Journal of Logistics and Supply Chain 02 (2) (2022) 81-90

Journal of Logistics and Supply Chain

Journal homepage: https://ejournal.upi.edu/index.php/JLSC

Implementation of Warehouse Management System

Planning in Finished Goods Warehouse
Wiku Larutama1*, Dewang Rangga Bentar2, Rifqy Oktavian Risdayanto3, Ridwan Salman Alvariedz4

1,2,3,4
Universitas Pendidikan Indonesia, Indonesia
*Correspondence: E-mail:wiku.larutama@upi.edu,

ABSTRACTS ARTICLE INFO

Warehouses play an important role in the supply chain by Article History:
Submitted/Received 29 June 2022
serving as a link between producers and end consumers. First Revised 17 July 2022
Warehouses not only serve as a place to store goods, but also Accepted 03 Sept 2022
have other important functions. Operational efficiency and Online Date 31 Sept 2022
Published Date 01 October 2022
logistics control in finished goods warehouses are
increasingly becoming an urgent need for companies in Keyword:
various industries. However, ineffective warehouse Finished Goods,
Operational Efficiency,
management can lead to negative impacts such as decreased
Productivity,
profits and customer dissatisfaction. Therefore, efforts are Warehouse
needed to manage warehouses with good efficiency and
structure. This article discusses the concept of Warehouse
Management System (WMS) and finished goods warehouse
management in an effort to improve operational efficiency
and logistics control. Through a qualitative approach with
data acquisition using literature review from various relevant
sources, the relationship between the use of WMS and
increased productivity in a company is examined. The results
showed that there was a significant improvement in the
performance of a company. The WMS is proven to increase
the number of orders received and the company’s
operational efficiency. WMS aids inventory management
with real-time stock data, preventing shortages or excesses.
Successful implementation demands proper strategy, tech
utilization, planning, system integration, and employee
training. Thus, WMS implementation can bring about
positive changes in warehouse operational efficiency,
inventory optimization, and meeting customer needs.

© 2022 Universitas Pendidikan Indonesia

 W. Larutama, et.al., Implementation of Warehouse Management System Planning in Finished Goods
Warehouse)| 82

1. INTRODUCTION
Efficient warehouse management is vital for businesses in today's intricate and
competitive industrial landscape. Nowadays, the warehouse acts as a competitive factor in
any supply chain as it has a main role in linking all the partners in it (Hamdy et al., 2020).
Warehouses are an integral part of any logistics system and supply chain management and
have an important role as a link in the flow of materials or goods from producers to end
consumers or customers (Susanto & Hasibuan, 2017). In the past, warehouses primarily
served as static storage facilities for products awaiting distribution. However, the dynamics
of consumer demands, e-commerce proliferation, and global supply chains have transformed
warehouses into dynamic hubs that demand precision, speed, and adaptability.
Over the last decade, there has been continuous pressure for organizations to focus
on the sustainability and accountability of a company’s performance beyond the border of
financial issues (Torabizadeh et al., 2020). Towards this end, companies have been striving to
improve the efficiencies of their operations through improvements in the processes (Mahalik
& Nambiar, 2010). On top of that, companies constantly need to anticipate and adjust to
changing client needs and societal requirements. Hence, one could argue that the ability of
organizations to renew their knowledge – in other words, knowledge innovation – is pivotal
to achieving corporate excellence and competitive advantage (Rademakers, 2005). With
the growing concern for modern competitiveness, companies today are are now turning to
implementing technology into their operations. One form of applying this concept of
effectiveness can be found in finished goods warehouses. Finished goods warehouses, or
warehouses in general, are currently implementing technology in their operational processes,
either partially or completely. According to Statista (2019), the technology adoption rate in
2019 only reached eight percent but has the potential to increase to 45 percent by 2030. This
shows that some industries are starting to realize the importance of effective management in
the finished goods warehouse. As a result, profits may be affected, and customers may
become dissatisfied, leading to other negative consequences. Therefore, there is a need to
manage warehouses in an efficient and structured manner.

Figure 1. Technology adoption in warehouse automation worldwide in 2019 and

2030 (Source: https://www.statista.com/)
83 | Journal of Logistics and Supply Chain, Volume 02 Issue 2, October 2022 pg. 81-90

