Types of Warehouse Management Systems

February 26, 2025

What Is a Warehouse Management System (WMS)?

Warehouse Management System (WMS) is a software solution that helps optimize warehouse processes. Its main functions are:

Inventory tracking – Monitoring stock levels in real-time.
Order picking and fulfillment – Organizing the processes of retrieving, packing, and shipping goods.
Receiving and storage – Efficient distribution of goods within the warehouse.
Process automation – Reducing errors and speeding up operations.
Reporting and analytics – Providing data on warehouse performance and inventory turnover.

WMS is essential in large warehouses and logistics centers, as it increases operational accuracy, improves efficiency, and reduces costs.

How Many Types of Warehouse Management Systems (WMS) Exist?

Looking at different sources we can determine as many as 10 different WMS types, but truth be told only 4 types really matter and rest of the options we should consider as subcategories and variations that may occur depending on company needs, technology, and industry-specific challenges.

The 4 Main Types of Warehouse Management Systems (WMS)

1. Standalone WMS

An independent software solution focused solely on warehouse management functions.
Features: Inventory tracking, order picking, goods receipt, shipping, and warehouse space optimization.
Best for: Small and medium-sized businesses that need a specialized WMS without integration with other systems.

2. Cloud-Based WMS

Hosted in the cloud and accessible via a web browser.
Features: Real-time updates, remote access, lower initial costs, automatic updates.
Best for: Businesses that require flexibility, scalability, and minimal IT maintenance.

3. Integrated WMS (Part of an ERP System)

Embedded within a larger Enterprise Resource Planning (ERP) system.
Features: Seamless integration with finance, sales, purchasing, and supply chain modules.
Best for: Large enterprises requiring a comprehensive business management solution.

4. Supply Chain Execution WMS

A more advanced system that integrates warehouse operations with the entire supply chain.
Features: Transportation management, order fulfillment, workforce management, and real-time data sharing.
Best for: Large logistics and manufacturing businesses that require full supply chain visibility.

Key Benefits of Implementing a WMS in Your Business

Better control over inventory - WMS monitors warehouse stocks statuses and updates in a real time and eliminates any shortages and surpluses
Faster orders fulfilment - Automation of picking, packing and shipping processes speeds up customer service and increases their satisfaction.
Lower operation costs - Optimization of picking routes, reduction of errors and better staff management allow for savings.
Maximize usage of warehouse space - Intelligent placement of goods improves efficiency and increases warehouse capacity.
Easy integration with other systems - Modern WMS easily connects to ERP, CRM and TMS, streamlining the entire supply chain.

How to Choose the Right WMS for Your Business Needs

Determine your needs – Consider what processes you want to improve (e.g. inventory management, order fulfillment, cost optimization).
Choose the right type of WMS - Standalone, cloud, integrated with ERP or an advanced supply chain management system - match it to the scale and specificity of your business.
Check integration and scalability – Make sure the WMS easily connects to your systems (ERP, CRM, TMS) and will grow with your company.
Compare costs and support – Pay attention to the pricing model (license, subscription) and the availability of technical support and updates.

Good WMS should be flexible and tailored for your company's needs.

Is Cloud-Based WMS Becoming the Industry Standard?

Yes, cloud-based WMS is increasingly becoming the industry standard due to its flexibility, scalability and lower implementation costs. It allows access to real-time data, easy integration with other systems and automatic updates, which makes it an attractive solution for companies of all sizes.

Do Large-Scale Enterprises Always Use Integrated WMS?

Yes, an integrated WMS is a good solution for companies of all sizes, not only for large enterprises. Although large companies often choose a WMS integrated with an ERP system to improve the management of their entire supply chain, small and medium-sized companies can also benefit from such integration. Thanks to connection with other systems, such as finance, sales or CRM, it is possible to better manage operations, reduce errors and optimize costs. Ultimately, the most important thing is to select a solution that meets individual business needs, and an integrated WMS can support the development of both small and large companies.

Which Industries Use Each Type of WMS?

Standalone WMS – Most commonly used in small and medium-sized companies that do not require advanced integration. In telecommunications, it can be used in small distribution centers, e.g. to manage warehouses with network devices or customer equipment.

Cloud-Based WMS – Popular in companies that value scalability and real-time availability. In telecommunications, cloud WMS is useful for managing global supply chains, warehouses with routers, modems, SIM cards, or other customer equipment. It enables integration with CRM and ERP systems, which allows for process automation and better customer service.

Integrated WMS (part of ERP) – Most commonly used in large telecommunications companies that manage hundreds of thousands of devices and spare parts. Integration with ERP allows for synchronization of equipment, customer and order data, which facilitates delivery planning, demand forecasting and inventory control.

Supply Chain Execution WMS – Essential for telecommunications operators who handle complex logistics processes, such as distribution of equipment to stores, service points and end customers. It helps to optimize transport, track shipments and manage returns and equipment repairs.

In telecommunications, the choice of WMS depends on the scale of the business and the level of integration with other systems. Large companies most often use integrated or advanced supply chain systems, while smaller companies can effectively manage warehouses with a cloud-based or stand-alone WMS. Don’t know which one will be the best for your business? Let’s talk!

What’s the Most Cost-Effective WMS for Small Businesses?

CWA and working with Adrentech because we customize our solutions for each client 😁

How to Transition from One WMS to Another Without Disrupting Operations

It all depends on the software vendor and their approach to system migration. A good WMS vendor will ensure a smooth transition by offering technical support, training for your team, and data migration tools. Key steps include:

Planning and analysis – Assess your current system and business needs to ensure that the new WMS aligns with your operational processes.
Data migration – Transfer inventory, order, and customer information securely and without data loss.
Team training – Users need to become familiar with the new system to avoid issues in their daily work.
Phased testing and implementation – Gradual transition to the new WMS, preferably starting with selected operations or warehouses to minimize the risk of disruption.
Post-implementation support – The vendor should provide ongoing support and quick troubleshooting after the system goes live.

If the WMS vendor is experienced in migrations, the entire process can be carried out smoothly, without major disruptions to warehouse operations.

Customization Options for Different Types of WMS

No two companies work the same way, so each WMS system needs to be adapted to specific business processes. When choosing a solution, you should take into account the industry, scale of operations, and operational needs. Everything can be done with the help of a good software provider. Let’s meet so we can better understand your business needs.

How WMS Enhances Warehouse Automation & Efficiency

Good and flexible WMS can enhance the business on many different levels. The typical improvements and savings we see being achieved with a successful WMS implementation include:

Labour utilization savings of 10-45%
Inventory reduction of 5-40%
Warehouse utilization increases by 10-40%
Picker productivity up by 10-50%
Shrinkage reduced by 50-99+%
Increase shipping accuracy to 99%
Increase supplier conformance 99% +
Customer service 10-50%
Increased inventory availability 10-50%

* Based on industry standards

Final Thoughts: Choosing the Best WMS for Your Business

The choice of WMS should be tailored to your company’s processes, scale of operations, and future development plans. Key factors include integration capabilities, scalability, customization options, and technical support. There is no single perfect solution – the best system is the one that best meets your operational needs.

Want to see how WMS can streamline your business? Schedule a CWA demo and see which solution is best for you!