8 Key Functions Of Warehouse Management System (WMS)

functions of warehouse management system

A warehouse management system (WMS) is a software application that is used to monitor and control warehouse operations. It handles inventory from the time it enters the warehouse, throughout its storage, and until it gets delivered to the end customer.

A WMS avoids manual errors and also manages stock control by ensuring the transparency of inventory data. A WMS application enables users to access a centralized system in which various warehouse management duties are controlled through a uniform interface, ensuring warehouse operations are both simple to use and efficient. Following are the key functions of the warehouse management system.

1. Tracking Inventory

One of the key responsibilities of warehouse management systems is to keep track of the inventory inflows in the warehouse. It provides warehouse managers with unparalleled visibility into stock availability and replenishment requirements. A WMS enables warehouse operators to monitor the demand and supply of their commodities to procure the products in the appropriate amount and at the proper time. Additionally, it is critical for warehouse space optimization. A WMS ensures that inventories are allocated evenly to guarantee efficient warehouse management.

2. Layout Planning

It is critical for a warehouse to maintain a well-organized layout design. A warehouse management system assists you in perfectly designing the layout of your warehouse. A logical framework incorporated into its system allows effective placement of your inventory within the specified warehouse. Accessibility, demand, and weight are the variables that influence the development of this systematic pattern design

3. Labour Management

Having real-time data on each employee’s efficiency and performance is critical for monitoring and ensuring that warehouse operations are adequately processed.  A WMS can examine and monitor numerous performance indicators displayed by warehouse staff. This could be a crucial performance measure, and its implementation could be beneficial for labour management. Additionally, warehouse management adds to staff management by assisting logistics companies in developing incentive systems that emphasize employee productivity and effectively minimize workforce burnout.

4. Order Processing

Another critical function of WMS is to oversee the order processing inside the warehouse. A WMS helps fulfilling products accurately and ensure timely delivery of products. There is a minimal expense associated with incorrect stocking of orders and shipment to mismatched clients, hence reducing the overall cost of warehousing.

5. Analytics

A business’s strategic decision-making process is based on data-driven and executable insights. A WMS provides extensive and accurate insights into warehouse activities, assists in efficiently tracking inventory in and out, and the warehouse management team can plan their future course of action successfully. Warehouse managers gain the leverage to significantly enhance the business by using the information obtained in real-time from the WMS.

6. Paperless Documentation

A WMS provides a centralized view of the complete warehouse processes. With its anytime accessibility, WMS provide warehouse workers with the necessary data and information to perform their jobs efficiently. Automated warehouse management solutions eliminate the need for paper-based paperwork. 

7. Reliable Customer Service

Businesses’ primary focus has always been customer satisfaction. As a result, organizations strive to optimize their processes to provide seamless, customized, and personalized experiences to their customers.  A warehouse management system enables the delivery of authentic products to the correct consumers at the right time. WMS are essential in guaranteeing customer satisfaction for existing customers and acquiring and converting new prospects.

8. Increases Productivity

A good WMS maintains an audit trail that connects transactions to specific employees. This increases accountability and creates an opportunity for coaching based on individual performance goals. A WMS establishes a logical structure that is simple to follow and significantly improves the working lives of your team. It establishes explicit KPIs and performance requirements for the warehouse team, which promotes efficiency and accuracy.


Warehouse management has long been a pillar of the logistics industry, and businesses have always placed a high premium on the efficient operation of this business unit. The logistics industry has reaped tremendous benefits from WMS systems and significantly reduced warehousing costs with new technology and platforms.

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