Warehouse Software 101
Warehouse automation software has become a staple of modern material handling, but different systems will influence different sections of your operations, so to help you identify which may best suit your needs, let’s go over the three traditional types of warehouse software.
WMS – Warehouse Management System
To use an analogy, WMS is the heart of distribution facility operations, providing an overview of everything: inventory, orders, labor, inbound, outbound, and so on.
This software application acts as the heart of your facility, viewing, assessing and controlling each process, giving you a birds-eye view of what matters most: processing orders. In addition, it connects to your company’s ERP, thus tying all information into one convenient place.
WCS – Warehouse Control System
If WMS is the heart of your
warehouse, WCS is its arms and legs. This system directly instructs each piece of automated equipment to fulfill a certain task.
Unlike your management system, a control system is not concerned with the bigger picture; it is instead laser-focused on directing your equipment to complete whatever is asked of it.
WES – Warehouse Execution System
WES is something of a hybrid, and
can be thought of as the brains of your warehouse. Much like WCS, it has your equipment following orders, but this system is capable of further analysis, taking into account other data to make dynamic decisions to maximize efficiency. For example, if a WCS simply tells a conveyor to take a product from point A to point B, then a WES will consider other factors, like when to move from A to B or whether it should take an alternate path to B, depending on space or labor availability. It analyzes information to optimize the efficiency of a given task.
WES is considered a hybrid since many WES functionalities grew out WCS software packages adopting more WMS functionality, or WMS adopting more WCS functionality, each meeting in the middle and rebranding as WES.
Though it can be helpful to understand the traditional roles of these software types within your material handling operations (due to overlapping capabilities, and varying naming conventions between providers) – it is often better to consider warehouse software from a functionality approach versus a system approach. You may find that one or two systems are sufficient to cover your current operating needs.
Additionally, within your warehouse ecosystem, you might find specialized systems to manage labor, slotting, yard, or transportation, for example.
How Are Things Changing in the Warehouse Software Landscape?
Matt Verbrugge, DLN’s Sr. Director of Technology, has been working with warehouse software for almost 30 years. He recalls when WCS solutions began being adopted, and in his time has noticed much change.
Matt described the three biggest shifts he has noticed since entering the industry in the late 1990’s, which is considered by many as a “golden age,” when software advanced and became more widespread.
These shifts are proliferation of providers, blurring lines between software types, and the role of AI.
Proliferation of Software Providers
“Thirty years ago, the major supply chain industry manufacturers leaned into providing their own software systems, and those were the main sources for WCS, while ERP systems created WM (Warehouse Management) modules to support the growing industry,” Matt says.
Back then, to implement a software solution, there weren’t all that many choices, which made making the buying decision somewhat easier. As the industry grew, Matt recalls, independent WCS and WMS providers and integrators joined the fray and created their own software solutions, out of which grew WES solutions.
In the last 10 to 15 years though, there has been a massive influx of new specialized technologies and technology providers, each providing their own software which is pushing the industry back towards a dependency on manufacturer-provided software versus independent software packages.
“This leads me to wonder whether someday there will be a push back once again on being forced into a manufacturers software package and there will be a general swing towards using more independent, open architecture software and hardware. The modern landscape can be so confusing with so many choices with tighter software integration. In every saturated market there are winners and losers.”
He continues, “back in the mid-90’s, jumping ship to another conveyor supplier didn’t necessarily mean your software or controls system needed to change. Now, both hardware and software are part of that equation of whether to shift providers or not, which adds a higher burden on initial system selection.”
Blurred Lines in Functionality
As mentioned above, there are generally accepted understandings of what each software type handles. Nowadays, those understandings are constantly being challenged by more hybrid solutions that involve parts of each type of software. This adds to another layer of confusion for supply chain decision makers.
“DLN’s own software, PRODirect, for example, is a hybrid. We’ve built it based on our experience with what companies actually need. But how to categorize it as a WCS, WES or WMS is a challenge. It certainly covers WCS and some WES and WMS functionality, but is not as robust as what might generally be thought of as WMS for some people,” Matt says.
Knock, Knock, AI is at the Door
According to a July 1st article in Modern Materials Handling, WMS and WES are already tapping machine learning (a subset of AI), while generative AI features are being introduced at the WMS level.
Matt is generally optimistic about AI’s capabilities, but also realistic as to how quickly they’ll be embraced by operations. The results of a 2025 Software/Automation survey in Modern Materials Handling supports this realism. It indicates that tariff uncertainty, rising business costs and high interest rates mean that adoption of new technologies won’t be immediate – with 75% of respondents categorizing themselves as taking a “wait-and-see approach.”
A Trusted Partner
Working with a trusted advisor in assessing challenges and solutions increases the chances of success. DLN’s Software Engineering team is not only technically experienced, we emphasize a multi-functional approach. Our team of skilled engineers have decades of real-world experience in optimizing distribution systems. Feel free to reach out to start the conversation.
