The Ultimate Guide: What to Look For in a Warehouse Management System (WMS) Software

In the modern, customer-driven, and hyper-connected world, warehouses are not merely storage boxes for products. They are a central hub of modern logistics and severely influence the speed of shipment of the products to the customer and accuracy of delivery.

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Regardless of whether you are a 3PL, an expanding eCommerce brand, or a global manufacturer of products, warehouse operations play a big role in your bottom line.

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With more and more complex business models (omnichannel fulfillment, same-day delivery expectations, dynamic demand enabled by data), spreadsheets and manual processes no longer cut it, and this is when a warehouse management system (WMS) will step in.

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A WMS is not just a software for tracking inventory. It is a strategic decision that can assist in facilitating efficiencies in operations, minimizing human error, and improving your prospects of growth.

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Getting the appropriate WMS software is your competitive advantage now, more than ever, as faster, more accurate, and more economical demands on warehouses are rising.

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Contemporary WMS platforms offer advanced functionality, including automated picking, real-time inventory visibility, labor tracking, and even predictive analytics. However, with numerous options and providers, it becomes crucial to understand what to look for in a WMS.

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This blog will walk you through everything you need to know, from features you'll need to have, main benefits, how WMS is different from inventory management software, to who the top providers are on today's market.

Why choosing the right warehouse management system (WMS) matters

Not every warehouse is the same. A business with thousands of SKUs across multiple fulfillment centers has very different needs from a small regional distribution company. However, efficiency at the warehouse level impacts customer satisfaction, fulfillment speed, and ultimately, profitability. 

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For this reason, choosing a warehouse management system (WMS) is not only a technological decision; it is a critical business decision.

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A well-implemented WMS serves as the operational control system for the warehouse, describing and managing the movement of inventories, coordinating the activities of the workforce, and ensuring that everything moves through the warehouse in a highly efficient manner with minimal errors.

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Alternatively, an incorrect decision regarding a WMS or a storage device, or not using a WMS at all, can lead to significant costs and errors, overstocking, mispicks, shipping delays, and even lost customers.

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Here's why a proper WMS is more important than ever:

• Operational visibility - A  WMS offers a real-time view of the available inventory, the location of the shelves, order status, and productivity of the workforce. This transparency helps teams make decisions that are more well-informed and quick to react to problems that may come unexpectedly.
• Cost controls - Labor can represent over 60-65% of total warehousing expenses. The right WMS helps mitigate overtime, determines the most efficient picking routes, and facilitates task assignment management, all resulting in improved labor utilization.
• Scalability - As your organization scales, the complexity of your warehouse operation continues to grow. A scalable WMS allows you to add new locations, increase order volumes, and integrate with more sales channels - all without a whole new system requiring new implementation.
• Error elimination: A WMS eliminates manual data entry and human error through barcode scanning and automated enumerations. With the implementation of a WMS, return rates, reshipments, and customer complaint rates decrease.
• Speed of fulfillment: Whether you're shipping B2B or B2C, fulfillment speed is important. A WMS looks to speed up everything, from receipts and putaway to picking, packing, and dispatch.

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It's essential to consider not only the features that the WMS offers but also its operational suitability and the capabilities it can provide, both currently and in the future.

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What is warehouse management software (WMS)?

Warehouse management software (WMS) is a digital system that helps control, manage and optimize warehouse processes. In essence, a WMS allows businesses to manage the flow of products through the warehouse, from the time inventory arrives at the receiving dock to when that inventory is picked, packed, and shipped out to the customer.

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The software works by implementing a centralized solution that monitors inventory phases in real-time modes, provides employee workflow management and accuracy across all warehouse operations. Improved inventory maintenance lowers not only manual input, but also accelerates fulfillment and improves more space and labor.

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The majority of the new WMS systems have mobile, barcode scanning, and good integration functions, which enable them to integrate with various enterprise systems, such as ERP, TMS, CRM, and e-commerce.

What does a WMS do?

A warehouse management system (WMS) is not merely a software application that keeps track of inventory; it is an intelligent platform that directs and optimizes every operational process inside a warehouse. A WMS directs every aspect of getting goods from the receiving dock to the customer. 

