Best Warehouse Management Software

The Warehouse Management Buyer’s Guide is intended to provide readers with in-depth knowledge and understanding regarding how to control and manage the day-to-day operations in a warehouse. By going through this informative guide on the warehouse management system, users can identify how to improve the efficiency of tracking inventory and supplies as they move through a warehouse.

This buyer’s guide on the WMS system will familiarize businesses with the processes of receiving, picking, and putting away products in a faster and more accurate way in their warehouses.

Warehouse management is the process of arranging and controlling everything in the warehouse. It manages the warehouse and its inventory, tracks it, and improves its overall performance. It picks and packs the products and looks after the shipping orders. The warehouse management system manages and maintains all the recently added stocks.

There are different types of warehouses, depending on the specific industry, location, and needs. Let’s discuss the following types of warehouses:

• Public Warehouses: Government and semi-government bodies own this type of warehouse, and private firms use it to store goods on the payment of rent. It is an apt option for SMB owners (Small and Medium Businesses) that can save the products for a shorter period.
• Private Warehouses or Proprietary Warehousing: Large retail corporations or companies use private warehouses to store goods privately. Wholesalers, distributors, and manufacturers personally own the warehouses. Companies willing to make a financial investment in storing their goods can find private warehousing a great option.
• Distribution Centre: This type of warehouse stores and sells large quantities of goods. It is a vital part of the supply chain that helps serve a high volume of customers. It also works as a storage space for temporary needs and items that are shifted quickly within the supply chain.
• Co-operative Warehouses: Co-operative societies own and manage these types of warehouses. At economic rates, these societies provide storage facilities to their members only. This type of warehouse aims to help its members without worrying about profit.
• Climate-controlled warehouse: This type of warehouse is used for storing and shipping perishable goods. From humidity-controlled environments (to save things like fresh flowers) to freezers (that store frozen products), climate-controlled warehouses are used. This type of warehouse helps keep fast-moving goods at the required temperature, which can be resold.
• Automated Warehouse: This type of warehouse receives, stores, and moves goods. It is considered extremely efficient, quick, and agile. Within the warehouse, products are moved quickly with the help of modern equipment like forklifts, racking, and pallets. This type of warehouse primarily relies on computer technology and machinery.
• Government Warehouses: Government and private enterprises use this type of warehouse to store their goods. Central and state governments, public corporations, or local authorities manage and control this type of warehouse. For example, the Food Corporation of India and Central Warehousing Corporation of India maintain government warehouses.
• Bonded Warehouses: Government or private agencies own and run bonded warehouses, which store imported goods. Private companies require a government license to operate bonded warehouses. The companies whose goods are stored in these types of warehouses do not pay any duty charges until their items are released.

You can maximize the chance of remaining competitive by understanding the primary objectives of storing and shipping the product. Let’s have a look at the goals of warehousing- 

• The small-business owners build a warehouse or rent a warehouse space to store inventory securely.  
• The facility of warehousing provides efficient access to your inventory. Your inventory storage process should have an effective inventory tracking system. 
• There is an efficient movement of goods and effective utilization of labor along with the equipment with proper warehousing. 
• The warehousing offers maximum protection of items and good housekeeping. 
• Warehousing is crucial for maintaining an optimum inventory turnover ratio. 
• The goods are stored in the warehouse so that they can help meet the anticipated demand in the future.
• The manufactured product is stored in the warehouse to maintain the economies of production and to meet the consumption requirement.
• The warehouses help deploy marketable goods and cater to the variety of needs of the company's marketing function. 

The warehouse is essential as it stores goods and helps businesses in managing the distribution of products to consumers. The vital functions of a warehouse are as follows:

• Storage: If surplus commodities are not required immediately, they can be stored in the warehouses. Then, they can be supplied to customers as per their requirements.
• Shipping Hub: Some warehouses work as shipping hubs. They receive shipments and hold the items until they are loaded onto other trucks and shipped elsewhere.
• Price Stabilization: Warehouses help with price stabilization, which is achieved by creating the time utility (warehousing). Situations like a fall in the prices of goods when their supply is in abundance and a rise in their prices during the slack season are avoided. 
• Financing: The depositor gets a receipt for depositing the goods in the warehouse. The warehouse keeper's warrant acts as the owner of the goods. Businessmen can take loans from banks and other financial institutions by keeping this warrant as security. 
• Protection of goods: The goods in the warehouse are protected from loss or damage due to heat, dust, wind, and moisture. During storage, the warehouses reduce losses due to spoilage and wastage. The warehouses make special arrangements for different types of products according to their nature. 

