Glossary
Warehouse management software that tracks every product in every location and guides receiving, put-away, order picking and shipping, usually through barcode scanners.
A WMS (Warehouse Management System) is the software that knows, at any moment, how much of which product sits in which location of the warehouse. Where an ERP knows the total quantity in stock, the WMS knows the aisle, the rack and the shelf, and tells employees the shortest route for receiving, put-away, picking and shipping.
At receiving, it logs pallets by barcode scan and suggests a location. At picking, it groups picks by zone and wave to reduce walking. At shipping, it validates that the right SKU goes in the right box. It applies rotation rules (FIFO, LIFO, expiry date) and flags inventory discrepancies as they happen rather than at the annual count.
The two complement each other: the ERP manages the order and the invoice, the WMS manages the physical moves. Many ERPs include a basic warehouse module, enough for a small stock; once the warehouse holds thousands of references or several pickers, a dedicated WMS pays for itself.
A standard WMS suits a classic distribution warehouse. Quebec distributors and manufacturers with particular rules (lots, consigned parts, assembled kits, dynamic slotting) often get a better result from a custom WMS plugged into their existing ERP. The Distribution MA project, where shipping errors dropped by 75%, illustrates that gain.
Updated on
The number of references and orders matters more than square footage. Once a warehouse holds more than a few hundred SKUs or ships dozens of orders a day with more than one picker, picking errors cost more than the software.
In practice, yes. Scanning replaces manual entry and guarantees the system inventory matches reality. Scanners and label printers are a modest share of the budget.
Between $40,000 and $150,000 for an SMB depending on the modules (receiving, picking, shipping, cycle counting) and the integrations with the ERP and carriers.
