WMS selection: find the right WMS for your warehouse

A modern WMS system combines useful hardware and software to serve as the backbone of efficient warehouse management. It allows you to run your warehouse operation in a more effective and accurate way, increasing profits and customer satisfaction. 

Without a competitive solution, you risk falling behind your competitors, not to mention disappointing your customers. That is why it is important to compare different WMS options based on your business needs.

But how do you find the right WMS for your warehouse needs? What are the main things to consider? In this blog post, you will find everything you need to make the right WMS selection.

For a deep dive on WMS systems, please read The essential WMS guide to power up your warehouse guide.

 

Key WMS features

A modern WMS system consists of many useful, integrated functions, but they vary between different systems. Variations aside, there are some key WMS functions that you simply should not be without, including:

Inventory management and tracking

A quality WMS should be able to keep track of the inventory flow in an efficient and accurate way, including levels, locations, and statuses

Layout planning

Improve the warehouse layout by organizing inventory, identifying optimal locations, reducing bottlenecks and better utilizing underused areas.

Order picking and packing

Effectivize your picking and packing routines, including specific methods, such as picking multiple orders in one go.

Shipping management

Modern WMS technology can be used to automate parts of the shipping process, e.g. automate shipping label generation to speed up the process and reduce manual errors or integrating WMS functions with your shipping carriers.

Labor and workforce management

Improve labor organization and performance for increased productivity across the board.

Receiving and delivery

A quality WMS can help you foresee and plan for upcoming deliveries, making sure that adequate resources are allocated in advance.

Returns management

Effective returns management can be turned into a competitive advantage. Use your WMS technology to offer customers easy and flexible return options beyond what they are used to from other companies.

Reporting and analytics

High-quality business data allows you to monitor KPIs in real-time and receive useful insights, offering you the tools to continually optimize and improve operations. Some applications even offer the opportunity to explore specific points of attention through a simple click.

Integrations

An integrated WMS setup effectively connected to your other hardware and software gives you the power to work in a truly data-driven manner. Many modern systems have features such as integration modules and open APIs to smoothly integrate systems like ERP, TMS or MES.

Mobile functionality

Mobile WMS functionality allows for flexible access, so you can perform tasks anywhere in the warehouse on a variety of devices. You can do this through an app or responsive UI’s. The ability to use 4G or 5G (which some devices can handle with a SIM card) is a strong advantage if you have warehouse space that cannot connect to access points or wifi. Just imagine what it can do for outdoor storage space.

Handling specific goods

Many warehouses require functionality to handle specific goods, e.g. food or dangerous goods. They might also require serial number handling, separating goods based on type, compatibility, regulatory requirements, or customs integrations (for bonded warehouses). Not every WMS offers this, so it is important to double-check. 

Value-added service functionality

A quality WMS enhances Value-added service (VAS) functionality by integrating customizable workflows for tasks like labeling, kitting, assembly, or quality inspections. It enables efficient tracking, ensures accurate execution, and provides visibility into VAS activities.

3PL functionality

3PL warehouses require functionality like multi-client inventory management, customizable billing, and real-time visibility for each client. Operational support should be combined with client-specific reporting and SLA compliance.

 

Do your research and list your processes and requirements. Then explore the various WMS options on the market to see if they offer the key functions you need.  Learn more about defining your needs in our guide on writing an RFI.

 

Matching business needs and WMS features

Matching your unique business needs and the features of different WMS systems correctly is a central part in WMS selection. Some things you need to consider is your order volume, business size and operational complexity. Make sure that your processes are covered by the system’s functionality. Do not forget to include other requirements, such as industry-specific features.

Assessing your business needs is a central part of WMS selection. Getting the needs right and correctly matching them to features in the solutions you are considering will go a long way in finding the best one. 

 

Common WMS selection mistakes to avoid

Getting your WMS selection right means avoiding pitfalls and mistakes. Here are some common mistakes to avoid when selecting a WMS system:

 

• Not defining the business needs clearly enough: as mentioned, matching correctly defined business needs and WMS features is a central part of finding the right solution. It is definitely worth dedicating extra time and energy into defining your needs, as it will pay off later.
• Forgetting about scalability and future concerns: selecting the right WMS is about far more than your company’s current status. You need to include your future plans, making sure that the system can handle growth and seasonal variations. A highly scalable solution is a good way to avoid costly upgrades and IT projects further ahead.
• Focusing solely on price: WMS systems should be evaluated based on factors like ROI (Return on Investment) and TCO (total cost of ownership). When focusing solely on low price, you risk getting a system without robust features, with low scalability and flexibility, not to mention lacking support, reliability and security. 
• Not considering the integration possibilities: integrations are a central part of an optimized business setup. Every company has its unique infrastructure; the right integrations will give you a greater overview and access to insights that will continually boost your operation. 
• Not thinking enough about ease of use and training: WMS systems should be easy to use, but even the best systems require proper training. Comparing systems based on ease of use and user adoption is an important part of making the right choice, as it will impact how effectively employees will use it. 
• Failing to involve key stakeholders in the WMS selection: WMS selection can include many stakeholders across the business. Not including key stakeholders might result in a lesser system, not to mention dissatisfaction within the company.
• Assemble a project implementation team featuring stakeholders from all relevant departments. Assure that the team get to spend enough time on system implementation and training
• Also plan ahead, think about holiday seasons. Starting an implementation just before summer holidays often results in having to start all over again 5 weeks later. Do you have a specific top season, like fashion from Black Friday up until New Year? Try to plan around it, or anticipate. Your WMS supplier will help you with that, but it might come in handy to think about it when you 
• Think about your current data from your other systems (i.e. ERP, Finance system, PIM (Product Information Management System) or webshop that might be leading for certain master data. Is that data of high quality or is it polluted with unnecessary doubles and mistakes? It will be rewarding later on to clean that data in time. You will need it during the WMS implementation project and it can slow teams down a lot.

On-premise vs. cloud-based WMS: Which one is right for you?

For many companies, the choice stands between an on-premise or a cloud-based WMS system. There are many considerations connected to this, and one system simply does not fit all. You have to consider things such as functionality, scalability, security, costs, updates, support and maintenance. It is important to understand the key differences between on-premise and cloud-based solutions, so you can make the right choice for your business. 

Future-proofing your warehouse operation

WMS selection is not just about how your company operates today. What are your future plans, and can the WMS accommodate them without costly upgrades or IT projects? Selecting a highly scalable system that can scale along with future growth and seasonal variations can be very helpful. We strongly recommend that you future-proof your warehouse operation immediately, including embracing the latest technology in the field. 

Conclusion - WMS selection

Selecting the right WMS has its challenges and pitfalls, but adequate planning and consideration will go a long way. Do you want to streamline your WMS selection process and find the perfect solution for your needs? Explore our guide to writing and RFI (Request for Information), a request that helps you compare different suppliers on exactly the same terms.