The technology has brought important solutions that can reduce costs and increase business productivity. While WMS (Warehouse Management Systems) aims to automate the processes of receiving, storing and shipping goods, TMS (Transportation Management System0 ensures maximum control of the shipping operation – from shipping to delivery to the customer.
The challenges of maintaining a business are many, and they were further intensified  by the explosion of the digital age, which gave rise to new sales channels, the most popular being the so- called “ e-commerce” .
Such novalties brought new challenges and placed logistics as a key element in the competitive strategy if companies, a tool capable of guaranteeing the success of the processes and good operational and financial results.
After all, Logistics involves an integrated approach, encompassing information systems, inventory, warehousing, handling, packaging and transportation, from the raw material to the end consumer.
With the help of systems and technologies, Logistics helps companies produce more with less costs, less labor, fewer operational errors and more agility.
Besides being fundamental in the storage, distribution and transportation of products, logistics is also a differential in companies, especially e-commerce, as fast delivery interferes with the purchase decision.
According to US Brent Williams and Travis Tokar, professors at the University of Arkansas, 33% of retail logistics expenses are due to inventory maintenance.
In the case of e-commerce, logistics costs are even more decisive for business success, especially transportation. Recent research by the E-commerce School revealed that freight represents 58% of the costs of logistics operations in the sector. That is, without storage and transport control, it is practically impossible to survive.
The WMS management information systems, for distribution centers, and TMS for transportation, facilitate and coordinate operational activities such as inventory management, logistics and distribution, supporting the company’s global processes and making the difference in e-commerce.

What is WMS? 

The WMS (Warehouse Management System) is a management system that controls all stages of the goods warehousing processes.
Works with the integration of hardware, software and peripheral equipment to manage physical space, storage, warehousing, equipment and labor in distribution centers.
The WMS systems utilize Auto ID Data Capture technologies such as bar code, mobile devices and wireless local networks to efficiently monitor product flow. When using technologies such as bar codes and RFID tags, the system records goods receipt and issue, updates inventory (with information such as shelf life, batch number and product data) and evaluates how the product space is being used to optimize your layout.
After all data is collected, WMS synchronizes through a centralized database, which can be used to provide useful reports on the status of the goods in the warehouse.
Through WMS, receiving, storing, sorting and shipping are closely monitored, offering greater inventory accuracy, more efficient location control, automated order processing and consequently cost savings due to increased efficiency and waste reduction.
Imagine the stock of a large e-commerce with hundreds of shelves. Knowing exactly which one is each of the products in the online store can result in waste of time and therefore additional costs. Deploying WMS results in much more efficient warehousing and dispatching of goods, enabling more assertive strategies to be created at all stages of e-commerce.

How WMS Works 

Capable of managing the entire logistics process that takes place within a company’s inventory, WMS impacts operations as follows:

⦁ Receipt


⦁ Reduces
⦁ carriers waiting time


⦁ Manages
⦁ incoming and outgoing vehicles in the warehouse


⦁ Records
⦁ received goods and their characteristics


⦁ Automate
⦁ product conferencing


⦁ Generate
⦁ tags with complete merchandise information

0.
1. Storage
2.

⦁ Defines
⦁ and controls the location of goods in the warehouse.


⦁ Controls
⦁ occupied and vacant spaces


⦁ Warns
⦁ of the need to replace goods

0.
1. Picking (picking
2. and order preparation)
3.

⦁ Sorts
⦁ and separates goods from barcode or RFID tag

0.
1. Production
2.

⦁ Tracks
⦁ and controls manufacturing and procurement raw materials


⦁ Define
⦁ jobs and evaluate performance

0.
1. Expedition
2.

⦁ Issue
⦁ NFs


⦁ Check
⦁ RFID tags


⦁ Controls
⦁ product returns and returns


⦁ Separate
⦁ goods according to region of recipients

0.
1. Management
2.

⦁ Is
⦁ updating the inventory


⦁ Controls
⦁ Validity and Loss


⦁ Warns
⦁ of need for replacement of raw materials and products

WMS Advantages

⦁ Optimizes
⦁ storage space usage based on real-time information on shelf usage status;


⦁ Speeds
⦁ the location of items;


⦁ Controls
⦁ the entry and exit of goods;


⦁ Manages
⦁ inventory and orders, with online reports that allow you to follow the entire distribution path in real time;


⦁ Improves
⦁ productivity


⦁ Makes
⦁ possible planning, tracking and manpower functionality;


⦁ Provides
⦁ real-time information


⦁ Makes
⦁ operational and management reports;


⦁ Reduces
⦁ operations errors;


⦁ Predict
⦁ demands and identify purchase needs, reducing inventory and optimizing space


⦁ Reduces
⦁ warehousing and labor costs.


