WMS Buyer’s Guide: How to Choose the Best Warehouse Management System (WMS)
Modern warehouse operations are fast-paced and prone to human error. Fortunately, technology now plays a critical role in reducing errors, boosting efficiency, and drastically improving the effectiveness of warehouse management.
An especially useful tool is a warehouse management system (WMS), which is designed to streamline and optimize the warehouse management process as well as automate many processes.
Understanding Warehouse Management Systems
As your business grows, warehouse and inventory management become more complex. From small businesses to large ecommerce enterprises, implementing a more robust warehouse management system is essential for managing and optimizing operations.
A WMS tool assists businesses with all aspects of warehouse management, including inventory tracking, order processing, returns handling, shipment dispatching, tracking, and more. With real-time updates and increased visibility, management and stakeholders can create reports, spot inefficiencies, gauge performance, and make informed business decisions.
There are a wide range of WMS products available on the market today, so choosing the best warehouse management system for your operation requires a careful evaluation of all your options. If you are looking for a warehouse management solution for your logistics or supply chain management operation, we’ve got you covered.
How to Choose a Warehouse Management System: 8 Steps to Take
While a good WMS offers a range of benefits for a company, it is also a financial commitment, so it’s important to dedicate time and resources to finding the right software solution for your unique needs. Follow these steps to find and select the best warehouse management system for your organization.
1. Form a WMS Selection & Implementation Team
The entire process of choosing a WMS should be conducted by a dedicated team—ideally, the same team that will be responsible for the WMS implementation process as well.
Find a project leader with warehouse operations knowledge to help inform the process. Additionally, request that management appoint at least one person on the team who is responsible for coordinating with decision-makers to ensure the WMS is aligned with larger organizational requirements.
2. Identify Your WMS Needs
The last thing you want to do is jump into your WMS search headfirst. What works for one company may not be the best fit for yours, so you also shouldn’t just choose whatever software your competitors use.
Instead, identify your internal requirements for the WMS—exactly what you need out of the system. It’s these needs that will form the basis of your search.
3. Define Your Budget
What is your budget?
Create and get approval for a budget before shopping for a WMS. To establish a base number, look at popular WMS vendors online and explore costs, including the features you need for your software.
4. Write a Detailed RFP & Analyze Vendor Responses
Once you’ve narrowed down your list of potential vendors, write a detailed request for proposal (RFP). Include your software requirements and ask for information surrounding pricing, the vendor’s methodology, contract details, and a list of references.
5. Research WMS Vendors & Create a Short List
Based on your budget and list of internal WMS requirements, perform preliminary research on five or six WMS vendors. Look at review websites, read case studies, and have an initial conversation with vendors where you ask for information about their customer support and get a feel for how in-tune they are with your business needs.
Based on this research, create a short list of four or five vendors you want to get more in-depth information from.
6. Pick Finalists & Schedule Demos
When you receive responses to your RFP, choose the two or three WMS vendors that most align with your needs. Now is the time to schedule software demonstrations with each prospective vendor.
Before each demo, create a list of questions and the functionalities you want to see. Send this list to the vendor ahead of time so they can be sure to cover everything you want to know.
Based on the software demonstrations, information from references, and final pricing, select the WMS vendor that is the best fit for your warehouse operation.
7. Contact References
With a list of references in hand, you can get a better idea of what it’s like to work with the WMS vendor. Call each reference and, if possible, perform site visits. Ask questions about the installation and implementation process, whether the project was finished on-time and on-budget, and if they are achieving what they set out to with their new WMS.
Additionally, consider reviewing references that were not provided by the vendor. Look for companies that are known users of the WMS and ask the same questions.
8. Conduct a Legal Review of the Contract Before Signing
Don’t sign on the dotted line before having your legal counsel review the contracts. The support agreements, user licenses, third party software licenses, and more need to undergo a legal review and receive approval from stakeholders before moving forward with the contract.
What to Look for When Choosing the Best Warehouse Management System: 10 Key Factors to Consider
Selecting the right WMS for your organization is an important decision that will significantly impact the efficiency, productivity, and cost-effectiveness of your warehouse operations. Your decision will be guided by various criteria, including software features, your budget, the size of your operation, and more.
Here are a few of the key factors you should consider when looking for a warehouse management system.
1. Software Features
Every WMS has its own specific features—and every warehouse has its own unique requirements. From product type and number of order lines to automation, traceability, and multisite coordination, you can tailor the system to meet your logistics and supply chain management needs.
It’s essential to choose a WMS with features that support your current requirements and are able to adapt with the demands of your business.
2. Flexibility & Customization Options
A WMS can be configured to your specific business needs. At the same time, a warehouse management system must also be flexible enough to support your operations even as your company grows and evolves. Look for a WMS that is both configurable and flexible so it can address both your current needs and adapt to future ones.
