WMS - Warehouse Management System

What is a WMS?

A Warehouse Management System is a software system that helps you manage all processes in your warehouse. It tracks inventory, optimizes picking routes, handles incoming goods, and coordinates shipments. For online stores with their own warehouse, a WMS is essential for efficient order processing and minimizing errors.

Core Features of a WMS

• Inventory Management: Real-time overview of inventory, locations, and stock levels. You always know what you have and where it is.
• Order Management: Automatic assignment and prioritization of orders based on rules (e.g., urgency, shipping method, or order time).
• Picking: Optimized picking routes and pick lists that minimize walking distance and time spent. Option for batch picking of multiple orders simultaneously.
• Packing: Guidance on proper packing, automatic shipping labels, and packing lists.
• Receiving: Registration of incoming goods via barcode scanning and quality control.
• Reporting: Statistics on inventory turnover, delivery times, error rates, and employee productivity.
• Inventory Count: Systematic counting using barcode scanners to ensure the system matches the physical inventory.

When do you need a WMS?

A WMS makes sense when:

• You ship more than 20–50 orders per day and spend too much time on manual processing.
• You have many different products (SKUs), and it’s difficult to keep track of inventory.
• You experience errors in orders—wrong products, incorrect quantities, or missing items.
• You have multiple warehouse staff members who need to be coordinated effectively.
• You want to scale your business without hiring a proportionally larger number of warehouse staff.

Types of WMS

• Standalone WMS: Dedicated warehouse management software that integrates with your online store and shipping carriers.
• ERP-integrated WMS: A WMS that is part of a larger ERP system (e.g., SAP, Microsoft Dynamics).
• Cloud-based WMS: A SaaS solution that runs in the cloud with a recurring subscription.
• Shipping solutions with WMS: Shipping platforms that have expanded to include warehouse management.

Popular WMS solutions for Danish online stores

• Shipmondo: A Danish platform that combines WMS functionality with shipping label management. Popular among Danish online stores.
• Ongoing WMS: A Scandinavian WMS with strong integration with e-commerce.
• ShipBob: An international solution that combines WMS with 3PL services.
• Consignor: A Nordic shipping platform with logistics features.

WMS and Shoporama

Shoporama can be integrated with external WMS systems via the REST API. Orders can be automatically sent to your WMS when they are created or paid for, and inventory status can be synchronized back to your online store so that your product pages always display the correct inventory status. You can also use webhooks to receive real-time notifications about order changes.

Implementation Tips

• Start with the essentials: Implement the core features first (inventory management and order processing) and add advanced features gradually.
• Barcode scanning: Invest in handheld scanners—this significantly reduces errors compared to manual entry.
• Warehouse layout: Organize your warehouse with clear locations and zones before implementing the WMS.
• Test thoroughly: Run the new system in parallel with the old one during a transition period.