It’s a full-time job managing and maintaining warehouses. You must upkeep inventory, organize logistics, offer smooth transportation and streamline operations. A WMS (warehouse management system) can simplify tasks and guarantee you meet quotas while keeping your customers satisfied. Do you need help determining where to look for the right warehouse management software? Say no more.
SelectHub’s elite research team and market analysts have assembled a full roster of the market’s best systems. But before we review our selections, let’s discuss its diverse types, benefits, benchmark features, trends and purchasing considerations.
What This Article Covers
- What Is WMS?
- Primary Benefits
- Key Features
- Trends
- Warehousing and COVID-19
- Purchasing Considerations
- FAQs
- Top WMS
- Moving Forward
What Is WMS?
WMS software is a solution that manages your entire warehouse, including resources, employees, logistics, packing and shipping. It also comes with various features like tracking and analysis, inbound and outbound operations, order fulfillment management and more.
Types
Like different ice cream flavors, there are different types of WMS with various purposes, such as:
- Standalone: This solution only consists of the top WMS features.
- Cloud: Cloud WMS offers management tools while operating on the cloud or a third-party’s separate internet-based server. These programs enable you to access real-time data across various mobile devices.
- Supply Chain: In actuality, WMS is a subset of supply chain management (SCM). SCM software have diverse modules to keep a keener eye on operations, including order processing, inventory management, transportation management, risk assessment and more. Infusing this software with WMS ensures full transparency across your facilities.
- Enterprise Resource Planning (ERP): ERP software acts as a melting pot of different applications to keep your company’s various departments on the same page.
These programs include tools for accounting, customer relationship management (CRM), manufacturing and more. Implementing ERP for your warehouse practices can facilitate responsibilities and provide real-time information to all facets of your business at all times automatically.
Primary Benefits
This platform has various benefits, from competent labor management and strengthened customer relationships to decreased operating expenses.
Leverage Ideal Resources
A WMS has the proper tools to ensure you’re correctly employing and saving your resources. You can also measure labor for particular employees and evaluate who’s doing well and underperforming.
Improve Supplier and Customer Relationships
As aforementioned, SCM is the main category, and WMS is the subset of this category. A proper WMS allows you to keep track of suppliers and vendors. You can also assess a vendor’s performance to determine the valuable ones. You can also maintain client relationships with the right CRM appliances, such as contact management, sales analytics, campaign management, marketing automation and sales data, to name a few.
Enhance Inventory Balance and Visibility
Knowing every nook and cranny of your inventory is fundamental to having a successful business. It’s paramount for the warehousing sector because items and raw materials are stored and housed there until it’s time to manufacture or allocate them to customers. Most inventory management tools enable you to set minimum quantities for specific items and receive real-time alerts as you reach these levels to avoid outages.
An exemplary inventory management system gives you complete visibility over your stock of goods, raw materials and more. You can either look for a system with an inventory appliance or invest in a standalone inventory management ERP.
Optimize Space and Deplete Operating Expenses
This program allows you to manage space inside your facility with effective floorplanning and inventory modules so you can dodge over or understocking. You also save on operating costs because you’re utilizing your resources correctly. Practical resource usage diminishes waste and saves money on materials because you can recycle leftover objects.
Detect Ongoing Improvement Areas
This solution lets you stay on top of improvement areas with automatic updates. You can also add new processes to the system as you receive the latest updates to features and workflows. Pinpoint and detect workflow or supply chain issues before they become big problems.
Boost Security
Cloud solutions offer numerous safety measures to keep sensitive data from falling into the wrong hands. Some cloud WMS security options that vendors may provide are:
- Two-step or Multi-factor Authentication: Scan fingerprints and retinas, answer security questions only you know the answers to or receive additional codes in your inbox or as a text message to sign into the software.
- User-level Access: Establish user-level permissions and role-based access points so only the right people review sensitive company information.
- Data Encryption: If cybercriminals siege important details, data encryption can muddle everything into undecipherable codes. These codes prevent hackers from viewing sensitive data because they don’t have an encryption key.
