For modern companies, having a Warehouse Management System (WMS) to handle inventory and track goods is crucial for operational efficiency, responsiveness to market demands, improving delivery accuracy, and reducing downtime. In a competitive environment, goods traceability enables more effective planning, optimizes logistics, and enhances customer service, making it essential for business success.
A WMS: why It’s important for warehouse management
Having a Warehouse Management System is essential for several reasons, including:
- Operational Efficiency: Automates manual processes, reducing operation time and improving efficiency, allowing employees to focus on more strategic tasks.
- Inventory Control: Provides real-time stock visibility, crucial for maintaining a smooth workflow and meeting customer demands.
- Error Reduction: Manual inventory management is prone to errors. A WMS minimizes picking and shipping errors, increasing accuracy.
- Analysis and Reporting: Offers detailed analytical data to identify trends and areas for improvement. Data-driven decisions are more effective and strategic.
- Scalability: With a well-structured system, it’s easier to scale operations as the business grows, managing larger inventories or more complex distribution networks without compromising efficiency.
- Cost Reduction: Optimizing operations reduces operational costs. Fewer errors, more efficient space management, and better resource use contribute to significant savings.
- Integration with Other Systems: Can integrate with other business software, improving inter-departmental communication and ensuring smooth information management.
The warehouse management solution developed for Sagi S.p.A.
Revelis developed a custom module on the PlugAIn platform for Sagi S.p.A., tailored for inbound/outbound processing, batch traceability, inventory monitoring, and integration with robotic handling equipment. Sagi is a leading company in Calabria in the distribution of frozen seafood products with a wide range of items.
Storage area monitoring
Sagi has a large facility for storing and processing goods. A primary requirement was to design the storage areas to facilitate management, including creating two “Warehouses” due to two Cold Rooms.
- The first warehouse is a semi-automatic cell allowing high-volume storage through robots that transport goods through deep tunnels. The system enables operators to analyze the mapped warehouse setup:
- The second warehouse consists of a fully automated cell managed by robots. The system that orchestrates the robots here is called HMS. In this case, no position mapping was necessary, as the goods are continuously moving within an automated warehouse and are already managed by the HMS.
Warehouse management for incoming goods
The client’s requirements included modeling a process for handling incoming goods to enhance the tracking and processing of inbound products. The workflow includes:
- Goods arrival;
- Retrieving reference orders;
- Transport document check;
- Unloading, batch tracking, anomaly management, pallet definition;
- Goods entry;
- Order consolidation on actual received goods.
The following workflow is guided by a series of interfaces that simplify operations and reduce the chances of errors. The figures below show two fundamental features for tracking incoming goods.
The first shows how batches and anomalies are managed:
The second shows how pallets are layered before being stored in the warehouse:
Layering is optional. Importantly, to identify each individual pallet, the system allows for generating a QR code. This can be printed directly from the system and then affixed to the pallet. This will allow the QR code to be scanned with a camera, identifying the goods inside and displaying all detailed information.
For pallet allocation, deductive artificial intelligence techniques are used to optimize the use of available space. These techniques analyze a series of variables, such as package dimensions, physical characteristics of the spaces, and the specific requirements of each unit, to determine the optimal arrangement. Through advanced algorithms, AI can predict the best spatial configuration, reducing waste and maximizing logistical efficiency. This approach enables improved warehouse management by dynamically and adaptively managing pallet distribution, allowing for quick responses to potential changes or constraints.
Warehouse management for outbound goods
Similar principles apply to managing outbound goods. A workflow was implemented to optimize operators’ productivity:
- Retrieve orders to prepare;
- Check stock levels by item;
- Locate goods for picking;
- Pick goods and prepare pallets for dispatch;
- Consolidate orders on goods actually picked.
The following two figures show two important steps in the outbound goods phase. The first shows, after running the algorithm to identify the goods to be picked, which pallets are to be moved for picking. Specifically, the “missions” required to access them are displayed. The algorithm for identifying the “correct” goods uses the expiration date as a criterion, and when expiration dates are the same, it ensures goods are taken from adjacent pallets to minimize the number of actions required by the operator.
The second figure shows the quantities to be picked for each item to fulfill the order. When the retrieval operations from the warehouse are complete, the pallets will be available for collection. As the goods are picked, the quantities on both the Source Pallet and the Target Pallet are updated through the appropriate buttons.
Below are some explanatory videos of the processes.
Monitoring articles and batches
In warehouse management, tracking items and batches is crucial for ensuring traceability and operational efficiency within any logistics and inventory management system. For batches, tracking enables unique identification of similar product groups, facilitating the management of expiration dates, recalls, or quality analysis. This process also helps prevent picking errors, minimizes the risk of obsolete or non-compliant stock, and allows precise management of available quantities.
