58% of retail brands struggle with inventory accuracy below 80% — that's a lot of misplaced items and frustrated customers. Let's face it — manually tracking thousands of items across countless shelves isn't just inefficient, it's practically impossible. With businesses holding an average of $142,000 in excess inventory, warehouse management software is just what you need. It’s what you can’t live without.
In this guide, we’ll break down exactly when you need a WMS (spoiler alert: probably sooner than you think) and explore the top WMS software options that help you save serious money by optimizing stock levels and streamlining operations.
What is a warehouse management system?
WMS is a complete digital ecosystem for running warehouse operations from start to finish. WMS goes way beyond just tracking boxes on shelves — it's specialized software that orchestrates every move in your warehouse, from the moment a truck backs into your loading dock until products head out to their final destination.
What sets warehouse optimization software apart is how it weaves together all moving parts into one seamless operation, helping you dodge misplaced items and shipping mix-ups. To fully understand the importance of a warehouse management system for your business, let’s explore how warehouse management works in detail, and then try to find specific optimization points.
Understanding warehouse processes
Let's unpack the core warehouse processes that keep your facility humming. A typical warehouse has several steps in a workflow:
The journey kicks off with receiving. This first step involves unloading trucks, conducting thorough quality inspections of incoming goods, verifying quantities against shipping documents, and staging items in a designated receiving area. Workers must check for damage, verify product specifications, and ensure proper documentation is complete.
Once products clear this checkpoint, they move to putaway and storage. Workers transport items to designated locations using appropriate forklifts or pallet jacks. Products are stored according to specific criteria: fast-moving items go in easily accessible areas, temperature-sensitive goods in climate-controlled zones, and heavy items on lower levels.
Then comes picking, often the trickiest part of warehouse management operations, where workers gather items to fulfill orders. How is it organized? Workers navigate the warehouse with pick lists, collecting specific items from their storage locations. Batch picking is typically used for multiple orders simultaneously. Zone picking involves assigning workers to particular areas, and wave picking is used for time-specific order fulfillment.
This flows into packing, where products get boxed up and checked one last time. In the packing area, workers select packaging materials based on product size, fragility, and shipping requirements. They need to choose the correct box sizes, add protective materials like bubble wrap or foam inserts, and ensure the product is properly oriented. Special orders, such as gift wrapping, custom packaging, or personalized labels, are handled here.
The warehouse process flow wraps up with shipping, sending orders to customers, and handling returns that come back. Workers load trucks according to delivery schedules and routes, ensuring proper load balancing and securing. Returns processing includes inspecting returned items, determining their condition, routing them back to inventory or to damage assessment, and updating inventory records accordingly.
Each step needs attention — mess up one move, and you end up with a mess. The beauty of having solid warehouse management processes in place is that they turn this complex choreography into a smooth, reliable routine.
Types of warehouse management systems
Let's review the different warehouse management system examples available on the market. WMS solutions come in various shapes and sizes to match diverse business needs.
Standalone WMS
This type of basic warehouse management system lives on your company's servers, giving you complete control over every aspect of your operations. You own the software outright and tailor it exactly to your needs, from custom reporting dashboards to specific warehouse management system process flow setups. The catch? You're on your own for updates and maintenance, and as technology evolves, your system might struggle to keep up.
Cloud-based WMS
With cloud-based WMS solutions, instead of heavy IT infrastructure, you access everything through your web browser — perfect for flexibility and quick scaling. Your team checks inventory levels or processes orders from anywhere with an internet connection, and you'll always have the latest features thanks to automatic updates. The monthly subscription model means lower initial costs, plus you get top-notch security and backup systems. This option is good for growing businesses where WMS requirements change rapidly.
Integrated WMS solutions
When we discuss integrated WMS solutions, we look at systems that play with your ERP or supply chain software. This approach is great for retail warehouse management system setups where you need communication between your store operations, warehouse, and financial systems. When an online order is placed, it automatically triggers warehouse picking, updates inventory counts, and adjusts financial records. These systems require more setup time to get it all working together, but eliminate the headaches of managing disconnected systems.
