Warehouse management system

A warehouse management system (WMS) is a set of policies and processes intended to organise the work of a warehouse or distribution centre, and ensure that such a facility can operate efficiently and meet its objectives.

In the 20th century the term 'warehouse management information system' was often used to distinguish software that fulfils this function from theoretical systems. Some smaller facilities may use spreadsheets or physical media like pen and paper to document their processes and activities, and this too can be considered a WMS. However, in contemporary usage, the term overwhelmingly refers to computer systems.

The core function of a warehouse management system is to record the arrival and departure of inventory.^[1] From that starting point, features are added like recording the precise location of stock within the warehouse, optimising the use of available space, or coordinating tasks for maximum efficiency.^[2]

There are 5 factors, that make it worth establishing or renewing a company’s WMS. A successful implementation of the new WMS will lead to many benefits, that will consequently help the company grow and gain loyal customers. Number one, helping not only logistics service providers but also their customers to plan the resources and inventory accordingly, is real-time inventory management. Furthermore, when a company screens/scans a product for every movement in the facility, the location of products, inventory control and other activities are clear and the possibility of mishandling any inventories declined greatly. The third factor that emphasizes the importance of WMS systems is faster product delivery, which is very valued in today’s fast-paced world with a highly competitive environment. The benefits of advanced WMS systems are not only seen when a company needs to send products to its customers/partners but when dealing with returns as well. Managing and taking care of customers’ returns becomes much easier and more effective if the company is able to monitor and track the returned inventory. Lastly, a successful WMS implementation will help the company to perform all their operations seamlessly and thus lead to improved overall customer satisfaction.^[3]