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WMS Functions: Maximizing Warehouse Efficiency


Vijay Kumar

Senior Specialist - Marketing @ Shiprocket

January 9, 2024

7 min read

In modern-day commerce, efficient warehouse management can assist businesses to stand out. It’s critical to understand that a strong WMS can boost the whole supply chain, influencing areas well outside the warehouse.

With an excellent projected 9.2% annual growth rate, the WMS market is expected to reach a value of USD 7.90 billion by 2027. Remarkably, 83% of transportation and warehousing companies in 2021 had already used warehouse management systems.

Warehouse Efficiency

But what is a WMS? It is a software programme that keeps a close eye on all components of warehouse operations, from handling inventory from the moment it enters your warehouse until it is delivered to your valued customers. We will examine the essential features of a warehouse management system in this post, which may be very helpful to you and your company.

The Role of WMS in Modern Supply Chain and Logistics Management

Warehouse Management Systems (WMS) have become essential tools for improving the supply chain and effectively managing logistics in today’s fast-paced corporate environment. These systems provide several advantages to companies and are essential to the smooth operation of distribution centres and warehouses.

WMS has grown to be a crucial part of contemporary supply chain and logistics management by boosting output, streamlining procedures, and building stronger bonds with clients and suppliers. In addition to improving warehouse operations’ efficiency, WMS helps organisations succeed and survive in the cutthroat business world of today by lowering operating expenses and offering comprehensive data.  WMS systems are now the foundation of a well-run and efficient logistics business, helping with everything from workforce management and order processing to inventory monitoring and layout design optimisation.

WMS provides real-time visibility into inventory, allowing more effective stock replenishment, precise demand forecasts, and better utilisation of available warehouse space. Moreover, it speeds up order processing, cutting down on mistakes and guaranteeing on-time delivery. Transparency and improved customer service are two ways by which the warehouse environment is transformed by the power of data-driven insights and paperless documentation.

8 Vital Functions of a WMS

Warehouse Management Systems (WMS) are the backbone of contemporary supply chain management and logistics. It provides an extensive feature set essential for optimising warehouse operations. Let’s take an in-depth look at the eight vital functions that WMS performs:

1.    Tracking Inventory

●      In order to track inventory inflows in the warehouse, WMS is essential.

●      It offers unmatched insight into the need for replenishments and stock availability.

●      Warehouse managers are able to keep an eye on supply and demand to ensure that the proper amount of product is purchased on time.

●      By guaranteeing equitable inventory distribution for efficient warehouse management, WMS also actively promotes the optimisation of warehouse space use.

2.    Layout Planning

●      A well-designed layout is crucial to a warehouse’s seamless functioning.

●      WMS helps with exact warehouse layout planning, making use of logical frameworks to maximise inventory placement.

●      The construction of this comprehensive layout design is influenced by several factors, including accessibility, weight, and demand.

3.    Labour Management

●      To ensure efficient warehouse operations, it is imperative to track staff productivity and performance in real-time.

●      WMS makes it possible to review and keep an eye on the several performance indicators that warehouse employees present.

●      It makes performance measurement easier, which is an essential part of labour management.

●      WMS also helps logistics organisations create incentive programmes that maximise worker productivity while reducing burnout.

4.    Order Processing

●      WMS oversees the order processing within the warehouse, ensuring accurate and timely product deliveries.

●      By streamlining workflows and generating automated picklists, WMS minimises delays resulting from manual processes.

●      WMS helps achieve cost reductions and an overall boost in efficiency, contributing to enhanced competitiveness in a globalised marketplace.

5.    Analytics

●      Data-driven, actionable insights are the backbone of strategic decision-making for businesses.

●      WMS provides extensive and precise insights into warehouse activities.

●      It facilitates efficient inventory tracking in and out, empowering the warehouse management team to plan future actions effectively.

●      Warehouse managers can harness this real-time information to enhance business operations significantly.

6.    Paperless Documentation

●      WMS offers a centralised view of the entire spectrum of warehouse processes.

●      With anytime accessibility, it equips warehouse workers with the data and information needed for efficient job performance.

●      The automation provided by WMS eliminates the need for paper-based work, promoting efficiency and minimising errors.

7.    Reliable Customer Service

●      Customer satisfaction has always been a top priority for businesses.

●      WMS plays a crucial role in ensuring the delivery of authentic products to the correct consumers at the right time.

●      It guarantees customer satisfaction for existing customers while also attracting and converting new prospects.

8.    Increases Productivity

●      A robust WMS maintains an audit trail that links transactions to specific employees.

●      This enhances accountability and creates opportunities for coaching based on individual performance goals.

●      WMS establishes a logical structure that simplifies operations, setting explicit KPIs and performance requirements for the warehouse team, thus promoting efficiency and accuracy.

Maximising Efficiency with Shiprocket Fulfillment: Your Retail and eCommerce Warehousing Solution

With Shiprocket Fulfillment, you can elevate retail and eCommerce companies by streamlining both B2B and B2C processes. It can help you in growing your business by providing options for same-day and next-day delivery. It can aid in processing orders, handle inventory, manage warehouses, and assess performance with the help of a unified management system. With a widespread pan-India network, cost-effective multi-user warehousing, and efficient packaging services, Shiprocket Fulfillment creates a seamless operational experience. This all-encompassing strategy enables companies to prosper in dynamic retail and eCommerce environments.


Effective warehouse management is a key component of manufacturing and supply chain operations that can bring about significant business growth. Different functions of warehouse solutions benefit firms by streamlining operations and guaranteeing accuracy. It’s not just about today but also about getting ready for what’s ahead.

Although WMS systems may appear expensive for small firms, they are an investment that will eventually pay for itself. It guarantees that your company continues on course for long-term success and that you get the most out of your investment. In the dynamic world of logistics, investing in your company’s future with a strong WMS is essential.

How does warehousing contribute to the value of the logistics process?

Order fulfillment may be streamlined by warehousing. This starts when an order is placed and ends when it is sent out of the building. Warehousing guarantees that each order fulfillment is completed accurately and that the merchandise is dispatched as soon as feasible.

Which tasks in the warehouse are handled by a WMS?

A warehouse management system, or WMS oversees the fulfillment process, from the receipt of raw materials to the shipment of completed items. It makes sure that supplies and commodities are moved through warehouses as cheaply and efficiently as possible.

What are the different types of WMS?

Three main types of WMS include standalone WMS, cloud WMS and integrated ERP and SCM-based WMS.

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