Specialized WMS
The newest addition is the specialized WMS for micro-fulfillment centers. These lightweight systems have a lot to offer, despite their smaller footprint, perfect for urban warehouses or backroom operations. They focus on speed and efficiency in tight spaces, often incorporating automation and robotics. Specialized WMSs might not have all the features of a full-size system, but they excel at quick, precise operations in compact environments.
Now, let’s look at the key features of a warehouse management system.
Warehouse management software features you don’t want to miss
The best warehouse optimization software does more than automate — it sets you on autopilot. Below, we break down the core functionalities of a WMS and why they matter.
Smart inventory management
A reliable inventory management system is the backbone of any WMS. It tracks every product through inventory counting mechanisms, batch/lot tracking, and serial number management. Modern WMS solutions implement cycle counting schedules, ABC inventory classification, and dynamic reorder point calculations based on lead times and demand. Slotting optimization algorithms analyze product velocity, size, and handling requirements to maximize storage.
Order management
From customer orders to internal stock transfers, order management handles multiple fulfillment strategies like wave picking, batch picking, and zone picking. The best warehouse control system software implements cartonization logic to optimize packaging, supports multi-order consolidation, and enables cross-docking for time-sensitive items. The system also handles order prioritization based on shipping cut-off times, carrier requirements, and customer SLAs.
Labor management
Workers are the heart of any warehouse, and using warehouse labor management software ensures they’re working at peak efficiency. labor standards and engineered labor times help plan staffing needs, while real-time task interleaving algorithms balance workload distribution. The system tracks individual and team KPIs like units per hour, pick accuracy, and dock-to-stock time while supporting incentive-based pay calculations and performance tracking.
Financial management and reporting
Keeping costs in check is just as important as moving products. A top-tier warehouse planning software provides landed cost tracking, ABC costing analysis, and activity-based management metrics. The system generates detailed transaction audit trails, tracks handling costs per unit, and enables multi-level bill of materials costing. Custom dashboard creation allows monitoring inventory turns, carrying costs, and order fulfillment costs in real-time.
Risk management and forecasting
No warehouse is immune to risks, whether from supply chain disruptions, theft, or mismanagement. Advanced inventory aging analysis helps prevent obsolescence, while catch-weight handling supports variable-weight items. The system implements FEFO/FIFO picking logic, manages product recalls efficiently, and provides lot genealogy tracking. Quality control workflows include random sampling protocols, quarantine management, and automated disposition processing for damaged goods.
Whether improving stock accuracy, boosting productivity, or cutting costs, the right system turns warehouses from chaotic to controlled, inefficient to optimized. However, there is some new technology that brings warehouse management to an entirely new level.
Warehousing technology that makes a change
With shifting customer expectations, new eCommerce solutions, and unpredictable supply chain disruptions, businesses need more than traditional logistics. They need intelligence. That’s where warehouse management system integration, automation, and data-driven decision-making change the game..
IoT in warehousing
The Internet of Things (IoT) brings warehouses to life by connecting devices, sensors, and machinery to share real-time data. IoT-powered WMS modules gather crucial information from RFID tags, GPS trackers, and smart shelves to improve inventory accuracy, minimize shrinkage, and optimize space.
For example, integrated warehouse management systems use IoT sensors to track temperature-sensitive goods, ensuring perishable items remain within safe limits. Motion sensors monitor worker activity, improving efficiency and safety. Even forklifts equipped with IoT send usage data to predict maintenance needs, preventing costly breakdowns.
AI and ML for warehouse management
Warehouses are no longer just reacting to demand — they’re predicting it. AI and ML enable dynamic decision-making by analyzing vast amounts of data, identifying patterns, and making proactive adjustments.
