Modern businesses across the supply chain utilize warehouses to store goods for their customers. Whether these goods are destined for the customers, the manufacturers or retailers’, accurate recording and tracking is important in the supply chain. The supply chain industry is also dramatically changing and characterized by the increase of freight and transportation charges making it quite difficult for businesses to cope up.
One way to get ahead of these business challenges according to Natesan Andiyappillai, a supply chain management expert and researcher is by using the Warehouse Management Systems (WMS). In his recently published research paper, Digital Transformation in Warehouse Management Systems (WMS) Implementations Andiyappillai has pointed out that numerous supply chain businesses can gain a competitive advantage in their business areas if they focus on utilizing the WMS.
The global growth of the logistics is not something to be underrated. As per latest research done by EMR, the global third-party logistics (3PL) market attained a value of nearly USD 910.4 billion in 2019. It is expected to grow at a CAGR of 5.25% in the forecast period 2020-2025 and is projected to reach nearly USD 1237.6 billion by 2025. Despite the existence of numerous opportunities in WMS technology, data from the Warehousing Education and Research Council (WERC) has indicated that one-third of the Warehouses in the US do not currently have any WMS implemented. This according to Andiyappillai is one of the factors that make these companies not to fulfill their full potential.
Some companies still rely on traditional Order Management System (OMS) or Enterprise Resource Planning (ERP) which only have basic warehousing functionality. Most of them lack critical warehouse functions such as ASN’s inbound routing and truck scheduling. Other numerous benefits associated with WMS according to the research include increased visibility, flexibility and productivity.
To realize the full benefits associated with the implementation of WMS, a business should choose WMS according to their business needs. “Warehouse Management System can be selected based on the business and customer requirements as there are many in the market and choosing and implementing the right one is critical for the success of the business.” he reiterated.
There is no doubt that the growth of digital technology has provided a great opportunity for businesses to streamline their activities so that they can meet the needs of the customer. The utilization of artificial intelligence for instance has provided the opportunity for the development of automated storage and retrieval systems (ASRS) to perform and augment tasks that were previously accomplished only by human beings. Automated Guided Vehicles (AGVs), goods-to-person technology (GTP) are just but a few ways through which these digital technologies are changing businesses.
About Natesan Andiyappillai
Natesan Andiyappillai is senior business analyst, researcher and WMS expert. As a researcher and expert in WMS, Andiyappillai has published 7 research articles in leading peer reviewed journals in the area of Warehouse Management Systems (WMS) Implementations. He has also worked at numerous business organizations in the US where he has helped these businesses to implement numerous technologies to realize their objectives. He currently works at CEVA Logistics as the Manager IT WMS Solutions. He is also a keynote speaker in the field of digital technologies. Natesan Andiyappillai holds Master of Science in Supply Chain Management and Master of Engineering in Engineering Design from Dublin Institute of Technology, Ireland and Bharathiar University, India respectively.
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