The Hidden Risk in Your WMS Implementation: How Inaccurate Item and Location Data Can Derail Your Operations

“How much candy did you order?!” I exclaimed in amazement after opening a large box delivered to our home.

“A few boxes of different kinds,” my wife replied, explaining they were for a school event.

“Boxes, or cases?” I asked, showing her the massive quantity of candy that had arrived. She pulled up the receipt, confirming she’d ordered several boxes of various candies. However, instead of receiving boxes—like the dozen-count candy bars you’d typically find at a grocery checkout—we received full cases for several of the items.

I glanced at her order and what we actually received and immediately identified the root cause. For the items shipped in error, the “box” quantities matched the number of full cases we received. While there could be various explanations for this, I knew exactly what had happened. Having dealt with this type of issue from the corporate troubleshooting side more times than I care to mention, I had now become the lucky customer—thanks to bad data!

As an industry expert in implementing Warehouse Management Systems (WMS) across various companies, I’ve had the opportunity to witness firsthand the challenges and complexities that come with integrating these advanced systems into live warehouse environments. Over the years, one key lesson has stood out—despite all the technological advancements in warehouse management, one critical aspect continues to be overlooked: the accuracy of item and location data.

There’s a lot to account for when executing a WMS implementation: planning, installation, configuration, training, integration, and ongoing support. Companies recognize that item and location data accuracy is important, but some data points required by the new system are either entirely new to the company (requiring gathering) or unreliable at best. Depending on the company’s products and warehouse profile, multiplying just 10-20 data points by 30,000 warehouse storage locations or 80,000 items can result in millions of pieces of data to gather, validate, and ensure consistency. It’s a time-consuming, physical process involving specialized equipment. Putting the right team and processes in place to capture this information consistently and accurately is critical for a smooth operation free from errors due to bad data. Without these foundational elements, even the most sophisticated WMS can falter, leading to operational disruptions, employee frustration, and ultimately, a failed implementation.

The Consequences of Bad Data
Bad data—specifically inaccurate or incomplete item and location data—can quickly lead to significant issues in warehouse operations. One of the primary ways this manifests is in inventory movement, both inbound (receiving) and outbound (shipping). If the system can’t track inventory movement accurately due to poor data, the physical flow of goods within the warehouse suffers.

The effects of bad data on warehouse operations can vary widely depending on the type of error. Some of the more serious issues I’ve seen include:

• Products that cannot be put away correctly.
• Products that underfill or overfill storage spaces.
• Orders that fail to allocate properly.
• Orders shipped short or with extra products sent to customers.

When this happens, warehouse workers become frustrated. They start questioning the reliability of the system, and once they lose confidence in the WMS, it becomes a slippery slope. Workers eager to get their tasks done often resort to “workarounds” to speed things up. These workarounds undermine the very purpose of the WMS, making the implementation process more stressful and prolonged.

At the root of these challenges lies the core issue: inaccurate item and location data. Without accurate data, the WMS simply cannot function as intended. Let’s explore how these data issues impact warehouse operations.

Item Data: A Critical Foundation
Item data accuracy is essential for various reasons, from storage optimization to outbound processes like shipping. Many organizations, in their rush to go live with a WMS, overlook or underestimate the importance of accurate item data, but this can have serious consequences.

Here are a few key item data attributes that must be accurate:

• Dimensions: Length, width, and height are crucial for understanding how much space an item will require in storage and shipping. Items that stack together, like soup bowls, should be measured differently using inherent system functionality (e.g., Manhattan Active® Item Nesting). If these dimensions are incorrect, it can lead to failed system putaways, overfilled locations, failed order allocation, and overall inefficiency.
• Weight: This attribute can significantly affect outbound processes. Inaccurate weight data can cause issues with parcel shipping (e.g., exceeding carrier weight limits) and truckload paperwork (e.g., incorrect weight totals on Department of Transportation forms). These discrepancies can lead to higher shipping costs, order delays, and even fines.
• Units of Measure (UOMs): Warehouses don’t just track items at the “each/unit” level; many companies manage products in cases, subpacks, and pallets in addition to the base unit level. Each UOM comes with its own data points for dimensions, weight, and the number of units inside. Inaccurate UOM data can lead to complications in receiving, picking, and shipping. For example, if the number of units in a case is incorrect, it can result in shipping more product than ordered (as I found out firsthand).

