A warehouse management system (WMS) is a software that manages all aspects of warehouse operation including order management, inventory management, returns management, and offers complete visibility into warehouse operations.
The best WMS solutions break down inventory and product to a granular level and allow operations to become extremely efficient. More sophisticated WMS systems even guide warehouse workers step by step through the facility when they are picking and packing orders in order to maximize time. WMS solutions can be based in the cloud or on a server located in the warehouse. Both options have benefits and downsides: a local server-based WMS has high installation fees and is susceptible to power outages, not to mention the cost of maintaining IT professionals to support the WMS. A cloud-based WMS generally has a monthly subscription fee but often sidesteps the need for IT staff.
A transportation management system (TMS) is a software that streamlines the shipping of products. The best TMS’ integrate with all of your marketplaces, shopping carts, and order management systems--putting orders all in one place. They then allow you to select the best shipping parameters for your needs. They additionally assist with any documentation needed for shipping, let you customize your shipping labels or manifests, and finally, give you access to package tracking and notifications.
Smaller operations likely only use a transportation management system as many small businesses, like you would find on Etsy, may fulfill out of garages, storage units, or even spare bedrooms. As businesses grow though, and they expand and start to fulfill out of a small warehouse, and then a bigger warehouse, etc., they will need a system to organize inventory, track inventory, and communicate with the TMS.
However, using two independent systems and then connecting them with an integration can become a major hurdle for growing companies. This integration can be costly, it needs to be maintained, and can break and cause downtime in operations.
Both WMS and TMS are critical to a growing e-commerce business, but connecting separate technologies and maintaining that connection hinders growth.
This is where a completely seamless system that combines all features of a WMS and a TMS comes in, a TWMS. Earlier this year, ShipCaddie TWMS announced this new software category and how the offering revolutionizes e-commerce business growth.
Learn how TWMS software is unique through the ShipCaddie TWMS announcement video:
Moral of the story? Technology should enable growth, not be a stumbling block for businesses. As critical and useful as WMS and TMS technologies are on their own, choosing a seamless, combined solution is only beneficial.
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