What is TMS? 

Managing freight transport  efficiently is a challenge for logistics operators, carriers, companies that make their own transportation and many others that outsource this service, such as e-commerce companies.
The transport operations have a major impact on organizations, mainly financial – it is estimated that one third of logistics costs is intended for transportortation.
The Transportation Management System (TMS) is a software that aims to achieve excellence throughout the distribution process, managing the entire transportation operation and management in an integrated manner.
The TMS system allows the planning and monitoring of all distribution operations, route and modal planning, document issuance, cargo assembly, delivery and collection tracking, fleet tracking.
If you have an online store, you know that your customers are increasingly demanding: they want cheap freight, fast delivery and the ability to constantly monitor their orders.
The problem is that, often, not even the company itself has full control of the process of forwarding products to the final consumer. The TMS was made exactly to optimize and rationalize this stage of the logistics chain. It ensures that your cargo is on its way and shows all its progress to the destination address. It is possible to check the characteristics of the carrier’s fleet, the route traveled and the estimated arrival.

How TMS Works
The TMS is an online system that works and allows you to transfer the management of cargo transportation processes before accomplished by means of various worksheets and notes for a software.
The well – structured TMS has some features:

⦁ Planning :
⦁ budget control and analysis of variables, transport budget setting, route and modal planning , equipment sizing calculation and fleet renewal;


⦁ Operation :  control
⦁ of delivery and collection and tracking of cargo;


⦁ Cost :  the
⦁ operation and maintenance;


⦁ Supplies :  control
⦁ of materials in own workshops, requisitions and purchasing;


⦁ Tracking :
⦁ wireless data  transmission , interface with GPS trackers;


⦁ Billing
⦁ Shipping :  request
⦁ transportation, invoice records, customer and third records, rates and rates of the transport network, order collection, customer billing invoice issue;



⦁ Inventory Control : control of products, orders, purchases and movements;


⦁ Shipping: control
⦁ of the shipment of goods to some destination;



⦁ Profitability Analysis :  Information
⦁ on how each customer yields to the company.

Who can use TMS
This system is flexible and meets the needs of carriers, carriers, companies that make their own transportation or companies that outsource this service by hiring carriers.
In accordance with the purpose, the TMS can be customized as the organization chooses the most appropriate modules to their activities.

TMS Advantages

⦁ performs
⦁ real-time and automatic freight calculations, allowing you to choose the best carrier for each delivery;


⦁ develops
⦁ scenario simulation for freight strategy optimization (route and mode combinations, comparison between pricing models, etc.);


⦁ performs
⦁ tracking of deliveries in real time, and schedule automatic notifications to the client according to the status of delivery;


⦁ automates
⦁ the exchange of information with carriers and post offices (through webservice, EDI and any other form of communication), with electronic transmission of packing, generating more agility and clarity in the distribution process;



⦁ delivery scheduling ;



⦁ alarm triggering against route deviations, control over stop times;


⦁ Improved
⦁ cargo composition and route planning;


⦁ Visualization
⦁ of shipments, collections and deliveries;


⦁ reduction
⦁ of transportation costs – one of the largest costs a company has;


⦁ improvement
⦁ in the level of delivery service;


⦁ greater
⦁ control over travel;


⦁ availability
⦁ of data that allows freight composition analysis (which can be calculated by customer, by order, or by product, for example),


⦁ improved
⦁ communication and information availability;


⦁ generation
⦁ of management reports that assist in the preparation and management of performance indicators.

Integrated WMS and TMS

While WMS seeks to automate the receiving, storing and shipping processes, TMS ensures maximum control of the shipping operation – from shipping to delivery to the customer. These are important controls over different stages of the logistics chain.
Both technologies can be interconnected, facilitating the logistics process for companies to gain agility, reduce costs and conquer efficiency.
Sequoia operates under the integrated management model, providing the most appropriate solutions for each company. Through specific consultancies, Sequoia develops customized strategies which include demand, supply and inventory planning.