What Is a WMS? How a Warehouse System Differs from a Stock System

What does a WMS do?

• Receives goods into the warehouse and assigns storage locations such as shelf, bin and row
• Creates pick lists from orders, routed so staff walk as little as possible
• Packs goods and prepares them for each shipping round
• Counts stock in cycles by location, without closing the whole warehouse to count
• Tracks lots and expiry dates so the items that expire first go out first

How is a WMS different from a stock system?

4 questions to tell which one you need

If you answer yes to 2 or more, look seriously at a WMS. If you answer no to all of them, a good stock system is enough.

• Your warehouse has hundreds of storage locations or more, and staff often cannot find items
• You pick and pack hundreds of orders a day
• The same product sits in several locations, and you need to know how much is in each
• Several warehouse staff work at the same time in shifts

Example: a 2-branch ingredients shop only needs a stock system

A bakery ingredients shop has 2 branches and a stockroom behind the shop. The owner wants to know how many bags of flour each branch has left, which items are running low and need ordering, and whether goods can move from one branch to the other. A stock system answers all of this. There is no need to know which shelf the flour is on, because the stockroom is small enough for staff to find things themselves.

If the shop one day opens a central warehouse shipping hundreds of boxes a day to other shops, that is the time to think about a WMS.

The stock system in GORINY

GORINY's stock system is built into its ERP. It keeps stock per branch, transfers stock between branches, counts stock, adjusts with a recorded reason, sets reorder points and warns about low stock, records lot numbers and expiry dates, and works out average cost. Sales take items out of stock automatically. GORINY is not a full WMS, because it does not yet have shelf locations or pick routing.

Frequently asked questions

What is a WMS, in simple terms?

A WMS is a system that knows where every item in the warehouse sits and tells staff where to pick first. It is used in warehouses too big to search by walking around.

What does WMS stand for?

Warehouse Management System.

Does a small shop need a WMS?

Usually not. A shop with a storefront and a small stockroom only needs a stock system that knows what is left, warns about low stock and transfers between branches.

Are a stock system and a warehouse system the same thing?

Many people use the two terms interchangeably, but a WMS means a system that tracks storage locations and picking in a warehouse, while a stock system tracks quantities on hand.

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