Based on the above background, WMS and its application in the context of warehouse
management need to be explained in detail regarding the importance of understanding the
topic in order to improve operational efficiency and logistics control in finished goods
warehouses. A comprehensive understanding of the scope of warehouse management
related to Warehouse Management System (WMS) and finished goods warehouse
management is needed as a reference source that can help readers to understand the
concepts, principles, and best practices in warehouse management. It is hoped that readers
can gain understanding and apply this knowledge in their work environment.
2. THEORITICAL BASIS
2.1. Warehouse Management System
WMS is an information technology database used to support storage operations and
increase warehouse productivity by coordinating integrated storage activities and keeping
accurate inventory (Istiqomah et al., 2020). WMS acts as a system that organizes all
warehousing activities in the supply chain, such as receiving stock, storing stock, and
managing stock orders. The software helps to keep the check on the inventory, raw
material, and shipment details and customers feedback (Ali et al., 2020). The use of WMS
is becoming more frequent in this modern era. As warehouses and DCs become more
automated and less reliant on human labor, and as that labor becomes harder to come by
and more expensive, software that supports these operations is in high demand (McCrea,
2019). Based on a survey conducted by McCrea (2022), more than half (56%) of the
companies surveyed use WMS, inventory management, etc. software; 30% use supply
chain management and planning (SCP) software; and 26% currently use Transportation
Management System (TMS). The urgency of using WMS in this modern age is driven by
the need for businesses to improve their operational efficiency, reduce costs, and meet
increasing customer expectations.
In the present day, Warehouse Management Systems (WMS) are extensively
employed across various industries to optimize warehouse operations and enhance
supply chain efficiency. The use of WMS has evolved to address modern business
challenges and capitalize on technological advancements. The influence of WMS extends
to the complex landscape of multi-channel retail, enabling businesses to effectively
oversee inventory and orders across diverse sales platforms. WMS is pivotal in managing
product returns proficiently, facilitating the reverse logistics process with clarity and
efficacy. Integration with automation technologies enhances operational workflows,
while data analytics tools embedded within modern WMS offer valuable insights for
refining warehouse performance. Ensuring compliance, traceability, and real-time
tracking of shipments, WMS caters to industries with rigorous regulatory requirements.
Integration with other enterprise systems and a positive impact on customer experience
further underline the contemporary significance of WMS. Their scalability and adaptability
make WMS suitable for businesses of all scales and industries. As technological progress
continues, the role of WMS is poised to evolve further, adapting to the evolving demands
of a globally interconnected business environment.
 W. Larutama, et.al., Implementation of Warehouse Management System Planning in Finished Goods
Warehouse)| 84

2.2. Finished Goods Warehouse

A finished goods warehouse is a space designed to store products that have come off
the production line and are ready to be sold or distributed (Mecalux.es, 2021). This
warehouse is used to store products or goods that have been completed. This type of
warehouse is usually located near production facilities or distribution centers, and it plays
an important role in the supply chain management process.
Finished goods warehouses can be used for different types of purposes, including by
manufacturers, wholesalers, and retailers. The specific requirements for a finished goods
warehouse will depend on the nature of the products being stored and the needs of the
business. The goods stored can vary, but in general, the goods stored in a finished goods
warehouse, for example, are electronics, clothes, food, and goods that are ready to be
shipped and used.
In today's business landscape, finished goods warehouses continue to hold significant
importance across industries. These warehouses serve as pivotal hubs for manufacturers,
wholesalers, and retailers, facilitating streamlined supply chain management and efficient
distribution processes. Modern businesses rely on finished goods warehouses to
effectively manage inventory, fulfill orders promptly, and adapt to fluctuating customer
demands. By centralizing products ready for distribution, these warehouses enable
companies to optimize inventory levels, meet customer expectations, and ensure timely
order deliveries.

3. METHODS
The research methodology employed for this study is primarily qualitative in nature,
adopting a systematic approach to gather valuable insights. The data acquisition process
involves conducting an extensive literature review, drawing information from a diverse array
of pertinent sources. The choice of a qualitative methodology stems from the objective of
generating a conceptual framework and innovative ideas pertaining to the central theme of
the study.
The sources used are articles, journals, books and publications relevant to the topic of
discussion. Articles and journals were obtained from reputable sites such as Google Scholar,
ResearchGate, Taylor and Francis, Emerald, ScienceDirect and other journal sites. The
flowchart of the overall methodology of working on the article is shown as shown in the figure
below.

Figure 1. Methodology Flow

85 | Journal of Logistics and Supply Chain, Volume 02 Issue 2, October 2022 pg. 81-90

The research process begins by choosing a topic and defining the problem to be
addressed. After clarifying the problem, the next step involves gathering relevant sources of
information, like articles and studies. These sources are essential for analyzing data and
studying real-world cases. Once all this information is collected, it's used to create a scientific
article that presents the research findings and insights.

