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A digital warehouse management system (WMS) is a productivity tool for internal logistics. In the end it helps you to ship more orders in less time with less staff.
There is a lot of confusion in the market about what is WMS vs IMS (Inventory Management System). Basically IMS does not offer the operational efficiency gains that WMS does. A modern WMS uses a mobile device (Smartphone, Handheld or PDT) and guides the employee step by step from receiving goods to shipping goods in a smarter and more automated way.
Most of the time the motivation behind evaluating a WMS system is to increase inventory accuracy and improve labour productivity. Companies looking into WMS systems in 2025 struggle with transparency in inventory tracking and also want to reduce picking and shipping errors that happen because their staff is using manual and paper based methods to process orders.
Warehouse Management Software can reduce errors and increase the profitability of an internal logistics operation by forcing to scan warehouse positions in the correct shelf and then scan the correct product before being able to complete a fulfillment task.
A modern WMS can also more than double the speed of order processing by telling the team member to walk or drive (in case of forklifts) through an optimal route inside the warehouse. No time is wasted searching for products or going back and forth.
In addition to these benefits, a WMS plays a crucial role in supply chain management by ensuring accurate order fulfillment, optimizing resource use, and facilitating integration with other systems such as ERP and TMS.
In the case of Ecommerce-first companeis the direct integration to platforms like shopify, woocommerce, prestashop etc can also be a valid scenario.
By tracking the exact number of items of a given SKU (stock keeping unit) on an individual bin level (Shelf and position inside the warehouse) a WMS fills the inventory visibility gaps.
A WMS allows to create automated stock management tasks like inventory counts and audits on a regular basis. Reducing mispicks and easy counting of items in your warehouse improves inventory management.
Without a WMS we have seen that companies can have only 80% accuracy in their stock levels. This means that 20% of the products that show up in your ERP, accounting software or Ecommerce platform are actually wrong.
By knowing exactly the step of the internal fulfillment process an order is at any given point in time, you can automate notifications and communicate more proactively to your customers, leading to enhanced customer service.
Warehouse management systems also speed up returns management, which increases customer satisfaction by allowing for more accurate and faster refund processes, resulting in improved customer service.
The capital cost of overstocking and the operational cost of unused space utilization are big costs in your operations if you handle physical goods. Maintaining the right inventory levels is crucial to reducing these costs.
With a modern warehouse application you can make decisions with accurate data to size your operation without wasting resources.
Inventory problems often start at the receiving of goods step of your process. If there is a miscount or wrong item booked in the receiving of goods, this will lead to further issues in your internal supply chain (I.e overselling or overstocking).
A better integration with the tool you use to generate purchase orders (ERP, IMS etc) can help you control the quantity and quality of what is arriving versus what you ordered.
If the WMS has a modern, user friendly application that integrates to scanners, your staff can easily count all the items that arrive and log any discrepancy. This will help you to hold your supplier or carrier accountable.
Depending on your business operations, if they are more B2B or B2C focused you will have different operational characteristics in the way you process your orders.
If you have a B2C operation picking is likely to be a very labour intensive process that consumes a big part of your resources and time. By allowing for advanced picking methods like multi-order picking in batch or in cluster a WMS can take your business to the next level of efficiency and effectiveness.
A modern WMS can also integrate with distribution centers and shipping label generation tools like ShipStation, MetaPack, SendCloud, etc., and in this way automate and speed up the generation of packing labels.
In our experience at PULPO WMS, our clients that make warehouse productivity KPIs visible to the whole operations team create transparency and motivation to improve order fulfillment by making it easy to track goals in real time.
If there is a shared goal to process a certain number of orders per day, the individual contributors will keep each other accountable and motivate each other as peers to meet the goal without so much micro-management and control by the warehouse or operations manager.
Most companies worldwide are struggling to find motivated and skilled warehouse workers. The demand for this talent is increasing because more customers are buying online and less in retail points of sale. Since automation and robots are not yet available or affordable for most companies there is big need to make the people you have more productive. This is one of the main advantages of a WMS.