Other functions of the warehouse are:

• Reception of all products
• Information Management
• Movement of Goods
• Grading and Branding
• Processing
• Risk Bearing
• Transportation
• Immediate quality control
• Quick dispatch of orders
• Arrangements of orders to send to regional warehouses and customers.
• Consolidation and Distribution
• Customer Satisfaction
• Stockpiling
• Product Mixing in the warehouse

A warehouse management system (WMS) software application helps organizations control and administer warehouse operations. These operations are handled from when the goods enter a warehouse until they are moved out. The WMS system maintains and improves the warehouse’s operations and processes. By employing the WMS system, you can receive, pick, and put away the products quickly and accurately in the warehouse. The WMS system aligns with project, supply chain, and transportation management. 

Warehouse Management Software should have the following key features:

• Flawless Integration with ERP Platforms: You can facilitate accuracy and real-time tracking of data if your WMS system is integrated with the ERP (Enterprise Resource Planning) platform. The complete information is stored on a single platform and is synchronized with other types of departments. 
• Inventory Tracking: Most warehouse management software includes a system of advanced tracking, such as ID data capture, barcode scanners, or radio-frequency distribution, that helps locate and move inventory. 
• Pick-and-pack: The warehouse managers have great flexibility with warehouse management software systems as these systems contain a variety of options like zone picking, batch picking, and wave picking. The workers can reduce the number of trips with the help of the lot zoning and task interleaving options, which in turn helps in completing the task. 
• Reporting and analysis: Companies can evaluate their warehouse inventory in real time, analyze production efficiency, and identify areas for improvement by employing warehouse inventory management software, which in turn helps generate reports for the businesses.
• Mobile Deployment: The WMS platform features a mobile-friendly interface that allows access from mobile devices and tablets. This readiness enables warehouse managers and staff to perform tasks effectively. Management professionals can set authorities, view the list of purchase orders along with the raw materials, and track the inventory right from their mobile devices. 
• Tracks Stock: This feature allows warehouse managers to know the number of stocks available and when restocking is needed with the help of warehouse management solutions. This feature allows businesses to order more stocks at the right time and in the right amount, which in turn helps avoid commodity shortages and overstocking the warehouse. 
• Warehouse Design: The WMS system allows the efficient and logical placement of products within the warehouse layout. Accessibility, weight, and demand are the criteria for placing the products. Proper warehouse design allows the warehouse to operate smoothly. 
• Dashboard: WMS software provides real-time updates regarding the inbound and outbound shipments, the status of the inventory, and supply chain operations. The inbound and outbound order data on the dashboard helps in labor planning and setting productivity goals.

Other essential features of warehouse software are:

• Barcoding/RFID 
• Kitting
• Quality Management
• Order Management
• Shipping Management
• Cycle Counting and Planning
• Front Counter
• Lot Control
• Serial Number Tracking
• Slotting Optimization
• Warehouse Metrics
• Multiple Warehousing Management
• User-friendly interface
• Technical Support
• Third-Party Logistics (3PL)
• Labor Management

The use of appropriate warehouse operations in your business can provide you with immense benefits. The warehouse control system can integrate with your inventory management, order fulfillment, and accounting, which in turn helps in managing the demand and movement of your products efficiently. Let’s discuss the following benefits:

• Enhances inventory accuracy: The WMS software improves stock control and inventory tracking. Clients can have accurate and updated stock information, and they can have goods as per their requirements. The warehouse management software system helps improve customer satisfaction levels and eliminates potential operating costs that occur due to errors. The warehouse tools provide overall effectiveness, cost diminution, and better profits. 
• Higher insight into inventory: The WMS system enables the documentation of every item that enters the warehouse, monitors the movement of the items through the warehouse, and organizes where the items will be stored until they ship from the warehouse with the help of barcoding serial numbers, and RFID (radio frequency distribution) tagging. Inventory visibility plays a vital role in warehousing.    
• Planning:  The warehouse management software helps in managing transportation costs and deliveries. You can have a proper delivery management system by employing warehouse tools. The warehouse operations can establish the parameters and business rules regarding dock schedules, appointment times, load and unload times, and geographic zones by consolidating shipments and optimizing truckloads and routes. All these activities help in reducing miles, time, vehicle use, fuel consumption, and labor, which ultimately saves transportation costs. 
• Better auditing and accountability:  Warehouse management software provides individual login to the staff members that enable greater responsibility as audit trails link to the specific users. It helps in avoiding security inventory theft. Among all the employees, the WMS system allows dealing and improving best practices and compliance. 
• Reduced equipment usage: There can be a reduced workforce in the warehouses due to the warehouse management system. There can be significant savings due to the presence of fewer people in the warehouse that make use of machinery and technology. It helps in minimizing annual maintenance budgets 
• Increase Productivity: Warehouse software enables warehouse workers to work efficiently in less time. With the help of warehouse management solutions, better inventory control and easy-to-train new employees can be achieved. Less labor in the warehouse results in less expenditure and more savings. With a warehouse management software system, every square foot of warehouse space can bring higher returns. 

