Warehouse management system (WMS) is an integrated set of system functions designed to manage the locating, putaway, movement, picking, and cycle count/inventory verification activities of a warehouse or distribution center.

It normally receives purchase, sales, and interplant order data from a base ERP system that serves as the authorization to initiate activities.

Warehouse locations are described in terms of their weight and volume capacities to enable proper direction when moving or stocking material. Inventory and order status data, collected in real-time often through the use of data collection devices, are normally uploaded to the base ERP system on a batch basis.

Types of warehouse management system

Following are the most common and  popular types of warehouse management system

  1. Standalone system: This system is an on-premises type system that is deployed on the local hardware and network. This is the lowest price warehouse management system. Features of the standalone system are inventory management, warehouse operations, barcode scanning, slotting, put-away, picking, packing, shipping, validity date tracking. This system suits small businesses.
  2. Cloud-based: This system is a typical web-based system such as SaaS. It provides faster implementation and helps to reduce IT maintenance as it is hosted on separate server, depending on the vendor’s specifications. This system allows users to get software updation automatically without extra expense.
  3. ERP Modules: Many vendors provide WMS integrated with thier ERP solutions. This system is known as one of the best warehouse management system. It offers core apllications like supply chain planning, CRM, accounting, human resource management etc.This system helps to reduce the labour cost, to increase warehouse productivity and to increase accuracy of inventory.
  4. Supply chain execution modules: This system is subcategories of Supply Chain Management (SCM) system. It helps entire supply chain process to go in streamline.

Get more definitions about warehouse management system (WMS) and other ERP related terms here.


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