Best Warehouse Management System Software
Buyer's Guide
Warehouse management software (WMS) plays a crucial role in managing inventory and supply chain operations by optimizing inventory management, order fulfillment and warehouse efficiency. It’s an integral part of the profitability of any company working within the supply chain.
Modern businesses need modern solutions to stay competitive. To facilitate efficient supply chain fulfillment operations, many companies are adopting WMS.
This in-depth buyer’s guide will cover everything from top WMS market vendors and deployment methods to upcoming trends, software comparison strategies and more.
Executive Summary
- Warehouse system software provides greater visibility, increased replenishment, improved efficiency and higher operational qualities.
- WMS software buyers must create a list of requirements to accomplish implementation goals.
- Warehouse systems provide several additional features like labor and inventory management, report and analytics, automation and more.
- Ask prospective vendors questions during demos to find the perfect warehouse management software.
- What Is Warehouse Management Software?
- Deployment Methods
- Primary Benefits
- Implementation Goals
- Basic Features & Functionality
- Advanced Features To Consider
- Current & Upcoming Trends
- Software Comparison Strategy
- Cost & Pricing Considerations
- Best Warehouse Management Software
- Questions To Ask Yourself
- Questions To Ask Vendors
- Next Steps
- Product Comparisons
- Additional Resources
What Is Warehouse Management Software?
A warehouse management system is a software application that manages day-to-day warehouse operations and offers end-to-end inventory visibility. Warehouse inventory management software capabilities range from receiving and putaway to picking, packing, order shipping and replenishment.
Whether a standalone application, integrated ERP system or a custom solution, WMS software organizes and manages available resources, maximizing productivity with optimal staffing solutions. They also support goods movement in warehouses or a system of warehouses connected by a single interface.
Different Types
Warehouse management system software caters to specific requirements and offers varying functionalities. There’s no single go-to model for a WMS, and the market needs variations to support businesses of all sizes and structures.
Consider checking out these four types of modern WMS.
1. Standalone
Standalone warehouse system software strives to handle the full range of warehousing tasks. These fully-stocked software suites integrate with other specialized software to handle tasks outside warehouses.
They usually offer robust features like inventory management, order fulfillment, picking and packing optimization, receiving and putaway, labor management and reporting. You can implement them alongside existing enterprise systems or use them independently.
Standalone systems are often a good match for small to medium-sized businesses. They’re great if you need a quick way to straighten out your daily warehousing processes.
2. Supply Chain Modules
Another common place to find warehouse management features is within a supply chain management (SCM) system. Since supply chain suites typically handle numerous processes that make up a unique supply chain, you’ll also find additional warehousing features.
Depending on the size and requirements of your business, SCM software offers various features that can manage inventory and transportation processes besides warehousing. However, integrating an SCM system can sometimes lead to unnecessary feature overlap within your current systems.
Ensure you aren’t wasting valuable resources on an end-to-end SCM solution that duplicates modules.
3. ERP Integrated
ERP systems combine features from numerous platforms for a complete package built to serve large enterprises. WMS features may not be core inclusions of most ERP software, but some include them.
Much like SCM systems, ERP solutions tackle a broad scope of HR and marketing processes. These platforms come with higher price tags, thanks to their jack-of-all-trades nature, but if you’re an enterprise looking to get a competitive advantage, they come with numerous benefits.
- 3PL
- Barcode
- Contract Lifecycle Management
- Courier
- Delivery Management
- Dispatch
- Dropshipping
- Ecommerce Inventory Management
- Electronic Parts Catalog
- Fire Department
- Fleet Maintenance
- Fleet Management
- Fleet Tracking
- Freight Broker
- Fuel Management
- IFTA
- Inventory Control
- Inventory Management Software for Small Business
- Inventory Management
- Inventory Optimization
- Limo
- Medical Inventory
- Moving Company
- Order Entry
- POS Inventory System
- Procurement
- Public Transportation
- Purchasing Software
- School Bus Routing
- Service Dispatch
- Shipping and Receiving
- SRM
- Supply Chain Management
- Supply Chain Planning
- Taxi Dispatch
- TMS
- Towing
- Transportation & Logistics CRM
- Truck Dispatch
- Trucking
- Yard Management
ERP-integrated WMS streamlines data flow and eliminates the need for separate interfaces or data synchronization between the ERP and WMS systems. It provides end-to-end visibility and data consistency throughout the supply chain.
