Warehouse Management System (WMS)

A warehouse management system is the operational brain of a distribution center or warehouse. It governs how inventory moves through a facility: where products are stored, how pick orders are routed across the floor, how packing stations are assigned, and when shipments are staged for carrier pickup. If an ERP tells a business what to ship and when, the WMS tells the warehouse how to make it happen physically.

Core WMS functions include inventory tracking by location (down to bin, shelf, or pallet position), receiving workflows that validate inbound freight against purchase orders or ASNs, putaway logic that directs products to optimal storage locations, pick-path optimization, packing verification, and shipping label generation. More sophisticated systems add labor management, slotting optimization, wave planning, and cycle count scheduling. A WMS also typically manages lot tracking and expiration date visibility – critical for food and beverage or pharmaceutical warehouses.

For shippers, the WMS matters because it's the system of record for what's actually in the warehouse and what's ready to ship. When a WMS doesn't talk to the transportation management system, problems multiply: loads get tendered before orders are picked, carriers arrive for freight that isn't staged, and inventory counts drift from reality. The integration between WMS and TMS is one of the highest-value connections in a shipper's tech stack – ensuring that transportation planning reflects real warehouse readiness.

The trend toward cloud-based WMS platforms has made these systems more accessible to mid-market shippers who previously relied on spreadsheets or basic ERP inventory modules to manage warehouse operations.