WMS Guide: Warehouse Management System Examples & Types

In today's digital — and intensely competitive — business landscape, effective warehouse management is crucial for optimizing supply chain operations. Warehouse management systems (WMSs) have emerged as powerful tools that revolutionize how facilities operate, enhancing efficiency and providing invaluable visibility into inventory and order fulfillment.

In this article, we explore the transformative potential of a WMS, its tangible benefits, key implementation considerations, and future trends shaping the industry. Discover how the right warehouse system streamlines operations and drives success in the modern, automated warehouse environment.

What is a WMS? 

At its core, a WMS is a software platform designed to control and manage various aspects of warehouse operations. As a warehouse manager, you can think of it as the “central hub” for overseeing inventory, optimizing storage, and facilitating the precise movement of goods within your distribution center.

The primary function of a warehouse inventory management system is to ensure the smooth, profitable functioning of a facility. This includes:

• Inventory control and optimization
• Order management
• Labor management
• Slotting and location management
• Yard management
• Reporting and analytics

With these features, organizations can effectively allocate resources, optimize layout, reduce storage costs, and dramatically improve order accuracy and fulfillment speed.

Six different types of WMS 

WMSs vary in capabilities and deployment options, catering to different facility sizes, complexities, and industry requirements. When selecting a WMS management system, you must consider specific needs, budget, scalability, and integration capabilities.

Here are the six main types of WMS with examples:

1. Standalone WMS‍

Standalone systems focus solely on warehouse management functionalities, such as inventory control, order management, and labor management. It may integrate with other systems for broader supply chain visibility and coordination. They are specialized tools perfect for operations that need deep functionality without replacing their entire accounting infrastructure.

• Examples: Manhattan Associates (specialized solutions) and Blue Yonder

2. Cloud-based WMS‍

Cloud-based WMS is hosted on remote servers and accessed through the internet. It offers scalability, flexibility, and cost-effectiveness since organizations can pay based on usage and avoid upfront hardware and infrastructure costs. Cloud-based WMS also provides remote accessibility, allowing users to manage warehouse operations from anywhere, anytime.

• Examples: Oracle Warehouse Management Cloud, Infor CloudSuite WMS

3. Integrated WMS (ERP)‍

Integrated WMS solutions are part of a comprehensive suite of supply chain management or enterprise resource planning (ERP) software. These systems provide end-to-end functionality, including warehouse management, transportation management, demand planning, procurement, and financials. They offer seamless integration and data flow between different modules, enabling a holistic view of the entire supply chain.

• Examples: SAP S/4HANA, Microsoft Dynamics 365, NetSuite WMS

4. Supply chain management (SCM)‍

SCM-based WMS modules expand the scope of standard warehouse software to provide end-to-end visibility. These solutions integrate core warehouse capabilities with broader tools like transportation management systems (TMSs), demand planning, and advanced analytics.

• Examples: SAP Supply Chain Logistics, Oracle SCM‍

5. Industry-specific WMS‍

Designed to meet unique vertical requirements, these solutions incorporate specialized features and compliance standards. For example, a pharmaceutical WMS might manage lot/batch numbers and temperature-controlled storage.

• Examples: Tecsys (Healthcare/Retail), Synergy Logistics SnapFulfil (3PL).

6. ‘WMS lite’ for MFCs

Companies deploying micro-fulfillment centers (MFCs) often benefit from space-efficient, end-to-end standard solutions. An example is the QubIt Fulfillment Platform, often referred to as “Execution Software/WMS Lite.” It combines business logic, task management, and inventory capabilities, serving as the central intelligence behind the system.

QubIt integrates seamlessly with AutoStore automation, managing order fulfillment and communication with the Controller. It interfaces with ERPs, standard WMS, or order management systems (OMSs) to optimize resources using real-time data, while supporting pick-to-light systems and scanners.

Comparison: Cost vs. complexity

 To help you gauge which solution fits your current operational maturity, consider this comparison:

Improve inventory accuracy and reduce stockouts with WMS

Why implement a WMS? The business case is driven by tangible ROI. First and foremost, it enhances inventory accuracy, ensuring the right products are in the right place at the right time. By optimizing storage space and minimizing stockouts or overstocks, you can significantly reduce carrying costs and improve cash flow.

Furthermore, a WMS accelerates order fulfillment. Faster, more accurate picking, packing, and shipping processes directly translate to improved customer satisfaction and retention.

Key Strategies for Success

• Leverage Tracking Technology: Utilize barcode or radio frequency identification (RFID) to accurately track inventory movements, minimizing errors and improving stock visibility.
• Real-Time Updates: Capture inventory data the moment goods move in or out of the warehouse. This maintains accurate stock levels and virtually eliminates the risk of selling out-of-stock items.

