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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 companies use to manage, control and optimize their entire warehouse processes. It is therefore an important component for smooth supply chain management.

In this article:

What are the benefits of a warehouse management system?

More efficiency

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

Cost savings

With the purpose of optimally utilizing perishable goods, warehouse management solutions show which raw materials should be picked first to avoid waste. This prevents unused goods, optimizes the use of warehouse space, saves time and money.

Real-time information

Warehouse Management provides real-time inventory insights. This ensures more accurate forecasts and facilitates traceability.

Precise work steps

Using the functions of a WMS, companies can forecast work requirements more accurately. Schedules and warehouse work can be created more accurately. This can increase employee motivation, as their time is used sensibly and with appreciation.

Good relationships with customers and suppliers

WMS helps orders to be fulfilled better and faster and increases accuracy in the production area. Customers and suppliers are more satisfied and look forward to further cooperation.

Less time spent

Thanks to WMS, process planning in companies can be better organized. This reduces the effort involved in numerous warehouse processes and saves time on a day-to-day basis.

Reliable stocks

As warehouse management systems rely on intelligent scheduling, stock reliability is significantly improved.

More transparency

WMS ensures that warehouse processes are continuously optimized and are traceable. Those affected can view the current status transparently at any time.

Optimal use of personnel resources

WMS improves warehouse utilization by controlling personnel management in the best possible way. The available working time is optimally planned and deployed.

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What are the tasks of a warehouse management system?

The purpose of a warehouse management system is to optimize the entire warehouse management process.

This essentially involves the following steps:

Warehouse receiving and storage

A WMS supports the efficient acceptance, processing and storage of items in warehouse receiving. Business rules and defined warehouse processes are used as the basis for this. RFID technology is also used in conjunction with a WMS system and an invoicing solution is integrated, for example. Items are automatically received, validated and compared with the digital purchase order. To do this, a barcode is scanned and labels are printed.

Inventory management

To facilitate inventory management, a warehouse management system enables real-time inventory insights. This also includes items that are currently in transit or already in a store. The ability to track stock precisely is the best way to ensure that orders reach the customer on time and in the desired quality, including the invoice. In summary, inventory management comprises the areas of inventory management and inventory optimization.

Warehouse management

The aim of a warehouse management system is to support companies in optimally managing goods in their own warehouses.

Picking and packing orders

Warehouse management systems offer the potential to reduce storage costs by making warehouse processes more efficient. Special technologies such as radio frequency, pick-to-light and pick-to-voice as well as robotics further optimize picking routes.

Dispatch of goods

The majority of warehouse management systems are integrated into software that manages transportation management and logistics. Both can speed up processes in the warehouse and especially in the shipping area by automatically generating documents. Real-time tracking provides an overview of when a parcel arrives.

Managing the work steps

Because warehouse management systems provide detailed insights into data on work in the warehouse, personnel costs, response times and many other areas, companies can act on the basis of transparent statements. This makes it not only easier but also more effective to manage the work steps involved. Optimum process steps and precise timing are simplified.

Yard and gate management

Yard and route management is designed to make it easier for truck drivers to find the right loading bay. Goods arriving at the warehouse are transferred to outgoing transports via cross-docking without intermediate storage.

Key figures and analyses for the warehouse

Warehouse management systems make it possible to collect data in real time. Data no longer has to be recorded manually, which also avoids typing and transmission errors. On this basis, analyses for the timely delivery of goods, stock accuracy or costs incurred can be monitored. Corrections can be made using the resulting reports.

What types of warehouse management systems are there?

There are the following types of warehouse management systems:

1. stand-alone warehouse management systems

Stand-alone warehouse management systems are usually operated with their own hardware and on their own premises. They are highly customizable and companies retain full control over their data and software.
As the company purchases the system, it is responsible for installing updates and maintenance and bears the costs incurred.

2 Warehouse management systems in the cloud

Warehouse management systems that are operated in the cloud can be introduced quickly. These are software as a service solutions (SaaS) and therefore an online warehouse management system that is very flexible and can be easily adapted to changing circumstances.
The provider is responsible for updates and maintenance.

3 WMS with integration of an ERP or supply chain platform

Integrated warehouse management systems work more efficiently with solutions that overlap with other areas, such as accounting.
They make it possible to view the entire business and logistics chain and thus achieve maximum transparency across the warehousing and logistics process, which improves the ability to act and enables efficient work.

Futuristische Lagerhalle mit blau-oranger Beleuchtung

With Yaveon 365 you can manage your warehouse clearly.

Warehouse management is time-consuming and quickly ends in chaos. With Yaveon 365 and the Warehouse Management App, this is a thing of the past.