4. RESULTS AND DISCUSSION

Warehousing and material handling systems play a vital role in maintaining a smooth
supply chain. The requirements of warehousing and handling operations have seen a
significant increase in recent years, demanding more sophisticated and efficient solutions.
Warehousing refers to activities related to inventory management within the warehouse
area, including receipt of goods, handling of purchased goods, selection, collection, and
activities related to sorting (Tomáš Kučera, 2017). WMS is applied to improve the
effectiveness and management of warehousing with the aim of improving management
decision-making and minimizing the amount of unnecessary inventory in the manufacturing
process (Jiun-Yan Shiau and Ming-Chang Lee, 2010). An automated warehousing system
provides easier organization, more efficient results, and reliability, compared to manual
management in a finished goods warehouse.
4.1 Implementation of WMS in Finished Goods Warehouse
The application of technology in various fields has been integrated into warehouse
management. Automation in the process can be improved by using robotics technology.
The use of robots in material handling is done by incorporating radio frequency
identification (RFID), which will be connected to computer programming by integrating
tools such as material resource planning and enterprise resource planning to streamline
material handling data management (M. Shashidharan et al., 2021). This planning
software supports effective inventory management by performing replenishment on a
precise schedule and maintaining optimal quantities in real-time. Using QR codes or
barcodes along with wireless technology will provide additional benefits in the process.
Maintaining accurate stock in the finished goods warehouse can be done by conducting
regular physical counts of the products in the warehouse. This counting is done daily and
on a regular basis. WMS is a solution to make the stock counting process easier and faster
because, by using WMS, inventory data recorded in the SAP (System Applications Product)
system can be automatically adjusted to the physical data of products in the warehouse
(Andi Haslindah et al., 2017). SAP is an Enterprise Resources Planning-based software that
functions to manage various daily activities in an organization or company. With the use
of WMS, company is able to monitor and track product items, their quantity per pallet,
the location of the product in the storage bin, and the batch of each product. This helps
reduce human error and improve the accuracy of stock counts.
4.2 Advantages of WMS Implementation in a Finished Goods Warehouse
Implementing a WMS in a finished goods warehouse has many advantages. According
to Nadya Amanda Istiqomah et al. (2020), WMS makes it possible to reduce errors in
receiving goods and increase the speed of the process. In addition, WMS can
automatically identify the storage location of goods, reduce errors in storing goods in the
storage area, and minimize errors in determining the location and goods taken by the
picker. The WMS can also increase the speed of pickers in picking goods, assist in
recognizing shortages or excess quantities of goods, know the reliability and quality of
goods to be shipped, and reduce human error in checking goods. In addition, the WMS
also accelerates the delivery of information and report data obtained from the processes
 W. Larutama, et.al., Implementation of Warehouse Management System Planning in Finished Goods
Warehouse)| 86
of receiving, storing, order processing, outgoing inspection, loading, and stock
take/opname. All this information is directly updated in the WMS, thus ensuring the
accuracy of the data obtained.
Secondly, order fulfillment processes are streamlined as WMS optimizes order picking
routes, ensuring quicker and error-free order processing, ultimately boosting customer
satisfaction. Thirdly, the system optimizes space utilization by suggesting ideal item
placement based on demand patterns, leading to efficient storage. Effective labor
management is another benefit, as WMS aids in resource allocation and task assignment,
granting real-time insights for strategic decisions. Moreover, real-time tracking and
visibility into inventory levels and order statuses enable proactive issue resolution. By
minimizing cycle times and errors, WMS accelerates throughputs and reduces returns.
Additionally, compliance adherence and traceability improve due to accurate inventory
records. Data generated by WMS empowers data-driven decision-making, while the
system's scalability caters to business growth. Integration with other systems like ERP and
TMS ensures seamless information flow. Despite initial costs, the long-term savings from
error reduction, efficient labor utilization, optimized inventory management, and space
usage make WMS implementation financially beneficial. In conclusion, adopting a WMS
in a finished goods warehouse substantially enhances efficiency, inventory control, and
customer satisfaction, necessitating careful planning and training for optimal results.

4.3 Challenges in WMS Implementation

As technology continues to evolve, WMS contributes to logistics and supply chain
systems to help simplify their implementation. The logistics industry has experienced
tremendous advances in technology in the past few decades. WMS makes a significant
contribution in simplifying the implementation of logistics and supply chain systems, but
there are several challenges that need to be overcome in the implementation process.
According to Rafael de Assis and Juliana Keiko Sagawa (2018), one of the main challenges
in the implementation process is predicting and overcoming the cultural shock that is
bound to occur. The WMS system is complex because it requires standardizing and
formalizing processes, reducing the use of informal and alternative records, and
monitoring and tracking the overall movement of components. It also demonstrates the
productivity of the people involved, directs tasks, and provides little decision autonomy
for standardized operations. These new working practices have significantly changed the
routine of logistics operators compared to the past.
The next challenge is system integration that can arise when connecting the WMS with
existing systems to ensure smooth data flow and synchronization between systems. One
of the challenges in WMS integration is ensuring effective integration between the WMS
and the Customer Host system (Natesan Andiyappillai, 2020). During the integration
process, technical challenges can arise in connecting different systems, mapping data
correctly, and ensuring proper synchronization between the WMS and other external
systems. This requires close cooperation between the technical teams involved in the
implementation. To achieve this, an in-depth understanding of the business needs and
capabilities of the Host system is required in order to select and implement a suitable
integration. Careful evaluation of factors such as system requirements, product
capabilities, flexibility and reliability is necessary to ensure seamless integration and real-
time data delivery. Employees who have the responsibility of using the WMS must receive
adequate training to operate the system with expertise. This challenge involves providing
effective training and a comprehensive understanding of the features and functionality of
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the WMS. It is important to ensure that employees are involved in the planning and
development process of the system, so that they feel they have a significant role in the
use of the WMS and can more easily accept necessary changes.
The challenges of WMS implementation in data security and protection are related to
protecting the database and regulating software access. In this context, effective data
protection measures need to be implemented to keep the database safe from internal
and external threats (Chen Chen, et al., 2018). Care needs to be taken in designing and
configuring WMS systems to meet high security standards, as well as conducting regular
monitoring and updates to address security vulnerabilities that may arise over time.
Integrating appropriate data protection measures into the design and operation of the
system to maintain the confidentiality, integrity, and availability of the data stored in it is
to protect the database with high security and regulate software access.

