Why your warehouse needs a warehouse management system

Why your warehouse needs a warehouse management system

Does your warehouse need a WMS? And how can you evaluate the right one? 

Ask most warehouse managers what they want to achieve in 2026 and most will say ‘improve efficiency’ and ‘cut overheads’, or ‘prevent mistakes’ and ‘avoid bottlenecks. The problem is many of these issues are systemic and the result of relying on paper-based systems. 

If you are operating in a fast-paced industry and your competitors are using WMS technology, relying on paper-based systems will make it increasingly difficult to compete. This is true regardless of the scale of your operations. In fact, industry analysts will all agree that the biggest single factor influencing efficiency in the warehouse is linked to its use of technology. If driven by technology, like a WMS, there is the potential to dramatically improve performance. A warehouse management system (WMS) will track the flow of all goods into and out of the 4 walls, from initial arrival through to packing, dispatch and then to final customer delivery. This article explains some of the key benefits of using a WMS and, if you are considering an investment, how to approach the evaluation process. 

Five critical warehouse processes a WMS streamlines 

1. Goods receiving and put away

Stock sitting in the warehouse waiting to be booked in is an expensive overhead. Using a WMS automates the booking in process, making it immediately available for sales or production. A WMS also helps operatives to find locations for stock items and up to 30% more stock can be stored within the same total warehouse space. 

2. Order picking

Achieving the right levels of picking efficiency can make or break your logistics operation. A WMS enables orders to be picked and sent out as quickly and accurately as possible, shortening order cycle times and accelerating the payment cycles. This is especially important for e-commerce businesses where fast, inexpensive delivery is a key purchase driver. 

With a WMS you can choose a range of picking methods. This could include bulk orders or, for e-commerce businesses, a focus on picking single items picked as part of a ‘wave’. A WMS also supports item level traceability and it works in real-time. As soon as items are verified as picked, stock availability levels will automatically adjust. When a warehouse is managed with paper, this data needs inputting after the transaction, causing data delays and bottlenecks. 

Voice picking is now one of the fastest growing methods employed because of the way it improves productivity. By allowing two-way communication with a WMS using a wearable device, pickers can operate hands free. This is particularly useful in cold storage environments, where pickers wear protective clothing, or where warehouses stock high numbers of small items. 

3. Packing bench

A WMS provides end to end process automation. It enables the entire contents of a box to be scanned simultaneously, with an instant audit trail created. The system knows exactly what’s in the box and where each item needs to go, whether it is part of a single consignment or to be split into multiple orders. It can also spot opportunities to reduce consignments sent to parcel delivery firms, saving on transport costs and packaging. 

4. Stock counting

Doing stock counts at a single point in time is one of the most inefficient tasks in the warehouse. It is effectively dead-time, and it can cause huge disruption but it is also really important to know what stock you are holding. A WMS allows you to perform stock counts continuously, known as perpetual inventory management, by linking it with picking processes. Whenever an operative arrives at a location to pick items for an order, they can also count the stock left as an ongoing inventory check, ensuring figures are always up to date. This way of working also means warehouse managers are alerted when stocks run too low in any location, triggering an automatic replenishment request. The WMS can be set up to track likely stock requirements based on historical ordering patterns and replenishment reminders automated. 

5. Returns management

Returns are notoriously time consuming to process. It’s like doing goods receiving all over again, but this time the items also need quality checking. These incoming stock items aren’t working for your business until they’re booked in, and with a WMS this is as immediate as possible. When the process is also integrated with an e-commerce storefront, returned goods can be put back up for re-sale the second they’re checked back in. 

How to select the right WMS for your business 

• Implementing a WMS is an investment your business will rely on for many years, so identifying the best fit for your needs is crucial. 
• Start the process by understanding your long-term warehouse management requirements and business goals.  
• Create a shortlist of vendors by requesting recommendations from other users in the same or similar industry sectors.  
• Evaluate the shortlist for their technical product capabilities, customer service reputation, relevant industry experience and check out their reference sites. Ask those you are interested in to connect you with existing customers and go on some site visits. 

Checklist for evaluating the WMS your business needs 

Identify whether the WMS offers: 

• Scalable architecture that can accommodate additional server capacity and feature requirements 

• Extensible architecture that can accommodate custom development for specific process requirements and third-party integrations 

• Industry specific compatibility for sectors like food manufacturing. Does the system support ASN (advance shipping notifications), lot and batch traceability and stock rotation? 

• Integration capabilities to enable seamless data exchange with third party systems and visual reporting tools. 

Longevity is crucial when implementing a WMS. The system needs to serve your needs in the short and long-term, with potential for scaling and becoming more advanced as your business grows. Identify how easily new features can be added, for instance, you may want to introduce automation like robotic arms or AGVs (automated guided vehicles). 

Most importantly, speak to the vendor’s existing users. Visit their warehouse facilities and understand how the vendor supports them. If they’ve been using the WMS for some time and maintain a good working relationship with the software vendor, you will know they can become your long-term technology partner and an asset to your business.