Continuous monitoring of items and batches:
- ensures transparency;
- optimizes operations;
- supports better planning of company resources;
- while simultaneously enhancing customer satisfaction.
Below is a system feature for searching and tracking items:
Another essential feature is batch tracking, with the added capability to extract items nearing expiration relative to a reference date, as shown in the figure:
Integration with external order management systems
The module, leveraging the PlugAIn architecture, has been designed with flexible and highly integrable logic, allowing for a seamless interface with external order management systems. This integration enables real-time synchronization of order information, reducing manual errors and improving overall operational efficiency, even in multi-system environments.
Integration with pallet handling robots
In the era of Industry 4.0, where connectivity and automation are central, the ability to enable communication between robots and software via Modbus allows companies to enhance flexibility, increase accuracy, and reduce downtime, creating an interconnected and intelligent industrial ecosystem.
For Sagi, a remote control has been implemented for sending tasks to the robots responsible for storing and retrieving pallets from the tunnels. The remote control, which can also be used via tablet, has been integrated directly into the WMS thanks to the libraries provided by the PlugAIn platform, facilitating and optimizing operations for the operators. Below is a figure of the described functionality.
With the panel shown in the interface, it is possible to send and receive data efficiently to manage logistics operations. Using the available commands such as “INSERT,” “FETCH,” “EXTRACT,” and “LOCATE,” the operator can send tasks to insert and retrieve pallets. Additionally, as seen in the figure, it is possible to know the real-time status of the device with a series of grouped information to make it easier for the operator to read.
This implementation logic is also applicable to other devices in Industry 4.0, where it is possible to send and receive data efficiently to optimize production and logistics processes. The flexible structure of the system allows for the adaptation of the same operational functionalities to different machinery or devices. However, to properly integrate such devices, it may be necessary to adapt the communication protocol based on the specific technologies used, thus ensuring smooth interoperability between various industrial components and the central management system.
Integration with the HMS system
One of the main requirements requested by the client was the integration between the WMS (Warehouse Management System) and the HMS (Handling Management System) for managing the Automatic Cell. To this end, a series of communications have been implemented between the two systems for the coordinated management of orders.
During the goods receipt phase, the WMS handles all necessary operations to prepare a pallet (as described in the “Goods Receipt Management” section). Once these operations are completed, the WMS sends the information to the HMS, which initiates the storage process in the automatic cell using a system of motorized rollers.
In the goods dispatch phase, the Warehouse Management System retrieves the details regarding the orders to be prepared. After collecting all the necessary information, it is transmitted to the HMS, which takes care of the picking phase. The two systems are constantly synchronized, ensuring that every withdrawal made by the HMS is immediately communicated to the WMS, ensuring a continuous and accurate flow of operations.
This type of integration between the two systems fully reflects two of the principles underlying Industry 4.0:
Integration of systems
- Vertical Integration: Connection between different production levels, from plant management to administration and supply chain management.
- Horizontal Integration: Connection between different actors in the value chain, enabling real-time cooperation among suppliers, manufacturers, and distributors.
Flexible production and mass customization
- Adaptability: Production systems are designed to be flexible, allowing for rapid changes and adaptations to new specifications or market needs.
- Mass Customization: It is possible to efficiently produce small batches of customized products, responding to specific customer needs without losing the benefits of large-scale production.
Monitoring cells and sensors within the warehouse
For the Sagi case, the functionality for managing and monitoring IoT (Internet of Things) devices is currently being tested, allowing for real-time control of operations and resources. By utilizing the APIs of the PlugAIn framework, integration with sensors and smart devices has been made possible, enabling the system to collect useful data on various parameters such as temperature, humidity, location, and the status of refrigeration units.
This information is processed and displayed directly in the management interface, allowing for the timely identification of any anomalies or operational inefficiencies. The ability to interface with IoT improves product traceability, predictive maintenance of equipment, and process optimization, ensuring greater automation and responsiveness.
Conclusions
Industry 4.0 represents a crucial turning point for the future of production and business management, as it introduces an unprecedented level of automation, connectivity, and data analysis. Additionally, customization and the ability to respond quickly to market demands provide a significant competitive advantage. Industry 4.0 also promotes greater sustainability through the intelligent use of resources and waste reduction. In an increasingly interconnected and digital-oriented world, embracing the principles of Industry 4.0 is essential for remaining competitive, improving productivity, and creating an agile and responsive industrial ecosystem.
Author: Simone Vizza, Massimiliano Ruffolo