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Here are the key functions a WMS manages:

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1. Receiving and putaway

The WMS handles inbound operations first. It helps warehouse teams validate receipts, check discrepancies, and assign storage locations. Most solutions use barcodes or RFID scanning to ensure that the stated goods were received and that they are placed in their intended bin or rack.

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Most WMS have efficient putaway rules built in (e.g., storing frequently picked items closer to packing) that warehouse operations typically configure ahead of time to facilitate retrieval in the future.

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2. Inventory tracking

A core function of a WMS is to provide inventory visibility in real-time.

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A WMS can help businesses:

• Track inventory across multiple zones or buildings.
• Identify slow-moving or obsolete inventory.
• Set low-stock alerts.
• Prevent overstocking.
• Prevent understocking.

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By tracking the movement of items in WMS, businesses can achieve a higher level of inventory accuracy without needing to undertake a time-consuming manual inventory count process.

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3. Order picking and fulfillment

Once a customer order has been received, WMS decides the optimal picking strategy to be followed for the order using information about the layout of the warehouse and what warehouse resources are available.

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The WMS uses the instructions, which are generated, to assign the pick method to be adopted by the staff. In order to present the pick method instruction to the warehouse workers, the WMS typically pushes pick instructions to a portable device or hand scanner, enabling warehouse workers to follow an optimal route. This reduces unnecessary steps and improves overall picking efficiency.

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4. Packing and shipping

The WMS can also help manage the processes for packing items once the picked items are processed. The WMS supports the packing by performing order validation, printing the shipping label, and providing the best packing method based on the size and/or weight of the items, by suggesting documentation via the WMS.

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The WMS can also integrate with carrier systems to check rates with each carrier and present the best option to the warehouse staff when packing is completed.

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Some advanced WMS platforms have cartonization logic services that determine how the items should be cartonized by considering how the items fit in the cartons to maximize the area and space of the container in order to minimize the cost associated with packing and shipping.

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5. Returns and reverse logistics

Dealing with returns is complicated, but a solid WMS streamlines the returns process. Your WMS tracks returned items, assesses whether they can be put back into inventory, refurbished, or sent for shredding, and updates the inventory record accordingly.

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If done correctly, returns should not negatively impact ongoing processes, allowing the organization to manage its inventory more effectively and improve the end-user and customer experience.

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6. Labor or task management

The majority of warehouse management systems come equipped with tools that make it easier to manage warehouse associates. These tools can assign tasks by priority, provide an individual with a set of work and productivity tracking, and produce reports on performance for warehouse managers. They will help you with labor forecasting, shift planning, and productivity improvement.

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7. Reporting and analytics

One of the features of WMS is that you gain visibility and awareness into your warehouse key performance indicators like order accuracy, fulfillment cycle time, and space utilization via dashboards and custom reports. Through this knowledge, leadership teams are able to be data-driven to decide on issues that can lead to less wastage and cost reduction.

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It is this combination of capabilities that allows a WMS to transform a warehouse from being seen as a cost center into an organizational asset. Whether it's faster fulfillment or better control of operational processes by leadership, a WMS provides visibility, accuracy, and responsiveness to the heart of your logistics.

Top warehouse management software (WMS) providers

With numerous options for WMS solutions, each one claims to offer advanced automation, simple integrations, and better ROI, which can be overwhelming as you try to narrow down your choices.

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Here’s a look at some of the most favorable WMS options available today! In addition to being known for their features and flexibility, these WMS solutions are also backed by providers that service businesses of all sizes and industries.

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1. Fynd WMS

Fynd WMS is a multi-brand, e-commerce and Fast-Moving Consumer Goods (FMCG) solutions which are cloud-native. It is known by its easy-to-use interface and modular structure, which covers the entire order cycle, including managing inventory, and end-to-end integrations into last-mile delivery.

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Key strengths:

• Visibility of inventory in real-time across multiple sales channels.
• B2B and B2C fulfillment flows.
• Advanced analysis and performance tracking.
• Allows effortless integration with such platforms as Shopify, Amazon, etc.

