - 10x more for features that you don't need. At the same time, you don't want to put in a solution that won't meet your basic requirements.
The good news about data capture solutions ... any industry that needs to track inventory can take advantage of the technology that once was marketed specifically to large distribution and manufacturing organizations. Since a data capture solution can be implemented at a fraction of the cost of a WMS and without the maintenance and overhead, it is often an ideal solution that will fit in multiple industries and a great option for small and mid-sized organizations that do not need have a complex operation that require a traditional WMS system. If you already have the inventory database that fits your needs ... the smart investment will be adding the tools to maximize efficiency.