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Warehouse management system

Published Jul 14, 2025
Warehouse worker scans packaged goods with a barcode scanner.

What is a warehouse management system (WMS)?

A warehouse management system is a software solution that allows companies to manage, control, and optimize all warehouse operations. It is therefore a key component of smooth supply chain management.

In this article:

What are the benefits of a warehouse management system?

Increased efficiency

Because the functions of a WMS automate processes in the warehouse and reduce complexity, they boost overall efficiency.

Cost savings

To ensure perishable goods are used optimally, warehouse management solutions highlight which raw materials should be picked first to avoid waste. This prevents paid goods from expiring unused, optimizes storage space, and saves both time and money.

Real-time information

A warehouse management system provides real-time inventory insights. This ensures more accurate forecasts and facilitates reliable traceability.

Tailored workflows

With the functions of a WMS, companies can predict labor requirements more accurately. Schedules and warehouse tasks can be created more precisely, which can also increase employee motivation, as their time is used meaningfully and with appreciation.

Stronger relationships with customers and suppliers

A WMS helps ensure that orders are fulfilled more accurately and quickly, while also improving production reliability. This results in higher satisfaction for both customers and suppliers.

Reduced time and effort

Thanks to a WMS, companies can better organize warehouse planning. This reduces the workload of many warehouse processes and saves time in daily operations.

Reliable inventory

Because warehouse management systems use intelligent planning, inventory reliability is significantly improved.

More transparency

A WMS ensures that warehouse processes are continuously optimized and remain transparent. Stakeholders can view the current status at any time.

Optimal use of personnel resources

By controlling workforce management in the best possible way, a WMS improves warehouse utilization. Available working hours are planned and deployed effectively.

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What are the tasks of a warehouse management system?

A warehouse management system is designed to optimize end-to-end warehouse operations.

The process includes several key steps:

Warehouse receiving and put-away

A WMS helps process incoming goods efficiently – from warehouse receiving to handling and storage. Business rules and defined warehouse workflows form the foundation. In combination with WMS, technologies like RFID are often used, as well as solutions for invoicing. Items are automatically received, validated, and compared with the digital purchase order. Barcodes are scanned and labels are printed to ensure accuracy.

Inventory management

To simplify inventory control, a warehouse management system provides real-time visibility of stock – including items in transit or already at a store. The ability to track inventory precisely is the best foundation for ensuring that customer orders are delivered on time and in the right quality, complete with invoice. In short, inventory management covers stock administration as well as inventory optimization.

Location management

A warehouse management system supports companies in managing goods within the warehouse and ensures that storage locations are used optimally.

Picking and packing 

Warehouse management systems reduce warehouse costs by making workflows more efficient. Technologies such as radio frequency, pick-to-light, pick-to-voice, and robotics further optimize picking routes.

Shipping

Many warehouse management systems are integrated with transport management and logistics software. This accelerates warehouse and shipping processes by automatically generating documents. Real-time tracking provides visibility into when packages will arrive.

Managing workflows

With detailed insights into warehouse tasks, personnel costs, response times, and more, companies can act on transparent data. Tasks are easier and more efficient to manage. Processes and timing can be streamlined.

Yard and dock management

To simplify processes for truck drivers, yard and dock management ensures they can easily find the right loading ramp. With cross-docking, incoming goods are transferred directly to outgoing transport without interim storage.

KPIs and warehouse analytics

Warehouse management systems collect real-time data automatically, eliminating manual entry and reducing errors. This data enables analysis of delivery times, inventory accuracy, and costs. Reports based on these insights allow companies to identify corrections and improve efficiency.

What types of warehouse management systems are there?

1. Standalone warehouse management systems

Standalone WMS solutions typically run on dedicated hardware and on-premises. They are highly customizable, and companies retain full control over their data and software. However, the company is also responsible for updates, maintenance, and related costs.

2 Cloud-based warehouse management systems

Cloud WMS solutions are quick to implement and are provided as Software as a Service (SaaS). This type of online warehouse management system is flexible and easy to adapt to changing circumstances. The provider is responsible for updates and maintenance.

3 WMS integrated with ERP or supply chain platforms

Integrated warehouse management systems work seamlessly with other solutions such as accounting. They provide full transparency across business and logistics processes, strengthening decision-making and enabling efficient operations.

Futuristische Lagerhalle mit blau-oranger Beleuchtung

Manage your warehouse with clarity using Yaveon 365

Warehouse management can be complex and quickly spiral into chaos. With Yaveon 365 and the Warehouse Management App, those challenges are a thing of the past.