- Threat Detection: Implement a centralized view of user activity, internal and external content sharing, and more for transparency. Machine learning and analytics can also detect anomalies to help pinpoint and rectify threats and abnormal processes.
Strengthen Employee Morale
What is a warehouse without its employees? Workers are the backbone of any good business, and keeping tabs on them with centralized KPIs and metrics is essential to retention. You can also determine goals, constructive feedback and more to keep employees fulfilled and loyal.
Key Features
Like raindrops, no two solutions are the same. But there are some standard features that these programs carry, such as:
- Inventory Management and Stock Locator: Upkeep inventory and pinpoint the item locations needed to complete a product or send to clients.
- Order and Fulfillment Management: Users can streamline every stage of the order and fulfillment procedure with purchase orders, pick tickets, order entries, assembly, price stickers and more.
- Picking: Create detailed picking lists with bin locations, order dates, stock-keeping unit (SKU) information and more. Some accessories offer diverse picking methods such as wave, batch, product, scanner and one-scan.
- Receiving: Receiving orders, receipts and more are critical for the warehousing industry. A proper receiving tool should accept orders, offer multiple receipt order types, cross-docking, dock scheduling and returns management, amongst other things.
- Labor Management: Supervise single or grouped employee data and quotas to evaluate performance thoroughly and make well-informed business choices.
- Financial Management and Reporting: Keep tabs on all bookkeeping processes and reporting with practical accounting and financial management tools, such as bank reconciliation, accounts payable and receivable, general ledgers and more.
- Packing: Gather items, review product quality and prepare for shipments. You can also confirm packing material quantities to guarantee accurate shipping and on-time deliveries.
- Shipping: Send goods to customers or vendors. Leverage real-time supply chain and distribution data to catch and fix obstacles.
- Risk Management and Forecasting: Plot efficient goals and determine how to combat risks via planning and risk management tools. Compare prospective vs. actual revenue and plan practical strategies that align with client demand during all timeframes.
- Analytics: Implement analytics to govern productivity, revenue, on-time deliveries and more to make necessary improvements and well-informed choices. You can also ask vendors if you can integrate business intelligence (BI) or business analytics (BA) tools with your WMS.
SelectHub had the opportunity to sit down with Steve Hopper, founder and principal of Inviscid Consulting, to stress the importance of crafting a strong requirements list.
“No WMS is truly ideal for any warehouse. Based on the unique requirements of any warehouse, however, there is likely to be a WMS on the market that is a good fit for it. The key here is to take a requirements-based approach rather than a solutions-based approach. I’ve seen too many businesses start their WMS search by looking at the marketplace of solutions and asking vendors to ‘show them what they got.’
“Instead, these businesses should start by defining their own business requirements related to WMS, and then searching for the right WMS solution for their needs. The result of this approach will be much less risky and more successful for the business.”
Are you in need of more features to complete your wishlist? Check out our in-depth requirements template for more assistance.
Trends
Investing in relevant industry trends and new solutions is essential. Not all technology aligns with your business requirements, but implementing at least one or two could keep you relevant amongst your clientele and competition.
Hopper explained that, like software, it’s critical to invest in trends that best streamline your facilities.
“It’s easy to get drawn in by the sexiness of technology trends. But that’s not a good reason to buy them. These technologies are solutions, not goals. The right approach is to define the problem, and then search for the right solution. Taking this approach consistently leads a better result.”
Automation and Artificial Intelligence (AI)
It’s no surprise that automation is becoming relevant in the warehousing sector. Research and Markets predict the warehouse automation market will reach $41 billion by 2027.
The internet of things (IoT), robotics, AI and more can automate operations with self-driving cargo container loaders, pallet jacks, forklifts and other vehicles and machinery. Automation also reduces downtime caused by breaks, employees taking PTO or sick days, and other circumstances.
AI can also leverage machine learning, robotic processing automation and natural language processing to automate data entries, correct mistakes, follow verbal commands and more. Since we leverage AI in Alexa, Siri, Netflix and other everyday items, it’s a no-brainer to implement this technology in professional and workplace settings, which is why MarketsandMarkets predicts the AI market will reach $407 billion in 2027.
