What is a WMS?
In short
A WMS (warehouse management system) is software that directs the work in a warehouse: receiving goods, storing them in a location, collecting orders (picking), packing and shipping. It knows what is in each location, whereas ordinary inventory management mainly tracks how much of an item you have.
What does a WMS do?
- Receiving: scanning incoming goods and checking them against the order.
- Storage: giving every pallet or box a fixed or free location, so you know exactly where everything is.
- Order picking: pick lists with the shortest walking route, per order or for several orders at once.
- Shipping: packing, creating shipping labels and booking the carrier.
- Counting: counting stock per location without shutting down the warehouse.
Staff work with handheld scanners that read barcodes, usually following the GS1 standards. That puts fewer errors into the system than paper lists.
WMS or inventory management?
Inventory management in an ERP system or webshop package knows how much of each item you have and when you need to reorder. A WMS also knows where everything is and directs the work of warehouse staff. That difference starts to matter with many items, many orders a day, several warehouses, or if you provide storage and shipping for other companies.
What should you look out for?
A WMS rarely stands alone: it receives orders from your ERP or webshop and reports shipments back. Ask which integrations are standard, whether the system works with the scanners you already have and whether customers and carriers exchange messages via EDI. Also read inventory management in Excel or software?
Which software helps with this?
For a small warehouse, the inventory module of an ERP system or webshop platform is often enough. A separate WMS pays off with many order lines, several locations or logistics services for customers.
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