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Best suited for: Emerging D2C brands, retail chains, and third-party logistics (3PLs) in need of growth and automation.

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2. NetSuite WMS

Oracle NetSuite WMS is a software application within the broader NetSuite ERP ecosystem. It supports end-to-end warehouse processes for organizations that currently use, or plan to use, NetSuite ERP.

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Key strengths:

• Native integration with NetSuite ERP and financials.
• Mobile RF barcode scanning.
• Intelligent pick, pack, and ship capabilities.
• All of the above with real-time inventory across multiple warehouses.

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Ideal for mid-size to large companies that want a tightly integrated ERP and WMS platform.

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3. Manhattan Associates WMS

Manhattan WMS is known for its rich features and technical capabilities, though it can be complex to use. It is popular among the retail, grocery, pharmaceutical, and third-party logistics sectors.

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Key strengths:

• Highly configurable workflows.
• Advanced labor management, labor optimization, and slotting optimization.
• AI-powered order streaming.
• Strong support for omnichannel fulfillment.

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Best fit: large enterprises with complex supply chains and large-scale distribution centers.

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4. SAP Extended Warehouse Management (EWM)

SAP EWM is an advanced warehouse management (WMS) module in the SAP S/4HANA ecosystem that provides visibility and operations, end-to-end, with capabilities for automation, quality, and compliance.

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Key strengths: 

• Integration into SAP ERP.
• Powerful fleet management and transportation planning capabilities through integration with SAP Transportation Management (TM).
• Yard management and cross-docking features.
• Radio frequency and voice picking; automation equipment (including conveyors and automated storage and retrieval systems).

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Best suited for enterprise-level organizations in manufacturing, automotive, and consumer goods sectors with SAP-driven enterprise infrastructure.

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5. Fishbowl WMS

Fishbowl Warehouse is a popular WMS targeting small to mid-sized businesses that want to manage inventory without the overhead of a full ERP. It has a great set of features for an affordable price.

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Key strengths:

• Built to integrate with QuickBooks and Xero.
• Tracking inventory by location, serial number, and lot.
• Order management and shipping integration.
• Mobile warehouse management tool support.

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Best fit: small manufacturers, wholesalers, and distributors looking for a low-end WMS.

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Each of these providers provides its own unique value. The best provider will depend on the size of your business, your industry, what source systems you are using now, and future growth requirements.

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The next section will provide an overview of how WMS differs from inventory management systems, helping users understand the type of solution that best suits their operations.

Warehouse management software vs inventory management software

Many businesses, especially those starting to scale operations, often confuse warehouse management software (WMS) with inventory management software (IMS). They are related and occasionally overlap in function, but they serve different purposes in your business operations.

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What is inventory management software?

Inventory management software is designed to track inventory levels, monitor product movements, and report on what is in stock, what is selling, and what needs to be restocked.

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It is usually used to:

• Track inventory across multiple locations or channels.
• Create purchase orders/restock alerts.
• Track how products are selling.
• Avoid running out of stock or overstocking.

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IMS can be very beneficial for businesses that sell products through various channels like e-commerce, retail, or wholesale, and want visibility into what is in inventory, often in a centralized place.

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IMS focuses on stock levels across different locations, rather than the detailed movement or handling of items within the warehouse.

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What is warehouse management software?

Essentially, WMS governs the movement of stock within the warehouse. It controls all physical workflows, including receiving, putaway, picking, packing, shipping, and returns. Though WMS provides inventory, the real value is in the warehouse management and optimized operations. 

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Where IMS will tell you there are 100 units of a product in stock, WMS will track: 

• Where are those units in storage (aisle, bin, rack)?
• Which units were picked, who picked them, and when?
• How many are reserved for pending orders?
• Which units are damaged, returned, or expired?
• How long have the items been in storage (inventory aging)?

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Key differences at a glance

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Can you use both together?

Yes – and many organizations do! Current WMS systems commonly integrate with IMS, ERP, and e-commerce applications, allowing data to flow seamlessly from the warehouse floor to the finance division. This type of integration provides organizations with visibility across the entire organization, minimizing data duplication and enhancing data consistency.

