A WMS (Warehouse Management System) is software that drives warehouse processes: stock locations, order picking, receiving and shipping. It ensures that the physical stock and the administrative stock tell the same story.
WMS in practice
For webshops a WMS becomes relevant once picking from experience no longer scales: multiple pickers, multiple locations or high order volumes. The system determines walking routes, prevents mis-picks and links every stock movement to an order or receipt — turning 'the stock doesn't add up' from a daily problem into an exception.
The chain only works if the WMS is connected to the webshop and the accounting system or ERP: orders in, stock levels and shipping statuses out. What such chains look like is covered in Connecting your webshop to your accounting.
Related terms
- ERP — An ERP (Enterprise Resource Planning system) is a single system that brings together a company's core administration: finance, purchasing, inventory, orders and often projects or production too.
- POS system — A POS system (point of sale) records sales in a physical shop or hospitality venue: checkout, payments, receipts and often stock and revenue reporting too.
- API connection — An API connection is a link between two software systems that automatically exchange data via their APIs — for example orders from a webshop to the accounting system, or placements from an ATS to invoicing.