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


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

It usually 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 data collection devices, are typically uploaded to the base ERP system on a batch basis.

Warehouse Management System

Types of warehouse management system

Types of Warehouse Management System

Following are the most common and popular types of warehouse management systems.

1. Standalone system

This system is an on-premises type system that is deployed on the local hardware and network. That is the lowest price warehouse management system.

Features of the standalone system are inventory management, warehouse operations, barcode scanning, slotting, putaway, 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 update software automatically without extra expense.

3. ERP Modules

Many vendors provide WMS integrated with their ERP solutions. As a result, 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 reduce labor costs, increase warehouse productivity, and 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.

Features of warehouse management system

Following are the features of the warehouse management system.

  • Warehouse infrastructure: This system allows the organization to design the warehouse in such a way that it has sufficient space for seasonal inventories.
  • Monitoring of inventory: The system allows to track, monitor, and move the inventories easily with the help of a barcode scanner.
  • Incoming and outgoing inventories: With the help of pick-to-light and pick-to-voice technology, this system optimizes the incoming and outgoing inventory process.
  • Picking and packing of finished products: The system includes efficient picking systems like zone picking, wave picking, and batch picking that help the worker to pick the goods efficiently.
  • Shipping: The system allows you to create invoices and packing lists for shipping and also sends shipping notifications to the customer in advance.
  • Employee management: The system allows the warehouse managers to manage the employees and monitor their performance with the help of key performance indicators (KPI).
  • Dock management: It directs the drives to find the proper ducks to load and unload the inventories.
  • Documentation: The system generates all the reports that help the managers to analyze the warehouse process.

Workflow of warehouse

Workflow process in warehouse includes

  • Receiving the goods
  • Storage
  • Picking
  • Packing
  • Delivery
  • Returns
Workflow in warehouse

Your warehouse management should have the capability to manage the workflow within the warehouse.

  • Receiving: The warehouse management system must have a hold over the delivery of goods to the warehouse of the exact quantity of wanted product of good quality at the correct time. This process contains the following works
    • Make space for the receiving goods
    • Unloading the goods
    • Verification of the received goods
    • Updating in the database
  • Storage: It is one of the important responsibilities of the WMS. Move the received goods to their specified place in the warehouse, that is SKU ( stock keeping unit). Check out the safety measures for both goods and employees.
  • Picking: Picking of the products from the storage area takes place as per the customer order. To reduce time consumption and error adopt suitable picking methods like zone picking, wave picking, and cluster picking, etc.
  • Packing: In this process, checking of quality and quantity of the product and make them ready for shipping takes place.
  • Delivery: Ensure the safe delivery of the goods to the customer’s place and on time. In this stage, WMS should take care of scheduling, tracking, and labor management.
  • Returns: In rare cases, there will be a chance of returning the products due to some reasons. So this situation should be handled with special attention. Proper identification of the product, placing them back on the specified shelf, and sending them for repair will happen in this stage.

Advantages of Warehouse Management System

Decreases the operating cost: The warehouse management system lowers the operating cost by finding an excellent place to store products, materials, and equipment.

Controls warehouse activities: It controls all the actions 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. In addition, it helps to manage the inventory efficiently and rapidly.

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 gives the work to the suitable person at the right time, depending on the person’s skill levels.

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 where 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 essential elements like sensors, bar codes to record, capture and communicate activity.

Improves customer service: WMS helps 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. As a result, it improves the supply chain process and customer service.

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

That 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 systems (WMS) and other ERP-related terms here.


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