A Warehouse Management System (WMS) is software that manages the operations inside a warehouse or distribution centre. It tracks inventory location, directs worker activities, and optimises the flow of goods from receiving through storage, picking, packing, and shipping.
At its core, a WMS answers two questions at all times: where is everything, and what should happen next.
You’ll hear this when…
WMS comes up in warehouse operations, logistics technology evaluations, and supply chain discussions. “What WMS are you running?” is like asking “what ERP are you on?” for warehouse teams. Major WMS vendors include Manhattan Associates, Blue Yonder, and Oracle.
Key WMS functions include:
- Receiving: Recording inbound goods and directing them to storage locations.
- Putaway: Determining the optimal storage location for each SKU.
- Picking: Generating and optimising pick lists to fulfil orders efficiently.
- Shipping: Coordinating outbound loads, generating labels, and confirming shipments.
“Pick path optimisation” is a common WMS feature — the system calculates the most efficient route through the warehouse for a worker fulfilling orders, reducing walking time and increasing throughput.
Cloud vs. on-premise
Like enterprise software generally, WMS has shifted toward cloud-based deployment. Cloud WMS offers faster implementation and automatic updates; on-premise WMS offers more customisation and control. Large warehouses with complex operations often still run on-premise systems.
Source: Gartner Magic Quadrant for Warehouse Management Systems