AI-driven solutions adjust stock levels based on seasonal trends, while ML-powered demand forecasting reduces overstock and shortages. Algorithms fine-tune picking routes in real-time, cutting unnecessary movement. AI chatbots assist workers by answering logistical questions instantly, reducing downtime. With AI-infused warehouse optimization software, your business streamlines operations and gains unprecedented control over its supply chain.
Warehouse robotics
Robots are no longer a futuristic fantasy — they’re essential warehouse team members. From picking and packing to transportation and sorting, warehouse robots reduce human error and speed up operations.
Automated guided vehicles (AGVs): Move inventory along fixed paths using tracks or magnetic strips, ideal for predictable routes.
Autonomous mobile robots (AMRs): Navigate independently using sensors, avoiding obstacles, and rerouting on the fly. They assist in picking and packing, reducing manual effort.
Aerial drones: Fly through warehouses scanning barcodes and tracking inventory in hard-to-reach areas, updating the integrated WMS instantly.
Automated storage and retrieval systems (AS/RS): Use robotic shuttles or cranes to retrieve and store items, maximizing vertical space and reducing retrieval times.
Beyond efficiency, robotics improves safety by taking over repetitive and hazardous tasks, freeing up human workers for higher-value operations.
Best warehouse management systems for eCommerce
When it comes to WMS features and finding the perfect solution for your warehouse operations, the market offers numerous options to explore. Modern warehouse management systems go far beyond basic inventory tracking, so let’s explore what they have to offer. Let's dive into the WMS software comparison to help you navigate the leading solutions available. Also, you can see the features and warehouse management system price comparison in the table.
Körber Supply Chain WMS
Standing at the top of the list of warehouse management software, Körber Supply Chain WMS has exceptional flexibility and scalability. This solution boasts intelligent automation and advanced analytics. Perfect for medium to large enterprises, it handles multi-site operations and has robust features like voice-directed picking, automated storage and retrieval systems, and sophisticated labor management tools. What sets it apart? The platform adapts to various industries, from retail to pharmaceuticals, while offering great customization options.
Manhattan Active WMS
Want something secure and novel? Manhattan Active WMS leads the pack with its cloud-native architecture and innovative approach. This solution eliminates traditional upgrade cycles – your system stays current automatically. The platform excels in order orchestration and fulfillment optimization, ideal for retailers and distributors handling high-volume operations. Its embedded ML capabilities continuously improve picking routes and inventory placement, while the mobile-first design ensures your team stays productive on the go.
Oracle Cloud WMS
Among top WMS providers, Oracle's offering stands out through its seamless integration with broader business operations. This enterprise-grade solution simplifies warehouse operations with embedded IoT capabilities and advanced analytics. The platform manages complex fulfillment requirements and supports sophisticated wave-planning strategies. Middle-market companies and large enterprises particularly benefit from its robust inventory management capabilities that provide real-time visibility across multiple locations.
SAP Extended Warehouse Management
Looking through the WMS systems list, SAP EWM is a comprehensive solution for deep ERP integration. This sophisticated platform handles everything from basic warehousing to complex distribution center operations. Its strength lies in material flow control and yard management capabilities — a gem for manufacturing and distribution companies. Its labor management and cross-docking features help optimize workforce efficiency and accelerate throughput.
Blue Yonder WMS
Among the top warehouse management software choices, Blue Yonder (formerly JDA) gives exceptional capabilities to companies with complex distribution needs. The solution excels in predictive analytics and machine learning-driven optimization. Distribution centers and retailers appreciate its advanced slotting optimization and labor management features. The platform's AI capabilities help predict and prevent potential disruptions before they impact operations.
Microsoft Dynamics 365 Supply Chain Management
If your company already uses Microsoft products, D365's WMS module offers seamless integration with existing business systems. The solution provides comprehensive warehouse management capabilities while maintaining the familiar Microsoft interface. Its strength is in its ability to handle both basic and advanced warehousing needs, making it particularly suitable for growing businesses that need scalability.
