What is WMS?
A Warehouse Management System (WMS) is a specialized software application designed to optimize and control daily warehouse operations from the moment goods enter a facility until they are shipped out. While an ERP manages high-level business planning and finance, a WMS focuses on the tactical execution of tasks like directed picking, real-time stock tracking via barcodes or RFID, and labor management to ensure maximum efficiency on the warehouse floor.
WMS software can be implemented as a standalone solution, but to really benefit from its far-reaching management and control capabilities, a WMS module is seamlessly integrated into an ERP system.
How does WMS work?
A Warehouse Management System (WMS) works by acting as the “brain” of the warehouse floor, coordinating every physical movement of goods from entry to exit. Unlike an ERP that records what is in stock, a WMS directs how that stock moves using real-time data from barcodes, RFID, and IoT sensors to optimize pick paths, manage labor tasks, and ensure that every item is precisely localized at the bin and shelf level.
WMS systems include functionality that helps with order management, including controlling backorders and scheduling orders for shipping and delivery. A WMS streamlines the tracking and traceability of every stock item received, picked, packed, shipped, or put-away using barcode scanners, RFID codes, and mobile devices and tablets, to accurately track the movement and storage of products.