Warehouse Management Systems: That's How Things Run in the Warehouse

Viktoria Tropé 12/20/2022

What you need to know about Warehouse Management Systems (WMS) and their functions

Table of contents
  1. What is a Warehouse Management System (WMS)?
  2. What functions does a Warehouse Management System have and what tasks does it perform?
  3. What are the advantages and disadvantages of Warehouse Management Systems?  
  4. What WMS systems are there? 
  5. Conclusion

Nowadays, it's nearly indispensable to establish a WMS. In particular, online shops can hardly handle their day-to-day business without a warehouse management system. It manages all processes from goods receipt to shipping including returns. You'll learn what this looks like in detail in this article.

What is a Warehouse Management System (WMS)?

Warehouse management systems are also called inventory management systems. They help you manage operations and processes in your warehouse and optimize your material flow. A warehouse management system handles the administration of your inventory, plans warehouse movements, and monitors all warehouse activities. You can link it with your Enterprise-Resource-Planning-System (ERP) and many other systems that you have in operation.

Warehouse Management Übersicht

A WMS system covers many tasks within your warehouse. Source: ClickPost

Recommended warehouse management software

On our comparison platform OMR Reviews you will find more recommended warehouse management software. We present over 80 solutions that are specifically tailored to the needs of warehouse management companies, logistics service providers and businesses. This warehouse management software offers comprehensive support in all aspects of warehouse management. Take this opportunity to compare the different software solutions using authentic and verified user reviews:

What functions does a Warehouse Management System have and what tasks does it perform?

The main task of a warehouse management system is the management and optimization of your storage and transport systems. A WMS controls, checks and optimizes your storage and distribution systems. For this, it provides you with a number of functions that, for example, assist in managing your inventory, transfer stations, storage spaces, and shipping papers. 

These are a few functions that you can expect from your WMS:

  • Inventory Management: A WMS stores and tracks information such as item numbers, storage locations, quantities, and due dates. It helps you to keep an overview at all times.
  • Process Control: With a WMS, you can control and optimize your processes from goods receipt through storage, picking, packing and shipping to inventory tracking, and maintain an overview of your resource utilization.
  • Yard and Gate Management: With a WMS system, truck drivers can find their loading ramps more quickly.
  • Storage Space and Equipment: A WMS monitors and optimizes the use of storage equipment, such as the use of shelves and the operation of forklifts.
  • Warehouse and Transport Documentation: The creation of transport documentation – for example delivery notes, stock books and stowage plans – is also handled by the WMS system.
  • Customer and Supplier Order Management: A WMS assists you in managing customer and supplier orders. It stores and oversees key information such as item numbers, delivery volumes and delivery dates for you.
  • Compatibility: You can integrate other tools into a WMS such as barcode scanning and RFID labeling, modern robotics and Augmented Reality (AR) wearables, transport management systems (TMS), ERPs and logistics systems.
  • Data Analysis and Evaluation: A WMS enables real-time monitoring and the creation of data analysis reports.
Warehouse-Management-Systeme: Übersicht über Funktionen und Aufgaben

WMS have many functions and tasks. Source: DEAR Systems

What are the advantages and disadvantages of Warehouse Management Systems?  

The use of a WMS sounds absolutely advantageous, doesn't it? If you're considering integrating a warehouse management system into your workflow, you should get an overview of the pros and cons first.

As you may have already realized, a WMS saves you a lot of work by automating your processes and guaranteeing a certain quality standard. This in turn saves time and money, avoids returns and improves your reputation. However, the cost of acquisition has to be worth it for you. So, let's look at the most important advantages and disadvantages of Warehouse Management Systems in detail:

Exakte Bestandsführung durch zeit- und ortsgenaue Protokollierung aller Warenbewegungen Anschaffungs- und Instandhaltungskosten für Soft- und Hardware
Priorisierung Eurer Lagerbewegungen, Materialien sowie Produkte und Steuerung dieser mit logischen Strategien (z. B. durch die Einführung einer ABC-Klassifizierung) Akzeptanz und ggf. regelmäßige Schulungsbereitschaft Euer Mitarbeitenden sind ein Muss
Exakte Planbarkeit, Terminierung und Personal-Einsatzplanung Abhängigkeit von Stromversorgung und Internet
Schnelle Reaktion auf Anfragen von Kund*innen Datenschutzkonformität muss gewährleistet sein

What WMS systems are there? 

On OMR Reviews you'll get an overview of suitable warehouse management systems for your business. Verified reviews from users will help you make a decision for an appropriate WMS.

These are the 10 WMS systems you should take a closer look at:

The entire range of Inventory Management Systems & Tools including a practical comparison can be found on OMR Reviews.

Conclusion

A WMS system can save you a huge amount of time and money, but also brings with it – like many tools and technologies – challenges, especially when it comes to implementation. Nevertheless, for many companies the investment in a warehouse management system is worth it – maybe for yours too.

Viktoria Tropé
Author
Viktoria Tropé

Die angehende Ernährungsberaterin Viktoria ist freiberufliche Texterin und Übersetzerin. Zuvor war sie HR-Managerin in einem Health-Tech-Start-up.

All Articles of Viktoria Tropé

Software mentioned in the article

Product categories mentioned in the article

Related articles

Join the OMR Reviews community to not miss any news and specials around the software seeking landscape.