Optimize warehouse operations and increase overall productivity

A robust warehouse system does more than count stock; it optimizes the entire facility. By managing slotting, labor, and yard operations, you can allocate resources effectively and refine the physical layout of the warehouse.

To take this further, technology integration is essential. Connecting the WMS with ERPs, TMS, or automation technologies streamlines processes that were once siloed, enhancing both efficiency and data accuracy across the board.

Things to consider when implementing a WMS

Selecting the right system requires a strategic approach:

1. Assess key factors: Evaluate scalability, flexibility, user-friendliness, and ease of integration.
2. Align with reality: Ensure the chosen system fits your specific warehouse size, complexity, and industry nuances.
3. Seek expertise: With various types available, finding the perfect match is critical. We recommend consulting with experts who can guide the selection process to ensure a seamless fit between your operations and the software.

‍Integrating WMS with AutoStore

The integration of AutoStore with a WMS simplifies complex supply chain logistics. The WMS acts as the conductor, managing tasks from inventory receipt to final order fulfillment, while AutoStore executes the physical movement.

Aligning workflows

The WMS guides users through essential workflows — receiving, inventory management, and picking. Despite variations in specific processes, the objective remains consistent: Driving the journey from incoming inventory to dispatched customer orders.

Real-time coordination

Connecting a WMS to the AutoStore system signals a revolutionary shift in inventory management and order fulfillment. Linked via a standardized API, the WMS requests specific Bins to be presented at AutoStore workstations (Ports) exactly when needed.

Dynamic order fulfillment

When a customer order arrives, the WMS becomes the choreographer. It translates the picking task into instructions for the AutoStore system. Through the Grid API, the WMS prompts Robots to transport the required Bins to designated Ports. AutoStore efficiency-driven algorithms then ensure these Bins are presented at the most available active workstation.

Responsive automation and extended workflows

The WMS maintains constant communication with the AutoStore system, receiving real-time updates on Bin statuses. This collaboration extends beyond picking to goods receipt, inventory counts, and exception handling. Operators are guided through every step, ensuring precision.

Maximizing efficiency with vendor agnosticism

AutoStore integrates effortlessly with major WMS vendors like Manhattan Associates, SAP, and Oracle. This vendor-agnostic approach combines high-density automation with best-in-class WMS features, creating a rapid, space-efficient order fulfillment system that enhances both operational efficiency and the customer experience.

Impact of machine learning (ML) and artificial intelligence (AI) in WMS

ML and AI are becoming integral to modern WMS. These technologies inject automation and predictive intelligence into the software, enhancing adaptability. They optimize inventory management, enable predictive maintenance, improve picking paths, and power advanced features like voice recognition.

Looking ahead, AI and ML will continue to advance, enabling WMS to make sharper predictions and optimize operations in real time. This will revolutionize demand forecasting, route planning, and decision-making. We believe we are only at the beginning of a new era where full automation and robotic technology evolve to become smarter and more autonomous.

Summary: Choosing the right warehouse system

Investing in a WMS is no longer optional for competitive logistics; it is a necessity. Whether you opt for a powerhouse like SAP, a cloud-native solution like Oracle, or a specialized integration for automation, the right choice will define your operational speed and accuracy.

By aligning your WMS choice with your specific scale and complexity — and integrating it with automation like the AutoStore system — you turn your warehouse from a cost center into a growth engine. The question is not whether to modernize, but how quickly you can start.

Do you want to learn more about how to automate your warehouse operations to improve efficiency and overall ROI? Let's get in touch today.

FAQ

What are the six types of warehouse management systems (WMSs)?

Six types of WMSs include standalone WMS, WMS with supply chain management modules, cloud-based WMS, industry-specific WMS, an integrated suite WMS, and WMS “lite.” Each type offers unique functionalities and benefits to cater to different warehouse management and fulfillment needs.

What is an example of a warehouse management system?

An example of a WMS is Manhattan Active Warehouse Management. It offers numerous benefits, including streamlined operations, improved inventory accuracy, enhanced order fulfillment efficiency, optimized resource utilization, and increased visibility across the supply chain.

What are the five essential warehouse management processes?

The five essential warehouse management processes are receiving, putaway, picking, packing, and shipping. 

What is WMS vs. OMS?

WMS focuses on optimizing warehouse operations, while an order management system (OMS) handles the end-to-end order lifecycle. They can be integrated for improved supply chain visibility and efficiency.