Other advantages of WMS software are:

• Enhance security and safety
• Improve Customer Service and customer satisfaction
• Reduce Operating Expenses
• Transparency and Visibility
• Continuous Improvement
• Improves supplier and customer relationships
• Efficient labor allocation
• Enhances Billing Management options
• Just-in-time inventory
• Inbound and Outbound Optimization
• Improves relations with customers and suppliers
• Quick product delivery and returns processing 
• Lessens mispicks and paperwork
•  Data-driven decisions
• Effective Management Control 
• Optimize supply chain inventories
• Improves employee morale
• Collaboration grows with WMS vendors and suppliers
• Stock visibility and traceability
• Automatic Replenishment
•  Real-Time Control

There are various types of warehouse management systems in the market. It is essential to choose the apt WMS system for your business so that you can run your business operations smoothly. The ideal warehouse management software will allow your company to grow efficiently. You can keep the following points in mind before selecting the warehouse management system:

• Prioritize your business needs: You can perform an assessment of your needs that helps you determine what can be practically implemented immediately and what can be considered for later.
• Evaluate your budget: Make sure you figure out the budget before finalizing the warehouse management system. It is crucial to determine how much you can spend on warehouse management tools. 
• Pay attention to the employees: With warehouse management solutions, staff members remain at the front lines, so it becomes vital to consider their needs and capacity when considering the options for warehouse management tools.
• Identify the physical layout of the warehouse:  Keep the physical design of your warehouse in mind before looking for a Warehouse management system that helps in finding the right WMS software that works well with your warehouse’s requirements.
• Think about scalability: Your warehouse inventory management software should have features that allow your company to grow seamlessly. The scalability of the WMS system can provide you with smooth business operations. 
• Calculate ROI (Return on Investment): Make sure your warehouse control system provides higher ROI along with the justification process. Your WMS system should be able to provide improved stock accuracy by reducing errors, real-time information, perpetual inventory counting, increasing productivity, improving traceability, better customer service, improving warehouse control, higher pick and dispatch accuracy, significant cost savings system, improving labor equipment, and proper space utilization. 
•  Make an evaluation plan: If you have implemented the Warehouse management software, then determine whether you have made the right decision. Are there any specific problems? How can you fix those problematic issues, and how much amount of money can you save? Questioning these critical issues related to WMS software and determining their answers will help you in your evaluation process.

While evaluating warehouse management software, you can ask essential questions from WMS vendors.

• Does this warehouse management software system offer industry-specific functionality for the unique needs of your business operation?
• What type of deployment model does this warehouse control system follow?
• Does this warehouse management software fit your business size and type?
• What type of support will the WMS vendors offer after you buy their software?
• Is the warehouse management software user interface simple?
• Are there some drawbacks associated with this warehouse control system that should be considered beforehand?

 The latest trends in the warehouse management software system are:

• Voice Technology: The warehouse management system can use voice technology in the warehouse so that workers can quickly speak to the management system using a microphone, headset, and wireless computer system. During product delivery, the employees and management authorities can use local area networks and radio frequencies for verbal instructions and confirmations.
• Blockchain Technology: Blockchain technology can rise in the warehouse management system, which in turn can provide a sound system to record multiple transactions, track assets, and easily access document management. This technology can allow manufacturers, suppliers, auditors, customers, and warehouse managers to have successful warehouse management. 
• Automation:  In the warehouse management software system, there can be usage of advanced technologies like robotics, machine learning, augmented reality (AR), virtual reality (VR), and artificial intelligence (AI). There can be a transformation in warehouse management systems due to real-time tracking of warehouse operations, shipping through business intelligence, AI-powered inspections and packaging, and automation of labor-intensive activities, which in turn can reduce manual dependencies.
• Regional Warehouse: Some retailers prefer to have smaller regional warehouses so that customers can have a fast solution that can deliver products to their doorstep on the same day. Without any unexpected delays, the warehouse management software system can quickly deliver the product to a local warehouse.
• Latest Technology: Warehouse management systems can incorporate the latest technology, such as big data/analytics, barcode scanning, IoT (Internet of Things), stationary label printers, wearable devices, advanced imagers and cameras, RFID(radio frequency identification), mobile thermal printers, truck loading automation, and tablet computers.
• AGVs (Automated Guided Vehicles) and AMRs (Automated Mobile Robots): Robots like AGVs and AMRs can reduce the time required to sort warehouse items. These technologies can also help automate the order fulfillment process and reduce the time of delivery and picking.
• Big Data and Analytics: The advancements in big data analytics can help businesses and manufacturers harness their data that help first by identifying the operational inefficiencies and then improving them. The valuable information can be highlighted from daily operations with the help of data analytics solutions. With the help of big data and analytics, the warehouse management system can make data-driven decisions, which in turn helps in improving the overall performance. 
• Dropshipping can increase significantly: The operations of retailers, manufacturers, wholesalers, and 3PLs (third-party logistics) can be transformed due to the growth of e-commerce and direct-to-consumer activities. The dropshipping trend can be accelerated as it can build up direct-to-consumer channels that help in improving the profit margins and can easily create direct customer relationships.  
• Advanced predictive analytics to assist supply chain management:  Predictive analytics can make accurate predictions about future customer demand, so organizations are investing heavily in this technology. The companies can have a competitive edge with predictive analytics technology that helps in knowing the future, which in turn allows them to act accordingly. 

