WMS and OMS have become indispensable components of any third-party logistics warehouses. Here is why OMS and WMS connectivity matter to third-party logistics warehouses.
Do OMS and WMS Connectivity Matter to 3PLs?
In today’s supply chain, the logistics of moving goods have never been more complex. So, it’s critical for 3PLs and other companies to have a strong connection between OMS and WMS.
With OMS/WMS connectivity, 3PLs can maximize their efficiency. You can do this is done by tracking every step in the process. This means they can ensure their customers’ products are handled correctly throughout their journey.
Besides, OMS/WMS connectivity allows third-party logistics warehouses to reduce costs. This is done by eliminating any unnecessary steps along the way. One study found that businesses with strong OMS/WMS connections generate 15% higher profit margins.
What are WMS and OMS?
WMS and OMS are two of the essential tools in warehouse management. They track, manage, and optimize the flow of materials.
Warehouse Management System (WMS) tracks the movement of products within a warehouse. The system connects to barcode readers, conveyor belts, and other automation equipment. So, It can also track information about each product, such as location and quantity. This information can be utilized for various applications, including inventory control.
Operations Management System (OMS) tracks the flow of materials and information. Companies with many locations typically use it. But businesses can use it in one area if they want more control over their supply chain. This is not the case if they use their ERP system alone.
The Importance of OMS and WMS Connectivity
The essential part of any supply chain is the connection between the elements. Every link in the chain has to be vital to ensure success. The supply chain relies on connection and communication. So, if one of the links breaks down, it will affect your business.
1. Automated WMS Tasks
You can automate your WMS tasks. The fact that they can be scheduled to occur at specified times or intervals means that they can be scheduled to occur at specified times or intervals. For example, a transportation company could configure the WMS automatically. This can send a truckload of cargo from its warehouse to a customer. The OMS would then schedule that activity in its scheduling engine. Besides, it can notify you when it’s happening.
When you connect your OMS with an ERP system, it can pull data from your ERP system. Therefore, It can then use that information as input into its scheduling engine.
2. Oms and Wms Connectivity Lead To Less Human Error
Today, most organizations strive for an efficient way to achieve the best performance. You can accomplish this with a well-connected WMS and OMS.
- Errors are costly. A single mistake in the supply chain can cost you time, money, or both.
- Automation reduces error rates. Software that automates processes helps eliminate human error. Besides, it increases efficiency by ensuring every step in operation is performed correctly.
- Better data visibility increases accuracy across your organization’s operations. You can do this from procurement to distribution to customer service. This reduces costs for you and your customers alike.
- Better data access ensures all members have access to accurate information. The company can tell its clients what their orders are at any given moment.
3. More Accurate Forecasting
Forecasting is the technique of predicting what will happen in the future. It helps businesses and organizations to plan. Besides, it allows companies to prepare and make decisions. The decisions could be based on their expectations of what will happen in the future. 3PLs predict sales, costs, profits, and other essential business metrics.
In business, forecasting refers to estimating or predicting sales volume or revenues. You can do this by evaluating information about past trends. So, you can also look at new factors that may affect future results. The prediction could be on the number of widgets it will sell the next. You can base this on a year at an average price that might be lower. This is due to increased competition among manufacturers.
4. Reduced Labor Costs
OMS and WMS integration benefits are not limited to improved visibility. They also contribute to reduced labor costs. With an integrated system, you can reduce your workforce by eliminating manual input. You can set up your OMS or WMS to pull data from third-party systems like Enterprise Resouce Planning (ERP). This automation will save third-party logistics warehouses time and money when hiring staff with expertise.
One key area where this integration saves money is reducing errors due to manual data entry. By eliminating this step, there will be fewer chances for human error. At the same time, you will enter orders into the system. This can result in less need for fixing mistakes after they have been made.
5. More Efficient Warehouse Management
Your WMS can track and report on warehouse efficiency with an integrated system. This is especially important for long-term warehousing operations. This is because it’s necessary to have a system that alerts you to any inefficiencies.
For example, you may not have designed your warehouse layout appropriately. Or, if there are too many products in one area, the issues will be evident during tracking. The WMS provides data about the nature of item movement. You can do this throughout the facility. You can also know how much space certain goods take up relative to others.
Quick read: 5 Top Questions Every 3PL Should Ask Their WMS Provider
Real-time data is critical for making informed decisions about your supply chain. With real-time visibility into your inventory, you can identify gaps and plan accordingly. You will be able to correct discrepancies between your WMS and OMS.
By connecting your WMS and OMS, you will have complete visibility in the system. This includes order status and critical information like who placed it. This data assists you in making better business decisions. You can then use the findings to improve the performance of your supply chain—contact sales support for more details.