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If you're running a growing e-commerce or distribution operation and want to scale efficiently, using both systems in parallel will be an effective way to do so. With both systems operating in tandem, you can take advantage of the best of both worlds, efficient inventory decisions, coupled with optimized warehouse execution.

Benefits of warehouse management software

Implementing a warehouse management system (WMS) is more than just inventory management; it is about optimizing warehouse operations to achieve greater efficiency, accuracy, and responsiveness, thereby directly enhancing supply chain service and performance.

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If you're managing an operation as a small- to mid-size distributor or an enterprise with more sophisticated logistics, it's important to recognize that the right WMS will provide tangible advantages that can have a considerable reach beyond the physical floor of your warehouse.

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Some of the major benefits include:

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1. Improved Inventory Accuracy

Recording and managing manual inventories rely on human accuracy if you are dealing with thousands of SKUs across multiple storage locations. A WMS automatically records inventory at the bin or zone level, updates stock in real-time, and integrates with a level of accuracy using barcode or RFID scanning.

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This level of precision can significantly improve accuracy while reducing minor errors that result from discrepancies in stock levels. More accurate inventory levels mean fewer stock-outs, less overstocking, and more accurate forecasting of demand.

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2. Faster and more reliable order fulfillment

In today's customer-centric economy, speed and accuracy in the processes of picking, packing, and shipping is essential. A WMS system can allow for optimized pick paths, batch picking, wave picking, and packing instructions which will benefit your team by allowing you to fulfill more orders in less time and having fewer errors.

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The benefits include faster delivery times, reduced returns from mispicks, and more satisfied customers.

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3. Reduced operational errors

With an appropriate WMS set up correctly, you will have a consistent process for tasks such as receiving, putaway, picking, and returns. A WMS will reduce errors and exceptions that can delay productivity and increase productivity-related costs by eliminating manual entry and enforcing barcode/RFID identification at each step of the operation. The result is fewer errors lead to better flow, less rework, and improved SLA compliance.

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4. Better space utilization

In addition to this, WMS can assist you in optimizing your storage pattern to be the best through features like slotting optimization, heatmaps of pick activity. A WMS will find those spaces that are not well used and will find better approaches to locating products depending on the movement of the product, its size, and the amount of movement, inbound and outbound. 

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Restructuring of inefficient and wastage storage will eventually decongest, decrease the cost of storage, and allow you to store a larger volume without the need to shift to another facility.

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5. Labor efficiency and productivity

Labor is among the largest operational costs in warehouse management. By utilizing a WMS, you can enhance labor productivity, minimize travel, assess performance, and allocate labor dynamically. Supervisors can look at which staff member is picking quicker, where the bottlenecks are appearing, and how to better overlap shifts.

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Some warehouse management systems will also help forecast your labor needs based on demand patterns and spikes, such as seasonal sales or new product launches.

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6. Real-time visibility and reporting

One of the benefits is that a WMS can provide the users with real-time dashboards and customizable reports, so the managers can easily track the vital performance indicators (KPIs) such as the inventory turnover, order cycle time, fulfillment accuracy, and productive employee activity. 

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This information provides companies with a chance to make decisions at a faster rate and not on the basis of instinct, but on knowledge, and also enables them to constantly improve their functioning. 

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Predictive analytics will also be included in advanced WMS platforms, and it will enable the business to be up to date in terms of trends instead of solving issues once they have already happened.

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7. Better customer satisfaction

Ultimately, customers are the primary beneficiaries of a well-implemented WMS. When orders get to customers on time, in full, and without errors, customer satisfaction and retention will increase. And when return logistics go smoothly, customers are far more likely to remain loyal, even when they make returns. 

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As delivery expectations continue to rise, having a WMS that provides your business with the tools to deliver high-quality service consistently gives you a significant advantage.

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8. Scalability for future growth

As your organization grows, whether with new warehouses, in new channels, or with global fulfillment, a strong WMS can also grow with you. It allows for multi-site operations, integrates with new technologies, and supports evolving operational processes with minimal disruptions.

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With scalability, your warehouse operation will remain a strong asset and not become the weak link when demand increases (or becomes overwhelming).