Other latest trends which can be seen in WMS software are:

• Social Media can play a considerable role in reverse logistics
• Supply Chain can continue to move to the cloud
• Integrated communication across entire companies
• Use of mobile devices in the warehouse
• Enhancing security to protect inventory data
• Advanced predictive analytics to help with warehouse operations
• Warehouses can improve visibility 
• Automating the picking process
• Automated machine cleaning
• Sustainable Warehousing
• Heightens security regulations
• Mobility
• Information and Transparency through advanced APIs (Application Programming Interface)

The difference between inventory management and warehouse management system are:

• The warehouse management software system holds the capability to locate exact items in a warehouse while inventory management can just indicate the availability.
• Companies can manage entire storage systems within a warehouse with the help of the warehouse management system. On the other hand, the inventory management system can indicate the total amount of stock for one specific storage location. 
• The warehouse management software system provides the specifics of inventory control, whereas inventory management can furnish the quantity.
• Warehouse management is integral to the ongoing operations in other departments of the company, while this is not the case with inventory management.
• As per the requirement, the warehouse management system can allow the business to analyze and alter its inventory and storage, whereas this system does not imply inventory management.

The businesses require warehouse management software system due to the following reasons:

• For accurate Inventory counts and tracking
• Eradicate the requirement for regular inventory counts
• Streamlines customer service procedures
• Increases data accuracy 
• Reduce manual intervention
• Quickly and easily share information
• For transportation and logistics purpose
• Inventory Control and Management
• Customer Service and Tracking
• Return on Investment 
• Company’s productivity
• Meet and exceed compliance regulations
• Labor Tracking
• Reduce overall cost 

The fundamental principles of the warehouse management system are as follows:

• Find out the objectives of the facility: Warehouse owners and managers identify the goals of the facility (the essential part of the supply chain) that help in the proper planning and execution of the warehousing activities. The parties involved in the business have to decide how to maximize the usage of space, labor, and equipment. Warehouse owners address questions like what is the primary purpose of the business, who is the target audience, what types of goods are intended to be stored in the warehouse, and whether the design of the warehouse provides optimum efficiency.  
• Have optimum stock levels: Warehouse management solutions can effectively optimize the stock levels by demand forecasting and demand planning. The Warehouse management software system allows the accurate and efficient receipt of stock. It returns into a facility that can enhance warehouse management and help you in meeting all eventualities. 
• Control the movement and storage of goods: The warehouse management controls the movement and storage of materials that help in the accurate detailing of stock levels and the correct fulfillment of orders in the warehouse. The warehouse control system helps in providing substantial profit margins. 
• Focus on quality control: The warehouse management maintains quality control by ensuring that the right order is shipped every time and that there are no shortcomings while processing the orders. 
• Apt Software for Warehouse Operations: Implementing the right warehouse management software with the latest technology helps increase productivity and enhance warehouse operations. The appropriate WMS system can process sales orders speedily and associated transactions efficiently. By employing an efficient warehouse management system, warehouse managers can achieve higher customer satisfaction. 

The key points you should consider while purchasing warehouse management software are:

• Understand your warehouse challenges and prioritize the needs accordingly
• Figure out your budget and keep your employees in mind
• Form the list and review the marketing materials
• Explore what is your integration and scalability requirement
• Identify the physical layout of your warehouse
• Track your products by fixing a tracking system
• Find out what type of technical support is offered by the vendors
• Have an evaluation plan and decide the future support options

The price of the warehouse management system is based on the business size and the requirement of its operations. Small businesses prefer the features that mostly come in the basic plan of warehouse management software. On the other hand, large organizations need robust features, so they prefer to invest in advanced programs. 

The cost of the warehouse management software can start as low as $36/month (for example, Odoo MRP) and can reach as high as $999/month (for instance, Foysonis). Small and start-up businesses can try free and open-source warehouse management software. 

GoodFirms platform is continuously growing in terms of listing categories that also provide authenticated reviews of the users. This platform believes in performing thorough research based on the latest business trends. By exploring this vast platform, you can quickly gain an understanding of the top-notch quality and accessible warehouse management software available in the market. You can grab the opportunity to explore the list of warehouse management software before finalizing one of the best warehouse management software systems for your business requirements.