---
title: "Warehouse management system"
description: "What is a warehouse management system (WMS)? Software that directs work inside a warehouse, down to bin level. Learn how it differs from inventory management."
url: https://1flux.ai/glossary/warehouse-management-system
last_updated: 2026-10-11
---

[Procurement and inventory](https://1flux.ai/glossary#procurement-and-inventory)

# Warehouse management system

What is a warehouse management system, and does your business actually need one?

Glossary Updated 11 October 2026

Definition

A warehouse management system (WMS) is software that directs the physical work inside a warehouse, such as where each item is stored and how it's put away, picked, packed and shipped, usually down to bin level and with scanning.

## What is a warehouse management system used for?

Inventory management answers “how much do we have, where and what is it worth?” A WMS answers “which bin, which picker, which route?” It adds bin and location tracking, putaway rules, wave picking, handheld scanners and labour reporting, and pays off in high-volume warehouses handling thousands of picks a day.

Example: a third-party logistics provider uses a WMS to send pickers to bin A-12-03 by scanner.

Many trading companies with a few warehouses need accurate stock, pick lists and dispatch control rather than a full WMS, with [available-to-promise](https://1flux.ai/glossary/available-to-promise) figures per warehouse.

In 1flux

1flux provides multi-warehouse stock across warehouses, stores and vans, a picking and dispatch board that never shows prices, and delivery notes for every dispatch, full or partial. [See multi-warehouse stock, picking and dispatch](https://1flux.ai/products/inventory/multi-warehouse)

Related

## Keep exploring

### [Available to promise](https://1flux.ai/glossary/available-to-promise)

Stock you can still commit to new orders: on hand minus reserved.

### [Stock transfer](https://1flux.ai/glossary/stock-transfer)

Moving stock between warehouses or locations.

### [Barcode](https://1flux.ai/glossary/barcode)

A scannable pattern that encodes an item's identifier.

### [Multi-warehouse](https://1flux.ai/products/inventory/multi-warehouse)

Stock per warehouse and company, reservations, a price-free pick board and delivery notes.

Last updated 11 October 2026