Types of warehouse management software 

Not all WMS solutions are created equal. The type of solution you use could have a significant impact on how easily it integrates into your existing solutions, how flexible it is for your specific operations, and how well you can use it to facilitate growth.

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Here are the main types of WMS software to help you decide what is best for your warehouse:

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1. Standalone WMS

A Standalone WMS is a software application designed to manage warehouse operations independently. It typically contains a full suite of functions to verify receiving, inventory control, shipping, returns, and order fulfillment, but operates without integration to other enterprise systems.

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Pros:

• Deep functionality for warehouse operations.
• Best for business owners seeking top-tier warehousing tools at a competitive price.
• Often, a standalone WMS is cheaper than an enterprise software suite and quicker to implement.

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Cons:

• May require custom ERP integration, TMS, or E-commerce integration.
• Without integration, data silos can develop.

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Best for: small to medium businesses and/or 3PL businesses wanting robust and powerful warehousing tools, without the complexity of a full suite of ERP functions.

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2. Integrated WMS in ERP

An integrated WMS sits within a wider enterprise resource planning (ERP) system. When the warehouse operates within an ERP, all operations are interconnected with purchasing, accounting, production, customer service, and more, all from a single application. 

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Pros:

• Unified data for all functions.
• Coordinate better between the warehouse and other business functions.
• Less reliance on third-party integration.

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Cons:

• May have fewer features in warehousing compared with a dedicated WMS.
• Implementing and customizing it can be time-intensive and costly.

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Ideal for:  large businesses or those that are rapidly expanding in size, that aspire to be using a multi-purpose ERP with a unified system (i.e., SAP, Oracle NetSuite, Microsoft Dynamics) today or in the future.

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3. Cloud-based WMS

WMS solutions use internet-based servers hosted by a remote vendor, called cloud-based WMS. The popularity of these solutions is rapidly growing due to their flexibility, scalability, and initial low costs, as well as faster onboarding times (often getting operations up and running in a matter of days). 

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Pros:

• Access from anywhere with an internet connection.
• No in-house IT infrastructure.
• The provider regularly updates and applies security patches.
• It can easily scale as the business grows.

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Cons:

• Dependent on internet connectivity.
• Limited offline functionality.
• Applicable data location controlled by the vendor (and some businesses do not want to store location under someone else's control for security and liability reasons).

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Best use case - for fast-growing businesses, online sellers or e-commerce, and firms requiring flexibility and remote access as part of a distributed team.

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4. On-premise WMS

On-premise WMS applications are located on your company’s servers and infrastructure. An on-premise model puts the most control over the system and data in your hands, but comes with a large upfront capital expense for IT resources and hardware.

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Pros:

• Complete data security control and more customisation capability.
• Can be tailored to individual operation needs.
• No dependency on the internet to conduct internal processes.

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Cons:

• The highest upfront costs and more extended implementation periods.
• Maintenance, upgrading, and IT personnel are necessary on an ongoing basis.
• They are more difficult to scale or make remotely accessible.

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Best for: large businesses with rigid data handling needs or companies with intense warehousing solutions that need highly customized systems.

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5. Industry-specific WMS solutions

There are a few industry-specific Warehouse Management Systems (WMS) e.g, pharmaceuticals, food and beverage, fashion, or automobiles. Such warehouse management software products come with pre-integrated compliance applications, procedures, and modules specific to a domain.

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Pros

• Compliance requirements for regulated industries, eg, FDA, ISO, etc.
• Industry-specific functionality and reporting.
• Faster implementation with fewer workarounds or adjustments.

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Cons

• Limited flexibility for businesses operating across diverse industries.
• Could drive up price due to there being niche capabilities.

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Best for: businesses with specialized warehousing needs that require strict compliance or process control.

Key features to look for in WMS software

Selecting the right warehouse management system is an important strategic decision, and its ultimate effectiveness depends on your feature set. If your business has a similar size, complexity, and industry, it's worth noting that there are certainly basic features, or "non-negotiables," you should expect from any high-performing WMS. 

