WMS or WCS? Understand your technology for greater optimization

In any warehouse today, efficient operations are critical to staying competitive. Yet, with so many technologies available, businesses often struggle to make decisions about which solutions align with their unique needs.

When warehouse optimization is the main challenge, two key players should be on your radar: Warehouse Management Systems (WMS) and Warehouse Control Systems (WCS).

While these systems might sound similar, they serve distinct purposes and excel in different areas of warehouse management. Understanding their roles—and knowing when to use one, the other or both—is essential for maximizing efficiency, reducing costs and meeting customer expectations.

In this article, we’ll demystify the differences between WMS and WCS, explore their capabilities and by the end, you’ll be equipped to make an informed decision about which system is best for your business.

Warehouse Management System (WMS): The Strategic Overseer

A Warehouse Management System (WMS) serves as the strategic hub of warehouse operations. It manages inventory, order fulfillment and overall workflow. This system focuses on real-time data, ensuring stock levels are accurate and operations run smoothly.

A WMS directs:

• Inventory tracking: Provides real-time updates on inbound and outbound shipments, preventing stockouts or overstocking.
• Order fulfillment: Manages picking, packing and shipping processes to meet customer expectations efficiently.
• Space optimization: Guides how and where to store inventory for maximum utilization and productivity.
• Labor management: Assigns tasks and tracks worker productivity for better performance insights.

A WMS integrates with Enterprise Resource Planning (ERP) systems, offering a holistic view of the supply chain. Companies of all sizes can benefit from the system’s scalability and versatility.

Warehouse Control System (WCS): The Operational Executor

While WMS handles strategy, a Warehouse Control System (WCS) focuses on operational execution. It controls equipment like conveyors, sorters and automated storage systems, ensuring smooth material movement.

A WCS specializes in:

• Equipment coordination: Ensures automated machinery operates efficiently and avoids workflow disruptions.
• Real-time execution: Directs and monitors equipment in real time for uninterrupted operations.
• Error mitigation: Addresses jams or mechanical issues quickly to minimize delays and downtime.
• Throughput optimization: Manages the flow of goods through automated systems, ensuring maximum output.

The WCS acts as a bridge between the WMS and physical warehouse equipment. It ensures operational activities align with high-level planning.

Key differences between WMS and WCS

• Scope of functionality: A WMS manages inventory and order fulfillment, while a WCS focuses on equipment control.
•  Decision-making level: WMS supports strategic planning and WCS handles real-time, operational execution.
• Integration points: WMS integrates with business systems like ERP, while WCS connects with material handling equipment.
• Cost and complexity: WMS implementation is often broader and more expensive. WCS focuses on specific automation needs.

Case Study: How Strauss achieved end-to-end supply chain optimization and increased fulfillment speed by 25%.

Strauss, Europe’s leading manufacturer of workwear, manages around 1 million storage locations and an output of 4,000 parcels per hour, up to 50,000 per day. It aimed to completely integrate digital processes from receipt of the order to the arrival of the goods to the customer.

To achieve its aim, the company partnered with Körber Supply Chain Software using successive migration of various warehouses and systems to our WMS, WCS as well as a digital twin operation.

As a result of this partnership, Strauss was able to achieve a 25% increase in fulfillment speed.

Do you need a WCS, WMS or both?

Choosing between WMS and WCS depends on your operational needs and business goals. Here’s a quick guide:

When a WMS is ideal

1. You manage complex inventory and need real-time visibility across all operations.
2. Optimizing order picking, packing and shipping is a priority for customer satisfaction.
3. You require data insights for long-term strategic planning and process improvement.

When a WCS is necessary

1.  Your operations rely on advanced automation for handling material movement.
2. High throughput is essential to meet demand quickly and efficiently.
3. Managing real-time equipment coordination is critical to avoid costly downtime.

When you need both

1.  Your warehouse operations combine manual workflows and automated equipment.
2. You plan to scale your operations and require seamless integration of strategy and execution.
3. You aim for end-to-end optimization, blending automation technology and strategic insights.

To decide on a WMS, WCS or both, consider these questions:

How complex are my warehouse operations?
High complexity may require both systems for full optimization.

What level of automation do I use?
Automated warehouses benefit more from WCS integration than those relying on manual processes.

What’s my long-term growth plan?
Scalability often requires the capabilities of both systems to manage increased demand effectively.

Final thoughts: The case for integration

Understanding the differences between WMS and WCS is essential for making informed decisions about warehouse technology. Integrating these systems within your current tech stack can create a synergy that optimizes efficiency, accuracy and throughput.

Evaluate your operational challenges and growth plans carefully. Whether you choose a WMS, a WCS or a combination of both, with the right technology in place, your warehouse won’t just keep up with demand; it will set the pace for your industry.