10 Key Features of a Warehouse Management System (WMS)

A system should provide real-time tracking of inventory levels, statuses and location within the warehouse. Movement of inventory should be logged to provide traceability and insight, this starts at with goods into the warehouse, encompasses all movement within the warehouse and ends with goods out. 

Key inventory management features include:

• Real-time inventory level and status 
• Support for Stock Keeping Units (SKU)
• Attribute logging for Serial Numbers, Batch and date information
• Barcode scanning to maintain stock accuracy
• Inventory allocation to orders, replenishments and warehouse tasks (FIFO,FEFO)
• Inventory movement reporting
• Stock take functionality

Another key feature is the ability to uniquely identify your warehouse layout and classify the space in your warehouse. Depending on the size of the operation, it may provide support for unique location IDs across multiple warehouses or internal warehouse zones with many different use cases like pick faces, bulk storage, goods in or out locations and controlled storage (Chilled, frozen, high security).

A WMS can provide:

• Unique IDs for each location taking into account the aisle, column and shelf
• Support for locations across multiple warehouses or warehouse zones
• Barcode scanning of locations for inventory control and traceability
• Location types (Bulk, Pick etc)
• Location contents and inventory traffic reporting
• A warehouse map allowing visibility of locations and contents at a high level 
• Access control for security, health and safety and loss control

Managing goods in efficiently can be one of the biggest challenges for a warehouse. Your solution should provide visibility of upcoming deliveries, including delivery date and time as well as the size of the delivery to allow you to forecast the resources needed to handle it efficiently. Ideally a staged receipt should also be supported allowing larger shipments to be quickly received for subsequent put-away minimising the time a loading bay is occupied. A WMS should also support blind receipt so that even unexpected deliveries can be properly logged into the system.

Features to consider include:

• Support for advanced shipment notifications (ASN)
• Delivery calendar to show upcoming shipments
• Serial Shipping Container Codes GS-1 label support
• Staged receipt and put-away actions
• Suggested put-away logic to optimise the use of available space

A modern warehouse has to deal with order input from multiple sources. Omni-channel systems allow receipt of orders from a variety of online store fronts, social commerce platforms, from CSV upload, API/EDI connections, EPOS or manual input. A WMS allows you to manage your orders from one platform allowing you to allocate to all your orders and back orders from one inventory source, automate for accuracy and speed of operation, and track from receipt to delivery. The business can also report on key order data to allow you to make key decisions through data analytics and forecasting driving efficiency in operations. 

A competent order management system should include:

• A central point for managing your orders in bulk
• Able to receive orders, provide inventory and despatch updates across multiple channels
• Backorder management
• Order statuses to allow automation, and drive warehouse action
• Order detail amendment and logging
• Query and response logging
• Order tracking
• Automation rules for common actions
• Reporting and analytics

A WMS should be capable of automating aspects of a warehouses shipping requirements. Automated courier and service selection considering the order and package details, destination and generate any required documentation. Integration to couriers will allow for the automation or bulk creation of shipping labels and return of tracking information.

The key elements of a shipping management solution in a WMS are:

• Automated service selection
• Document production
• Integration and shipping label generation
• Automated receipt of tracking information
• Reporting and analytics

Depending on the volume of orders being processed and the types of product being handled by the warehouse different pick and pack processes may need to be followed. You may wish to pick specific orders depending on shipping or order details, pick multiple orders to a cage in bulk or use tote trollies. The WMS should have the capability to assign the relevant picking type to each batch of orders. When packing, a WMS should offer the ability to double verify picked items and attributes as well as generate any required paperwork like despatch notes, customs documentation and packing lists. 

Key functions that support picking and packing:

• Support for multiple different pick types
• Barcode scanned pick verification
• Walk sequencing to maximise efficiency 
• The ability to skip damaged or missing items
• Double verification on pack
• Document generation 
• Reporting and analytics

An inevitable part of fulfillment is returns management. A WMS needs to provide a clear efficient returns process both against an order and returns received blind. Returns management processes should generate any documents required, log the returned items and their condition and provide options to exchange or refund before inspection of the returned goods and lastly preparation for restock or scrappage.

Key functions to look for in returns management are:

• Return of items against an order or blind receipt
• Logging of reason for return and return actions (refund or exchange)
• An inspection process with options to restock or scrap
• Reporting and analytics

We have touched on order and courier integrations but you may also wish to integrate to other elements of you ERP software solution such as a finance management system or CRM. A WMS may have standard integrations to common platforms but an open API allowing for custom integration is also an important factor to consider.