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Here are the features you must qualify for:

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1. Inventory tracking and real-time visibility

One important feature of any warehouse management system is the ability to track inventory precisely, down to the SKU level, including locations and movement history. Real-time visibility ensures your stock data is current, minimizing the chances of overselling inventory and understocking dates.

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Seek systems that provide:

• Bin and zone tracking.
• Cycle counting and stock reconciliation.
• Low stock, expiry, or aging inventory alerts.
• Real-time dashboards for inventory state.

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2. Order management and fulfillment capabilities

Your WMS should be able to streamline every step of the order lifecycle, from sales order capture to delivery. It should also offer multiple picking methodologies and process fulfillment intelligently based on order type, customer SLAs, or shipping cutoffs.

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Some key features include:

• Wave, batch, zone, and cluster picking.
• Order allocation based on rules (FIFO, LIFO, location, etc.).
• Backorder and partial shipment.
• Integration with order management systems (OMS).

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3. Barcode/RFID scanning and mobile support

WMS applications equipped with mobile-enabled technology, such as barcode or RFID scanning, can minimize human error and enhance the speed of picking by allowing employees to scan items for verification, track movement, and receive real-time notifications through handheld devices. 

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What to consider:

• Native mobile app or the ability to use devices.
• Real-time sync from the mobile device to the central system.
• RFID for fast or bulk item processing.
• Configurable workflows/scanning.

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4. Returns and reverse logistics  

Returns will happen. How you manage them can impact your cost and customer satisfaction. Your WMS should support a smooth process for returns management and help make decisions about whether the product should be restocked, repaired, or scrapped.

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Must-have components:

• Workflows and barcode scanning to initiate the returns process,
• Rules for restocking returned goods.
• Tracking of reasons for return and goods conditions.
• Integration or relationship with carriers for reverse logistics.

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5. Analytics and reporting

If you can't track, you can't improve. Quality reporting tools in a WMS help you stay informed about inventory turnover, labor productivity, fulfillment accuracy, space utilization, and more. 

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Look for functionality such as:

• Dashboards that can be customized and reports that can be scheduled.
• KPI Tracking for warehouse performance.
• Trends for inventory and orders can be viewed over time.
• Predictive alerts for inventory trends.

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6. Slotting and warehouse optimization

More sophisticated WMS platforms can assist you with optimizing the way your inventory is stored, such as recommending the optimal bin or zone based on item picking frequency, size, weight, or replenishment cycles.

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A slotting-optimized warehouse provides benefits such as:

• Faster picking and limited travel. 
• Improved space utilization.
• Better replenishment flow.
• Minimized bottlenecks in busy areas.

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7. User role management and access control

A proper and secure warehouse requires clearly set roles and rights. A Warehouse Management System (WMS) must ensure that they have role based access control so that the user can see, edit or complete their workflow depending on the role assigned to them.

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Look for:

• Role-based access control.
• Evidence of auditing for task visibility.
• User management with different levels of permissions.
• Policies for remote access.

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8. Integrations

A WMS needs to work in complete integration with the systems your business already has in place (ERP, TMS/mode of shipping, e-commerce stores, CRM), which allows data to be shared and automates workflows.

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Key integrations:

• ERP system (SAP, NetSuite, Microsoft Dynamics).
• TMS/shipping carriers (FedEx, UPS, DHL).
• Ecommerce systems (Shopify, Amazon, Magento).
• Accounting/invoicing systems.

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9. Scalability and customization

A growing or changing business invariably means your WMS needs to grow and change, too. Look for WMS vendors that offer modular, versatile systems, allowing you to add features or change workflows without needing to reimplement the system.

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Indicators of scalability:

• Multiple warehouse or fulfillment center support.
• Multi-language and multi-currency support.
• Configurable business rules.
• API or SDK access for custom integrations.

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10. Cloud access, uptime, and data security

In the cloud-first economy, your WMS will need to be reachable anywhere, everywhere, and your data needs to be secure. Select WMS providers with high guaranteed uptimes, with good encryption, and adherence to industry standards.

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Key security features:

• Data encrypted at rest and in transit.
• User authentication protocols (e.g., SSO, MFA).
• Daily backups and disaster recovery.
• ISO, SOC, or GDPR compliance.

