14 minutes de lecture

Warehouse management system (WMS): Features and benefits

IA ET ML

AR/VR/MR

eCommerce

Assurance

IoT

Fabrication

In 2024, the global WMS (warehouse management system) market was worth $3.45 billion. But this is just the beginning of the story. By 2032, it’s projected to hit $9.11 billion, growing at a steady pace of 12.9% annually. This growth tells a tale of rapid adaptation, driven in large part by the rise of cloud-based solutions.

With e-commerce booming and supply chains getting more complex, businesses have had to rethink how they run their warehouses. It’s been interesting to watch how WMS tech has evolved — AI, IoT, RFID… all these innovations are making a real difference in how things operate.

Take SAP SE and Oracle, for example. They’re building advanced WMS solutions that help with everything from inventory tracking to order fulfillment and automation. And then there’s Microsoft — not making WMS directly, but powering a lot of the innovation behind the scenes with AI, cloud, and IoT.

$3.07 bln

Market size in 2024

$9.11 bln

Projected market size in 2032

12.9%

CAGR is expected for 2024-2032

I’ve been thinking about how much online giants like Amazon, Alibaba, and eBay have changed the game. Keeping up with global supply chains isn’t just about efficiency anymore — it’s about survival. Typical processes such as managing inventory, predicting demand, and automating tasks used to be nice extras, but now they’re absolute must-haves. The way online orders fluctuate, you just can’t afford to wing it.

This brings us to warehouse management systems, throughout this article I’ll give a comprehensive overview that covers every aspect of warehouse management, from inventory tracking and demand forecasting to automation and cost reduction. If you’re looking to get a complete picture of how warehouse tracking software is transforming warehouse operations, this article dives into all the key details.

What is a warehouse management system?

To put it simply, WMS (warehouse management system) is a system designed to automate warehouse operations, including receiving, storing, processing, and shipping goods. It helps track inventory, optimize space usage, and improve overall warehouse efficiency. With WMS, businesses can manage stock accurately and quickly, monitor product movement, and reduce errors. Let’s take the example of an e-commerce business and see how a warehouse management system works in this context.

Receiving goods

When new stock arrives at the warehouse, WMS is used to verify the quantity and quality of each product against the supplier’s invoice or order documentation. Warehouse staff scan each product using barcodes or RFID, which updates the inventory levels in real-time.

For example, if a shipment of 100 t-shirts arrives, a warehouse employee simply scans each box, and the warehouse management software updates the inventory to reflect the exact quantity available for sale on the e-commerce platform.

Stockage

Warehouse management software helps position products based on their size, weight, and demand frequency. High-demand items, such as popular clothing sizes or frequently purchased electronics, are stored in easily accessible areas, while bulkier or less popular items are placed in less accessible locations. The system considers factors like product type (fragile, perishable) and recommends optimal storage.

Order picking

Once a customer places an order, WMS guides warehouse staff to pick the correct items from various locations. The system then generates an optimal picking route. If an order contains multiple products, the warehouse management system directs the worker to the exact shelf or bin, ensuring the right quantity and item are picked. So, if a customer orders three different sizes of the same hoodie, the WMS sends the picker to the exact shelves where those sizes are stored, reducing the chance of errors.

Shipping

After the items are picked, the warehouse distribution management software validates the order before shipment. The warehouse employee scans each item, confirming that it matches the customer’s order. It then generates shipping labels and can suggest the best carrier and shipping method based on the customer’s preferences, order value, and urgency (e.g., standard vs. expedited shipping). This helps e-commerce companies provide fast, reliable shipping, with minimized errors and delays.

Gestion des inventaires

The inventory is automatically updated in WMS after each item is received, picked, and shipped. If an item is sold out in the online store, the warehouse management system updates the system immediately to reflect the change in stock.

As a result, customers can only order items that are actually in stock, preventing overselling and ensuring customer satisfaction. In order to avoid stockouts WMS also can help the e-commerce business to reorder products in time through low-stock pointers.

Role of WMS in supply chain order processing

When a client orders a product, the ERP (enterprise resource planning) serves as the focal point and processes the order before sending it to the WMS for fulfillment. WMS processes warehouse-related activities, such as inventory control, order picking, packing, and shipping preparations.

