What Is a Warehouse Management System

What Is a Warehouse Management System?

Did you know that the global warehousing industry is expected to grow by 9.4% throughout 2022? That’s an increase from $601.68 billion to $658.52 billion. By 2026 that number will increase to $906.4 billion.

Businesses are growing, and with that their need for more space to store their products grows as well. As your company grows, so does its need for an efficient warehouse management system.

If you’re wondering, “what is a warehouse management system?”, then this article is a great place to start. Keep reading to learn some warehouse management system tips, and why you should consider getting one for your business.

What Is a Warehouse Management System?

A warehouse management system (WMS) is a kind of software used by businesses across different industries for the organization and distribution of their products. There are many warehouse management systems available today, and each one offers unique features.

When considering a WMS for your company, you will want to consider having either an “on-site” system or cloud-based software. On-site systems are ones that you are entirely responsible for. While this can be a positive feature, it can cause issues you don’t have time to deal with.

But, using cloud-based software can be more profitable in terms of upkeep and ease of use. These SaaS programs can be used across multiple devices on a subscription basis. Click here to learn more about the benefits of using a cloud-based WMS.

What Is Included in Different WMS Software?

There are two types of warehouse management system software for your business. The first type is a standalone system and the second is an integrated system.

The standalone is the less involved system that focuses solely on your warehouse. The standalone WMS will scan items, print shipping labels, track your inventory, and other tasks focused almost exclusively on the warehouse itself. This form of WMS software is perfect for small to medium-sized companies that want a focused system for their warehousing needs.

The second kind of WMS is the integrated system. This system combines with your Enterprise Resource Planning software to provide the most accurate numbers for your business. This system will handle your entire business, from HR to inventory, managing invoices, shipping, and more.

The integrated system is perfect for a larger company that has a lot of moving parts. Being able to keep track of your logistics from one software is a great way to get a full picture of your business. This WMS software is more expensive than the standalone but can be worth it if your company has a larger volume.

Warehouse Management Systems Explained

There are many benefits to a warehouse management system, and you want to make sure you find the right one for your company. Look at the benefits offered by a WMS before you make a change in your company’s warehouse management. By choosing the right WMS you can have a more efficient process, keep track of your inventory level, and more.

This warehouse management system guide has briefly taught you the different kinds of software and the benefits of each. If you started reading this article wondering, “what is a warehouse management system?”, you should now have a working knowledge of WMS software and how it operates.

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