What is WMS (Warehouse Management System)?
Software that optimizes warehouse operations including receiving, putaway, picking, packing, and shipping.
Definition
A Warehouse Management System (WMS) is software designed to optimize and manage warehouse operations from the moment goods enter a warehouse until they leave. WMS controls and tracks the movement of materials, manages inventory locations (bin management), optimizes picking routes, and provides real-time visibility into warehouse inventory. Modern WMS solutions support barcode scanning, RFID, wave/batch picking, cross-docking, and integration with transportation management systems (TMS).
How WMS Works in ERP
Many ERP systems include a WMS module as part of their supply chain or inventory management suite. ERP-embedded WMS provides the advantage of a single database — real-time inventory updates flow directly into financials, procurement, and sales. However, companies with complex warehouse operations sometimes use standalone WMS (like Manhattan Associates or Blue Yonder) integrated with their ERP for more advanced capabilities like slotting optimization and labor management.
ERP Vendors with Strong WMS
Microsoft Dynamics 365
Modular ERP + CRM tightly integrated with Microsoft 365
Oracle NetSuite
The original cloud ERP — built for fast-growing companies
SAP S/4HANA Private Cloud
Fully customisable managed-cloud ERP for complex enterprises
Infor CloudSuite
Industry-specific cloud ERP suites on AWS
Frequently Asked Questions
Do I need a separate WMS or is ERP-embedded WMS enough?
For most mid-market companies, ERP-embedded WMS is sufficient. Standalone WMS is typically needed for complex, high-volume warehouses with advanced requirements like wave planning, labor management, or multi-warehouse optimization.
Which ERP systems have the best WMS?
SAP S/4HANA (Extended Warehouse Management), Dynamics 365 Supply Chain, Oracle NetSuite (WMS module), and Infor CloudSuite are known for strong warehouse management capabilities.