LeanwareWMS (Warehouse Management System) is more intelligent than ERP. The inefficiencies of warehouses managed by ERP (Enterprise Resource Planning) result in approximately EUR 50,000 – 500,000 in annual company losses. The losses are calculated using the total efficiency of the warehouse and production errors. Total efficiency is calculated by dividing delivered lines by all of the time used for warehouse work. Using the results of 150 warehouse analyses and over 30 delivered WMS solutions, we have determined that the total efficiency of a warehouse managed by ERP is approximately 5 lines/person/hour.
Use of LeanwareWMS for managing a warehouse achieves a total efficiency of up to 15 lines/person/hour. The total efficiency increase generates the majority of the savings for the warehouse. Other LeanwareWMS benefits include:
- delivery accuracy 99.9 %
- shorter delivery times
- errors eliminated
- accurate inventory turnover (FIFO and FEFO)
- balance accuracy at least 99 %
- 100 % automatic traceability
- learning curve shortened to even one hour.
According to our experience, LeanwareWMS management results in higher customer satisfaction. The personnel’s job satisfaction is also increased, as work is easier and unnecessary work is eliminated through the use of a modern, digital tool.
The most significant functions that increase total efficiency and cannot be accomplished by ERP or people
Intelligent dynamic warehousing
LeanwareWMS uses stock-keeping unit quantities, instead of warehouse location quantities. This is the foundation for dynamic warehousing. Purchase lot products are received into unique inventory units (e.g. pallet, box). Products from different purchase lots are not combined into the same inventory unit and the different SKUs are not mixed together. Every unit can be identified and the content of each unit can be viewed in real time. In addition, the exact location of each unit is known at all times. This automatically results in 100 % traceability and FIFO and FEFO can be accomplished using automatic management handled by the system.
The product does not have a fixed active or reserve location in dynamic warehousing. Being dynamic is an important part of space and total efficiency, in addition to inventory accuracy. LeanwareWMS has a lot of additional intelligence and management properties, allowing full utilization of the dynamic capabilities. The benefits of intelligent dynamic warehousing over an ERP-managed warehouse are listed below.
|Deficiencies in ERP-managed warehouses||ERP method||LeanwareWMS method||LeanwareWMS benefit|
|Poor product placement, which results in poor picking efficiency||• Does not implement product placement according to turnover class (XYZ) at all, or does it very rarely|
• Cumbersome, manual and completed very rarely (data searches and use of Excel)
• Done using the wrong assumptions: relying on ABC classes or delivered total quantities
• Active locations are allocated to low-turnover products
|• Automatic daily calculation of turnover rating (XYZ) based on number of deductions |
• Racking and refill placement based on current turnover rating
• Easy positioning for seasonal products
|• Items are always in optimal locations
• Increased picking efficiency due to shorter transitions
• Turnover ratings used to refill active or pick from reserve
|A lot of work that does not generate additional value, resulting in poor total efficiency||• Fixed warehouse locations in ERP results in mixing products and unnecessary moving of items and looking for locations |
• Put-away and refill management often deficient
|• Always directs SKU to new empty inventory location |
• An item is never touched during put-away or refilling
|• Improves put-away and refilling processes by up to hundreds of percentage points|
|Insufficient balance precision||• Annual stock-taking |
• Warehouse location-specific inventory balances
|• Real-time stock-taking against zero-balance||• No need for separate stock-taking
• Allows 98.5 – 100 % inventory balance accuracy
|Lack of space||• Empty rack space is not used efficiently |
• Products that are not in inventory take up rack space
• Partially full pallets take up unnecessary space
• Receiving area is large, because receiving process is not dynamic
|• Racked optimally based on pallet height and width|
• Product does not have fixed location. If a product is not in inventory, it does not take up space.
• Maximizes rack capacity by emptying partially full pallets as effectively as possible
• Received balances can be racked right away
|• Space is always used as efficiently as possible
• Minimal number of partially full pallets of the same product at the same time
• Possible to reduce size of receiving area, which allows for more rack space
Intelligent picking management
LeanwareWMS creates an optimal picking list for the user. LeanwareWMS identifies what items are to be picked for each order, from which location and in what sequence. Product images can be used. LeanwareWMS is able to create optimal picking lists and routes for group picking. LeanwareWMS automatically directs users to complete the necessary refills e.g. from reserve locations to active locations before picking. The put-away, refilling and full pallet picking tasks associated with orders are always at the top of the job queue. The order is defined automatically based on the defined scheduling requirements.
Job supervisors can alter the system’s warehouse management, by editing the rules, which can be defined product-specifically when necessary. They are able to prioritize orders manually at any time or create rules for automatic prioritization. Prioritized orders are always placed at the top of the job queue in real time. If necessary, LeanwareWMS is able to automatically combine orders for the same customer, which allows them to be picked at the same time. Combining orders reduces transport costs, improves customer satisfaction and improves picking efficiency. Intelligent product picking is able to automatically calculate total volumes and weights for the operator, which allows e.g. picking to be completed directly into the correct shipping unit. This improves total efficiency by reducing the amount of work needed for packing.
LeanwareWMS manages picking so effectively and visually that training a new worker for picking can take as little as 30 minutes. This allows adjusting for seasonalities and other changes in labor demand by using staffing services, for example.
How was LeanwareWMS created?
For decades, Leanware Oy has focused on warehouse logistics and industrial production, which is the foundation of LeanwareWMS. LeanwareWMS utilizes the best warehouse logistics practices and is the most intelligent and automated WMS solution on the market. LeanwareWMS can be integrated with automation and/or company IT systems with ease. LeanwareWMS is suitable for both retail and industrial applications, allowing efficient deliveries without errors and ensuring that the right materials are at the right place at the right time. LeanwareWMS can be extensively configured and can be customized to fit customer requirements. LeanwareWMS can be delivered to customers from the cloud or as local installations.
Leanware has decades of experience and is a market leader in warehouse logistics. The trust we have earned is evident in our customer references, read more customer testimonials.