Cloud Deployment
Implementing cloud software offers real-time inventory and efficiency supervision. You receive up-to-date data on all mobile devices from any location. You can also monitor valuable KPIs such as inventory turnover, perfect order rate, cost per line, accuracy rate, accidents per year and more.
The cloud software and computing markets show no sign of slowing down, which is likely why Report Linker expects the global cloud computing market to reach $923.46 billion by 2027.
Drones and Robots
For years, people thought robots would replace their jobs to boost efficiency and save money. In manufacturing and warehousing, a robot’s true intentions are to keep employees out of harm’s way and from doing strenuous labor.
Implementing drones and collaborative robots, aka cobots, will boost productivity by reducing downtime. While human workers need lunch breaks and sleep, robots inhabit the facility and work 24/7.
Initially used for the military, drones are leaking into professional and leisurely usage. It’s no surprise that Research and Markets estimate the global commercial drone market will reach $21.69 billion in 2030.
Sustainability
Warehousing and manufacturing industries should consider cleaner and environmentally-friendly practices to reduce carbon footprints. One way to achieve greener practices is by leveraging a WMS system to reduce paper. Going paperless saves trees and reduces losing or misplacing critical information.
Other ways to boost greener warehouses include implementing recyclable packing and building materials, diminishing heating and cooling requirements, and utilizing natural lighting sources.
Radio Frequency Identification (RFID)
RFID is an identification method that utilizes electron magnetic or electrostatic frequencies to find items, people or animals. Imagine implementing this WMS trend to pinpoint materials and inventory across one or multiple warehouse facilities.
This trend evolved from radar and radio technologies, and Charles Walton first patented RFID in 1983. This market is an ever-growing sector, which is why MarketsandMarkets forecast the RFID market to reach a value of $35.6 billion by 2030.
Warehousing After COVID-19
Like the rest of the world, the COVID-19 pandemic affected the warehousing industry significantly. Hopper described the pandemic as a wake-up call for most organizations and that the WMS market saw a surge in demand.
“Many businesses have realized that the pandemic would not have impacted their warehousing, distribution and fulfillment operations as severely if they had had the right WMS solutions in place during the pandemic to manage them effectively and efficiently. As we move further away from the pandemic, I believe more businesses will adopt more WMS solutions.”
“I also believe WMS solutions will develop more capabilities designed to handle disruptions like pandemics and provide effective ways for businesses to develop contingency plans that will help them handle disruptions better.”
Hopper also shared his thoughts on how companies should tackle global supply chain disruptions.
“When it comes to their supply chains and inventories, well-managed businesses have traditionally focused on just-in-time (JIT) philosophy. That philosophy was highly respected until the recent supply chain disruptions brought the industry to its knees. Now many businesses have learned from this experience, so they are adapting accordingly.”
“They’re addressing the possibility of disruptions by adopting a just-in-case philosophy to complement their just-in-time philosophy. Smart businesses now realize that both philosophies are important, so they’re thinking strategically about how they can ensure they have enough inventory in the right locations to reasonably satisfy unforeseen disruptions without wasting money on having too much inventory in the wrong locations.”
Purchasing Considerations
Purchasing new programs comes with many considerations that you must think over. These considerations range from business size and pricing to scalability.
Is the Solution Budget-friendly?
Establishing a proper budget in the early stages of browsing for solutions is vital. WMS costs anywhere from a few hundred to thousands of dollars. It would be best if you reached a happy medium of investing in a program that aligns with your business requirements and is friendly to your wallet.
How Big Is Your Business?
Is your company a towering enterprise or a humble business? Similar to ERP, a WMS is scalable. If you want to expand your business with more employees and worksites, scalable WMS’ is your best option. If you’re looking to downsize or keep at a small or mid-sized level, invest in a small or mid-sized solution.
What Type of Solution Do You Need?
As aforementioned, there are different types of WMS. A cloud solution can manage and receive real-time information on any internet-connected device if you have numerous local or global facilities.