As inventory is picked and updated in the warehouse management system, this information is relayed back to the ERP, which maintains accurate stock levels across the organization. The ERP also links with the accounting and invoicing systems to accomplish the financial side of the order. After completing the order preparation in the WMS, shipping instructions are passed on to the TMS (transportation management system). The TMS helps reduce transportation costs by choosing the cheapest carrier, the best route, and the best method of transportation.

Throughout this process, the three systems exchange real-time data, providing end-to-end visibility and enabling proactive decision-making. As an example, in the event of an inventory shortage, an ERP system can decrease demand forecasts, while simultaneously, the WMS can ensure that the workforce is optimally allocated. Meanwhile, the TMS monitors freight progress and updates delivery timelines, maintaining transparency for both the business and the customer.

When the WMS, ERP, and TMS collaborate, silos are broken down, mistakes are minimized, and the entire supply chain runs more smoothly, which boosts performance, lowers costs, and improves service levels.

Tracks stock, automate processes, and obtain smooth fulfillment with WMS

Types of warehouse management systems

Types of WMS solutions	Description	Pour	Cons
WMS modules integrated with ERP	This integration enables seamless data exchange between warehouse processes and other business functions	Minimizes discrepancies in inventory, orders, and finances	May create challenges in managing and processing large data volumes
Standalone WMS	A software solution designed for managing warehouse operations without relying on other enterprise systems	Can be customized to specific warehouse needs	May lack integration with other business functions like finance or procurement
On-premise WMS	An on-premise WMS installed and hosted on the company's own servers. It gives businesses complete control over the system	High level of customization and control over system configurations	Can be difficult to scale quickly and may require more manual intervention for updates or changes
Cloud-based warehouse management system	A system hosted on remote cloud servers and accessed via the internet	Easily scales up or down based on business needs	Relies on third-party vendors for data security, which may be a concern for some businesses
Cloud-native warehouse management system	Unlike cloud-based systems, cloud-native systems are built from the ground up to fully leverage cloud computing capabilities	Designed for greater reliability and uptime, often with built-in redundancies	Can lead to dependency on a specific cloud provider’s ecosystem, making it harder to switch

Warehouse management system features

Gestion des inventaires

Gestion des commandes

Labor management

Goods in processes

Gestion des transports maritimes

Order picking and packing

Returns management

Warehouse location management

System integrations

Rapports et analyses

Gestion des inventaires

Monitoring inventory levels
Verifying inventory accuracy
Predicting future stock needs
Auto-reordering stock when low

Gestion des dossiers médicaux par blockchain

Gestion des commandes

Monitoring order progress
Sorting orders by urgency
Managing out-of-stock items
Notifying customers on order status

Labor management

Planning shifts for workers
Assigning tasks based on skill
Monitoring worker productivity
Evaluating labor-related expenses

Gestion de la chaîne d'approvisionnement

Goods in processes

Checking goods upon arrival
Verifying quality & quantity
Organizing goods for picking
Preparing items for shipping

Gestion des transports maritimes

Creating shipping labels
Planning efficient routes
Monitoring shipments in real-time
Managing shipping paperwork

Order picking and packing

Choosing the right picking method
Using scanners & apps
Handling packing supplies
Checking order quality

Vérification des qualifications du personnel médical

Returns management

Validating return requests
Checking returned goods for damage
Issuing customer refunds
Returning sellable items to inventory

Warehouse location management

Defining warehouse layout
Allocating storage based on demand
Maximizing storage capacity
Monitoring product locations in real-time

Gestion de la recherche et des essais cliniques

System integrations

Connecting WMS with ERP software
Intégration de la CRM
Connecting to accounting software
Syncing with external services

Rapports et analyses

Accessing live data on operations
Monitoring key warehouse metrics
Identifying demand patterns
Forecasting future trends and needs

Gestion des inventaires

Monitoring inventory levels
Verifying inventory accuracy
Predicting future stock needs
Auto-reordering stock when low

Gestion des commandes

Monitoring order progress
Sorting orders by urgency
Managing out-of-stock items
Notifying customers on order status

Labor management

Planning shifts for workers
Assigning tasks based on skill
Monitoring worker productivity
Evaluating labor-related expenses