4. Cloud-Based
Cloud-based solutions offer multiple advantages like accessibility, automatic updates, cost-effectiveness, data security, disaster recovery and more.
They eliminate the need for on-premise infrastructure and provide a scalable and flexible option for managing warehouse operations. Unlike on-premise systems, they’re quick and easy to implement.
Since they’re hosted in the cloud, there are no infrastructure or hardware setup costs.
These solutions often operate on a subscription-based model, allowing organizations to avoid large upfront costs associated with purchasing licenses. Instead, they pay a predictable recurring fee based on usage or the number of users.
This cost structure makes it more affordable for businesses, particularly smaller organizations with limited budgets.
Deployment Methods
Depending on your business requirements, you can choose between an on-premise or cloud-based deployment strategy when integrating your warehouse management system. There are some benefits and limitations to both sides of this story.
Here are some points to consider about each strategy:
On-Premise
There’s been a decline in the popularity of on-premise deployments. However, they still convey some advantages that make them the best option for certain operations:
Benefits
- Reduce Costs: Eliminate internet connectivity reliance for system access and operation. The system can operate in areas with limited or unreliable network connectivity.
- Improve Security: Control, secure and manage data in-house. Companies can implement their own security measures, access controls and backup strategies to safeguard their valuable warehouse data.
-
Facilitate Hardware Control: Select the server hardware, storage devices, networking equipment and other components based on their performance, capacity and budgetary considerations.
Fine-tune processors, memory and storage to maximize system performance and responsiveness.
Limitations
- Extra Support Needed: Requires additional support specialists to maintain new systems after integration. Maintaining these systems can incur additional costs and resources.
- High Entry Cost: There’s a significant investment involved to get things started before you can hope to see any ROI.
- Scaling Woes: Growing your system means additional equipment costs and possibly more employees to maintain them. Being limited by growth is a tough pill to swallow.
Cloud-based
The cloud is a rising star in various arenas for a good reason. For many businesses, gaining the competitive edge of a WMS at an affordable price is hard to ignore. Check out some of these standout cloud-based benefits:
Benefits
- Streamline Deployment: Integrating a cloud-based system is a dream come true. Instead of extended deployment timetables, your teams can work on the new system in minutes. Time is crucial in competitive environments, and getting days or weeks of a head start can make all the difference.
- Minimize Costs: Cloud-based warehouse management systems lower the entry bar thanks to common subscription-based payment practices. This process allows smaller operations to enjoy the power of a WMS software system without a huge initial investment.
- Improve Real-Time Updates: Provide updates in real time without slowing down operations. Instead of losing resources and updates as they come out, you can keep working without interruption.
- Facilitate Support Backup: Cloud-based systems usually have support plans that give clients numerous technical support options when things go awry. Having a team of experts ready to pick up the phone without a costly in-house maintenance crew is a tantalizing benefit.
However, no deployment strategy is perfect. Keep these limitations in mind when selecting a cloud-based warehouse management system:
Limitations
- Less Customization: They don’t provide customization based on your business requirements. These systems are less about individual business needs and more about handling industry-specific processes.
- Payments Add Up: Incur additional monthly payments in the long term.
- Security Concerns: Systems based outside businesses are more vulnerable to hacking and malicious attacks. Cloud-based strategies can suffer from attempted outside incursions.
Expert recommendations and analysis on the top Warehouse Management Software
Primary Benefits
A warehouse management system performs several vital functions within a supply chain. They provide visibility, event management, performance management-based metrics and key performance indicators (KPIs) of overall warehouse performance.
Furthermore, warehouse systems:
Reduce Costs
Cut down costs associated with carrying too much inventory and optimize inventory turns to minimize financial risks. Balance inventory levels by distributing products across all warehouses.
Minimize order errors and returns to reduce costs associated with rework, restocking and customer dissatisfaction. Improve order accuracy through intelligent order batching, picking route optimization and barcode scanning.
