What is WMS and What are the Common Types

Business, English - December 5, 2021

Mega retail stores such as Walmart or Target are known for their enormous stork of goods. Alongside the ever-increasing numbers of online retail stores, retail Giants such as eBay, Amazon, and AliExpress, are also companies who manage and operate out of warehouses. With the plethora of goods that comes in and goes out from a company’s warehouse or storeroom, advanced management systems are required.

What is WMS?

WMS stands for Warehouse Management System. WMS are computer-based softwares that effectively manage warehouse operations. This software completely handles warehouse operations such as inventory, order tracking, cataloging new arrivals of raw materials or goods. 

WMS is not a one-size-fits all solution for only retail stores. Any company which manages a large enough warehouse can employ the use of the WMS. This software is also able to monitor goods within the warehouse. It has details of which ones come in and head out the most, keep track of orders from clients and help prevent order errors. 

Types of WMS

Primarily there are two main types of warehouse management systems. Depending on business objectives, the company will have to pick one of these types of WMS. These are:

Integrated Systems 

Integrated warehouse management systems are add-ons to a more encompassing business software commonly known as ERP (Enterprise Resource Planning) software. A good example of integrated WMS is the SAP Business One WMS. To use the SAP Business One WMS, a company would have to purchase the full Business One ERP software. Although more expensive, an integrated WMS works with other operational softwares and thus makes running the business easier.

Standalone WMS

Standalone WMS are specialized softwares created with the sole main of handling warehouse operations. They come with a robust list of features such as inventory, tracking the number of goods available, and much more that only concern the warehouse. It is cheaper and easier to use and maintain.


WMS is not just meant for big stores but for every company that wants to improve warehouse management. To better run the operations of the warehouse in an automated, orderly, and effective manner, getting a Warehouse Management System would be the best choice.