Implementing a Warehouse Management System (WMS) revolutionizes how warehouses are structured and managed, offering granular control, real-time visibility, and optimized operations. This guide explains how WMS integrates with plant storage locations, organizes warehouse types, and manages inventory at the storage bin level, enhancing overall warehouse efficiency.


Understanding Warehouse Structure With WMS

A warehouse structure with WMS involves defining warehouse complexes and organizing them into storage types such as:

  1. High-rack storage
  2. Block storage
  3. Picking areas

These storage types are grouped under a warehouse number, which acts as a central identifier for managing all activities.


Key Features of a WMS Warehouse Structure

FeatureDescription
Warehouse NumberRepresents a collection of storage types within a warehouse complex.
Storage TypesSubdivisions of a warehouse (e.g., high-rack storage, bulk storage).
Storage BinsSmallest physical locations where stock is stored and managed at a granular level.
Integration with IMLinks stock levels at the storage location level with storage bin details.
Warehouse Structure With WMS

How to Structure a Warehouse With WMS

1. Defining Warehouse Numbers

A warehouse number groups storage types within a plant or across multiple plants.

  • Each warehouse number is assigned to a storage location in Inventory Management (IM).
  • Example:
    • Plant 0001: Storage location 0088 → Warehouse number 001.
    • Plant 0002: Storage location 0077 → Warehouse number 002.

2. Organizing Storage Types

Within each warehouse number, storage types are defined to represent distinct functional areas of the warehouse.

Example Storage Types in a Warehouse Complex

Warehouse NumberStorage TypesPurpose
001001 (High-Rack Storage)For palletized items.
002 (Bulk Storage)For large or heavy goods.
003 (Picking Area)For frequently accessed items.
002001 (High-Rack Storage)Shared functionality.
002 (Bulk Storage)Shared functionality.
004, 005 (Additional Functional Areas)Specialized purposes.
Example Storage Types in a Warehouse Complex

3. Assigning Storage Bins

In WMS, storage bins are defined for each storage type. These bins represent the smallest physical locations for stock management.

Key Points:

  • Each bin is tied to specific materials, enabling detailed tracking.
  • Stock is managed at the storage bin level in WMS, while Inventory Management (IM) handles stock at the storage location level.

Pro Tip: Use barcode labels or RFID tags for efficient bin-level tracking.


4. Linking IM and WMS

To integrate Inventory Management (IM) with WMS:

  • Assign a warehouse number to the relevant storage location in IM.
  • This ensures seamless data flow between storage location stock totals in IM and bin-level details in WMS.

Example Configuration Path:

  • Navigate to:
    Enterprise Structure → Assignment → Logistics Execution → Assign Warehouse Number to Plant / Storage Location
Warehouse Structure With WMS complete guide

Managing Multiple Plants and Storage Locations in WMS

WMS offers flexibility to handle multiple plants or storage locations within the same warehouse number:

Scenarios

  1. Single Plant, Multiple Storage Locations:
    • Example: Plant 0001 manages both high-rack and bulk storage (locations 0088 and 0077) under warehouse number 001.
  2. Multiple Plants, Shared Warehouse:
    • Example: Plants 0001 and 0002 share the same warehouse number (001) for their storage locations.
Warehouse Structure With WMS

Benefits of a Warehouse Structure With WMS

BenefitDescription
Granular Stock ManagementTracks inventory at the storage bin level for precise control.
Integrated ProcessesLinks warehouse activities with Quality Management (QM), Product Planning (PP), and Sales and Distribution (SD).
Real-Time Inventory VisibilityProvides instant updates on stock location and quantities.
Optimized Resource UsageEnables efficient use of space and faster picking through system automation.
Warehouse Structure With WMS

Comparison: Without WMS vs. With WMS

FeatureWithout WMSWith WMS
Storage LevelsManaged at storage location levelManaged at storage bin level.
Random StorageNot supportedFully supported.
Stock TrackingTotal quantitiesDetailed per-bin tracking.
AutomationMinimalAdvanced automation available.
ScalabilityLimitedHighly scalable for large operations.
Warehouse Structure With WMS

When to Use a WMS Warehouse Structure

A WMS structure is ideal if:

  • You require bin-level tracking for high SKU variability.
  • Your warehouse operations involve complex workflows, such as cross-docking or dynamic storage.
  • You need integration with other processes, including QM, PP, or SD.

Conclusion

A warehouse structure with WMS provides unparalleled control and efficiency by organizing warehouses into storage types, managing inventory at the storage bin level, and integrating seamlessly with Inventory Management (IM). While it requires a more sophisticated setup, the benefits—such as real-time tracking, automation, and scalability—make it an indispensable tool for modern warehouse operations.