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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.
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.
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.
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.
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.
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.
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.
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 WMS solutions | Descrição | Prós | Contras |
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 |
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 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.
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.
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 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.
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.
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.
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.
WMS tracks expiration dates, manages FIFO (First In, First Out) inventory, and handles temperature-sensitive storage — all while complying with food safety regulations.
Grocery retailers use WMS to manage fast-moving items, automate shelf-life tracking, optimize product rotation, and navigate promotions during demand surges.
WMS simplifies large-order processing with optimized storage, automated picking, and simplified shipment tracking to handle high-volume demands.
Pharmaceutical WMS maintains compliance through automated inventory management, secure handling of sensitive products, and precise shipment tracking for on-time deliveries.
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.
Manufacturers use WMS to track materials in real-time, maintain inventory levels, and synchronize production schedules with deliveries to avoid disruptions.
Logistics WMS improves supply chain efficiency through real-time inventory tracking, route optimization, and automated shipment coordination to meet time-sensitive demands.
WMS optimizes resource management with secure asset tracking, centralized inventory monitoring, and automated reporting to improve the efficiency of public sector workflows.
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. |
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.
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.
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.
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.
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.
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