Warehouse Management Systems for Fastener Distributors

Fastener Distributors require more than just a generic Warehouse Management System (WMS). Although standard WMS solutions serve a variety of industries, fastener distributors have unique needs. Let’s explore what makes warehouse management critical for this sector as well as which features are essential when selecting a new WMS to maximise your investment.

The Purpose of Warehouse Management

Why do we use warehouses? The answer is straightforward: to better align customer demand with product supply. Because demand can be unpredictable or seasonal, warehouses act as buffers, smoothing out the differences between supply and demand.

However, warehouses come with significant costs, including labour, storage, equipment, and information systems. The challenge is to have a warehouse that is just the right size, operates efficiently, and uses labour wisely. Anything less than this standard ends up increasing your costs and eroding your competitive edge. This is where a robust WMS becomes essential.

WMS solutions have evolved from manual processes. Think of the ancient Roman “Horrea Galbae” warehouse, covering 140 rooms and about 225,000 square feet (21,000 square meters) of space, which required immense manual effort to manage its inventory. Today, technology streamlines these operations, making warehouse management more efficient and less labour-intensive.

What Does Warehouse Management Really Mean?

A precise definition:

A warehouse management system (WMS) is a set of policies and processes designed to organise the work of a warehouse or distribution centre, ensuring efficient operations and achievement of objectives.

Warehouse management is fundamentally about managing the costs of time and space. Labour is required to move products, and space to store the products, both of which are capital expenses. Strategic product placement, i.e., putting high-volume items in easily accessible locations, can save significant time and money. Locating and picking the right products efficiently is a science, and a good WMS is at the heart of this process. Fastener distributors will particularly appreciate a fast and accurate picking process as a key benefit of the WMS.

A well-implemented WMS reduces costs and increases customer satisfaction by enabling faster, simpler deliveries that keep you one step ahead of your competitors.

Core Functions of a WMS

A WMS should manage these key tasks:

• Receiving
• Put away
• Inventory locations and quantity
• Order picking
• Checking, packing, and shipping

Additional features—such as barcode management, reporting, inventory control, and automation—can add complexity and value. Let’s focus on which features fastener Distributors should prioritise when modernising their WMS.

Fastener Distributor Requirements for a WMS

To identify the right WMS, consider fastener distributors' daily activities. Here are some essential requirements:

1. Importing, Lot Management, and Product Lot Traceability

Distributors often import large quantities of fasteners, sometimes without individual barcodes. Products from different production lots must be tracked separately for traceability; this is crucial for recalls or quality issues. A WMS should help identify, quarantine, and trace products, even after shipment, a feature that is especially important in regulated industries like aviation. 

2. Storage Location and Product Picking

Each storage location should have a readable ID and barcode. Sometimes, a large amount of the same product shares one location and may not have individual barcodes, like a big box of screws. Your WMS must handle picking tasks where only the location is scanned, and quantities are entered manually—a feature not all systems support.

3. Unit of Measure Conversion

Products may arrive in bulk (e.g., kilograms) but need to be sold in different units (e.g., each/box). Your WMS should support conversions between units of measure throughout the buy/sell workflow.

4. Packing, Repacking, and Manufacturing

Distributors often repack bulk products into smaller quantities, sometimes creating new product codes and barcodes. Your WMS should support converting products from one form to another while integrating with your ERP to update costs and inventory. This is especially relevant for distributors who manufacture some products in-house. 

5. Inventory Check and Stock Taking

Stock-taking is disruptive but necessary for accurate inventory valuation. Look for a WMS that supports perpetual inventory checks, allowing you to audit sections of the warehouse throughout the year without halting operations. Certain products require different inventory check frequencies, and a great WMS will let you specify these requirements.

6. Substitute Notification and Forecasting

If a customer orders more than you have in stock, a good integrated WMS will suggest substitute products and record the true demand for future forecasting. This feature helps maintain customer satisfaction and improve inventory planning. 

7. Customer Part Number Support

Some customers require their own unique part numbers on invoices and shipping documents. Ensure your WMS can accommodate customer-specific part numbers.

Avoiding Common Pitfalls When Implementing a New WMS

Don’t fall into the trap of thinking, “Our WMS has worked for 20 years; we don’t need to change.” Stagnation can be costly, causing your business to lose customers to competitors while facing higher costs to modernise later.

Two core drivers for modernisation:

1. Modernise Your Core System: Only modern WMS and ERP solutions offer the latest features, such as AI, more flexibility, and built-in functionality to keep you competitive.
2. Strengthen Cybersecurity: This essential step cannot be overlooked in an increasingly sophisticated cybercrime landscape. 

Take your time selecting a new WMS. Engage with ERP providers to discuss your challenges and see how their solutions can improve your operations. The right partner will focus on understanding your requirements, enhancing your processes, and ultimately solving your problems, not just on making a sale. 

Starting Your WMS Modernisation Journey

• Develop a strategic plan with clear, achievable goals.
• Assess your current warehouse processes—what works and what doesn’t?
• Identify and measure mission-critical functions (timings, cost, stand-by time) and link them to your workflows and goals.
• Be open to changing workflows to take advantage of new system features. Address workforce resistance proactively.
• Define your organisational goals for the new WMS, both short- and long-term.
• Evaluate how deeply the WMS integrates with your ERP—do they share data seamlessly for reporting and analytics?

Is Modernisation Worth It?

Every organisation’s results will vary, but modernisation can deliver significant benefits. From our experience at Epicor, as referenced in a recent IDC analyst report, results have included:

• Higher accuracy leading to improved margins (4% average net margins) *
• Up to 21% increase in productivity *
• Inventory accuracy of over 99% *
• Reduction in picking errors from 6% to below 1%
• 22% faster delivery times *
• Paperless workflows (better sustainability)
• Faster onboarding of new staff

Source*: The Business Value of Epicor Software for Wholesale Distribution Companies, IDC July 2022. 

Modernisation is often rewarding, but remember to consider the broader digital ecosystem including ERP, finance, CRM, and more. Ensure that all systems will work together after modernisation. A great real-life example can be found in one of our latest Epicor success stories about Harrison Silverdale, a family-owned fastener distributor based in Dronfield, England.

If you’re feeling the pressure to modernise your IT systems and have questions about enhancing your solution, feel free to contact Epicor at info.uk@epicor.com 

With the right tools in place, every day can be more productive in fastener distribution, with fewer WMS worries and more time to focus on your customers.

This article appeared first in the torque online magazine issue 102 / January-February 2026.