Read out the article to get information about the warehouse management system and its advantages. This article gives details about 4 types of WMS.


A 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 a 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 their ERP solutions. This system is known as one of the best warehouse management systems. It offers core applications like supply chain planning, CRM, accounting, human resource management, etc. This system helps to reduce the labor cost, to increase warehouse productivity, and to increase the accuracy of inventory.
  4. Supply chain execution modules: This system is a subcategory of the Supply Chain Management (SCM) system. It helps the entire supply chain process to go in streamline.

Advantages of Warehouse Management System

Decreases the operating cost: The warehouse management system decreases the operating cost by finding a good place to store products, materials, and equipment.

Controls warehouse activities: It controls all the activities of the warehouse by reducing inventory levels, improving order fulfillment, and reducing order cycle time.

It helps the organization to respond quickly to customer demand by providing accurate and immediate feedback. It helps to manage the inventory easily and efficiently.

Improves inventory visibility: It provides accurate and real-time inventory levels so that the organization estimates the supply and satisfies the customer.

Assigns work: This system assigns the work to the suitable person at the right time depending on the skill levels of the person. It helps to design the schedule efficiently for day-to-day activities that improve labor efficiency.

It scans the items while entering the warehouse and keeps track of that item’s movement. Hence saves time by avoiding double-checking.

Helps to trace the materials: We can easily trace the materials with the help of WMS using lot/batch and serial numbers. Lot/Batch shows the group in which materials are made and the serial number indicates the specific item.

In this way, it helps to compare the incoming receipt and dispatch receipt with the item. Hence it improves the tracing ability.

Simplifies the process by automation: WMS provides basic elements like sensors, bar codes to record, capture and communicate activity.

Improves customer service: WMS helps to organize and track the shipments and improves the picking accuracy in the warehouse.

With WMS we can easily plan the incoming items and outgoing products. It improves the supply chain process and customer service.

Increases productivity: This system helps to move the products with speed in the warehouse and allows the worker to do more work with less time by providing them what they want at right time. This helps to increase the productivity of the company.

Best WMS vendors

Many WMS vendors are there. Following vendors provides WMS software as standalone products.

  • Fishbowl
  • IBM
  • Microsoft
  • Infor
  • JDA
  • Tecsys
  • Infoplus
  • Manhattan
  • generix

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


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