4.4 Case Study

La Ruche Logistique is a logistics company that has renovated its warehouse and has a
3,000 m2 warehouse in Créancey, France, to meet the new demands of its customers
(mostly e-commerce companies). La Ruche Logistique uses Easy WMS, a powerful and
versatile software, to optimize their logistics processes. Easy WMS is able to efficiently
control warehouses, whether they are manually operated with paper or radiofrequency
devices, mixed warehouses, or large automated warehouses. With multi-owner, multi-
site, and multi-language features, Easy WMS simplifies warehouse management, no
matter how large or what type of warehouse is operated. The company managed to
increase the number of daily processed orders from 150 to 500, consisting of more than
3,000 order lines that were distributed and shipped in a matter of hours. In other words,
the company not only increased productivity but also work speed by using this WMS.

Figure 2. Easy WMS Mapping

(Source: https://www.mecalux.com/)

Figure 3. E a s y WM S Dashboard
(Source: https://www.mecalux.com/)

The organization of operations and workers must also be taken into account when
 W. Larutama, et.al., Implementation of Warehouse Management System Planning in Finished Goods
Warehouse)| 88
improving item selection. Operators use radio frequency terminals to communicate in
real-time with the WMS, receive orders, and confirm that they have been fulfilled. La
Ruche Logistique has implemented Multi-Carrier Shipping, an Easy WMS module that
manages the packaging and labeling process. In addition, the WMS can communicate with
the shipping agents who distribute the orders. The program enables control of the number
of packages so that transport agents know in advance how many boxes make up each
order, printing of the necessary documents, both labels for carriers and delivery notes, as
well as confirmation of tracking numbers that allow end customers to track shipments.
According to Thomas Largeron, who is the founder of La Ruche Logistique, thanks to the
Multi-Carrier Shipping feature, Easy WMS can communicate directly with the carriers to
notify them of orders to be distributed.

Table 1. Productivity Comparison of La Ruche Logistique Company

Before After Improvement (%)

Number of SKUs 6000 12000 100

No. of packages received/day 100 200 100

No. of packages dispatched/day 50 150 200

No. orders prepared/day 150 500 233

Number of lines that make up 1000 3000 200

the orders

The table above shows a comparison of the productivity of La Ruche Logistique before
and after using WMS. The results show a significant improvement in the company's
performance. Before using the WMS, the number of orders that could be processed daily
was only around 150, but after implementing the system, the company managed to
increase the number of orders processed to 500 per day. In addition, there was also an
improvement in operational efficiency, with more than 3,000 order lines distributed and
shipped within hours. The WMS enabled the company to face the rapid growth of e-
commerce with more efficient operations and significantly improved productivity.

5. CONCLUSION
The implementation of a WMS in a finished goods warehouse provides significant
benefits in increasing operational efficiency, optimizing inventory management, and
improving customer service. WMS helps warehouse management processes become more
structured and automated, enabling a reduction in the time and effort required to complete
tasks such as item selection, storage, and shipping. In addition, WMS also assists in inventory
management by providing accurate and real-time information on stock items, ensuring timely
availability and avoiding shortages or excess inventory. Challenges in WMS implementation
also need to be overcome with the right strategies and the use of relevant technologies.
Successful implementation requires careful planning, including needs analysis, selection of
appropriate software, and adequate training for employees. In addition, integration of the
WMS with existing systems also needs to be considered to ensure smooth operations and
compatibility. The implementation of a WMS can bring about positive changes in warehouse
89 | Journal of Logistics and Supply Chain, Volume 02 Issue 2, October 2022 pg. 81-90

operations, improve efficiency, optimize inventory, and better meet customer needs, given
the right strategy and the use of relevant technology.

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