As order volumes, product ranges or delivery requirements grow, warehouse management quickly becomes more complex. Warehouse management software helps manage daily warehouse operations from receiving to shipping. Many companies are more familiar with the term WMS, short for Warehouse Management System, but in practice, the terms refer to the same thing.
Article summary:
· A Warehouse Management System (WMS) directs daily warehouse operations from receiving to picking, packing and shipping.
· Modern warehouse management is data‑driven: the system uses product information, storage locations and order flows to guide work efficiently.
· The need for a WMS increases as order volumes, product ranges or delivery requirements grow and operations become more complex.
· Posti’s outsourced warehousing service includes a WMS, so companies do not need to acquire or maintain their own system — Posti manages the processes and technology.
A Warehouse Management System knows what is in stock, where the products are located and what needs to be done next.
A WMS does more than keep track of inventory levels. A modern WMS guides daily warehouse processes from receiving and put-away to picking, packing and shipping. It can be described as the warehouse’s “brain”, directing what needs to be done, when and where. The system can guide both manual and automated warehouse processes.
What does warehouse management software do?
A good Warehouse Management System turns orders and product data into practical warehouse tasks.
When goods arrive, the WMS supports receiving and put-away. When a customer order comes in, the system creates the necessary warehouse tasks and guides product picking and the subsequent work stages. The transaction and inventory data generated by the system can then be transferred to other systems.
In Posti’s WMS environment, for example, the system determines a suitable packing method for each order and supports picking accordingly. Product characteristics and ABC classification are also used to optimize storage locations.
Among other things, a WMS supports the optimization of product placement and picking routes, as well as warehouse visibility and traceability.
When does a company need a Warehouse Management System?
The need for a WMS usually grows as warehouse operations become more complex.
A company should consider implementing one, at the latest, when:
the number of products and orders increases
several sales channels are served from the same warehouse
managing storage locations and inventory levels becomes more difficult
picking and other work stages require systematic guidance
delivery speed and quality requirements increase
warehouse operations need to be automated or optimized
A WMS also becomes increasingly important when different products and order flows are handled within the same warehouse. The system can use product, order and warehouse data to guide warehouse tasks.
A WMS is designed to scale across multiple locations and combine manual and automated processes.
Good warehouse management is based on data
Modern warehouse management is, above all, data-driven.
The WMS used by Posti utilizes product dimensions, for example, to determine suitable storage locations and assess their capacity. This means that the quality of product data also matters in practice. Accurate data helps the system make the right decisions in the warehouse.
Warehouse transactions also generate information that can be used to manage operations. At Posti, the WMS is used together with reporting and monitoring tools to track areas such as work tasks, efficiency and exceptions.
Your own WMS or warehousing as a service?
A company does not have to build its own warehouse and acquire its own WMS to benefit from modern warehouse management.
When a company uses Posti’s outsourced warehousing service, the WMS can be included as part of the overall service. This means that the customer does not have to build the warehouse system environment in the same way as it would when operating its own warehouse.
Posti’s WMS solution is used in warehouses in Finland and Sweden. It can also be used in customers’ warehouses as part of the Onsite service.
At Posti, the WMS is not a standalone system. Customer orders, product data, inventory levels and warehouse transactions form an integrated whole in which the Order Management System (OMS), WMS and transport-related solutions exchange information.
This is an important difference compared with purchasing WMS software alone. The customer buys a warehousing service from Posti, while Posti takes care of the warehouse processes, the supporting technology and the overall system environment.
→ Learn more about outsourced warehousing
How does warehouse management work in Posti’s warehousing services?
The solution is used at different stages of warehouse operations, and common operating models are built around it for different warehouses.
In Posti’s materials, the WMS is used for:
receiving
put-away
picking
packing
shipping
managing warehouse transactions
The solution also aims to harmonize warehouse operations. As part of Posti’s WMS renewal, a common solution is being developed for Finland, Sweden, Norway and the Baltics.
The solution supports both manual and automated warehouses.
The WMS renewal is also being rolled out gradually across Posti’s warehouses. Read more about how warehouse management is being developed at Posti’s logistics center in Järvenpää.
What does the customer get with Posti’s warehousing service?
A company considering a WMS should first ask a slightly bigger question:
Do we want to own a Warehouse Management System, or do we primarily need a warehouse that works well?
Acquiring a WMS involves more than the system itself. It also requires implementation, integrations, process definition, data, user training, and ongoing maintenance and development.
In Posti’s model, warehouse management technology can instead be integrated into the warehousing service.
From the customer’s perspective, the goal is simple: goods are received, stored and picked in a controlled manner, orders are dispatched, and the necessary information flows between the customer and the logistics operations.
A WMS is an important part of a modern warehouse, but the customer does not necessarily need to own it. In Posti’s warehousing service, the technology, warehouse processes and the organization operating them form a single service. This allows the customer to focus on its own business.
Frequently asked questions about warehouse management
What is warehouse management software?
Warehouse management software is a system that guides daily warehouse operations from receiving to shipping. It is used to manage inventory levels, storage locations, picking and other warehouse processes.
What does WMS mean?
WMS stands for Warehouse Management System. In Finnish, the terms varastonhallintaohjelma and varastonhallintajärjestelmä are used.
When does a company need a Warehouse Management System?
The need for a Warehouse Management System usually increases as the number of products, orders or storage locations grows and operations require more systematic guidance.
What are the benefits of a warehouse management system?
A warehouse management system helps manage inventory levels, improve picking efficiency, enhance traceability and support daily warehouse operations.
Can a company use a WMS without having its own warehouse?
Yes. A WMS can be included as part of Posti’s warehousing or Onsite service. This means that the company does not have to acquire or maintain its own Warehouse Management System.
Considering warehouse management software?
If you are considering acquiring your own WMS, it is worth assessing whether the same goal could be achieved as part of a warehousing service.
Learn more about Posti’s outsourced warehousing or talk to our experts about your company’s needs. This will help you find a solution that supports your business today and can scale with it in the future.