Automation of a warehouse: Accounting and WMS - systems whether there is a difference?

But, there is one "but"...

Potential and even present users often confuse warehouse management systems with the classical accounting systems. As a result, the customer sincerely considers that he implements in the warehouse WMS, expecting one result, and receives absolutely another. Fuel to the fire is added sometimes also by producers of the accounting systems, quite often specifying that their product is intended for "management of a warehouse", or adding an abbreviation of WMS to its name.

The market of software products for management of a warehouse in Russia arose more than 10 years ago (in 1998-99) that for a segment of high technologies - very significant value. Technologies develop huge jumps. Tasks for which solution the huge computing powers costing the same huge money now were required earlier home computing systems can do even. From here – whole "abyss" between functionality which was "then" and is available now.

Let's tell, hardly in the late nineties someone thought of solving of tasks of search in the soft Real-time mode (soft real time) on very mediocre server hardware. It can be told also about architecture of the software, and about functionality. The fact that ten years ago "management of a warehouse" could hereinafter be referred to can not meet requirements of the market now at all.

In what difference?

Differences between WMS and the accounting systems, by and large, become clear already proceeding from the name of classification of the software product - a management system and an accounting system, apart from functional aspects.

If to speak about WMS - systems, then their basic purpose is a management of technology processes in a warehouse. Professional solutions provide automation, optimization and control of all warehouse processes in a flyby mode (acceptance, placement, storage, a complete set of loads and many other things, depending on classification and a complete set of the software product). Also WMS allow to provide control and optimization of work of personnel, technicians and the warehouse equipment and many other functions.

Let's review a simple example what is "accounting" functionality in relation to transaction of set (piking) of loads in a warehouse and what – functionality of management?

It is possible to refer process implementation when the employee independently makes the decision on how it will execute set transaction to "accounting" functionality. The employee estimates the required volume, standard sizes of a container and tovaronositel, selects to himself specific tasks or their groups in the form of the list of delivery notes, throughout execution of tasks solves whether it will execute them or will pass to return then. The specialist applies the expert knowledge to work within the specified functionality.

In a case with WMS, the employee receives already created, specific instructions from a system: take the set container standard sizes, use the set equipment, in attempt of failure from a task – accurately to select the reason that a system could initiate start of other, concurrent process (for example, control of quantity from a cell, control recalculation of loads with certain attributes, check of weight and dimensional characteristics and another).

Than the dependence on employees is more, those with bigger confidence can tell that a system belongs to the class of "accounting". In turn, management systems are intended to ensure the maximum safety of business as for dependence on final contractors.

The main destination of the classical warehouse accounting system consists in conducting the automated accounting of the movement of trade material values. The basic functionality of such systems provides support of the document flow covering acceptance, goods issue, inventory of a remaining balance and reports on merchandising.

The functionality of some accounting systems can be expanded, but, anyway, they will be able to provide management of technology processes in a warehouse, to perform their adaptation and optimization, depending on the tasks facing a warehouse complex and also to plan and issue tasks to contractors. It is connected with the fact that basic purpose of such solutions - accounting, but not management.

Unfortunately, even at us many consider payback in the mode "how many we will save on salaries". There are also such values which are difficult for counting "on a knee". Let's tell how many the company will lose if the experienced storekeeper leaves? Whether the warehouse will long stand idle if employees suddenly decide to leave to neighbors? Personnel problems occasionally become defining and if in Europe it was understood for a long time, then we just try to realize.

Comparison accounting and WMS - systems by several functional parameters is given in the table.

The parameters specified in the table are not all list, but it is possible to sum up it the fact that WMS plans transactions and distributes them between employees and also provides a feedback at emergence of non-staff situations. Other functionality where decision-making depends on the employee on site - it is the accounting system.

Also there is a wish to note that the efficiency from application of WMS or the accounting systems, depends not only on their functionality, but also on other factors. For example, one of the most important conditions of successful functioning of warehouse complexes is the technology of their work. In fact, it is cargo handling process based on which the processes defining the principles of work of each specific site of a warehouse, and each his employee, machinery and equipment are implemented. If the technology of work of a warehouse has essential defects, then application of software products, whether it be advanced accounting or WMS are systems, will hardly give some essential effect.

Summing up the result of the aforesaid to receive desirable result from implementation of software products, it is necessary to understand first of all that these solutions have different functionality and appointment. And, both the accounting systems, and WMS have own classification. Therefore even to compare the advanced accounting systems to WMS solutions and to put them in "one row" not correctly. Even in the European warehouses with the high level of automation and application of robotic components, on certain places the accounting system can function, and all logistic complex will be is under control of uniform WMS.

In the near future it will be difficult to imagine the enterprise which warehouse is not equipped with WMS or the accounting system. Anyway, the choice for benefit of this or that solution should be made, proceeding from a number of aspects, in particular, considering the tasks facing a warehouse complex and also appointment and opportunities of the software products presented at the market. Moreover, there are already projects where instead of WMS it would be possible to install the simple accounting system, along with other projects where programmers "dopilivat" the accounting system to receive functionality of WMS.

Not to make a mistake in the choice, it is necessary to begin with fixing of requirements which result from the set technology of cargo handling, or if to speak a simple language, from purpose of a warehouse complex. Having the desirable result recorded on paper, it is much simpler to make the decision on the tool by means of which it will be reached.