A standalone system is your best option if you’re administering one facility in one distinct location and want to focus on warehousing tasks. Lastly, if you’re looking to merge your company’s various facets into one solution, such as CRM, accounting, SCM, manufacturing and more, an integrated ERP system is ideal.
For more pricing considerations, check out our detailed pricing guide.
FAQs
Here are some standard queries that crop up about this software.
What Is WMS?
Warehouse management system (WMS) software is a solution that manages all warehouse aspects, including employees, picking, packing, logistics and shipping.
What Types of WMS Software Exist?
This software has various types, including:
- Standalone
- Cloud
- Supply Chain
- ERP
Do WMS Solutions Serve Small Facilities?
Several WMS programs serve all company sizes. Some solutions help small organizations and are scalable if you expand your business locally or globally.
Top WMS
After covering what a WMS is, its benefits, standard features, trends and purchasing considerations, it’s time to peruse our picks of the top systems. Developing a list of features and requirements is essential to effectively deliberate on how each system measures up to your list.
Oracle WMS
Leverage Oracle WMS to overcome the many obstacles of the demanding market. Users may also administer complicated fulfillment procedures and receive a real-time snapshot of their visibility from distribution facilities to store shelves.
An example of Oracle WMS’s BI Tools.
Top Benefits
Improve Data Security
Store files and documents in a secure location via the cloud deployment option for better protection.
Decrease Errors
Implement automation to avoid manual tasks and diminish human errors to increase productivity.
Enhance Transparency
Review vital warehousing information to catch and address bottlenecks quickly.
Boost Centralization
Utilize equipped material handling service and equipment integrations to increase automation and carry out intricate fulfillment strategies. This centralization keeps everything in one system while increasing efficiency.
Make Better Business Decisions
Employ reporting and analytical features to craft, revise and distribute files to internal and external leaders. Use these data-driven documents to make better business choices.
Primary Features
Retail
Transform all warehouses, distribution centers, storefronts, kiosks and garages into smooth-running fulfillment facilities. You may carry out omnichannel fulfillment operations for in-store, online shopping and more in one process to guarantee patron satisfaction.
This module also offers inventory management tools that track items from the manufacturer to the distribution center and storefront. Users can produce store-friendly outbound shipments with intricate algorithms within wave management tools to streamline the picking process.
Wholesale Distribution
Strategize inbound and outbound shipments, cross-docking and flow-through distributions, and conduct tailored value-added services (VAS), including labeling, tagging and kitting. Enable business-to-business and direct-to-consumer fulfillment styles by transferring stocks into outbound cargo with numerous stop paths.
Consumer Goods and ECommerce
Facilitate multi-channel fulfillment methods into one process to strengthen productivity and customer satisfaction. You may also tag and track product returns and diminish documentation mistakes.
Manufacturing
Utilize boosted invisibility and proper handling for effortless reverse logistics. Manage material handling equipment (MHE) with effective warehouse control systems (WCS) with pick-to-light, carton sorters, tilt tray sorters, carousels, sortations, scales and conveyors.
Logistics
Expand warehouse operations to align with business demands swiftly. You can also upkeep a flexible implementation process and add new clients in hours instead of weeks or months, saving time and expenses. Manage diverse locations with local, regional or global client bases.
Limitations
This WMS system has a few drawbacks. These limitations include the following:
- Lacking integrations for QuickBooks and Xero.
- Not compatible with Mac OS X systems.
- Long development cycles after upgrades.
- Limited customization for labeling, printing and documentation.
Platform:
Company Size Suitability: S M L
Dynamics 365 SCM
This cloud-based WMS application offers scalable practices and warehouse management resources. Dynamics 365 SCM is built on Microsoft Cloud and offers speed, manufacturing productivity, real-time data, AI and IoT for precise analytics.
A preview of Dynamics 365 SCM interface.
Top Benefits
Pinpoint Patterns
Gather cost data via real-time reports to catch trends and improve KPIs to increase business productivity.
Maintain High-quality Practices
To avoid unexpected bottlenecks, utilize workforce planning, inventory flows, and material handling to enhance operations and track performance.
