WMS (short for Warehouse Management System) refers to a warehouse management system. It is software that enables a company to manage daily warehouse operations such as receiving goods, storage, picking, packing, and shipping.
The goal of a WMS is to make warehouse operations more efficient, accurate, and transparent while reducing manual work and errors.
What does a WMS do?
A WMS focuses specifically on internal warehouse processes. It can be used to:
Manage product receiving and put-away
Track inventory levels in real time
Guide picking and packing processes
Optimize warehouse space utilization
Manage serial and batch numbers
Reduce errors with barcode and scanning functions
Speed up order processing and shipping
A WMS provides a precise overview of where products are located, how much stock is available, and the current status of orders.
Why is a WMS important?
Without a WMS, warehouse management often relies on manual processes, spreadsheets, or disconnected systems. This increases the risk of errors and slows down operations.
A WMS helps companies to:
Improve delivery reliability
Speed up order processing
Reduce incorrect shipments
Increase warehouse productivity
Lower storage costs
Scale operations as the business grows
Especially in e-commerce, a WMS is a critical tool when order volumes increase and delivery speed directly impacts customer experience.
Where are WMS systems used?
WMS systems are widely used across various industries:
E-commerce
– Efficiently manage high order volumes, picking processes, and returns.
Logistics and 3PL companies
– Handle multiple clients’ inventories and deliveries within one system.
Wholesale and retail
– Manage inventory levels, picking, and distribution to multiple stores.
Manufacturing
– Control raw materials, semi-finished goods, and finished products.
Distribution centers and warehouse terminals
– High throughput and large volumes require efficient operational control.
When does a company need a WMS?
Implementing a WMS should be considered when:
Order volumes increase and manual processes are no longer sufficient
Inventory errors become more frequent (wrong items, inaccurate stock levels)
Delivery speed and reliability are critical
The warehouse contains multiple products, locations, or facilities
The goal is to scale operations without proportionally increasing staff
A WMS delivers particular value to companies where the warehouse plays a central role in the customer experience.
WMS vs. ERP and TMS
A WMS is not the same as an ERP or TMS system — they complement each other:
ERP manages overall business operations (finance, sales, purchasing, inventory)
WMS focuses on internal warehouse processes
TMS manages transportation and deliveries after goods leave the warehouse
The most efficient setup is often achieved when WMS, ERP, and TMS are integrated, allowing information to flow seamlessly from order to delivery.
A WMS (Warehouse Management System) is the core system of warehouse management, helping companies manage warehouse operations efficiently, accurately, and in a scalable way. It reduces errors, speeds up deliveries, and improves customer experience — especially in e-commerce and logistics-intensive businesses.
Shipit TMS works seamlessly with WMS systems
Shipit’s TMS solution is easy to integrate with Warehouse Management Systems (WMS) as part of a smooth and automated supply chain. While the WMS manages internal warehouse processes and Shipit TMS handles transportation, data flows in real time between systems without manual steps.
We offer ready-made integrations with multiple ERP and WMS systems, accelerating implementation and ensuring that transportation management operates efficiently as part of your overall business ecosystem.
Learn more about Shipit’s ERP and WMS integrations:
https://shipit.fi/en-US/enterprise-resource-planning-erp-and-warehouse-management-systems-wms