Before discussing cloud warehousing, let's first outline the current models of physical cloud warehouses in China, which mainly fall into the following three types: (1) Open cloud warehouses built by e-commerce platforms like Alibaba and JD.com; (2) Cloud warehouses built by traditional third-party logistics providers, such as Zhonglian Wangcang; (3) Cloud warehouses built by express delivery companies like SF Express, Best, TTK, and ZJS on the basis of their own warehouses. Using SF Express's cloud warehouse model as an example, I'll explain how a WMS can effectively support the improvement of logistics and warehousing efficiency in cloud warehouses. In 2013, SF Express entered the B2C third-party warehousing and management market, starting with the apparel industry. Leveraging its existing express delivery resources, it collaborated with various e-commerce companies and platforms through multiple channels. This marked the official beginning of SF Express's cloud warehouse era. In fact, cloud warehousing is built on the traditional third-party logistics warehousing management framework, leveraging the Internet+ era. Similar to cloud storage on the Internet, both e-commerce and logistics companies provide customers with cloud storage services and experiences through integrated warehousing and distribution, route allocation, efficient services, and cost savings. As a tool for lean management in logistics centers, WMS (Warehouse Management System) was implemented just two years ago when the concept of cloud warehousing didn't exist. At that time, multi-warehouse management was typically achieved through multi-site deployment or centralized deployment. To manage cloud warehouses, the first requirement is a networked technical architecture, including the current SaaS service model. More importantly, it requires centralized data management and decentralized, visualized data display—that is, the visualization of online data and the management of offline collective warehouse operations. I. Functions of a Cloud Warehouse System

  1. Warehouse Selection Principle For cloud warehousing, the first principle based on warehouses is the order warehouse selection principle. This principle considers the warehouse address, matching orders based on the warehouse's location. During the selection process, factors such as delivery time and cost are considered. Based on these two factors, we also consider safety stock, express delivery distance, and whether orders involve splitting.
  2. Involved Roles Once orders enter the warehouse, what operational rules enable us to quickly deliver orders to customers? In the cloud warehouse model, what roles are involved in warehouse management? The first role is the frontline order customer service. Order customer service assigns orders to production warehouses, reviews them, and dispatches them based on order routing rules. These tasks can be automated by the system. The second role is the order administrator. The warehouse can also automate most of this role's work through the WMS system, including: Order inventory allocation, task or wave combination, and document printing, including shipping labels, invoices, and shopping lists. When orders arrive at the warehouse, the order administrator handles warehouse assignment, wave combination, and task combination, and may also handle documentation, including pre-printing or post-printing of documents. The third role is warehouse operations. This includes pickers, sorters, packers, and personnel handing over to express carriers. The scope and content of these roles are well known, so I won't elaborate here. Why mention these roles? We know that the goal of cloud warehousing is to improve efficiency. If any part of the cloud warehouse process cannot improve production efficiency, it will affect overall warehouse operational efficiency. So, how does WMS support improving production efficiency in multi-warehouse simultaneous operations and layouts? Let me illustrate with a few simple examples. The first example is how to generate work waves. The purpose of waves is to optimize orders and generate work tasks with maximum efficiency. When generating waves, many conditions and optimization rules and logic need to be considered. Most WMS systems we know either use manual order selection or simple rules to combine orders. In cloud warehouse management mode, to simultaneously support different manual waves and system-generated waves, it's essential to first understand the wave logic. In warehouses, we typically form simple rules based on different carriers, work areas, and order types. However, the core of wave rules is to pick the most orders at the fastest speed—that is, the rule that completes the most orders in the shortest time after orders arrive at the warehouse.