Goods in processes

Checking goods upon arrival
Verifying quality & quantity
Organizing goods for picking
Preparing items for shipping

Gestion des transports maritimes

Creating shipping labels
Planning efficient routes
Monitoring shipments in real-time
Managing shipping paperwork

Order picking and packing

Choosing the right picking method
Using scanners & apps
Handling packing supplies
Checking order quality

Returns management

Validating return requests
Checking returned goods for damage
Issuing customer refunds
Returning sellable items to inventory

Warehouse location management

Defining warehouse layout
Allocating storage based on demand
Maximizing storage capacity
Monitoring product locations in real-time

System integrations

Connecting WMS with ERP software
Intégration de la CRM
Connecting to accounting software
Syncing with external services

Rapports et analyses

Accessing live data on operations
Monitoring key warehouse metrics
Identifying demand patterns
Forecasting future trends and needs

Smart technologies in warehouse management

Warehouse automation

Automating tasks like sorting, picking, packing, and shipping reduces human error, speeds up operations, and cuts costs. Systems such as automated storage and retrieval systems (AS/RS), robotic picking solutions, and high-speed sortation systems simplify warehouse workflows. These technologies guarantee the accurate storage and retrieval of goods, which reduces the need for manual labor.

Voice-picking technology

Voice-picking technology allows workers in a warehouse to use headsets to receive picking instructions, allowing them to pick using voice aids. This hands-free method improves picking operation speed and accuracy while enhancing warehouse safety since workers are not focused on paper printouts or mobile devices.

Dispositifs mobiles

Modern warehouse management would simply not exist if we excluded mobile devices such as smartphones, tablets, and even handheld scanners. These devices allow employees to scan items, check inventory, and track shipments from anywhere without being tied to a workstation. In addition, workers receive instant notifications about low inventory, misplaced items, or order changes, allowing for quicker decision-making.

AI and IoT in warehouse management

IoT-enabled gadgets like RFID tags and sensors continuously collect and transmit data to central systems. This real-time information allows businesses to monitor key factors such as stock levels, shelf life, and reorder needs with greater accuracy. AI takes these processes a step further. With advanced data analysis, businesses can anticipate demand, minimize waste, and control costs — all while providing timely deliveries.

Warehouse robots

Warehouse robots have become central players in the push toward automation. These robots can perform a variety of tasks such as picking, sorting, and packaging, and they work in tandem with human workers to increase overall productivity. Automated guided vehicles (AGVs) and conveyor belts, for example, transport products across large warehouses without the need for manual labor, providing that goods are delivered to the right places more efficiently and accurately.

Augmented and virtual reality apps

AR tech overlays digital information, such as picking instructions or inventory data, onto the physical environment. For example, AR glasses can guide employees to the correct items on the shelves, reducing errors and speeding up the picking process. VR, on the other hand, is used for training warehouse staff in a simulated environment. These immersive techs can also be used to simulate entire warehouse layouts to identify inefficiencies or improve workflow designs.

Embrace smarter inventory management.

Benefits of warehouse management system

What if, instead of manually searching for items throughout the warehouse, you use a warehouse management system that leverages barcode scanning and automates picking routes, guiding workers straight to the item locations? Such automation results in faster order fulfillment and higher customer satisfaction, as a pleasant bonus.

Real-time tracking of inventory allows businesses to maintain accurate stock levels, monitor product movement, and prevent issues like overstocking or stockouts. This increased visibility improves forecasting and demand planning.

WMS assigns workers the specific zones and then generates optimized picking routes for each order. No unnecessary movement! No wasted time! Just higher numbers of orders handled daily. It can also analyze performance data to identify areas for improvement.

A WMS drives cost savings by improving inventory accuracy, enabling growth, and providing smarter workforce management. The system enables real-time visibility into inventory, prevents errors, and allows businesses to scale without increasing overhead.

Some WMS solutions are specifically built to grow with your business. No matter what you want to do — scaling up your operations, introducing new product categories, or expanding to additional warehouses — the system adapts to handle escalating demands without disrupting workflows.