If item data is inconsistent or incomplete, the WMS can’t perform core functions such as inventory storage, picking, and replenishment correctly.

Location Data: The Core of the WMS
The effort to set up accurate location data in a warehouse management system is often underappreciated, but it’s just as vital as the accuracy of item data. A WMS uses location data to control everything from storage and picking functions to worker travel paths. When this data is inaccurate, the system can’t optimize tasks like order picking, storage, or even cycle counting.

Here are the key components of location data that must be accurate:

• Dimensional Data: Like item data, location data includes length, width, and height. If warehouse racking, shelves, or bins are not measured accurately, the system will direct workers to underfill or overfill locations.
• Zones: Locations are part of many different zones that control warehouse activities. For example, in Manhattan Active WMS, a location has 10 different zone fields that govern picking, storage, and other functions. If zone data is wrong, workers could end up picking from the wrong area or traveling further than necessary, disrupting productivity.
• Travel Sequences: A WMS also uses location travel sequence values to designate the most efficient paths for workers to follow during tasks like picking and storage. In Manhattan Active WMS, there are 7 different sequence fields for each location. Incorrect sequence data can lead to inefficient worker travel, wasting time and slowing operations.

Without accurate location data, the WMS cannot allocate resources efficiently or allow for the intended product flow, resulting in manual workarounds and frustrated workers.

The Road to Success: Ensuring Data Accuracy
It’s clear that item and location data accuracy is more than just a necessary part of a WMS implementation—it’s the backbone that ensures smooth operations from receiving to shipping and everything in between.

So, how can companies ensure that their item and location data are up to the task?

• Don’t Get Surprised: Take the time to understand the needs and estimate the effort required to achieve accurate data. Don’t underestimate the physical processes involved in walking the warehouse, pulling product, and measuring data. While 100% accuracy is unrealistic, it’s important to understand what will go wrong in bad data scenarios and have a plan in place for resolution at system go-live.
• Pre-Go-Live Data Cleansing: Before launching a WMS, ensure that item and location data are accurate and complete. This may involve a detailed audit of existing data, checking for inconsistencies in dimensions, weights, and UOMs. Tools and methodologies should be developed to highlight bad data—4SiGHT offers data cleansing tools and extensive experience in this area.
• Ongoing Data Management: Data management shouldn’t stop at go-live. Regular audits and updates to item and location data are vital to keeping the system running smoothly. This can include periodic checks on product data as well as the physical space in the warehouse.
• User Training: Proper training for warehouse workers is essential. Workers need to understand how the WMS interacts with item and location data, and the consequences of inaccurate information. Empowering workers with this knowledge builds confidence in the system and ensures fewer workarounds.
• Collaboration Across Teams: Ensuring data accuracy requires collaboration between warehouse staff, IT, and operations teams. Everyone must be aligned on the importance of accurate data and how it impacts daily operations.

Conclusion
At the end of the day, a successful WMS implementation comes down to the small but critical details—accuracy of item and location data being two of the most important. When these data points are incorrect or incomplete, the consequences ripple throughout the warehouse, impacting everything from inventory accuracy to customer order fulfillment. As someone who has implemented WMS across various industries, I can confidently say that paying close attention to data accuracy is a key determinant of success.

When organizations invest in getting the basics right, they unlock the full potential of their WMS and ensure that both the system and the workers thrive. However, achieving data accuracy and smooth WMS integration requires specialized expertise and experience—something that not all companies have in-house.

This is where 4SiGHT can help. With our proven track record in WMS implementations, we specialize in not only getting the data right but ensuring the entire system is aligned with your operational needs. From pre-go-live data cleansing and audits to ongoing support and system optimization, our comprehensive Implementation Services are designed to ensure a smooth transition and long-term success for your WMS. We understand the importance of precise item and location data, and our expert team can guide you through every step of the implementation process—helping you avoid the common pitfalls that lead to costly disruptions and frustration.

If you’re ready to unlock the full potential of your WMS, connect with 4SiGHT. We’ll help you achieve operational excellence through data accuracy and seamless system integration.