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Week 10 | Session 5: Information Systems — WMS & TMS (Warehouse & Transportation Management Systems)

Course: Supply Chain Digitization — Module 4: Digital Infrastructure



WMS & TMS — Warehouse & Transportation Information Systems

AttributeWMSTMS
Full nameWarehouse Management SystemTransportation Management System
FocusActivities inside the warehouse/facilityMaterial movement between facilities
ScopeReceiving → Put away → Storage → Picking → DispatchFreight, routing, dock scheduling, yard management
Facility typesWarehouse, DC, fulfillment center, sort center, cross-dockLong-haul, last-mile, inter-facility transport
Linked toERP (materials module), TMSERP (vendor module), WMS
DevelopedIn-house or procured (same or different vendor as ERP)In-house or procured — often integrated with WMS

Warehouse activities are very specific to the product type, facility layout, and process — not common across all businesses. ERP handles common business functions (finance, HR, projects) — not granular warehouse ops. WMS and ERP are often from the same vendor but are separate modules — integration is required.

Facility TypeCharacteristics
WarehouseLong-term storage — items may stay months before moving
Distribution Center (DC)Shorter hold — regular picking and dispatching to retailers
Fulfillment CenterE-commerce focused — fast individual order fulfillment
Sort Center / Cross-dockItems arrive and leave within 8–12 hours — no long-term storage
TermDefinition
Pallet positionsIndividual storage slots (each square = 1 pallet from top view). Can be stacked vertically on racks.
Aisle spaceMovement corridor between storage rows — no storage, only transit.
Inbound docksArea where incoming vehicles unload materials (multiple docks possible).
Outbound dockArea where outgoing vehicles load materials for dispatch.
YardOpen space around building — vehicle parking and large equipment.
SKUStock Keeping Unit — a specific product type + size + unit (e.g., shampoo 200ml).
  1. Receiving (Inbound): Materials arrive at inbound docks. Items unloaded, scanned (T&T integration), GRN generated.
  2. Put Away: Items moved from inbound to designated storage location. WMS provides sequencing to minimize travel. Location assigned based on SKU movement speed, size, etc.
  3. Storage: Items held for planned duration. WMS shows real-time pallet position availability. Tracks utilization by zone, rack, position.
  4. Picking: Orders received → WMS generates pick list (sequence + quantity). Picker or automated equipment follows list. Picking order minimizes travel distance.
  5. Staging & Dispatch: Picked items moved to outbound area (staging). Loaded onto vehicle. Outbound GRN-equivalent generated. Dock allocated by TMS.

WMS FunctionalityWhat it Does
Real-time VisualizationShows top-view of warehouse — pallet positions: full, empty, partially empty. Color-coded by status. Instant snapshot of capacity utilization.
Space Allocation / SlottingDecision support: where to assign SKUs based on movement speed (fast-movers near outbound), size, product type. Suggests optimal pallet position for each incoming product.
Goods Receipt ManagementRecords inbound completion — all pallets unloaded? GRN generated? Integrated with T&T scanning. Links to ERP materials module.
Put Away SequencingTells operator: visit position A first, then B — minimizes travel distance. Also handles multi-pallet put away sequencing.
Pick List GenerationBased on orders received — generates ordered pick list with quantities and locations. Assigns pickers and equipment. Minimizes travel; handles partial and bulk picks.
Performance ReportingDaily productivity metrics: throughput, utilization %, equipment utilization, picker productivity. Zone-level and facility-level reporting.

TMS manages the movement of materials between facilities — factory → warehouse → DC → retail store. Covers: manpower, equipment, commercial terms, regulatory compliance, route planning.

TermDefinition
FTLFull Truck Load — vehicle used to full capacity for one consignment
LTLLess than Truck Load — vehicle carries partial loads; may combine multiple consignments
BackhaulReturn journey of vehicle after delivery — goes to warehouse OR proceeds to another pickup
DockLoading/unloading bay at a warehouse — same term used in warehousing and port contexts
Yard managementManaging vehicle and equipment parking area around the warehouse building
TMS FunctionalityWhat it Does
Dock SchedulingWhich vehicle goes to which dock? When will a dock be free? Assign next vehicle. Connects TMS with WMS — dock availability depends on warehouse pick/load progress.
Yard ManagementManages open space — parking of vehicles awaiting dock allocation. Positioning of heavy equipment (cranes, forklifts). Tracks what is in the yard and when it needs to move.
Freight ManagementMode selection: road vs sea vs air — decision support based on cost, speed, urgency. FTL vs LTL decisions to maximize vehicle utilization. Compares freight costs across options.
DocumentationAuto-generates shipping documents, delivery orders, customs paperwork. Handles regulatory/compliance requirements for inter-state or international shipments.
Vehicle RoutingFor last-mile / multi-stop deliveries: decides optimal order of retail stores to visit. Minimizes total distance/time. Determines backhaul: return to warehouse or proceed to another pickup?

5. Integration — How ERP, WMS & TMS Connect

Section titled “5. Integration — How ERP, WMS & TMS Connect”

All three systems are interrelated — data flows between them continuously:

IntegrationData Flow & Purpose
ERP ↔ WMSProduction schedule informs warehouse of expected inbound. Dispatch records update ERP materials module. Spend data flows to ERP finance.
ERP ↔ TMSVendor delivery schedules from ERP procurement module inform TMS dock scheduling. Freight costs flow back to ERP for spend analysis.
WMS ↔ TMSWMS tells TMS when dock is clear and items are ready for loading. TMS tells WMS vehicle arrival time so dock can be pre-cleared.
WMS ↔ T&TBarcode/RFID scans at inbound dock update WMS inventory in real time. Pick scan confirms what has been picked and loaded.
TMS ↔ T&TVehicle tracking (GPS, telematics) updates TMS with live vehicle location and delivery confirmation at customer point.

End-to-end flow example: Production completes at factory (ERP) → truck dispatched (TMS) → arrives at dock (WMS dock scheduling) → items scanned in (T&T → WMS) → pick list generated for retail orders (WMS) → vehicle routed to stores (TMS).


6. Implementation Considerations for WMS & TMS

Section titled “6. Implementation Considerations for WMS & TMS”
Implementation QuestionWhy it Matters
Scale of business?Determines which modules to implement and whether to procure or build in-house
ERP integration possible?If WMS/TMS data cannot feed into ERP, value of the system is severely reduced
Partner WMS/TMS fit?Can your warehouse WMS talk to your vendor’s or client’s TMS? Cross-system compatibility is key
Digital readiness of people?Staff must be trained on devices and software — not just operational tasks
Adaptability to change?Product mix changes, demand variability, regulation changes — can the system adapt?
Routing complexity?Complex multi-stop or multi-mode routing requirements determine how sophisticated a TMS is needed
Scalability?Ability to adapt quickly determines how fast the business can scale. Rigid systems slow growth.

  • WMS: manages activities inside the warehouse — receiving, put away, storage, picking, dispatch, performance metrics.
  • TMS: manages material movement between facilities — dock scheduling, yard mgmt, freight, routing, documentation.
  • Key terms: dock, aisle, pallet position, SKU, FTL, LTL, backhaul, yard, cross-dock, sort center.
  • WMS functionalities: real-time visualization, slotting, GRN, put away sequencing, pick list, performance reporting.
  • TMS functionalities: dock scheduling, yard management, freight mode selection, documentation, vehicle routing.
  • Integration: ERP ↔ WMS ↔ TMS ↔ T&T — all linked. Data flows across all systems in a well-designed SC IS landscape.
  • WMS vs ERP: separate because warehouse activities are too specific for generic ERP — same vendor possible but different modules.