Warehouse Management Systems as an Optimizing Factor for Production Control

Organizing the material flow within a company to ensure smooth workflows, with materials and resources always available at the right time—that’s the ideal interplay between production and in-house logistics in a nutshell. In reality, many companies fall short of this ideal. However, practical examples demonstrate that connecting warehouse and production control with the help of Warehouse Management Systems (WMS) allows businesses to optimize production processes and enhance efficiency across the entire supply chain.

This article illustrates how a WMS optimizes logistical processes such as goods receipt, inventory management, and order picking, while providing examples of how these improvements directly benefit production control.

Benefits of a WMS in Production Control

A well-integrated WMS offers a wide range of benefits that contribute to the optimization of production processes. Below, we highlight key advantages, supported by examples from small and medium-sized enterprises (SMEs).

Cost Reduction Through Warehouse Management Systems

A WMS helps companies reduce storage costs e.g. by calculating optimal inventory levels. This is particularly advantageous for SMEs, which need to allocate resources efficiently to remain competitive.

• Example: A medium-sized furniture manufacturer in southern Germany uses a WMS to procure wood and upholstery materials efficiently, based on current order volumes. The system considers seasonal fluctuations. As a result, the company reduces material costs, avoids tying up capital in excessive inventory, and adapts to short-term demand changes without investing in oversized storage spaces.

Time Savings Through Automated Processes in WMS

By automating and optimizing material movements within the warehouse, a WMS reduces handling and transport times. This minimizes the risk of the warehouse becoming a bottleneck for production and allows the company to allocate its limited workforce to more complex tasks.

• Example: A machine parts manufacturer in northern Germany uses a WMS to streamline its goods receipt processes. The system automatically assigns arriving components to appropriate storage locations and immediately sends instructions to warehouse staff. This ensures workers know exactly where to store items, and the system updates inventory data in real time. Through this automation, the company reduced the time required for goods receipt by over 30%.

Enhanced Supply Chain Transparency Through WMS

With real-time monitoring of all warehouse movements, a WMS improves transparency throughout the entire supply chain. The benefits for production are clear: bottlenecks or delays are identified early, and alternative measures can be implemented in a timely manner.

• Example: A southern German electronics manufacturer, which produces components for the automotive industry, uses a WMS to monitor material flows in real time. If a critical supplier experiences delays, the system alerts the production planner and suggests alternative options from other storage locations. This enables the company to react flexibly, adjust production schedules, and avoid costly production interruptions.

Optimized Production Supply Through Just-in-Time Provisioning with WMS

A WMS ensures that materials are delivered just in time for production. This is particularly advantageous for companies with high order volumes or seasonal peaks, as it saves storage space and reduces capital tie-up.

• Example: A Swabian household appliance manufacturer uses a WMS to meticulously plan material provisioning for assembly. The system synchronizes material deliveries so that components are brought to the assembly line just before production begins. It automatically accounts for assembly plans and fluctuating demands. This prevents production lines from being disrupted by missing materials, saves storage space, and eliminates unnecessary stockpiling.

Complex Material Flow Management in WMS for Smooth Production Operations

A WMS controls and monitors the entire material flow within the company and across its locations, optimizing the exchange between decentralized warehouse and production areas. This is particularly beneficial for companies with complex manufacturing processes.

• Example: A family-owned company in Sauerland, which produces precision components for medical technology, relies on a WMS to manage material supply for individual production stations. Given the stringent quality and safety regulations in medical technology, the WMS monitors every material movement and ensures materials are delivered to production lines neither too early nor too late. The system optimizes processes so that each station receives precisely the required components in the correct quantity and at the right time, ensuring quality and avoiding costly production interruptions.

Challenges in Using WMS for Production Control and Solutions

Implementing a WMS comes with challenges, but with proper preparation and adaptation, these can be overcome:

• Data Integration: Integrating a WMS into existing ERP or production systems can be complex. Flexible integration interfaces ensure seamless collaboration and real-time data exchange.

• Employee Training: The acceptance of a new system largely depends on employee training. Targeted training maximizes the WMS’s potential and improves ease of use.

• Scalability: Companies need a scalable WMS that can meet growing demands. Modular extensions enable flexible adaptation to changing needs.

Warehouse Management Systems can bring the reality of in-house logistics and production closer to the ideal state. By automating and digitizing logistical processes such as goods receipt, inventory management, and shipping, the entire value chain is optimized. A WMS not only enhances warehouse logistics but also ensures precise and timely material provisioning for production, making a decisive contribution to business success.