Generix Group Solochain WMS
Solochain WMS provides end-to-end supply chain visibility and control. The platform has powerful manufacturing capabilities alongside traditional warehouse management features. Mid-sized manufacturers and distributors find particular value in the ability to handle both production and distribution requirements within a single system. The solution's modular approach allows businesses to start with basic functionality and add capabilities as needed.
Infor CloudSuite WMS
Infor CloudSuite WMS stands out with its industry-specific functionality and intuitive user interface. This cloud-based solution offers capabilities for both simple and complex warehouse management requirements. The platform manages third-party logistics operations and handle multi-client warehousing scenarios. Small to mid-sized businesses particularly win with its scalable architecture and rapid implementation options.
SnapFulfil
This cloud-based solution stands out among other WMS options with its rapid implementation approach and flexible configuration options. SnapFulfil has a golden prize in managing multi-channel fulfillment operations and provides strong support for seasonal peaks. The platform offers an excellent balance of functionality and ease of use, making it especially suitable for growing e-commerce operations.
Made4net SCExpert
Made4net's solution brings robust warehouse management capabilities to companies that need quick implementation and rapid ROI. The platform is particularly potent in its ability to handle e-commerce fulfillment operations and offers strong reverse logistics capabilities. Small to mid-sized businesses appreciate its intuitive interface and comprehensive feature set that grows with their needs.
Tecsys Elite WMS
Among the elite top warehouse management system providers, Tecsys offers a robust solution suited for healthcare and complex distribution environments. The platform is able to handle regulated industries' specific requirements and provides exceptional visibility across the supply chain. Healthcare providers and complex distribution operations especially like its ability to manage sensitive inventory and maintain regulatory compliance while streamlining operations.
Extensiv 3PL Warehouse Manager
This specialized solution targets third-party logistics providers with multi-client warehouse operations. Extensiv 3PL excels in billing management and client-specific workflow customization. Its robust reporting capabilities and customer portal features make it particularly valuable for 3PLs managing diverse client portfolios. Small to mid-sized 3PL providers appreciate its scalable pricing model and industry-specific functionality.
So, what is the best warehouse management system? It depends on your infrastructure, budget, and inventory size. When considering modernizing existing software, you face a choice between implementing a new WMS solution or upgrading your current system through customization. While many modern WMS platforms offer impressive out-of-the-box functionality, some businesses might benefit more from enhancing their existing solutions through targeted improvements and custom development.
Custom development: When standard solutions aren't enough
Understanding when to opt for custom development is a crucial part of the decision process. While off-the-shelf WMS solutions work wonderfully for many companies, certain situations demand tailored warehouse management system workflows. Custom development makes sense when your warehouse operations involve:
Unique industry-specific processes that standard WMS solutions don't address.
Complex integration requirements with legacy systems.
Special compliance requirements for regulated industries.
Distinctive picking, packing, or shipping workflows.
Specific reporting or analytics needs.
Unusual inventory tracking requirements.
Custom automation processes.
Custom retail software development fits WMSs into your business processes with no need to adapt to rigid, pre-built workflows. They also offer unique features that can set you apart from competitors relying on standard solutions. Besides, there are no integration restrictions, so you can connect with any existing or future system, regardless of platform constraints. Best of all, you maintain complete ownership, avoiding ongoing license fees and dependence on vendor updates.
What’s the downside? Custom development requires a higher upfront investment and takes longer to implement. Also, your team is responsible for maintenance, including updates and fixes. Thorough documentation is essential in this case. Custom development often works best as a hybrid approach — using a standard WMS as the foundation and adding custom modules for unique requirements.
So, how to decide what you need? Before choosing custom development, consider your budget, timeline, and in-house technical expertise. Think about your long-term growth plans, potential ROI, and risk tolerance compared to off-the-shelf alternatives.
How to choose a WMS solution?