A WMS typically has the following key integration functions:

• Prebuilt integrations to popular order sources and couriers
• Integration options for finance and CRM software solutions
• Integration to assembly and manufacture solutions
• An open API for custom integrations not supported as standard
• Integration error reporting

Mobile functionality is typically thought of in regards to picking and tasking allowing users to scan barcodes for SKUs and Warehouse Locations when completing tasks to log for traceability and ensure efficiency of operation and accuracy. With the rise of cloud-based solutions and the trend in increasing warehouse size, being able to access the full features of a WMS from a tablet or laptop while on the move should also be a consideration.

Key mobile functions to be aware of are:

• Mobile barcode scanning for goods in, picking, warehouse tasks and returns
• Internet dropout protection
• Mobile access to a cloud-based system

A WMS needs to provide both real-time data reporting and trend based analytics on all aspects of your warehouse. This allows users to monitor KPIs, SLAs and make informed decisions to optimise operations. More recently, forecasting driven by artificial intelligence has been employed to suggest required inventory and resource levels in advance of peak trading periods.

The reporting capabilities of a warehouse management software system may include:

• Real time reporting on key operational data like inventory, stock movements/adjustments, outstanding orders and daily despatch reports
• Trend based analytic data logged over time to allow analysis for optimisation and forecasting
• AI driven forecasting to assist in informed business decisions
• Custom reporting options
• Report scheduling 

Efficient inbound processes can help reduce delays, prevent warehouse receiving errors, and build a foundation for accurate inventory throughout your warehouse. Using a modern warehouse management system helps you to:

• Streamline your goods-in process and ASN handling
• Reduce reliance on manual data entry by utilising barcoding and mobile scanning
• Improve speed and accuracy when processing deliveries

A WMS should offer complete control of stock across all of your locations, channels and processes. 

2.1. Real-time visibility (the core function)

Accurate, real-time visibility of your inventory is the foundation of every successful warehouse operation, giving you crucial insights including:

• Live stock levels across all locations, zones and bins
• Instant updates from mobile scanning devices
• Prior warning of potential stockouts, overselling and any required manual reconciliation
• The ability to accurately forecast, plan replenishment, and track availability across multiple channels

2.2. Advanced inventory control (lot/batch tracking)

For warehouses that have more complex requirements, including food, cosmetics, pharmaceuticals and other regulated industries, advanced tracking features are an essential part of day-to-day operations. Those features include:

• Lot, batch, serial and expiry-date tracking
• Full traceability to be compliant and easily auditable
• FIFO/FEFO picking logic
• Controlled storage conditions for high-value, sensitive or perishable goods

These advanced tools aren’t readily available in every WMS, so ensure the tool you choose is fit for purpose for your business.

To achieve fast, accurate and cost-effective order fulfilment, your warehouse management software should help to optimise the entire order lifecycle. Particularly key WMS features for this include:

• Ability to configure order picking methods (wave, batch, zone, cluster)
• Automated packing processes
• Real-time, automatic carrier selection and shipping automation based on pre-determined order rules
• Complementary despatch tools to reduce manual paperwork and potential errors

This particular pillar often delivers strong return on investment, as it directly impacts on your delivery promises and boosts customer satisfaction.

Warehouse teams are more efficient when they have structured guidance and insights into performance. A well-built WMS helps you to:

• Allocate tasks automatically based on priority and skill
• Reduce travel time and wasted movement by optimising pickers’ routes through the warehouse
• Measure productivity and identify issues and bottlenecks
• Improve picking accuracy with role-specific workflows and utilising mobile barcode scanning devices

These key features enable you to improve efficiency and accuracy, reducing rehandling and repicking, allowing you to ship orders more quickly, and achieve higher throughput without increasing your labour resource (headcount).

A data-driven warehouse can operate with greater confidence and better control, knowing that there is a solid reason behind each warehouse process. A modern warehouse management system will provide:

• Real-time dashboards for stock levels, orders and performance
• Customisable reports for key warehouse KPIs, including picking accuracy, dwell time, dock-to-stock and carrying costs
• Automated exception alerts to surface potential issues before they escalate

Historical trends and insights to support strategic decision-making, forecasting, and potential improvements such as warehouse layout.

Before you choose a warehouse management software, buyers should consider not just what features each software has, but also whether the system is right for their operational model, future growth and expansion plans, and current tech-stack. Ask questions such as:

• Is it cloud-based and can it scale as we grow?
• Does it integrate with our ERP, ecommerce platforms and carriers?
• Does it include mobile barcode scanning to provide enhancements like greater accuracy and real-time updates?