What a WMS is and when you need one
WMS = Warehouse Management System
Short definition
A WMS is a warehouse management system that controls receiving, putaway, picking and shipping of goods. Workers operate on barcode scanners while the system knows the location of every product and guides them step by step.
A WMS (Warehouse Management System) is software that manages the physical work in a warehouse: receiving deliveries, putting goods away into locations, picking orders, packing and shipping. Workers use scanners while the system knows in real time what is where and guides them along the shortest path.
A WMS is not the same as a stock module in the ERP. The ERP knows how much of a given item you hold in total; the WMS knows which rack and shelf it sits on and how to pick it fastest. As order and SKU counts grow, a dedicated WMS markedly cuts errors and fulfilment time.
The key is integrating the WMS with the ERP and sales channels. Orders from marketplaces or a B2B portal must reach the WMS, while stock levels and shipment statuses flow back to the ERP and shop. Open Mercato often acts as the hub that synchronises the WMS with accounting and channels.
Key facts about a WMS
- A WMS controls the physical warehouse work: receiving, picking, shipping.
- The ERP knows total stock - the WMS knows the exact location.
- A WMS pays off as order and SKU counts grow.
Frequently asked questions
Do I need a WMS if my ERP already has stock?
At low volume the ERP module is enough. As orders, SKUs and staff grow, a dedicated WMS with locations and scanners clearly reduces errors and fulfilment time.
Can a WMS be connected to my ERP and sales channels?
Yes - and it is essential. Orders go to the WMS, while stock and shipment statuses flow back to the ERP and shop. We do this via Open Mercato as a hub.
Related terms
Want to connect your WMS with your ERP and sales channels? Let's talk.
Book a free call