Finding the perfect system requires considering what warehouse management system features you currently need and will need in the future. And that’s not the whole list of the things you need to take into account — let’s break them down in more detail.
Understanding your core warehouse management system functions forms the foundation of a successful selection process. Map out your processes and identify pain points that need addressing. Think about which features are essential for your operation and which would be nice to have.
Integration capabilities are essential for choosing your solution. The system you choose needs to work with your existing ERP system, connect with various marketplaces, and integrate easily with shipping carriers. Look for solutions offering robust APIs and real-time data synchronization.
Mobile optimization is non-negotiable in modern warehouse operations. Your team needs to access and update information on the go, whether they're using tablets, smartphones, or handheld scanners. The best systems offer full functionality across all devices and speed up scanning and data entry.
Scalability potential determines whether your WMS investment will continue paying off as your business grows. The right system should make it easy to add new locations, bring on additional users, and maintain performance during peak periods. Cloud-based solutions often excel here, offering simple expansion options and feature activation.
Customization capabilities separate good systems from great ones. Look for solutions with flexible configuration, custom reports, and workflows. The ability to tailor the system to your needs without expensive custom development impacts your long-term satisfaction and ROI.
User experience affects how quickly your team adapts to the new system. An intuitive UI reduces training time and minimizes errors, while comprehensive documentation and readily available support help overcome challenges. Consider how easily the system can be configured and modified without requiring assistance.
Operational coverage extends beyond basic functions. The ability to manage yard operations and optimize workforce productivity adds significant value. So, look for systems that provide comprehensive coverage of your entire operation.
Implementation planning deserves as much attention as feature evaluation. Consider realistic timelines for getting the system up and running, resource requirements for training and data migration, and how you'll measure success. The most feature-rich system won't deliver value if your team can't implement it effectively.
Cost considerations must go beyond the initial price tag. Some systems might seem more expensive upfront, but offer better value through included services and support. Understanding the total cost of ownership helps make a more informed decision.
If the off-the-shelf solution doesn’t solve all the problems or bring long-term improvements, you can always turn to us for a tailored option, whether you need a standalone warehouse solution or inventory management software as part of your marketplace infrastructure.
Build a unique WMS software
We develop custom retail software that seamlessly integrates inventory management solutions with marketplace platforms, ensuring efficient operations from warehouse to customer. Our solutions help businesses manage complex inventory operations while providing an intuitive experience for their customers.
Our expertise in retail development is backed by successful projects like Smartbat, a comprehensive warehouse management system we created for a French construction company. We delivered warehouse management system projects that include real-time inventory tracking, multi-location management, and seamless e-commerce integration. Our system integration services connected all aspects of the business, from supplier management to customer delivery tracking.
FAQ
What industries benefit the most from a WMS?
Retail, eCommerce, third-party logistics (3PL), manufacturing, healthcare, and food distribution benefit greatly from a WMS. Any industry that handles large volumes of inventory or complex supply chains can optimize operations with warehouse management software.
How long does it take to implement a WMS?
Implementation time depends on the complexity of the system, customization needs, and company size. While cloud-based solutions can be deployed in weeks, on-premise or highly customized systems may take several months to fully integrate and optimize.
Why is a process flow warehouse management system important?
A well-structured process flow warehouse management system ensures smooth warehouse operations by minimizing delays, reducing errors, and improving overall efficiency. It helps businesses save time and cut operational costs.
What to look for in warehouse management system software WMS?
A WMS should have core features like real-time inventory tracking, barcode scanning, order management, shipping integration, and reporting capabilities while being able to integrate smoothly with your existing systems like ERP and eCommerce platforms. It's crucial to choose a WMS that's cloud-based, user-friendly, and scalable to grow with your business, with strong technical support and regular updates to ensure long-term reliability.
Is cloud or on-premise the best warehouse management system software?
Cloud-based solutions offer flexibility and remote access, while on-premise solutions provide more control and security. The best warehouse management system software depends on whether you prioritize accessibility or data control.