Increase Visibility
Provide a strategic view of all warehouse locations and their relative status. They also offer supply chain visibility to partners and quote accurate delivery times.
Track order status at each stage to identify bottlenecks or delays. Discover inefficiencies and measure performance by monitoring key performance indicators (KPIs) and process metrics.
Strengthen Logistics
Improve logistics and supply chain process efficiency, lowering inventory and warehouse management costs. Integrate demand planning into WMS workflows to minimize out-of-stock conditions for parts, assemblies and high-demand products.
Support labor management by assigning tasks, tracking productivity and optimizing workforce allocation.
Integrate with enterprise resource planning (ERP) and transportation management systems (TMS) to improve supply chain visibility. They facilitate real-time information exchange and coordination among different stakeholders.
Improve Traceability
Assign items with unique identifiers like barcodes or RFID tags to enable traceability across the supply chain and ensure legal and regulatory compliance. Record the lot or serial number associated with each item during receiving and maintain that information throughout the storage and fulfillment processes.
Support effective labor allocation across warehouses and skill set optimization to specific tasks.
Boost Productivity
Automate repetitive manual tasks with conveyor systems, automated picking machines and robotics. These tools automate each phase of warehouse management and track inventory to improve warehouse productivity.
Provide visibility into inventory levels and the status of inbound shipments into warehouse locations.
Define a plan for continuous process improvement at the warehouse level that scales across all locations.
Expert recommendations and analysis on the top Warehouse Management Software
Implementation Goals
Every business has unique issues they’re trying to solve with a WMS system. There are a few common goals when implementing this software type.
Think about these goals when creating your list of WMS requirements:
| Goal 1 Improve Logistics | Between managing bins, slotting and optimizing algorithms, location management unifies the logical WMS functionality with a physical location. Location management systems create frameworks to optimize a broader warehouse distribution network and fulfillment locations globally. |
|---|---|
| Goal 2 Track Inventory Management Financial Success | The highest-performing warehouse management system software can support a broad base of accounting methods to track and report inventory management financial performance. Support distributed order management, asset tracking, service management, product identification and inventory optimization. |
| Goal 3 Improve Pick, Pack and Ship | Evaluate vendor support for piece, case and pallet picking, including their ability to provide mixed pallet workloads for multiple location delivery. |
| Goal 4 Support Efficient and Quick Replenishment | Analyze historical data, order patterns and product characteristics to determine the most appropriate storage locations for different items. Real-time visibility allows warehouse staff to quickly identify when stock reaches a minimum threshold or falls below a predetermined level. Look for WMS vendors that provide real-time insights, support cross-docking capabilities and replenishment automation. |
Expert recommendations and analysis on the top Warehouse Management Software
Basic Features & Functionality
The following features form the core capabilities of warehouse management software.
| Inventory Management | All warehouse management software shares this common feature with high-end suites capable of synchronizing warehouse locations across a diverse, geographically distributed network. Look for cost support and accrual-based accounting methods in addition to the flexibility of defining the best option for your given business model or workflow. High-end WMS supports radio frequency identification (RFID) and the long-established barcode standards that continue to be instrumental in managing warehouses. |
|---|---|
| Order Management and Replenishment | Orchestrate inbound shipments from suppliers and align them with production schedules to fulfill customer demand. Distributed order management (DOM) systems let SCM systems branch out and become multilocational while streamlining warehouse, pick, pack and ship, and advanced supply chain functions. All WMS systems need the ability to integrate and receive real-time data from an OMS. WMS software has distributed order management systems that provide a solid platform for order fulfillment. |
| Labor Management | Plan and forecast labor requirements based on anticipated workloads and operational needs. Consider factors like order volume, order complexity, seasonality and historical data to determine the optimal number of workers needed at different times. Monitor worker performance by tracking picking rates, accuracy levels, productivity and utilization. It identifies improvement areas and enables timely feedback. |
| Pick and Pack | Retrieve customer orders, organize and prioritize them based on the order type, urgency and shipping requirements. The WMS system uses algorithms to optimize the picking process. It determines the most efficient picking routes, minimizes travel time and reduces warehouse congestion. Some popular picking methods include single order, batch and zone picking. |
