WMS — Warehouse Management Systems

A WMS (Warehouse Management System) optimizes warehouse operations for order fulfillment — managing pick, pack, and ship processes to reduce errors and improve speed. In B2B distribution, the WMS is the operational backbone of physical fulfillment.

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What a WMS Does

  • Manages receiving, putaway, and slotting of incoming inventory
  • Directs the pick-pack-ship workflow for outbound orders
  • Tracks inventory location within the warehouse (bin, shelf, aisle)
  • Reduces mis-picks through barcode scanning and directed workflows
  • Provides real-time inventory counts by location
  • Manages returns processing (reverse logistics)
  • Generates shipping labels and carrier integration
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Pick-Pack-Ship Explained

“Pick and pack is a term you might hear often. What it means is picking something off the shelf. So someone orders a product, the order comes in, someone goes out to the shelf, they pick that product off the shelf, and then they package it for shipping or to be given to the customer.”
— C1, Module 2 Lesson 3
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Why WMS Matters for eCommerce

When eCommerce goes live, order volume can increase significantly and orders arrive 24/7. The WMS:

  • Receives digital orders from the eCommerce platform (via ERP)
  • Manages the fulfillment workflow without human order entry
  • Ensures the right product ships to the right customer at the right price
  • Provides tracking data that feeds back to the customer’s self-service account

If the WMS is not ready for eCommerce order volume and velocity, fulfillment errors increase — which destroys customer trust in the digital channel.

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WMS vs. ERP Inventory Management

Some distributors use their ERP for inventory management and don’t have a separate WMS. Others use a dedicated WMS for its depth of warehouse-specific features:

  • ERP: good for what you have and what it costs
  • WMS: good for where it is and how to efficiently pick it
“Studies show that WMS usage can reduce inventory holding costs by up to 30%, making this a very valuable tool for B2B companies focused on efficiency.”
— C1, Module 2 Lesson 3
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VP Supply Chain Connection

The VP Supply Chain typically owns the WMS. Any eCommerce initiative that changes the order flow must get VP Supply Chain approval because it touches their WMS-dependent fulfillment process.