Guest Editorial

THE RISE OF THE WAREHOUSE EXECUTION SYSTEM

IT’S NO SECRET that manufacturers and distributors are relying more heavily on automation than ever before. To stay ahead of evolving technology, warehousing professionals are realizing the importance of software applications, specifically warehouse management systems (WMS) and warehouse control systems (WCS). These systems help distributors move products faster, help create efficient inventory levels, and improve order fulfillment accuracy.

In warehousing, it is not uncommon to have a WMS and WCS operating as separate applications. The WMS manages the inventory and the workflow of the manual operations, while the WCS executes the workflow with automation. Yet without a seamless integration, the combination of these applications can lead to unnecessary challenges. Supporting these systems individually often requires valuable time, resources, and capital.

Implementing a WES

Any automation is only as effective as its software, and any intelligent warehouse would greatly benefit from a properly managed warehouse execution system (WES). WES implementation saves time and ensures effective communication by providing a host of actionable insights through appropriate data analysis. A WES offers integrated WMS and WCS functionality within one application, simplifying warehouse communication and reducing the need to manage several applications. Additionally, a WES platform can bridge enterprise resource planning (ERP) software with WMS functionality to optimize order flow, supervise processes, and execute the material handling equipment and warehouse automation.

The WES solution suits organizations with increased order volumes and high throughputs. It can receive and track products, while tying inventory to specific customer orders through its order fulfillment processing capabilities. As orders come in, the WES breaks them into logical units of work and then uses its WCS functionality to direct automation or manual labour to execute the job. The WES

DAVE WILLIAMS, is vice-president of technology solutions at Westfalia Technologies, Inc.

provides the overall coordination of WMS and WCS functionality, such as inventory and order management, billing and workflows, within a single application.

The benefits of an integrated WES

Operating as a two-in-one solution, a WES has many clear advantages over traditional, stand-alone WMS and WCS systems:  Simplicity: A WES requires a reduced need for complex integrations due to the built-in WMS and WCS features.  Time-Savings: Less time and fewer resources are needed to ensure effective communication between the WMS and WCS.  Flexibility: A WES offers the flexibility needed to interface with additional applications and host systems, such as enterprise resource planning (ERP), or programmable logic controllers (PLC).  Consistency: Having a single application across an organization helps ensure processes are consistent and efficient.

 Cost Savings: With a WES functioning as a single application to manage automation, organizations can increase inventory accuracy and reduce labour costs.

Additionally, an integrated WES provides product traceability, allowing manufacturers and distributors to efficiently handle recalls and comply with mandated regulations. A WES helps to recognize and act more quickly on issues that may have contributed to a recall. These early detections allow manufacturers to understand what product needs to be recalled, reducing the number of potentially tainted products that are released to the public.

Ultimately, using a WES integrated with WCS and WMS capabilities, as well as with other supply chain systems, helps warehouse personnel to work more efficiently, increase inventory accuracy, and improve product traceability.

Steps for increased capability

Although a WES can completely replace separate WMS and WCS applications, it is flexible enough to adapt to a variety of deployment options. Some warehouses with an existing WMS will look to introduce a WCS to assist with automation. However, it might be best to bring in a WES instead.

Doing this allows the company to continue using its original WMS and integrate it with WES to leverage its WCS capabilities. Alternatively, if the organization has not introduced automation that needs WCS functions, it can still implement the WES for its WMS capabilities and have the WCS functionality for future needs. Since they are a part of the same interface, this can help reduce training and shorten start-up time when a system is needed.

Find the right partner to help you analyze your situation and implement a WES designed to accommodate your specific warehousing needs and to comply with control requirements. With a sophisticated WES, you can orchestrate the process across the entire supply chain from start to finish, resulting in a warehouse that can deliver better product traceability, storage usage, increase inventory accuracy, and allow for customizations to accommodate specific customer warehousing needs. As the need for automation continues to grow, so will the need for an integrated warehouse execution system.

ARE YOU PREPARED FOR CARM?

It’s time to get on board with CBSA’s new assessment and revenue program

IF YOU’RE IMPORTING into Canada, chances are you’re heard of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management initiative, better known as CARM. By now importers may be aware this change is coming, but only about 10 percent of required users are currently enrolled in the CARM portal.

With the mandatory change approaching quickly, it’s important for importers to take action soon.

Understanding the basics of CARM

Before we jump into the action items importers need to take, let’s revisit what CARM is.

This new multi-year initiative from the CBSA will drastically impact how Canadian importers conduct business and interact with agency. The initiative was introduced to integrate and automate business processes while offering online self-service tools for imported commercial goods. While the mandatory transition to CARM is happening over three phases, the final deadline for importers to comply is likely to happen October 2023.

The central feature of the initiative is the CARM Portal, which will become the main communications interface between the CBSA and trade chain partners.

Through the portal, shippers can expect a whole new way of interacting with the CBSA. They will gain full visibility and access to their import records – making it easy to submit duty and tax payments directly to the government, as well as streamlining import processes – allowing shippers to file advanced ruling requests, corrections and declarations, all completely online.

Working group

CBSA has been working with a group of businesses and associations in developing CARM. The Trade Chain Partner (TCP) Working Group was established in July 2018, and includes importers, brokers, and service providers who help their clients submit data through Electronic Data Interchange (EDI). It’s divided into four

SOFIA SPOLTORE

is regional director at C.H. Robinson in Canada

working groups (brokers; carriers; couriers; freight forwarders; warehouses; importers; and customs self-assessment) that focus on issues affecting specific sectors of the trade chain community.

What can importers expect?

Currently, we’re in phase one of the CARM rollout. It will allow importers to create and manage their accounts on the CARM Client Portal; classify goods and estimate duties and taxes; make secure payments online via the portal; delegate access to their service providers; and, submit rulings requests and track their progress.

This included the launch of the CARM Client Portal, so importers, customs brokers, and trade consultants will be able to create an account in the new system. Once registered, users are able to view their transactions and statements of account, request a ruling and pay invoices with new electronic payment options.

Delegated authority

To set up an account, importers will need to acquire a GCKey, a secure unique electronic credential that will allow them to communicate securely with online-enabled government programs and services, or they can use a sign-in partner to enroll.

To import into Canada, shippers will then need to delegate authority to their customs brokers and service providers. Finally, ahead of the final phase, shippers will need to work with a Canadian customs broker or surety company to obtain a direct security bond to establish their payment privileges.

CARM Release 2

The second phase, also the final phase, will expand on the CARM Client Portal. It adds electronic commercial accounting declarations with ability for corrections and adjustments; new requirements related to the Release Prior to Payment (RPP) program; harmonized billing cycles; new offsetting options; and, electronic management of appeals and compliance actions.

Release 2 is when the CBSA will introduce the new electronic commercial accounting declaration (CAD) form, which replaces the existing customs coding (B3) and adjustment request (B2) forms. Importers can also expect a new billing cycle to harmonize payment due dates for all transactions and simplify the ways accounting information can be corrected.

Additionally, the Direct Security Bond mandate will go into effect, so importers will be required to secure commercial imports directly, instead of relying on customs brokers or other service providers. To remain in compliance by the October 2023 deadline, shippers must start by setting up their CARM Client Portal account right away.

Because there are only a few surety bond providers available to issue customs bonds right now, it is urgent for importers to take action immediately. Enrollment cannot happen in just a matter of weeks. Importers are also encouraged to reach out to their brokers early to start the bond application process.

Final thoughts

We know shifting to a new platform can be overwhelming and at times, confusing. CH Robinson and other customs servie providers can help you become – and remain – complaint.