| Mobile Deployment | In environments with limited or unreliable network connectivity, users can continue performing tasks even when disconnected. Warehouse workers can access real-time data from the WMS directly on their mobile devices. They can instantly view inventory levels, order statuses and other relevant information without being tied to a fixed workstation. |
| Payment Processing | Generate invoices for customer orders directly within the WMS. The system can automatically create invoices based on predefined billing rules or customer agreements. Seamless integration with popular payment gateways like PayPal and Stripe enables secure online payment processing. |
Expert recommendations and analysis on the top Warehouse Management Software
Advanced Features & Functionality
In addition to the basic functionality mentioned above, WMS vendors also offer sophisticated features:
| Advanced Shipping Notice (ASN) | Inform shipment recipients about related information before processing the shipment. This data includes product descriptions, shipment contents, carrier information and order details. Reduce receiving costs and the time it takes to stock your warehouse. With ASN, you can reallocate the extra time and money to grow your warehouse operations. Additionally, ASN can replace an invoice after shipment delivery and content verification. |
|---|---|
| Pick and Putaway Rules | Optimize the pick and putaway process using a built-in rules engine. Assign restrictions that enable the system to optimize this process. Set up where workers pick inventory by optimizing routes and clearing warehouse space. You can assign rules that prioritize certain customers’ inventory over others. |
| Out-Of-The-Box Integration | Modern warehouse system software must include pre-built integrations that cover a wide range of applications, including ERPs, accounting tools, shipping and receiving software, eCommerce platforms and marketplaces. While cross-docking isn’t suitable for every situation, it’s beneficial when your shipments are time-sensitive, like frozen goods. |
| Task Interleaving | Assign tasks to warehouse workers in the most optimal way possible. Successful task interleaving reduces missed opportunities for further productivity. For example, if your employee takes a forklift to perform a task at the other end of the warehouse, task interleaving tools would assign them another job on the way that needs the forklift. Depending on your needs, these tools also facilitate wave, batch and zone picking. |
| Business Intelligence (BI) | Provide greater insight into your warehouse operations. BI tools include customizable dashboards, allowing users to grasp certain KPIs quickly. They include other reporting tools to share vital information with stakeholders. These tools provide instant visibility into key performance indicators (KPIs) like order fulfillment rates, inventory accuracy, labor productivity, cycle times and shipping costs for proactive monitoring. |
Expert recommendations and analysis on the top Warehouse Management Software
Current & Upcoming Trends
The warehousing industry is continuously evolving to make the best use of emerging technologies to optimize daily operations and maximize space and resource utilization. Here are some emerging warehouse management trends businesses should watch:
Robotic Process Automation
Combining the power of artificial intelligence, machine learning and robotics, robotic process automation (RPA) handles various aspects of warehouse management such as pick and pack, storage and retrieval, purchase orders, inventory management, returns and refunds, and invoice management.
RPA in warehouse management saves time, eliminates data and operational errors, and reduces the risk of human contamination, making operations more efficient. These benefits make it easy to see why, according to a Fortune Business Insights report, the RPA market is expected to hit $50.50 billion in value by 2030.
Warehouses tend to spend a large amount of their estimated budget on labor. Introducing RPA can bring down operational costs by automating overall warehouse operations.
Radio Frequency Identification
Radio frequency identification (RFID) uses wave-based technology to monitor real-time inventory. Warehouses use RFIDs to enhance efficiency, accuracy and speed. Typically, RFIDs can read multiple tags with a single scan and transmit signals from several feet away.
The increasing adoption of barcode systems in warehouses and logistics evolved noticeably in recent years, giving rise to RFID applications in the industry. This trend further gives rise to the growing demand for RFID tags.
In fact, a recent report predicts that the RFID market is expected to reach a value of $23.86 billion by 2030.
RFID tags make it easier for warehouses to assign and track unique SKUs for multiple incoming items. With RFID software, you can receive alerts for items that do not match the shipment. It reduces shipping errors and improves order fulfillment accuracy.
Blockchain and IoT Integration
In addition to RPA, blockchain item tracking with handheld and mobile devices is slowly gaining popularity in warehouse operations. With the IoT market predicted to grow from $662.21 billion in 2023 to $3,352.97 billion by 2030, these popular technologies improve data security and provide businesses with real-time tracking insights.