Diminish Downtime
Execute IoT and resource scheduling for mixed reality and predictive analytics to reduce operation downtimes and ensure all equipment runs at maximum power.
Obtain In-depth Client Data
Work with supply chain, sales and marketing information to plot ever-changing customer demands and make smarter business choices.
Maintain Legal Compliances
Develop product definitions, qualities, identifiers and required paperwork to improve market times and coincide with legal and standard compliances.
Primary Features
Dashboards
Generate straightforward dashboards that supervise product data and images. Access full product data on a centralized dashboard.
Configuration Models
Alter patron requirements and product qualities via scalable models and equipped constraints. Draft automatic product requirements and route lists for delivery and production operations.
Asset Maintenance
Produce asset maintenance routines to enhance machine life. Review telemetry information to detect machine repairs and develop part replacements.
Supply Chain Management
Govern stock levels with AI technology to enhance inbound and outbound deliveries. Increase order picking and packing accuracy for better on-time deliveries.
Customer Returns
Supervise all returned merchandise and rectify problems. AI insights can reduce future returns.
Limitations
This solution has a few disadvantages. Some limitations include the following:
- A steep learning curve.
- Complicated modules.
- Time-consuming data inputting.
Platform:
Company Size Suitability: S M L
Logiwa
Logiwa is a cloud-based system that initiates automatic order fulfillment, inventory management and other processes. It caters to small and medium-sized organizations with enterprise-level modules and retail, eCommerce, wholesale and 3PL industries.
An example of Logiwa’s mobility options.
Top Benefits
Centralize Operations
Perform automatic marketplace, eCommerce, shipping and accounting integrations to centralize processes in one system. This centralization keeps everyone in the loop with real-time updates and data transfers.
Run on Mobile Devices
Implement this cloud solution for easy data storage and mobile access. This mobility enables you to review information on any device on the go.
Obtain Scalability
Manage multiple warehouses, client handling capacities and more as you scale your business. This scalability keeps you from looking for a new WMS solution in the next three to five years.
Enhance Workflow Transparency
Gain tailored, real-time reports for inventory statuses, order fulfillments, shipment progress and return orders to make more-informed decisions and detect unexpected bottlenecks.
Boost On-time Deliveries
Initiate automatic shipping and receiving via this solution’s rule-based and location-suggested algorithms to strengthen on-time deliveries and customer satisfaction.
Primary Features
Reporting
Leverage in-depth reports for online inventory, order fulfillment, shipment progress and more.
Cycle Counting and Inventory Management
Count inventory logs, make online stock updates, compare actual against expected inventory files and autocorrect inconsistencies.
Returns
Reduce losses with reverse logistics processes for return orders. This function offers better quality checks, splits return order statuses and pinpoints resaleable items.
Billing and Contract Management
Establish client and warehouse contracts, craft rule-based billing reports for specified clients and timeframes, and allocate files to accounting systems.
3PL Management
Simultaneously supervise several warehouses and customers on a centralized interface. Benchmark all warehouse operations and perform advanced fulfillment strategies, including wave-planning, cluster picking and cross-docking.
Limitations
This WMS offers several benefits and features but has a few drawbacks. These limitations include the following:
- Experiencing occasional bugs.
- Lacks clean reporting.
Platform:
Company Size Suitability: S M L
Fishbowl Warehouse
Fishbowl Warehouse, formerly called Fishbowl Inventory, is a warehouse-centric inventory management solution that simplifies the inventory and substantial expansion processes.
An example of Fishbowl Warehouse’s transfer order screen.
Top Benefits
Consolidate Operations
Merge this system with QuickBooks, Xero, Shopify, ShipStation and more to centralize workflows, boost productivity and allot employee flexibility.
Customize Modules
Pick and modify modules to meet work needs and align with your company’s objectives. Obtain needed features and omit the ones you don’t need for better navigation and utilization.
Enhance Visibility
Obtain and analyze manufacturing management information in one location to gauge KPIs and productivity and make better business choices.
