Warehouses are commonplace in many industries, but ecommerce is one of the use cases where the benefits of good order and wider warehouse management is most obvious.
During busy sales periods, like Black Friday, having a robust warehouse management system is essential. This system should help with the picking and sending of orders quickly. This is where many start to seek out a WMS for ecommerce that can help them do just that.
Here’s where we can guide you through the process of selecting the right ecommerce WMS for your use case. We’ll touch on examples of areas to look at and provide some of the most frequently asked questions you may have about getting the software.
Table of Contents
Understanding the Role of WMS in Ecommerce
It is worth noting that there are many ways that you can improve your warehouse operations outside of software applications, but a WMS for ecommerce will help to give you that marginal benefit that can make all the difference when your warehouse reaches capacity.
Finding the best WMS for ecommerce will reduce the need to rely on manual processes and allow for a much more scalable warehouse operation, helping your warehouse workers reduce errors and in general improve the accuracy of orders.
Wider Benefits of a WMS for Ecommerce
There are numerous upsides when introducing a WMS for ecommerce which will have positive impacts both on your staff and finances, you can find some of the main ones below which may help when building a business case for selecting the best ecommerce WMS:
Real-time inventory management: A WMS provides real-time tracking of inventory levels, ensuring businesses always know what’s in stock and where it’s located. This prevents stock outs or overstocking and enables faster replenishment, resulting in better inventory control and more efficient order fulfillment. Having this control over stock levels is a big benefit for your order management team.
Improved order accuracy: With features like barcode scanning and automated picking lists, a WMS reduces errors in the picking and packing process. Accurate order fulfillment minimizes returns, increases customer satisfaction, and strengthens brand loyalty, leading to fewer customer complaints and better reviews.
Enhanced scalability: A strong WMS can grow with your business. Whether it’s handling seasonal order surges or expanding into new markets, a WMS can scale operations efficiently. This flexibility allows ecommerce businesses to meet increasing demand without compromising performance or adding excessive labor.
Cost reduction: By optimizing labor, reducing errors, and improving workflow efficiency, a WMS helps cut operational costs. With faster order processing, reduced returns, and minimized inventory holding costs, businesses can operate more profitably while delivering a better customer experience.
Assessing Your Ecommerce WMS requirements
Not all warehouses will have the same WMS requirements and having a good understanding of what yours are will help you when it comes to assessing which provider is the perfect fit.
Step 1: Map Out All the Current Warehouse Operations
Getting to grips with your operations has to be the first step, this will help you map out the priority areas to improve for efficiency and also give you a chance to (ideally with your warehouse staff) discuss any areas of the wider warehouse management that could do with improvements. Some of the areas to consider include the following:
- Arrival of goods to the warehouse
- Picking and packing processes
- Staff movement around the warehouse
- Distribution of goods in the warehouse
- Final dispatch
Starting to record the above will give you insight into potential bottlenecks and priority areas, which will then feed into the must haves vs the nice to haves.
Top tip: Make sure you have an understanding of your ecommerce platform before you make the decision on a WMS. For example, if you use Shopify, then there are warehouse management systems for Shopify that offer great functionality.
Step 2: Define the Must Haves vs Nice to Haves
Once you have a clear understanding of current operations, the next step is to define the must-haves versus the nice-to-haves for any new system or improvement.
This involves separating the essential elements that directly impact productivity, safety, and compliance from those that may simply offer convenience or cosmetic benefits. Must-haves typically include systems for real-time inventory management, reliable order processing, and adequate storage solutions.
In contrast, nice-to-haves may include advanced reporting features, upgraded ergonomic equipment, or additional automation tools. By clearly differentiating between the two, you can prioritize investments that drive tangible improvements in operational efficiency while also leaving room for future upgrades. Remember to keep staff involved throughout this process, what management may consider a nice to have, staff may consider a real must have for the expected impact it could have on the warehouse operation.
Step 3: Forecast for Future Growth
The final major step to consider starts with looking towards the future; if you are implementing a WMS then you may well be on a growth trajectory or at least near one. This means you should anticipate future demand and make sure you take into account the scalability of the warehouse system you are looking to implement.
Evaluating Different WMS Providers
Now comes the fun part, diving into the potential providers out there to get an understanding of what they offer. The first step should be to do a search online to find the major providers, try to look beyond commercial landing pages and seek out case studies, reviews and customer testimonials. This will give you the wider context needed to make the decision beyond the information on WMS benefits and implementation (which is still of course very important).
Following this stage, look to schedule a WMS demo to see if the potential systems could suit your needs. This will give you the chance to speak to someone who has experience with the system and ask specific questions on what the use case may be for your organization. After you have had this demo, look into the associated investment required and start to map out the ROI available (most reportable WMS providers will have ROI calculation content that guides you along this path).
FAQs:
- What are the most important features of a WMS for ecommerce businesses?
Key features of a WMS for ecommerce include real-time inventory tracking, integration with ecommerce platforms, and efficient order fulfillment, including pick, pack, and ship automation. The system should support multi-channel sales, handle high order volumes, and provide accurate stock visibility.
Return management, scalability, and warehouse automation (like barcode scanning) are also crucial for maintaining operational efficiency.
It is worth noting that importance is also greatly determined by what your specific pain-points are, as the solutions and features for these will naturally provide the biggest benefit.
Watch this case study to see how choosing the right WMS supported VRG GRL in transforming their operation, enabling them to increase productivity by 200%
- What are the typical costs associated with a WMS implementation?
WMS costs depend on factors like warehouse size, operational complexity, and required features. Some of the most common costs include software licensing, integration, hardware, and customizations. Training, consulting, and ongoing support may add to the expense. Small systems might cost a few thousand, while larger ones can reach hundreds of thousands, with ongoing costs for updates.
You can see Descartes Peoplevox pricing as an example below. View the interactive pricing table.
- How can I ensure my team is ready for a WMS implementation?
Ensure your team is ready by providing thorough training, including hands-on sessions. Involve key members early and assign internal champions to guide the process. Clear communication about project goals and timelines is essential, along with regular check-ins and post-implementation support to ease the transition and ensure smooth adoption.
- What are the common mistakes to avoid when selecting a WMS?
Common mistakes include not fully assessing needs, excluding end-users from the process (keep the warehouse staff involved!), and focusing solely on price. Many people often overlook scalability and integration, which can cause future issues. Rushing the selection process or skipping vendor evaluations can also lead to problems. Thorough research and planning help avoid these mistakes.
Key Takeaways
- Understand your warehouse needs: This will help you set out on the right route when it comes to selecting your warehouse management system; prioritizing the right features and making sure you have defined the must haves from the nice to haves.
- Involve the end user (warehouse staff) in the decision-making process: This will help get buy-in on the changes they may need to make to the workflow to incorporate the WMS and get them on board with the benefits it can bring.
- Plan for the future with your WMS: Whilst more comprehensive warehouse management systems can be more expensive, having the foresight to predict future demand will help you get the right workflows in place that can be scaled up when you see an increase in orders.
