Warehouse management system (WMS)
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is WMS?
A warehouse management system (WMS) is software that directs and tracks the work inside a warehouse, from receiving and putaway to picking and shipping. It also manages bin locations, packing and counts through handheld scanners; many ERPs include basic warehouse functions, and distributors add a separate WMS when volume or complexity outgrows them.
WMS example
A picker’s scanner sends her to bin 14-A-06 for three fittings and won’t let her move on until she scans both the bin and the item.
Related terms
- Enterprise resource planning (ERP)Enterprise resource planning (ERP) software is the central system a distributor runs on, holding orders, inventory and accounting in one database.
- Receiving and putawayReceiving and putaway are the warehouse steps that bring a supplier’s delivery into stock and make it available to sell.
- Bin locationA bin location is the exact spot in a warehouse where an item is stored, written as a code for aisle, rack, shelf and position, such as 12-C-03.
- Pick, pack and shipPick, pack and ship are the three warehouse steps that turn a sales order into a delivery, from pulling items off the shelf to handing them to a carrier.
- Transportation management system (TMS)A transportation management system (TMS) is software for planning, booking and tracking shipments, including carrier choice, routing and freight rates.