With connected sensors and secured data storage and tracking platforms, warehouse IoT systems offer real-time visibility into every stage and process, such as storage, maintenance of stock levels, retrieval, transport and delivery.
Immersive Reality
Immersive reality or extended reality (XR) combines virtual reality (VR), augmented reality (AR) and mixed reality (MR) to create interactive and immersive experiences. Likewise, when applied to warehouse operations, these technologies can work wonders.
For instance, AR allows workers to visually overlay digital information like stock levels, item details and locations onto physical shelves or bins to enable quick and accurate inventory checks, cycle counting and replenishment activities.
Warehouse managers can use virtual simulations to test different layouts, equipment placements and storage configurations without physically moving items. They can seamlessly integrate immersive reality with data analytics systems to provide real-time insights.
Overall, modern technological advancements have transformed warehouse inventory management software in various ways.
Expert recommendations and analysis on the top Warehouse Management Software
Software Comparison Strategy
The warehouse management system market is diverse and has numerous options. While this ensures an excellent solution is available for your company, you must carefully compare your choices.
The best way to do this is to create a detailed product comparison you’re considering, using all the above features as criteria.
Look at our free requirements template to research, shortlist and evaluate different vendor options. You can compare factors such as cost, ease of use, customization options, integration capabilities, support and training, security features, scalability and more.
This way, you can compare vendors next to each other using the most important benchmarks of your business.
Cost & Pricing Considerations
The incurred costs for the warehouse software you select depend on the software type, deployment method, number of user licenses required, and add-on services and modules purchased. A few factors influencing pricing include:
- Cloud-based warehouse management software uses a subscription model with a tier-based monthly or annual fee. While this suits smaller businesses to start warehouse operation management, the subscription costs add up over time.
- On-premise software charges a one-time license fee, which is generally on the higher end and usually offers customized modules to fit unique requirements.
- Apart from the deployment strategy, it can incur additional costs on the number of handheld devices, support packages and add-on services. Similarly, you pay an upfront fee for setup and implementation, data migration and maintenance services.
It is advisable to look into each vendor’s pricing plans since the breakdown may vary from one vendor to the other, impacting the overall costs.
See prices for the top Warehouse Management Software... Plus get important questions to ask.
Best Warehouse Management Software
While the best warehouse management system software for you is the one that fits your unique requirements, our analysts at SelectHub review and shortlist the highest-rated vendors in the market regularly. These are the top WMS systems for your consideration:
Oracle Warehouse Management
What It Does
Oracle WMS is a cloud-based solution that deploys modern warehousing techniques and intelligence to minimize inventory costs, improve labor productivity and monitor operations.
Support outbound allocation, 3PLs, multi-channel fulfillment and cross-docking to increase client and customer satisfaction.
Oracle WMS labor management. Source
Product Overview
| User Sentiment Score | 81% |
| Analyst Rating | 85 |
| Company Size | M | L |
What It's Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Cycle Counting | 100 |
| De-Kitting and Kitting | 100 |
| Rules Engine | 100 |
| Task Interleaving | 100 |
| Work Order Management | 100 |
Dynamics 365 SCM
What It Does
Dynamics 365 SCM helps scale warehousing operations and mitigate supply chain issues. Its cloud-based software offers real-time insights, agility and intelligent warehousing operations with IoT and AI.
Predictive analytics reduces downtime and streamlines the overall supply chain.
Improve planning efficiency using real-time insights.
Product Overview
| User Sentiment Score | 78% |
| Analyst Rating | 86 |
| Company Size | M | L |
What It's Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Cross Docking | 100 |
| Barcode Scanning | 100 |
| Single and Multi-Level Cartonization | 100 |
| Work Order Management | 100 |
| Inventory Analytics | 100 |
Fishbowl Warehouse
What It Does
Fishbowl Warehouse provides tools to manage inventory, track stock levels, streamline order fulfillment and automate various inventory-related tasks. Features like barcode scanning help businesses quickly and accurately receive and pick items, reduce errors and improve efficiency.
Other robust features include serial and lot number tracking, asset tracking, manufacturing management and customizable user permissions.