  3. Order Optimization When discussing operational efficiency, we often mention the concept of picking paths in the warehouse, such as W-shaped or S-shaped path optimization. However, without order optimization analysis, no matter how you optimize the picking path, you cannot avoid walking. The core feature of order optimization is: Combining multiple orders and completing picking within the smallest area of the warehouse, such as 2-3 storage locations, a single aisle, or a single zone. In addition to internal order optimization, we must also consider basic order conditions such as bulk orders, small-item orders, and mixed large-small item orders as conditions for wave analysis and optimization. II. Internal Warehouse Picking Operation Modes
  4. Total Picking Mode Let me introduce a few concepts for internal warehouse picking. The first is total picking. Total picking mode: For e-commerce cloud warehouse deployment, many warehouses store a product in a centralized location. For high-volume single-item orders—where an order requires only one product—the total picking method is used, processing the order end-to-end. Additionally, there are orders that require 2 or 3 products with overlapping items. These orders also use total picking or sorting for picking operations. Classification of Total Picking Modes (1) Order-to-Goods One type of total picking is to centrally pick single-item orders, which is the traditional order-to-goods mode. (2) Product-to-Order Matching The fundamental logic change for single-item orders is product-to-order matching, followed directly by shipping label printing. This operational efficiency is higher than traditional methods.
  5. Pick-and-Sort Mode In cloud warehouse mode, for warehouses with a large number of consignors and SKUs, products are often randomly shelved. We adopt the pick-and-sort mode. Pick-and-sort means that during wave creation, orders requiring these products are combined within the smallest area. A container is used, divided into multiple work units, such as baskets or compartments. We then push this tool to one or more storage locations to complete picking for multi-item orders. The pick-and-sort mode began to be applied in some e-commerce customers around 2010. A 3C electronics e-commerce company in Shenzhen achieved a picking efficiency of 1,200-1,300 multi-item orders per employee in an 8-hour work shift.
  6. Sorting Mode (Different from Traditional Sorting) In multi-warehouse layouts, order structures become diversified with different types of e-commerce customers. Besides complex order structures, warehouse layouts also become more complex. In addition to multi-warehouse, multi-story warehouses are increasingly common among e-commerce customers. The differences in order structures are reflected in: early e-commerce orders could be for daily chemicals, apparel, etc. Now, e-commerce products are no longer single-category; large appliances, fresh food, and other categories have emerged, and fresh food includes frozen and refrigerated items. During this year's Double 11, LeTV TV received an order for a 120-inch ultra-large TV. This oversized TV could only be delivered to the customer's room using a construction lift. Based on these differences, we need to adopt multiple modes for in-warehouse order operations. The traditional sorting mode involves total picking based on product overlap rates in orders, followed by sorting by order. In contrast, the current e-commerce sorting mode, based on traditional sorting, needs to consider warehouse layout, order structure, and other factors. After zoning operations for different types of products and different orders, aggregation is performed. During aggregation, three factors must be considered: order overlap rate, operational efficiency of each zone's floor, and how to effectively combine the same orders for different products. The purpose of deploying cloud warehousing is to save costs and complete customer order picking tasks most efficiently in the shortest time. However, when deploying cloud warehousing, many customers are unwilling to split their orders for operations. This requires innovation: first, zone operations, then order consolidation, and finally delivery to customers. This is the manifestation of e-commerce's demand for the sorting mode.
  7. Secondary Sorting Previously, many warehouses for bulk commodities and retail aggregated orders based on product overlap rates, replenished goods from the warehouse to picking locations and transit areas, and then picked goods from transit areas according to orders. This is traditional secondary sorting. For e-commerce, such as cross-border e-commerce, most products are maternal and infant milk powder, health products, cosmetics, etc. The product structure is distinct, and product overlap rates are relatively high, rather than being simple orders. Based on this order structure, we have created a new secondary sorting mode, designed to minimize intermediate operational steps. Similarly, wave combination is performed, and orders with high product overlap and not too large single SKU quantities are combined and picked directly to the review station. As mentioned earlier, for single-item orders, SKU-to-order matching is used, where orders are scanned at the review station and then directly reviewed and picked. This mode is widely applied in e-commerce cloud warehouses. -END- The best learning platform for FMCG distributors in China Focused on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Distributor Management | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Sales | 015 Internet, Brands | 016 Distributor B2B Transformation | [Long press to follow QR code]