Support Rapid Turnaround Times
Find and match purchase orders to original orders for better audit trails and accelerated product workflows in and out of facilities.
Decrease Errors
Leverage automation on simple and intricate tasks to reduce human mistakes and to keep employees on other high-priority tasks.
Primary Features
Inventory Management
You may work with various advanced inventory appliances to better upkeep numerous worksites. These features include automatic reorder points to avoid stockouts, smooth barcode generation, effective barcode scanners and the ability to trace parts by serial numbers, expiration dates and revision levels. You can also integrate this solution with electronic data interchange (EDI), CRM and e-commerce applications.
Order Management
Draft purchase and sales orders, pick tickets, return merchandise authorizations (RMAs), and other vital reports for hassle-free order management tasks. You can also implement reorder points automatically to boost the warehouse management and picking stages. This system also tracks shipments to their destination, governs order statuses and employs constraint management.
Serial and Lot Tracking
Initiate various tracking modes to ensure products make it to their proper destinations on time. These methods include:
- Serial Numbers Per Unit
- Lot Numbers Per Batch
- Expiration Date
- Revision Level
- Custom
- And More!
These diverse tracking methods supervise FDA and government standards, returns, warranties and more.
Shipping
Fishbowl Warehouse has you covered when it comes to shipping stock items, moving goods to different worksites or delivering completed products to clients. It integrates with USPS, Endicia, FedEx Ship Manager, UPS WorldShip, ShipStation and StarShip. The ShipExpress tool compares multiple shipping costs against significant carriers to ensure you get the right deals.
Part Tracking
Notify others about manufacturing part locations. Establish part replacement alerts and track ordered parts based on their areas. Trace parts and labor costs.
Limitations
This WMS solution has a few limitations. These disadvantages include the following:
- Lacking an eCommerce module.
- Doesn’t support on-premise implementations.
- Only offers support in English.
- Lacks collaborative inventory support.
Platform:
Company Size Suitability: S M L
Manhattan Supply Chain
Lastly, Manhattan Supply Chain serves warehouse and transportation management systems. It’s a cloud and on-premise system that caters to mid-sized and enterprise-level businesses.
An example of Manhattan Supply Chain’s interface.
Top Benefits
Support Better Decision Making
Collect data from tasks to plan and make well-informed choices.
Save Money
Manage and cut transportation and inventory management expenses to meet your business needs.
Obtain Other Deployment Options
Choose on-premise, cloud or multi-tenant deployment options to align with your practices and to avoid sticking to only one plan.
Safeguard Information
Protect data against cybercriminals via the cloud with numerous security tactics. You also receive automatic upgrades from vendors so you can focus on other responsibilities.
Diminish Flaws
Automate manual responsibilities to decrease human errors and save the time needed to fix those mistakes.
Primary Features
Warehouse Management
Access unique functionalities to streamline warehouse jobs, such as inventory placement and accuracy.
Transportation Management
Reduce shipping and transporting fees via tools management to maximize delivery operations. Access features that work in global transport markets, such as multiple-language and currency support.
Value-added Services
Obtain kitting and other value-added services for better access and customer allocation.
Inventory Management
Reduce inventory numbers and detect inactive stock items taking up space.
Integrations
Merge this solution with other platforms to better exchange data between customers and business partners.
Limitations
At the time of this review, this solution has no limitations.
Platform:
Company Size Suitability: S M L
Moving Forward
Choosing the right WMS is like picking the right Girl Scout cookies. There are too many choices. You want something that meets your company’s needs and has the ideal features. For more warehousing software, check out our in-depth comparison guide.
Which warehouse solution is your top pick and why? How has WMS helped your business? Let us know in the comments!
Contributing Thought Leaders
Steve Hopper is the founder and principal of Inviscid Consulting, which helps customers strengthen their supply chain operations with complete objectivity and experience. Hopper’s expertise includes supply chain industrial engineering, supply chain facility planning and design, designing, evaluating, estimating, specifying, selecting and implementing material handling systems and supply chain technology, and inventory reduction and optimization, just to name a few.