3. Scalability
If you diversify your product portfolio, receive more orders, or expand to additional warehouse locations, will your WMS be up to the challenge?
The WMS you choose needs to be scalable so that it supports evolving business requirements. You’ll need room to grow. That’s why it’s important to find a WMS that can keep pace with future business changes.
4. User Interface
Like any other software, a WMS should be simple, intuitive, and user-friendly. Any warehouse employee should be able to use the system—including seasonal and temporary hires who need to be able to pick up on the system quickly. The more simple, streamlined, and intuitive the WMS user interface is, the easier it will be for employees to learn and use.
5. Ability to Integrate with Other Tools
Your WMS should be able to integrate seamlessly with other tools, especially your enterprise resource planning (ERP) system, as well as support data exchange protocols with an electronic data interchange (EDI) system. Integrating these tools is vital for maintaining real time visibility, providing accurate data, and optimizing warehouse operations.
6. Real-Time Tracking, Reporting, & Analytics
A modern WMS should be able to track and deliver precise and current data on warehouse operations, including inventory levels, efficiency, productivity, order standings, and more. With this data, the WMS can generate customizable reports and share comprehensive dashboards that improve visibility, support real-time decision-making, and provide cutting-edge data analysis.
7. Pricing Model & Hosting Options
What is the pricing model of the WMS? Do you pay for a license or a monthly subscription? Whether the WMS fits into your budget is a significant factor to consider.
Where and how will the WMS be hosted? Will you be expected to cover expenses related to hosting and ongoing maintenance from the vendor? If orders increase during a peak season, will the hosting system be able to handle it? Hosting options—and their related expenses—are also important to think about when choosing the best warehouse management system.
8. Mobile Accessibility
In today’s mobile-driven environment, having a WMS that is accessible on a mobile device is a huge benefit for many warehouse managers. With a mobile-friendly WMS, you can monitor, track, and manage warehouse operations from a smartphone or tablet remotely. If you want to be able to keep an eye on the warehouse from afar, look for a WMS that has remote and/or mobile capabilities.
9. Implementation Process & Ongoing Technical Support
The WMS implementation process has a direct impact on the effectiveness of the system. The vendor should be able to provide you with clear details regarding the project timeline, milestones, deliverables, and expectations.
Additionally, it’s important to consider the ongoing technical support offered by the WMS vendor. Can you escalate complex problems? Is there a way to prioritize support requests? A good technical and customer support infrastructure will make your life easier in the long run.
10. Vendor Reputation & Stability
When choosing a WMS, it’s important to look at the vendor itself. You’ll likely build a relationship with the WMS vendor, especially in terms of technical support, ongoing hosting, and software updates.
Is the vendor financially stable? Do they have a good reputation in the industry? The reputation and stability of the vendor are essential factors to consider in your search for the best WMS.
4 Tips for Finding the Best Warehouse Management System
As you dive into your search for the best WMS for your company and explore various options, keep these tips in mind.
1. Ask for Real-World Statistics & Case Studies
A WMS vendor can talk to you about saving money and increasing efficiency, but what does that look like in the real world? Always ask for specifics. Request case studies and statistics that showcase how their product has directly impacted the warehouse operations of existing customers.
2. Think About the Vendor Relationship
The relationship you have with your WMS vendor is important. You’ll rely on them for a range of needs, including technical support, training, software updates, and ongoing customer service. When you speak with WMS vendors during the selection process, consider how responsive and helpful they are. The last thing you want to do is work with a WMS vendor that is unreliable.
3. Understand the Full Cost of the System
Look at the full cost of any WMS you are considering. There are a variety of factors that contribute to the overall cost, including implementation expenses, maintenance and support fees, and costs associated with future growth. Check with the vendor to confirm what expenses are included in the initial quote and what costs you should expect to be ongoing.
4. Look at WMS Cost vs. Return on Investment (ROI)
Purchasing a new WMS is an investment, so it’s important to consider the initial cost of the system (per month or annually) compared to the potential return on investment (ROI). The right WMS can provide significant cost savings by reducing errors, increasing revenue, automating repetitive tasks, freeing up resources, and improving efficiency.
Find Innovative & Industry-Leading WMS Solutions at CAI Software
At CAI, we create innovative, production-oriented software to help our customers across a variety of industries streamline business processes and optimize their manufacturing, processing, or distribution environment. Our goal is to provide you with the best WMS software solution that improves your business operations, all with excellent service and support.
Whether you are looking to automate production, increase your return on investment, reduce costs, or streamline operations, we can help. With our suite of tools and access to our expert team, optimizing your business processes is easier than ever.
Contact us today for a free consultation.