Warehouse management systems across industries

Consumer goods
Alimentation et boissons
Grocery
Wholesale
Medical & pharmaceutical
Commerce de détail
Fabrication
Logistique
Gouvernement

Consumer goods

The functions of a warehouse management system for consumer goods refer to handling inventory flows, automating stock replenishment, and tracking product movements in real-time.

Reduced stockouts
Improved order accuracy
Optimized picking routes

Alimentation et boissons

WMS tracks expiration dates, manages FIFO (First In, First Out) inventory, and handles temperature-sensitive storage — all while complying with food safety regulations.

Easy control of proper storage conditions
Minimized chances of products expiring on shelves
Improved inventory accuracy

Grocery

Grocery retailers use WMS to manage fast-moving items, automate shelf-life tracking, optimize product rotation, and navigate promotions during demand surges.

Reduced waste & improved profitability
Optimized stock turnover
Accurate real-time inventory

Wholesale

WMS simplifies large-order processing with optimized storage, automated picking, and simplified shipment tracking to handle high-volume demands.

Increased order fulfillment speed
Optimized warehouse space usage
Réduction des coûts opérationnels

Medical & pharmaceutical

Pharmaceutical WMS maintains compliance through automated inventory management, secure handling of sensitive products, and precise shipment tracking for on-time deliveries.

Accurate inventory management
Robust regulatory adherence
Accelerated order processing & delivery

Commerce de détail

WMS for retail integrates with e-commerce platforms and POS systems for real-time inventory updates and efficient stock replenishment to keep products always available for customers.

Augmentation des ventes
Amélioration de la rotation des stocks
Une meilleure fidélisation de la clientèle

Fabrication

Manufacturers use WMS to track materials in real-time, maintain inventory levels, and synchronize production schedules with deliveries to avoid disruptions.

Better inventory visibility
Optimisation des processus de production
Exécution plus rapide des commandes

Logistique

Logistics WMS improves supply chain efficiency through real-time inventory tracking, route optimization, and automated shipment coordination to meet time-sensitive demands.

Faster delivery operations
Real-time tracking of inventory & shipments
Optimized route planning

Gouvernement

WMS optimizes resource management with secure asset tracking, centralized inventory monitoring, and automated reporting to improve the efficiency of public sector workflows.

Reduced asset loss & misplacement
Faster response times for public service requests
Decreased manual reporting errors

How to choose the right WMS: tips from Innowise

Step	What to consider	Recommendations
Define core business requirements	Specific needs of your warehouse, such as order volume, types of products (e.g., perishable, large, fragile), and operational complexity	Choose a WMS that can grow with your business. Be sure it can handle increasing order volumes and warehouse space without major disruptions.
Access system features	Basic WMS features including inventory control, order management, real-time tracking, and shipping support.	Think if you need advanced features like automation integration, labor management, multi-location support, real-time data analytics, or mobile access.
Evaluate integration capabilities	WMS should easily integrate with your existing enterprise resource planning (ERP) and order management system (OMS).	The WMS should integrate with shipping carriers (like FedEx, UPS) and third-party logistics (3PL) systems.
Consider costs & ROI	Upfront costs (software, implementation), ongoing fees (maintenance, updates), and hidden costs (training, support, hardware requirements)	Look at how the WMS will minimize costly errors in inventory tracking, order picking, and shipping, which can lead to costly returns and customer dissatisfaction.
Collect information on a vendor	Proven track record and experience in your industry, client testimonials, case studies, and reviews	Be sure the vendor offers strong customer support, training programs, and resources to help your team get the most out of the system.
Review change management & training effectiveness	System usability, training resources, change management strategy, employee adoption, onboarding support	Look for a WMS that offers customizable workflows, comprehensive training modules tailored to your team’s needs, and vendor-backed change management support.

See how businesses succeed through RISE with SAP

Amazon’s new fulfillment center in Shreveport, Louisiana, showcases its latest advancements in AI and robotics. Spanning 3 million square feet, it features Sequoia, a high-capacity inventory system, and robotic arms like Robin, Cardinal, and Sparrow that efficiently sort and process orders. Proteus, Amazon’s first fully autonomous robot, moves packages autonomously, enhancing safety and reducing manual labor.

IoT sensors paired with machine learning allow for predictive maintenance, which helps improve the performance of warehouse equipment and lowers downtime. With real-time data and AI-powered analytics, British Sugar not only optimizes its production processes but also streamlines warehouse operations, inventory control, and overall productivity.

