Warehouse Management System (WMS)
Definition
A Warehouse Management System (WMS) is software that runs the day-to-day operation of a warehouse: where products are stored, which employee picks which order, and how stock moves. The WMS works alongside the ERP, which manages the broader business processes.
Control within the warehouse walls
Where an ERP tracks total stock levels, a WMS handles the physical side: which shelf holds a product, in what order someone should pick an order, and when a shipment is ready to go.
Connection to the web shop
As soon as an order comes in through the web shop, the system sends a pick instruction to the WMS. After shipping, the WMS reports the status back, so the customer can track it in the customer portal.
Practical example
A wholesaler with a large warehouse uses a WMS to optimize pick routes, so employees spend less time searching for products.
Related terms
Fulfillment · Inventory management · Vendor Managed Inventory (VMI)
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