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What is a WMS? Warehouse management system meaning and types

A warehouse management system directs and records receiving, putaway, picking, packing and shipping. Learn what a WMS does, how it differs from inventory planning and when you need one.

Stokrio Team · · 6 min read

A warehouse management system (WMS) is software that runs the work inside a warehouse. It knows where every item is, tells staff what to do next, and records each movement. It is the system of record for physical stock; it is not the system that decides how much to buy.

Key takeaways

  • A WMS controls receiving, putaway, picking, packing and shipping.
  • Inventory planning decides what to order and when; a WMS carries out the physical work.
  • Small brands may need only locations, pick lists and a pack station. 3PLs run a full WMS.
  • Whatever you use, the two systems should agree on stock.

What a WMS does

  • Receiving. Check goods against the purchase order, record counts, lot and expiry.
  • Putaway. Direct stock to a storage bin location and record where it went.
  • Inventory control. Track stock by location, run cycle counts, manage lots and expiry.
  • Picking. Create pick lists, sort them into walking order, release pick waves.
  • Packing and shipping. Verify items, produce labels, update orders with tracking.
  • Reporting. Throughput, accuracy, space use and order cycle time.

WMS versus inventory planning

QuestionSystem that answers it
Where is this SKU right now?WMS
What should I pick next?WMS
How much will I sell next month?Planning
What should I reorder and when?Planning
Which stock is ageing or excess?Reports on either

A WMS rarely forecasts demand, and planning tools do not run a picker's day. The best setups share stock data both ways.

Types of WMS

  • Standalone systems for warehouses of any size.
  • Modules inside an ERP, convenient but often heavy.
  • Cloud WMS for growing brands and 3PLs, billed by subscription.
  • Lightweight tools built into order or inventory apps, covering locations, pick lists and packing.

When do you need one?

Signs include picking errors, time lost looking for stock, more than one stock location, a growing number of orders each day, expiry-dated products, or clients who expect accuracy reporting. You may not need a full WMS if you ship a few dozen orders a day from one small room.

How Stokrio fits

For Shopify brands, Stokrio includes warehouse locations, pick waves, a scan-to-pack station and Australia Post labels on the Inventory + Pick + Pack plan. For 3PLs, Stokrio is API-based with no Shopify connection: picking, packing and shipping stay in the 3PL's own WMS, which feeds Stokrio through the Partner API so clients get planning, dashboards and reports. See connecting a WMS to Stokrio.

Frequently asked questions

Is a WMS the same as inventory management software?
No. A WMS manages physical operations inside a warehouse. Inventory management and planning software decides what to buy and when, and tracks stock at product level across locations.
Do small ecommerce brands need a WMS?
Not always. A few dozen orders a day from one location can run on locations, pick lists and a pack check. As volume and error rates grow, more control pays off.
Can a WMS and planning software work together?
Yes. The WMS holds physical movements; the planning tool uses stock and sales to forecast and reorder. They should exchange stock and receipt data.

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