The role of warehouse management (Research Paper Sample)

Supply Chain Management: The role of warehouse management and warehouse management systems in the contemporary business world
Name:
Institution:
TABLE OF CONTENTS
Abstract………………………………………………………………………………………………..3
Supply Chain Management……………………………………………………………………………4
Warehouse Management System………………………………………………………………….….6
Benefits of a Warehouse Management System……………………………………………………….8
Prerequisites of a Successful Warehouse Management Venture………………………………….…11
Warehouse Management System Framework…………………………………………………….....13
Challenges of Establishing a warehouse Management system…………………………………..…..15
Benefits of Topic for Reader…………………………………………………………………….….19
Summary……………………………………………………………………………………………..20
References……………………………………………………………………………………………22
Appendix…………………………………………………………………………………………….23
Abstract
Supply Chain Management (SCM) is a concept in the contemporary business environment that ensures that manufactured goods are effectively transited from the manufacturer to the end user/ customer (Bernan, 2007). It is a complex phenomenon which requires the interplay of various organizations (supply chains) in ensuring that the venture becomes a success and customer satisfaction is accomplished. There are various components of the supply chain including planning, sourcing of suppliers, manufacturing, delivering (logistics) and returning of defective and excessive products. This paper dwells on the component of logistics. This is the phase whereby companies must coordinate, and also at the same time coming up with invoice systems that will enable them to receive payments and develop warehouse networks so that they are able to get the products to customers safely and in time. This paper analyzes the role of warehouse management system in supply chain management in the contemporary business environment. In discussing this topic, the following objectives will guide in the analysis.
Objectives
1) To establish the components of supply chain management
2) To determine the role of warehouse management and how it influences supply chain management
3) To establish the changes in warehouse management in the contemporary business world
4) To find out the prerequisites of a successful warehouse management venture
5) To determine the benefits and challenges of warehouse management in the contemporary business world
6) To offer a sample framework for the establishment of a successful warehouse management venture
7) To outline the Benefits of the topic to the reader
Supply Chain Management
Supply chain management (SCM) is a tenet that is common in the contemporary business environment. The principal is the translocation of a product from the manufacturer to the end user. This is not just a simple process, but, the cumulative effort of various organizations in ensuring that the end user has the product. These multiple organizations that make it possible for the product to be delivered safely to the end user are the supply chain (Frazelle, 2009). Supply chain management, in totality, therefore, refers to the management of supply chain ventures for purposes of maximizing customer value and ensuring that a competitive advantage is created in the target market segment. Supply chain management denotes all the efforts by supply chain firms to come up with products and run supply chains of these products in an efficient and effective way. There are many components of the supply chain including product development, product production, logistics and information systems. Information systems are important in terms of coordinating all these activities (Frazelle, 2009).
Various organizations constitute the supply chain; hence, these have to be interconnected by physical flows and various information systems. Physical flows represent the transformation, movement and keeping of materials. They represent the physical aspects of the supply chain. Information flows, on the other hand, allow the coordination of ventures of supply chain partners so that the system is effective and functional. These systems allow the control of physical flows. These two must, therefore, work hand in hand in ensuring that the system is a success. SCM is more of a philosophical approach than a business one because a noteworthy deal of interaction and trust are required so that companies are able to work together. Three main developments ensured that SCM shot to the forefront of business operations in the contemporary world: the information revolution, enhanced competition and globalization, and relationship management (Tompkins, 2008).
The information revolution has ensured that companies are coming up with all manners of developments so that they become competitive. With civilization came technological advancement, and this has been transmitted into the business arena. Organizations have now moved to electronic commerce, a concept whereby there is automatic conduction of information transactions. Electronic commerce includes ventures like Electronic Funds Transfer (EFT), Point of Sale Devices (POS) and Electronic Data Interchange (EDI) (Frazelle, 2009). From late 1990s to the 2000s, online trading communities also emerged, and this amplified the electronic age in the business sector. As years go by, paper transactions are becoming an obsolete phenomenon. The world has been reduced to a global village in terms of technology leading to the interconnection of many manufacturers, suppliers, retailers and customers, regardless of their geographical location (Lu, 2011, p17). The increased competition and business globalizations have also revolutionalised business operations. Companies which are not able to keep up with these conditions face the risk of perennially underperforming or being shut down. Times have changed to the point of forcing managers to make short notice decisions despite having less information. There is entry of new competitors into the market segment that has previously been soaked with “domestic” firms. As a result of all these, customers are also demanding quality services, enhanced product delivery and goods and services that are well suited to their preferences and needs. In fact, in some industries, the product life cycle is shrinking at a resounding rate (Tompkins, 2008).
Despite these challenges in the contemporary business environment, some companies continue to record good fortunes. The companies that continue thriving are those that have embraced contemporary business challenges and have improved their operations so that they are in tandem with the new requirements. Moreover, in order to excel now, companies need to be felt globally. There is need for every company to expand its global presence so that when customers want products, regardless of location, are able to access them at their desired price and quantity. Finally, the manner in which supply chain companies relate determines the level of success of the SCM system. An ineffective manager can break the entire plant, leading to the crippling of many processes.
Warehouse Management System (WMS)
Warehouse management is the component of the supply chain that is tasked with receiving, storing and movement of finished goods to intermediate locations or the end user (Lu, 2011, p8). In order to do this, a warehouse management system is vital. This feature is automated, technology conscious and ensures that supply chains are in tandem with the contemporary technological needs. There are various levels of warehouses used for the transit of goods: central warehouses, regional warehouses and retail warehouses. These represent various echelons in the chain whereby the central warehouses are the topmost stores that store goods after manufacture, and the other represent subsequent levels when goods are passed to different regions and finally to the buyers. Of important note is th...