WMS logistics software - how does it work?

Managing warehouse operations without the right IT system can be a major challenge. Without real-time tracking, you cannot accurately plan your stock. Inefficiently used space results in longer product search times. A lack of managed workflows elongates packing and shipping time. Orders take too long and require multiple people to maintain a satisfactory work pace.

How can you use WMS logistics software to simplify your company's daily warehouse operations while enhancing the customer experience? Walk with us through the order processing workflow streamlined by supply chain management software, and forget about filling out spreadsheets, exchanging emails and frequent trips to the warehouse.

What is a Warehouse Management System?

A warehouse management system (WMS) is specialised logistics software that helps companies effectively manage supply chain operations, from a product's arrival at the logistics centre to its departure. The core functions of WMS logistics software include distribution of goods, inventory control, and order and shipment management.

The WMS system provides real-time inventory visibility, increases order accuracy and reduces costs by automating tasks. Advanced WMS solutions integrate with cloud platforms, TMS, and ERP applications.

More details describing the functions and types of WMS solutions you will find in the article: What is a WMS?

How does WMS software optimise logistics processes? Step-by-step guide

WMS transforms the approach to inventory management. Repetitive and manual activities are automated, speeding up operations and reducing the risk of human error. Look below and see how the WMS logistics software works, from placing an order to delivering it to the customer's door.

Order placement

It’s time to start! The process begins when a customer places an order on your website. The WMS software solution instantly captures all necessary details, including product information, quantities, and the customer’s address, so you can be sure that nothing is overlooked.

Profit: Immediate data collection eliminates delays and ensures a seamless start to order fulfilment, enhancing customer satisfaction from the very first step.

Information transfer

After the customer places their order, the WMS processes and transfers this information across the system in real time.

Profit: Warehouse management software synchronises inventory, packing, and shipping. It enables faster communication, reduces errors, and streamlines workflows to save time and effort.

Order verification

The WMS checks the order against the real-time visibility of products in stock before moving forward. It confirms that the requested items are available, preventing issues like overselling or backorders.

Profit: By verifying availability upfront, the WMS builds customer trust and minimises operational disruptions.

FIFO (First In, First Out) management

For businesses handling products with expiration dates, the WMS uses FIFO principles to prioritise older stock during picking and shipping. This is essential for industries like food, pharmaceuticals, or goods prone to spoilage.

Profit: FIFO management prevents waste, reduces stock obsolescence, and ensures customers always receive fresh, high-quality products.

Inventory update

During verification, the WMS updates inventory levels and reserves the required items for the order. This automated process keeps stock records accurate, avoids double booking, and provides valuable insights for future restocking.

Profit: With these precise updates, your business can reduce stock discrepancies and improve forecasting.

Multi-location management

Managing multiple warehouses? The WMS logistics software gives you a centralised view of inventory across all locations, ensuring real-time coordination and accuracy. Whether stock is reserved, transferred, or restocked, everything runs seamlessly across your entire operation.

Profit: Unified oversight reduces stockouts, improves inventory allocation, and keeps operations running smoothly across multiple warehouses.

Order processing

The WMS organises the fulfilment process once the system verifies and confirms the order. It generates efficient workflows, assigns tasks, and sequences logistics operations to accelerate completion and ensure accuracy.

Profit: Automating these steps allows your business to enhance reliability by fulfilling orders correctly and on time.

Picking

The WMS designs optimised picking flows that minimise travel distance and time for warehouse staff. Pickers scan barcodes to confirm they have selected the correct products. Scanning reduces errors and speeds up warehouse processes.

Profit: These efficiencies lower labour costs and ensure order-picking accuracy, boosting customer satisfaction.

Integration with robotics

The WMS logistics software increases efficiency by connecting with advanced automation tools, such as robotic pickers, conveyors, and automated guided vehicles (AGVs). These technologies speed up picking and packing processes while maintaining accuracy.

Profit: Automation reduces reliance on manual labour, shortens processing times, and ensures error-free operations.

Consolidation

After picking, the software consolidates all items for the same order into a single shipment. It confirms no items are missed and groups them correctly.

Profit: This process reduces packing time and prevents additional costs from re-shipping forgotten products.

Packing

The warehouse system provides detailed packing instructions to your team. Then, the staff can securely package products based on size, weight, and fragility. It reduces the risk of damage during transit and enhances the customer experience.

Profit: By automating this step, you can save time while maintaining professional packing standards.

Labelling

The WMS generates shipping labels with customer addresses and carrier details. The automated label generation procedure eliminates errors, speeds up preparation, and ensures packages are routed correctly.

Profit: With faster and error-free labelling, your business minimises shipping delays.

Shipping

Once the order is ready, the WMS logistics software connects with shipping carriers to schedule pickups and manage transit logistics. It provides smooth coordination and reduces the chances of missed pickups or routing errors.

Profit: Communication with shipping carriers saves time while improving productivity and reliability.

Shipping status update

As the package leaves the warehouse, the WMS tracks its journey and updates its status in real time. Both you and your customers can monitor the shipment at every stage.

Profit: Package traceability builds customer confidence and enhances the overall delivery experience.

Customer delivery

The WMS logistics software coordinates every step of the process to ensure customers receive their orders as expected.

Profit: Using warehouse management software decreases the number of complaints and increases loyalty.

Return handling

If a customer initiates a return, the software generates return labels, tracks the product’s return journey, and updates the inventory once the item arrives.

Profit: WMS minimises hassle for both customers and staff, preserves trust, and maintains operational efficiency.

How does the WMS system streamline the logistics chain? Explore the StoreFeeder's case

We know that, in theory, every logistics process can seem flawless, but real-world examples speak louder. Take StoreFeeder, a leading e-commerce software provider in the UK and Europe. HappyTeam has been collaborating with StoreFeeder to refine and enhance its platform’s capabilities, addressing critical e-commerce challenges like order management, inventory tracking, and workflow automation.

Our role included optimising integrations and improving the system’s overall performance to meet the dynamic needs of modern e-commerce businesses. The result? Streamlined processes, fewer operational errors, and a solution that empowers StoreFeeder users to manage their warehouses and orders with precision and speed.

This successful collaboration highlights the value of WMS logistics software in enhancing productivity and delivering exceptional user experiences.

Read more about the WMS logistics software for StoreFeeder here.

Conclusion

The Warehouse Management System doesn't just manage your warehouse – it helps you grow and stay competitive. Whether you’re an e-commerce startup or a large-scale retail business, there is always room for improvement.

Discover how personalised WMS logistics software can transform operations, reduce costs, and boost customer satisfaction. Our experts at HappyTeam will fit your unique needs, providing integration with your present processes and future scalability.

Ready to optimise your warehouse? Let’s create a WMS logistics software tailored to your unique needs. Contact us today and unlock smarter, more efficient logistics!