A warehouse management system (WMS) is software that controls and optimises warehouse operations, from the receipt of goods through storage, picking, packing and despatch. A WMS tracks the physical location of every item in a warehouse, directs warehouse staff through put-away and pick tasks, and provides real-time stock accuracy data. For distribution businesses, WMS accuracy directly affects picking efficiency, order fulfilment rates and stock integrity. Microsoft Dynamics 365 Business Central includes an integrated WMS with bin management, directed picking and full lot and serial traceability, which meets the needs of most UK distribution SMEs without requiring a separate third-party system.
How Business Central's WMS works
Business Central's advanced warehouse module manages stock at bin level within each location. When goods arrive, Business Central directs put-away to the most appropriate bin based on configured rules. When a sales order is released for picking, Business Central generates a pick document that routes the warehouse operative through the most efficient sequence of bins to assemble the order. Each transaction is scanned and recorded, updating the item ledger in real time. Lot and serial numbers are tracked through every movement, supporting full traceability from goods-in to despatch. For operations requiring automation integration, Business Central's API layer connects to conveyor systems, automated storage and retrieval systems (ASRS) and third-party WMS platforms.
WMS in practice
- A UK distributor implements Business Central's advanced warehouse module, replacing paper pick lists with barcode scanning on mobile devices. Picking accuracy improves from 97.2% to 99.6% in the first quarter after go-live.
- A pharmaceutical distributor uses Business Central's lot tracking and bin management to maintain full chain-of-custody records for all controlled stock, meeting audit requirements without manual paperwork.
- A multi-site business uses Business Central's WMS across three warehouses, giving buyers and customer service teams a single view of available stock across all locations in real time.
- A 3PL integrates its customers' order management systems with Business Central's WMS via API, processing pick tasks from multiple clients through a single warehouse operation with separate stock tracking for each.
How Advantage implements WMS in Business Central
Advantage designs and implements Business Central's warehouse management module for distribution businesses, covering location and bin structure, put-away and pick rules, scanning hardware configuration and integration with carrier systems. We also integrate Business Central with third-party WMS platforms where operations require more complex automation or multi-client capabilities.
Read our full Business Central warehouse management glossary entry →
Frequently Asked Questions
Common questions about warehouse management systems and Business Central for UK distributors.
What is the difference between a WMS and an ERP?
An ERP (Enterprise Resource Planning) system manages the financial, purchasing, sales and reporting functions of a business. A WMS manages the physical operations of a warehouse: where stock is located, how it is picked and packed, and how it is despatched. Business Central includes basic warehouse management capabilities. For complex operations, a dedicated WMS is integrated with Business Central to handle the warehouse floor while Business Central handles finance and order management.
Does Business Central have a built-in WMS?
Yes. Business Central includes warehouse management functionality covering bin management, directed put-away and pick, lot and serial tracking, and goods receipt and despatch processing. For most UK distribution SMEs, Business Central's native WMS features are sufficient. Larger operations or those with complex automation requirements may integrate a dedicated third-party WMS with Business Central.
What are the key features to look for in a WMS?
For UK distribution businesses, the most important WMS features include barcode or RFID scanning at every transaction point, bin or location management, directed pick paths for efficiency, lot and serial number traceability, integration with carrier systems for despatch, and real-time stock accuracy reporting. Business Central delivers all of these through its advanced warehouse module.
