What is a WMS system? The definition
A WMS system (Warehouse Management System) is software that helps manage and optimize warehouse operations — including inventory control, picking, packing, and shipping. It acts as the brain of the warehouse, ensuring that both manual and automated tasks are carried out efficiently and in real time.
In an increasingly competitive market environment, warehouse operations must be fast, accurate, and flexible. The Warehouse Management System (WMS) allows you to optimize your logistics processes, space, and labor to achieve inventory movement efficiency and accuracy. This blog post will discuss what a WMS is, how it works, and how it can improve customer satisfaction. Let’s get to it!
Watch our short intro video to understand what a WMS system is, how it works, and how it supports smarter, more efficient warehouse operations.
First things first, let’s define the term. WMS means warehouse management system. The acronym is commonly used in the supply chain industry. A WMS is a software designed to optimize and manage warehouse operations.
There are thousands of processes carried out in a warehouse every day. Orders come in, items are picked, boxes are packed, forklifts move along the aisles, and goods are loaded into trucks for delivery. The WMS warehouse management system is a software application designed to create the optimal workflow for your warehouse operations by automating the decision-making logic of these processes. It connects all levels of business logic and machine control and interacts with other warehouse it systems, such as the ERP, WCS, and transport management systems.
As we can see on the image below, the warehouse management system influences all logistics processes in the warehouse.
The WMS is often called the “brain” of the warehouse – just like the human organ, it can learn and adapt to changing needs by combining different systems into one functional entity.
Here are the 8 most common features of the warehouse management system:
Curious about what a WMS actually looks like beyond the buzzwords?
In this short video, you’ll see how Astro WMS® supports real-life warehouse operations – from receiving and picking to real-time optimization and integration with automation.
Astro WMS® helps businesses across industries solve everyday warehouse challenges like labor shortages, space constraints, picking inefficiencies, and high operational costs.
Whether you're managing manual flows, automated systems or both – this is what a future-proof WMS looks like in action.
A system is only as good as the value it creates.
Curious how companies across industries are using WMS to improve accuracy, reduce waste, and scale smarter?
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So, why do companies use WMS, and what are the benefits? Below is the list of the most important aspects:
Every resource you use in the warehouse costs money – be it space, labor, energy, or anything else. A WMS optimizes workflows and lets your warehouse operate in the most efficient way possible, which, in turn, will reduce your operational costs. Efficiency gains can also spike productivity: with a non-reserving system, your operators can work in real-time and combine assignments in the warehouse. You can consolidate your order picking, allowing you to pick multiple orders simultaneously.
In an ever-changing supply chain, your warehouse must be ready for change too. This can be implementing automation, expansion to multiple sites, or having more warehouse staff to meet customer demand. A scalable WMS SaaS solution enables you to
thus, you can run more flexible and future-proof logistics operations.
A warehouse’s layout is literally set in stone, so how you use this space makes all the difference. A warehouse management system is a source of valuable information that you can use to optimize the placement of goods. Based on the data it provides, you can remove end-of-life SKUs, and check which products are selling fast and which are slow movers, to adjust their placement accordingly. These actions increase your warehouse throughput while reducing operating costs.
Artificial Intelligence opens new opportunities for efficient and sustainable warehousing. For example, an AI-based pick group optimization module in your WMS can analyze historical ordering patterns. The system can suggest moving articles to a more optimal pick area by learning which articles are ordered together. The more information the WMS has, the more accurate its decisions will be, guaranteeing further improvement to your processes.
A WMS can help you run more resourceful warehouse operations in various ways. For example, it reduces picking errors and prevents you from driving around with empty forklifts. In addition, by using a smart box calculation module, you can ensure that every shipment goes out in the most cost-efficient and least wasteful way possible, cutting down on the amount of air shipped and material used.
We live in the era of connectivity, and warehouses are no exception. A best-of-breed WMS will give you peace of mind in this area for two reasons:
Efficiency gains, compliance with regulations, and customer delivery experience are all drivers for improving visibility and traceability throughout the supply chain. By verification/scanning individual articles in warehouse processes, a warehouse management system enables control on the item level. It can also connect the nodes of the delivery chain, so you can notify customers about when their orders are picked and packed, thus improving customer satisfaction.
The most common WMS types are the following:
To decide which type best supports your business, you should have a clear overview of your warehouse needs and goals.
Many businesses start out managing warehouse operations through their ERP system. But as complexity increases, so does the need for specialization.
An ERP (Enterprise Resource Planning) system manages high-level processes like finance, HR, procurement, and even basic warehouse functions. A WMS (Warehouse Management System), on the other hand, is built to handle the fast-paced, detailed, and real-time execution of warehouse activities.
While the ERP offers an overview, the WMS is the engine that drives day-to-day operational efficiency – from receiving goods to optimizing pick paths and ensuring on-time shipping.👉 Read more: ERP vs. WMS – What’s the Difference?
Generally speaking, your WMS journey begins when pen and paper are not enough anymore for efficient warehouse operations. Here are some other signs indicating that you should start looking for a warehouse management system:
Investing in a warehouse management system is a strategic decision, so the key is thinking long-term and finding a solution that future-proofs your operations. The software should be able to:
Increasing market competition, growing customer demands, and constant supply chain disruptions put much pressure on warehousing. A modern warehouse management system can help you meet these challenges in the long term.
Our WMS warehouse system, Astro WMS®, is designed to support your long-term needs: it is scalable, rich in configurable core features and functionality, and adaptable across multiple sites. In addition, it can easily be integrated with any supplier’s automation equipment, giving you the freedom to choose when implementing a warehouse automation solution.
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For operations with simpler flows and smaller setups, we also offer Solid WMS – a cloud-native, easy-to-use solution that’s quick to implement and ideal for growing logistics businesses and 3PLs.
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