The errors that come from people having to manually input data in a terminal or sheet cannot be underestimated. By using a smart tool that automatically inputs and transfer product, customer and supplier information there are no errors.
With a modern warehouse solution the need to transcribe information from one tool to another diminishes and this is another way that mistakes are minimized.
Most robots and automated storage systems do not have a native WMS. If you are looking into these advanced solutions that require a very high investment, make sure they have an open and well defined API that can integrate to a warehouse management system.
And make sure the WMS has a modern, open REST API so you can integrate any other part of your tech stack.
A cloud WMS can give you real-time visibility into inventory and warehouse operations, scalability and flexibility in warehouse operations. It can reduce costs and improve efficiency, so it’s a good option for companies that want to upgrade their warehousing services.
A cloud WMS gives you access to important information and data, real-time visibility into inventory and warehouse operations. It improves collaboration and communication among team members, overall operational efficiency.
A cloud WMS gives you scalability and flexibility in warehouse operations, real-time visibility into inventory and warehouse operations. It reduces costs and improves efficiency, so you can adapt to changing demands and optimize your supply chain.
When selecting a WMS consider the costs involved, software, licensing and one-time implementation costs. Evaluate the scalability and flexibility of the WMS and consider the integration with other business systems like ERP to be seamless.
In the current economy you should look into the TCO (Total cost of ownership) of any software you buy. That means looking at any hidden cost associated with setting up and running the software. Evaluate the features and functionalities of the WMS software, the reputation and experience of the vendor. Evaluate the support and maintenance the vendor can offer so you have the resources to optimize your warehouse operations.
The choice you make should be future-proof. That means the WMS you evaluate should not tie you to a specific ERP (approach of many mega-vendors). The solutions should have an open and flexible API that allows for future migration of you accounting or ecommerce platform withouth having to change the WMS.
Remember that most ERP (Enterprise resource planning) companies are specialized in accounting and documentation of sales and purchase orders and not in optimizing warehouse operations.
Consider the implementation and configuration, the training and support the vendor can offer. Consider the customization options so the WMS fits your business needs and upgrades your warehousing services.
Optimize warehouse design to minimize unnecessary travel in the warehouse, the layout and organization of the warehouse. Evaluate the use of warehouse space and resources to be efficient and waste free.
Evaluate labor management and optimization strategies, labor management software. Evaluate the training and development of warehouse staff to increase productivity and reduce labor costs.
Evaluate continuous improvement and optimization strategies, lean principles and methodologies. Evaluate the use of data and analytics to improve warehouse operations, so you can meet customer demand and customer satisfaction.
Measure warehouse KPIs, using metrics like inventory accuracy, order fulfillment rate and labor productivity. Measure success and ROI using data and analytics so you can optimize your warehouse operations and customer satisfaction.
One of the main reasons we at PULPO WMS decided to built a modern warehouse management solution is that this category of software has a very clear and attractive ROI compared to other software categories. Measure the ROI of a WMS, using metrics like cost savings, productivity gains, reductions in returns, reduction in training times etc. Measure ROI using data and analytics so you can optimize your warehouse operations and warehousing services.
Depending on your industry it might make sence to evaluate warehouse management trends and technologies, using AI, IoT and automation. Altough these topics are only relevant for a small portion of the market, evaluating the impact of these trends and technologies on warehouse operations can optimize your warehouse operations and warehousing services.
In summary, a Warehouse Management System (WMS) isn’t necessary for every company that handles physical goods, but it’s essential when certain thresholds are met. If you have a lot of daily orders, employees and SKUs then a WMS can bring big benefits, across the board.
Whether you’re considering a WMS for the first time or upgrading from an old system our team at PULPO WMS are here to help. We’ll point you in the right direction even if it means we’re not the right solution for you. Get in touch today to see how we can help with your logistics.
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A warehouse management system is software that helps organizations manage inventory, orders, and logistics in their warehouse operations.
