Glossary of Terms

What is a Warehouse Management System (WMS)?

Warehouse Management System (WMS) Definition

A warehouse management system (WMS) is a software application that helps businesses manage and control their warehouse operations. With the help of a WMS, companies can keep track of inventory levels, manage orders, and optimize their warehouse space. Essentially, a WMS serves as the central nervous system of a warehouse, ensuring that everything runs smoothly and efficiently. Some of the key features of a WMS include:

  • Barcode scanning
  • Automated data collection
  • Real-time analytics
Warehouse management system definition

The benefits of implementing a WMS are numerous, including increased accuracy, faster order fulfillment, and improved customer satisfaction.

A multi-vendor commerce business has different needs for a WMS than single vendor commerce. Commerce platforms made for single-vendor typically have a low cap on warehouses. In a marketplace model, you need the ability to add many warehouses owned by different sellers.

Related terms

Inventory Management involves overseeing the flow of goods from the moment they are received until they are sold or used.
Dropshipping is a method of retail fulfillment where you don't keep any inventory in stock.
A Vendor Management system keeps track of vendor-related activities in one place.
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