Industry-specific requirements for WMS systems

The requirements for a warehouse management system in the pharmaceutical, food, chemical, cosmetics, biotechnology and medical technology industries are very demanding due to their specific legal requirements, high quality standards and sensitive products. Each of these industries has specific requirements that a modern WMS must meet in order to ensure safety, efficiency and compliance.

  • Pharmaceutical industry: A WMS must ensure batch traceability, quality assurance and compliance (e.g. GMP, FDA). Regulated storage conditions such as temperature control and quarantine management are crucial.
  • Food industry: Important requirements include the management of expiry dates (FEFO), batch traceability, HACCP compliance and fast stock rotations for perishable goods.
  • Chemical industry: A WMS must support hazardous substance management and the monitoring of special storage conditions such as temperature and ventilation.
  • Cosmetics industry: Lot tracking, variant management and regulatory compliance (e.g. EU Cosmetics Regulation) are essential, as are quality controls and flexible product packaging.
  • Biotechnology: Strict requirements for temperature monitoring, sterility and traceability for sensitive products such as samples and vaccines must be met.
  • Medical devices: The WMS must ensure serial number tracking, regulated storage and complete documentation for quality audits, especially with regard to the MDR.

What are the benefits of a cloud WMS?

A cloud warehouse management system essentially generates the following benefits:

  • Mobile working via (almost) all end devices
  • Costs incurred can be viewed transparently
  • No costs incurred for your own IT infrastructure, which includes hardware, databases and the operating system
  • Little organizational effort, as maintenance and updates are handled by the provider
  • Flexibility, as users can be added or reduced as required, for example

Difference between warehouse management and warehouse management system

Warehouse management systems are essentially used to describe quantities and storage locations and their relationship to each other, and also include functions aimed at managing transportation systems. Warehouse management, on the other hand, includes the ability to control, monitor and optimize complex warehouse systems and distribution systems.

Warehouse management systems therefore have the task of optimizing and managing internal warehouse systems. In principle, there is a difference between warehouse management systems and warehouse management systems, but in practice the terms are usually used interchangeably.

Yaveon 365: The smart ERP solution

Are you looking for an intelligent solution to optimize your warehouse processes? Yaveon 365 offers you more than just warehouse management. This innovative ERP solution goes far beyond the classic functions of a warehouse management system and has been specially developed for the process manufacturing industry. With Yaveon 365, you not only keep your stocks under control, but also ensure seamless lot tracking, quality assurance and absolute process control.

Your benefits at a glance:

  • 100% batch traceability for maximum transparency
  • Efficient warehouse management from goods receipt to order picking
  • Integrated quality assurance: Automatic checks throughout the entire warehouse process
  • Process automation: Save time and avoid errors with automated workflows
  • Mobile data capture and barcode scanning: store smarter and faster

How will warehouse management systems develop in the future?

Looking to the future, a trend towards intelligent warehouse management can be identified. Companies are responding to changing purchasing habits, new channels and increased customer requirements. Numerous options are possible, from artificial intelligence to the use of robots.

Typical examples are

Automation of the warehouse

Automation technologies have a strong impact on warehouses by automating and thus optimizing processes. Errors caused by manual work are reduced and companies can meet higher demand.

Voice-assisted order picking

Voice-assisted order picking is also known as voice-controlled warehousing or pick-by-voice. Users carry out tasks without having to actively perform them. Operation is carried out via spoken instructions.

Mobile devices

Mobile devices, mainly scanners, are already making work in the warehouse much easier. This application will become increasingly important in the future.

Artificial intelligence and the Internet of Things

Artificial intelligence (AI) and the Internet of Things (IoT) enable companies to react flexibly to changing conditions in the warehouse and adapt processes accordingly. The Internet of Things relies on working with sensors to collect and deliver data that can be used as the basis for analyses and predictions. Both AI and the IoT support companies in mastering the development towards a demand-oriented warehouse model.

Robots

Robots are already providing support in warehouses today and will become increasingly important in the future. They are based on AI and machine learning and make decisions on this basis. For example, it is possible for robots to measure the temperature in the warehouse. They use thermal sensors to do this. Other sensors they use are audio, video and haptic sensors. Automated guided vehicles (AGVs) will also increasingly shape warehouse work. They can move stock using a magnetic strip in the floor. Using deep learning technologies and optical sensors, drones will also be able to detect stock in hard-to-reach or high places and report the current quantity to the WMS system.

Augmented reality and virtual reality

Augmented reality (AR) captures the real environment with a camera and then overlays it with information, such as instructions or routes and storage locations. Virtual reality (VR), on the other hand, expands the environment using special glasses and thus enables, for example, exercises for later use in the warehouse.

Futuristische Lagerhalle mit blau-oranger Beleuchtung

With Yaveon 365 you can manage your warehouse clearly.

Warehouse management is time-consuming and quickly ends in chaos. With Yaveon 365 and the Warehouse Management App, this is a thing of the past.
Autor Stefan Klammler

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