Dashboard overview demonstrating multiple modules.
Product Overview
| Analyst Rating | 78 |
| Company Size | S | M | L |
What It's Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Yard Check-Ins and Check-Outs | 85 |
| RF Receiving | 100 |
| Barcode Label Generation | 100 |
| Event Management | 100 |
| Physical Inventory Count | 100 |
Logiwa
What It Does
Logiwa provides WMS and order fulfillment software for 3PL, B2C and direct-to-consumer businesses. It offers modern cloud-based solutions to enhance smart shipping and optimize multi-warehouse operations.
Real-time inventory visibility prevents shortages while routing orders to multiple fulfillment centers.
View multiple order statuses from a single dashboard.
Product Overview
| User Sentiment Score | 89% |
| Analyst Rating | 75 |
| Company Size | S | M |
What It's Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Serial and Lot Tracking | 100 |
| Activity-Based Billing and Billing Engine | 100 |
| Shipment Management | 100 |
| Batch Picking | 100 |
| System Directed Putaway | 100 |
Pros and Cons From User Reviews
| Pros | Cons |
|---|---|
| Around 80% of users said the solution seamlessly integrates with third-party logistics and various other platforms. | About 100% of users mentioned there’s limited information about the built-in reporting feature. |
| About 100% of users said the tool provides real-time inventory visibility. | Around 67% of users found the license fees expensive. |
| Around 80% of users found its customization option an added advantage. | About 100% of users said the tool lacks advanced features like AI technology. |
Manhattan Supply Chain
What It Does
Manhattan Supply Chain provides robust warehousing and logistics solutions for multiple industries, including 3PLs. It maximizes supply chain efficiency for logistics providers, retailers and manufacturers. It optimizes complex transportation and distribution operations and facilitates seamless execution across inventory.
Dashboard overview of SCI workbench. Source
Product Overview
| User Sentiment Score | 77% |
| Analyst Rating | 74 |
| Company Size | M | L |
What It's Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Transportation Planning | 100 |
| Warehouse Simulation | 100 |
| Performance Metrics | 100 |
| Appointment Scheduling | 100 |
| Slotting Workflows | 100 |
Expert recommendations and analysis on the top Warehouse Management Software
Questions To Ask Yourself
Use these questions as a starting point for internal conversations:
- How complex is my warehouse operation? For instance, am I managing a single warehouse or multiple warehouses?
- What solutions am I using for receiving and order fulfillment?
- What are my goals and objectives?
- Which features do internal and external stakeholders require?
- Do I need an end-to-end solution or just a few modules?
- Which deployment strategy suits my requirements?
Questions To Ask Vendors
Use these questions as a starting point for conversations with vendors:
About the Software
- Which business-critical modules does the product offer? Which features should you consider as additional developmental work?
- Can we change the business workflows at our end, or does it require assistance from your team?
- What reporting capabilities does the product offer regarding business intelligence and standard operational reporting?
- Does the software readily integrate with common applications like accounting and CRM?
- How are inventory counts managed? Do they sync up automatically with integrated systems, or is a manual data transfer required?
About the Vendor
- How will your warehouse management system improve my business?
- What sort of training and support options do you offer?
- What’s your industry experience?
- What implementation process does your team follow? (Request a sample outline for better understanding).
- Will your product support our business as our volumes and requirements change? What’s your product upgrade path to keep up with industry trends?
Expert recommendations and analysis on the top Warehouse Management Software
Next Steps
Choosing a warehouse management system provider is a task you must take seriously. With the right solution, you can position your company to succeed in the short and long term.
This buyer’s guide is a comprehensive reference tool to educate, inform and empower buyers to make informed decisions when selecting a solution for their organization.
Ready to take your search to the next level? Grab our free, customizable comparison report to see how leading systems compare against each other — and your requirements.
Product Comparisons
- Logiwa vs. Oracle Warehouse Management
- Korber vs. Logiwa
- Dynamics 365 SCM vs. Logiwa
- Oracle Warehouse Management vs. Dynamics 365 SCM
- Logiwa vs. SAP Warehouse Management
Additional Resources
Top 10 Warehouse Management Software Leaders by Analyst Rating (of 192 products)
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