Industry-specific requirements for warehouse management systems

The requirements for a warehouse management system in industries such as pharmaceuticals, food, chemicals, cosmetics, biotechnology, and medical technology are particularly demanding due to strict regulations, high quality standards, and the sensitivity of their products. Each of these industries has specific needs that a modern WMS must meet to ensure safety, efficiency, and compliance.

  • Pharmaceutical industry: A WMS must guarantee batch management, quality assurance, and compliance with regulations such as GMP and FDA. Controlled storage conditions like temperature monitoring and quarantine management are essential. 
  • Food industry: Key requirements include FEFO management of expiration dates, lot tracking, compliance with HACCP, and fast inventory rotation for perishable goods.
  • Chemical industry: A WMS must support hazardous materials management and monitor special storage conditions such as temperature and ventilation.
  • Cosmetics industry: Batch management, variant management, and compliance with regulations such as the EU Cosmetics Regulation are crucial, along with quality controls and flexible product packaging.
  • Biotechnology: Strict requirements for temperature control, sterility, and lot tracking must be met for sensitive products such as samples and vaccines.
  • Medical devices: A WMS must provide serial number tracking, regulated storage, and complete documentation for quality audits, particularly in line with MDR requirements.

What are the benefits of a cloud WMS?

A cloud-based warehouse management system offers significant benefits:

  • Mobile access across nearly all devices
  • Transparent visibility into incurred costs
  • No costs for in-house IT infrastructure such as hardware, databases, or operating systems
  • Minimal organizational effort, since updates and maintenance are handled by the provider
  • Flexibility to easily add or reduce users as needed

Difference between a warehouse management system and an inventory management system

Inventory management systems are primarily designed to describe quantities, storage locations, and their relationships. They often also include functions to manage transportation systems. Warehouse management, on the other hand, covers the ability to control, monitor, and optimize complex warehouse and distribution systems.

A warehouse management system therefore has the role of optimizing and managing internal warehouse processes. In principle, a distinction can be made between warehouse management systems and inventory management systems, but in practice, the terms are often used interchangeably.

Yaveon 365: The smart ERP solution

Looking for an intelligent way to optimize your warehouse processes? Yaveon 365 offers more than just warehouse management. This innovative ERP solution goes far beyond the traditional functions of a warehouse management system and was developed specifically for the process manufacturing industry. With Yaveon 365, you don’t just keep control of your inventory – you also ensure complete lot tracking, integrated quality assurance, and absolute process control.

Your benefits at a glance:

  • 100% lot tracking for maximum transparency
  • Efficient warehouse management from warehouse receiving to picking
  • Integrated quality assurance with automated checks across the warehouse process
  • Process automation: save time and avoid errors with automated workflows
  • Mobile data capture and barcode scanning for smarter, faster warehousing

How will warehouse management systems evolve in the future?

Looking ahead, warehouse management is clearly moving toward intelligent systems. This is a response to changing purchasing habits, new sales channels, and rising customer expectations. From artificial intelligence to robotics, many possibilities are emerging.

Automation in the warehouse

Technologies for automation significantly influence warehouses by streamlining processes, reducing manual errors, and meeting growing demand.

Voice-directed order picking

Also known as pick-by-voice, this technology enables users to complete tasks without manual interaction. Operations are guided by spoken instructions.

Mobile devices

Mobile devices, especially scanners, already make warehouse work easier today – and their importance will continue to grow in the future.

Artificial intelligence and the Internet of Things

Artificial intelligence (AI) and the Internet of Things (IoT) allow companies to respond flexibly to changing warehouse conditions and adjust processes accordingly. IoT uses sensors to collect and deliver data, which forms the basis for analysis and forecasting. Both AI and IoT support companies in moving toward demand-driven warehouse models.

Robotics

Robots are already supporting warehouse operations today, and their importance will only increase. Based on AI and machine learning, robots can make autonomous decisions. For example, they can measure warehouse temperatures using thermal sensors, or leverage audio, video, and haptic sensors. Automated Guided Vehicles (AGVs) are also shaping the future of warehouse work, moving inventory along magnet tracks. Drones equipped with deep-learning technologies and optical sensors can capture stock in hard-to-reach or high areas and feed live data directly into the WMS.

Augmented reality (AR) and virtual reality (VR)

AR captures the real environment with a camera and overlays it with useful information such as instructions, routes, or storage locations. VR, by contrast, immerses users in a virtual environment through headsets, enabling training sessions for future warehouse operations.

Futuristische Lagerhalle mit blau-oranger Beleuchtung

Manage your warehouse with clarity using Yaveon 365

Warehouse management can be complex and quickly spiral into chaos. With Yaveon 365 and the Warehouse Management App, those challenges are a thing of the past.
Autor Stefan Klammler

Questions for our expert Stefan Klammler?

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