What is a WMS and How Does It Work?

What is a WMS and How Does It Work?
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According to Forbes Advisors, a warehouse management system (WMS) is a type of software that is widely used in the manufacturing and retail industries because it tracks all materials and goods as they come in and go out of the warehouse. In basic terms, a WMS helps optimise all your warehouse processes.

Why Use Warehouse Management Systems

Part of the online retail landscape means being able to fulfill any order as efficiently as possible. In order to do that, you need a warehouse management system to understand where all of your materials and goods are in the warehouse to ultimately reduce order latency, processing costs and order errors.

A warehouse management system can help you speed up your order fulfillment, and it can also help you keep track of what is selling well. When you’re able to see what products are leaving the warehouse the most often, you can find new ways to optimise the way you set up the warehouse. You can track raw materials when they come in and make sure they’re in the best place for stocking and manufacturing. The bestselling products can be next to the loading dock or the packing area, as opposed to being on the opposite end of the space.

1. Reduced Operating Expenses

2. Enhanced Inventory Visibility

3. Just-in-Time Inventory

4. Continuous Improvement

5. Enhanced Security

6. Inbound and Outbound Optimisation

7. More Efficient Labour Management

8. Improved Employee Morale

9. Enhanced Billing Management

10. Improved Relations with Customers and Suppliers


The cost of installing a WMS system differs greatly depending on the complexity of the system and the system vendor. Choose a WMS system that will serve your warehouse better by fulfilling all the required functions, and also one that your business can afford. Choosing a system that is way too expensive for you will only put your business in trouble and end up compromising the quality and efficiency you so much want to improve. Choosing a basic WMS system on the other hand might not serve you sufficiently, especially, if you have many functions in your warehouse. You have to find the right balance between cost and functions when choosing the right WMS for your business. Don’t get caught thinking what your business needs are today, think of where your business needs to be in 5 years and choose a product that can take you there and beyond.

If you are planning a WMS system and would like to schedule a free consultation to see if YGL WMS is right for you as your next potential Warehouse management system.

We Can Help to implement Smart Warehouse Transforms in the Manufacturing Industry System Integration under Industry 4.0

We look forward to hearing from you. Contact us today so that we can help you with our YGL NERVO which is strategy Industry 4.0 ready implementation needs heading towards Industry 4.0 in smart warehouse and smart manufacturing.

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YglWorld KL
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Jalan Pinang 50450
Kuala Lumpur


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