Ingka Group, the parent company of IKEA, has acquired Made4net, a cloud-based warehouse management system provider. IKEA integrates the fulfillment platform to improve the accuracy of the data as well as the efficiency of order handling, thus enabling it to achieve its goals in omnichannel retail while improving customer service.

Warehouse management solutions: Innowise expertise

MS Dynamics 365 supply chain module

We partnered with a vehicle engine manufacturer to implement an end-to-end ERP platform based on Microsoft Dynamics 365 Release Wave 2. The solution addressed supply chain disruptions by unifying resource planning, procurement, manufacturing, and risk management processes within a single system. These improvements resulted in a 15% faster manufacturing process, optimized inventory costs, and zero risk of stockouts.

Platform for goods movement

We built a custom solution for a car spare parts retailer to speed up receiving, cross-docking, staging, shipping, and inventory management. Key features include multi-stage controls for accuracy, real-time cross-docking to save time, and dynamic inventory with smart putaway. The scalable system improves speed, precision, and efficiency across operations.

Our warehouse management system implementation process

We guarantee the hassle-free implementation of your custom wms, from the scope of work to post-launch support. Our approach indeed proves to be beneficial for every cycle.

Design

Our team crafts a clear, step-by-step roadmap for your WMS implementation, carefully aligning each system feature with your specific business objects.

Créez des

We customize and develop the WMS to integrate flawlessly with your existing systems, improve efficiency, and support your operational needs.

Préparer

We prepare the system by thoroughly testing configurations, training your team on key features, and finalizing data to make sure everything is properly set up.

Deploy

We deploy the WMS to ensure minimal disruption to warehouse operations and maintain smooth workflow throughout the process.

Soutien

With the last phase of the project being completed, the implementation is considered done and ongoing support for the customers is provided.

01 Design

Our team crafts a clear, step-by-step roadmap for your WMS implementation, carefully aligning each system feature with your specific business objects.

02 Créez des

We customize and develop the WMS to integrate flawlessly with your existing systems, improve efficiency, and support your operational needs.

03 Préparer

We prepare the system by thoroughly testing configurations, training your team on key features, and finalizing data to make sure everything is properly set up.

04 Deploy

We deploy the WMS to ensure minimal disruption to warehouse operations and maintain smooth workflow throughout the process.

05 Soutien

With the last phase of the project being completed, the implementation is considered done and ongoing support for the customers is provided.

Why choose Innowise for warehouse management software

With top-tier engineers, custom service models, and quick team ramp-up, we deliver fast time-to-market, predictable budgets, and smooth integration to optimize your warehouse operations and guarantee flawless, efficient processes.

To sum it up

I’ve seen firsthand how the right WMS can streamline operations, cut down on errors, and give businesses the agility they need to keep up with demand. As tech keeps evolving, so do WMS capabilities, and I truly believe that companies that embrace these systems will stay ahead. If you’re looking to scale, improve accuracy, or just make life easier in the warehouse, a solid WMS is a must.

FAQ

What is warehouse management system software?

Warehouse management system (WMS) software helps manage and optimize warehouse operations. It simplifies keeping track of stocks, order completion, transportation, and acceptance. WMS improves efficiency, accuracy, and productivity, providing real-time visibility into warehouse operations.

What is the best warehouse management system for small businesses?

The best WMS software for small businesses depends on specific needs, but popular options include TradeGecko, NetSuite WMS, and Fishbowl. These platforms offer scalable solutions, ease of use, and cost-effectiveness while handling growing businesses’ inventory management and order processing.

How to choose a warehouse management system?

When choosing a WMS, consider factors like scalability, compatibility with existing systems, user-friendliness, and customer support. Also, evaluate features like inventory tracking, reporting tools, real-time updates, and automation capabilities to ensure the system meets your warehouse needs.

How much does a warehouse management system cost?

WMS software costs can vary widely based on features, scale, and deployment options. Apply to us, and we will estimate the cost based on your budget and specific needs.

Michael Labutin Chef du département ERP

Date: Mar 4, 2025

Michael Labutin Chef du département ERP

Date: Mar 4, 2025

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