Warehouse Management System

WMS stands for Warehouse Management System and is a software application that aims to simplify the warehousing and logistics operations of a company. The WMS allows you to see what items are in the warehouse, their quantity, and where they are located. You can also see and create orders for which items are to be picked, packed, and shipped to the customer. In this way, warehouse workers can log in to the software and know which items to pick, when to pick them and where to send them. A WMS is often integrated with related systems like ecommerce platforms (the software for online retailers) ERP (Enterprise Resource Planning software for business processes such as accounting, management, etc), and transport systems, all of which simplify and automate the warehouse processes. Overall, a WMS can be said to increase traceability, minimize errors, and increase efficiency in a warehouse.

Who needs a WMS?

The businesses most in need of a WMS are those with logistics-intensive operations. For logistics companies such as third-party logistic providers (3PL) who mostly provide warehouse outsourcing, take care of order picking, shipping, and more for their customers, the WMS has a business-critical role in the operation. For ecommerce and some other logistics-intensive businesses, a WMS is also crucial for operational efficiency. Initially, it is possible to manage warehouse operations manually without a WMS. But as the business becomes more complex and the warehouse grows, a WMS can be a gamechanger.

What types of WMSs are there?

Small-sized companies with minimal warehouse operation can manage their stock balances in an Excel sheet or similar. Other companies with smaller warehouse operations often manage their warehouse in the ERP’s WMS module, which tends to have the most basic functions. Some companies specialize solely in WMS which have considerably more functionality in comparison to an ERP. Most commonly, the WMS is cloud-based, which is a great advantage as it can be easily accessed at any location via any web browser.

Depending on the needs of the company, different solutions are chosen for its warehouse. An important thing to consider is whether you have unique needs and need a tailor-made solution or whether a standard solution is enough. When a standard solution is applied, the customer uses the existing features of the WMS which for most companies, does the job. A customized solution, on the other hand, allows customers to adopt the WMS to their unique requirements. However, a customized WMS might be very resource and time-intensive as the customer needs to finance tailored features of the WMS to their specific needs.

In summary, the easiest thing to do for most companies is to find a WMS that is standardized and cloud-based. This is because it is very quick to get up and running and no large investment is needed.