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These are not only technical specifications; they are what will enable you to operate a modern warehousing business in a cost-effective, accurate, and proactive way. Regardless of whether you are deploying a new operation or updating an old system, you need to make sure that your WMS has a chance of success in the long run.

Choosing the right Warehouse Management System for your business

Selecting a warehouse management system (WMS) is not a software choice; it is a strategic investment that can change your business. The greatest WMS can never be the one with the maximum features or the highest price; it is the one that optimally complements your business approach, operation complexity, and predicted scalability.

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Here is how to carefully and purposefully go through the selection process.

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1. Understand your operational needs

Start by conducting an inventory of your warehouse processes. Find the sources of inefficiency and count the amount of manual work. Evaluate the SKUs you deal with and how complicated it is to fulfil your orders.

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When you know what you really need, you are less likely to overinvest or underinvest in something too complex or not scalable.

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Ask yourself:

• Are your fulfillment needs B2B, B2C, or both?
• How many warehouses or distribution centers are you overseeing?
• Do you require more difficult features such as kitting, cross-docking, or lot tracking?
• Are you working with perishable, regulated, or serialized products?

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2. Evaluate your tech ecosystem

A WMS won’t work in a vacuum. It should work well with your existing tools (ERP, OMS, e-commerce platforms, accounting software, TMS (transportation management systems)).

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Check for:

• Out-of-the-box integrations.
• Open API for customization purposes.
• Compatibility with your existing systems.
• Future-proofing for integrations with new tools or platforms.

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Integration readiness can impact the speed of implementation, the accuracy of data, and whether the workflow is automated.

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3. Involve the right stakeholders

A WMS impacts nearly all departments within an organization, including warehouse managers, information technology (IT) team members, finance, customer service, and logistics departments. Inviting these stakeholders to the selection process early is crucial to ensure the system meets each department's specific needs and builds trust in the implementation process. 

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Develop a cross-functional selection committee to evaluate: 

• Ease of use for warehouse staff.
• Customization requirements for IT.
• Reporting needs for management.
• Integration needs for operations.

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4. Compare the total cost of ownership

Price tags can be misleading. Always consider the total cost of ownership (TCO), which can include: 

• License or subscription costs.
• Implementation and training costs for use.
• Hardware or mobile devices (for on-premise).
• Support and upgrade costs.
• Custom development or integrations.

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A more expensive system may not be a complete disadvantage if it delivers a greater return on investment (ROI) in the form of efficiencies gained, as well as a system that requires fewer workarounds.

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On the other hand, a less expensive option could quickly become very expensive if it requires numerous add-on costs or if it necessitates frequent manual intervention.

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5. Test before you commit

Ask for demos, run sandbox tests, or get a trial version, if available. Where possible, build a test case that simulates your real operation, from receipt to fulfillment, to evaluate how well the system can manage it.

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Take the opportunity to evaluate:

• Ease of use.
• Speed and responsiveness.
• Reporting and analytics.
• Mobile experience.
• Availability of support.

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And don't forget the great value of customer reviews and case studies. Look for kindred size or industry peers and see how the WMS performed for them.

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6. Think long-term

Select a WMS for not only your current needs but for the future direction of your business. Ask yourself: Does the WMS:

• Support multi-warehouse or international capabilities.
• Handle seasonal spikes in volume.
• Provide modules/upgrades for future functionality.
• Give you visibility of a roadmap and updates.

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Your WMS should be able to scale with your business, not require a complete overhaul every two years. Warehousing has transformed from a rudimentary storage function into complex fulfillment networks that drive customer experience, efficiency, and growth.

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In such an environment, identifying a WMS is more than a technology upgrade; it's also preparing for the future of your warehouse operation. The Right WMS provides visibility, velocity, and accuracy to processes in the warehouse, which make it possible to pick and pack orders quicker, managers can allocate space and evaluations to control labor more effectively, and leaders can gain visibility into their processes.

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Nevertheless, all WMS systems are not created equal; finding the optimal WMS to support your business will be based on objectives, processes, and ecosystem.