Top 10 Features to Look for in a Warehouse Management System (WMS)

What is WMS

WMS which stands for Warehouse Management System is a software that helps companies manage day-to-day warehouse operations from the time they enter the fulfillment centre until the moment they leave. Warehouse Management Systems play a crucial role in managing various components of supply chain operations, namely- procurement, replenishment, expiry-date management, real-time visibility, returns management and many more. While the core features remain the same, WMS solutions can have diverse offerings, such as reporting and analytics, automated picking and picking, integration with ERP and other systems, etc.

Benefits of WMS

• Real-Time Data & Analytics: A WMS provides actionable insights through real time data collection and reporting. With AI-driven analytics, businesses are able to forecast the demand, identify inefficiencies, and optimize operational strategies for better decision making. Using advanced technologies like barcode scanners, RFID tags, and IoT sensors, WMS can ensure visibility of the inventory in the warehouses and reduce the situations where inventory becomes forgotten, lost, or misplaced within the warehouse.  
• Compliance and Navigating Risk: Different sectors operate under stringent regulatory compliance and adhering to these guidelines is not only non-negotiable but critical to avoid costly fines and reputation damage. WMS ensures that all the warehousing operations comply with the latest regulations, reducing the burden on the managers and protecting the business from any potential legal issue. 
• Improved Labor Management: A WMS can help in forecasting the labor needs in the organization, create schedules and assign the right task to the right individual on the basis of various factors such as skills, competency, willingness etc  to maximize efficiency. A good WMS system can also assist in boosting employee morale by creating a more relaxed, organised, and safe environment where workers feel their time is valued and being used wisely.
• Optimized Warehouse Space Utilization: By analyzing warehouse layout and storage pattern, WMS helps in maximizing space utilization by optimizing storage location, reducing retrieval times and minimizing aisle space.
• Reduced Waste and Costs: WMS keeps a track of the product batches with attributes ( Mfg. date, exp. date, MRP) and  can identify which items need to be picked first in order to minimize wastage and ensure quality. Additionally, it automatically keeps a track of inventory across locations thus, reducing chances of human intervention and errors. 

Principles of Efficient Warehouse Management System

• Automation: A Warehouse Management System should be designed in such a way that it reduces human intervention and automates warehousing tasks such as picking, packing, inventory management, inventory tracking thus, reducing human errors.
• Scalability and Flexibility: Warehouses need to evolve with the dynamic and uncertain business changes. A WMS should be scalable and adaptable to changing operational requirements, allowing seamless expansion across multiple locations.
• Security and Compliance: Complying with the regulatory policies and maintaining data security are essential principles of a Warehouse Management System. A WMS should include robust security measures and data encryption to ensure compliance standards.
• Seamless Integration: A WMS should be able to integrate with existing systems such as ERP, OMS, TMS , 3PL’s in order to maintain smooth connectivity and enhance overall supply chain efficiency.

Types of Warehouse Management System

• On-Premise Solutions: An on-premise WMS is installed and maintained on a company’s local servers. They provide the businesses complete control over their systems and provide flexibility to customize it according to the specific needs and security requirements. However, they are more expensive than other options as they require significant upfront costs for installation and maintenance.
• Cloud Solutions: These are hosted on remote servers, offering greater scalability, accessibility, lower cost of entry compared to on-premise solutions. Cloud based WMS also allows for real time updates and seamless integration with other supply chain applications. The main downside of cloud solutions is that customers don’t have full control over their data or environment which may lead to concerns about privacy and security.
• Hybrid solutions: The word “Hybrid” as the name suggests is the combination of on-premise and cloud solutions, offering best of both the softwares. It gives customers control over their systems while also providing scalability and flexibility with the help of cloud resources when needed. It is suitable for organizations that want more control but want to take advantage of cloud services like cost savings and scalability. 

Choosing the Right WMS for Your Business

Selecting the right WMS for your organization requires careful consideration of various factors:

• Easy and quick implementation: The system would easily integrate with the user’s interface and require minimal downtime.
• Cost: Organizations should access both one time and recurring cost associated with the implementation of WMS and analyze the ROI from the integration.
• User-Friendliness: The interface should be simple enough to reduce training time and improve adoption among the warehousing staff.
• Consider Support and Training: Your staff must learn new skills when implementing a new WMS. Find a company that offers thorough training and support services, such as Shipsy. The WMS’s advantages for your company are maximized when your workforce is properly trained and able to use it to its fullest capacity.
• Customization Options: Your WMS should be able to support the unique operations and workflows of your warehouse operation. To customize a WMS to your company’s needs, look for alternatives for customization. With this flexibility, you can be sure that the WMS adapts to your operating needs rather than the other way around.
• Assess Your Business Needs: An in-depth analysis of your business requirements is the first step in selecting the best WMS. Determine the problems, obstacles, and objectives facing your warehouse operations. Take into account elements like order volume, SKU count, inventory turnover, and the products you deal with. You will gain a better understanding of the exact functionality and features needed in a WMS to meet your particular requirements from this initial assessment.

Advanced Warehouse Management System (WMS) features

1. Real-time Inventory Tracking

Real time tracking stands as a cornerstone of effective inventory management and is one of the most critical features of Warehouse Management Systems. It ensures that every movement of the inventory is recorded and provides up to date information. With AI-driven analytics, businesses can forecast demand, identify trends and inefficiencies, and optimize operational strategies for better decision-making and adjust inventory levels proactively. Additionally, it helps in avoiding the discrepancies which result in costly issues such as stockouts and overstocking using the traditional inventory management system. 

A WMS equipped with advanced technologies like RFID tags, barcode scanners, IoT sensors enable warehouse managers to make informed decisions, reducing the need for manual checks and lowering the risk of human error. Furthermore, it also plays a crucial role in enhancing customer satisfaction by enhancing order accuracy.  

2. Returns Management

Reverse logistics has become a critical feature of any WMS, particularly for industries dealing with high return volumes, such as eCommerce, retail, and durables. A WSM with advanced returns management features enables businesses to turn returns into an opportunity for improving operations and customer satisfaction. An Advanced WMS should streamline the entire reverse logistics process, from initiating return requests to restocking, refurbishing, or disposing of returned goods.

Effective returns management also helps in enhancing customer satisfaction by ensuring that the return requests are processed quickly and accurately. It also plays a key component in customer return strategies by providing timely updates about the returns, replacement and refund.

For cross-border and omnichannel returns, a WMS can support multi-location return processing to allow customers to return products at various locations at their convenience. Moreover, Advanced AI-driven return analysis can identify patterns in returns, helping businesses minimize future return rates by pinpointing quality issues, incorrect shipments, or fraudulent return activities.

3. Integration with TMS and other systems

A WMS should be capable enough to integrate with other systems to fully realize its potential.  A WMS should be capable of exchanging real-time data with ERP (Enterprise Resource Planning) software, Transportation Management Systems (TMS), eCommerce platforms, and third-party logistics (3PL) providers. This also helps in ensuring that warehouse operations remain connected with the supply chain ecosystem, leading to increased efficiency and accuracy.

The supply chain of the businesses gets complicated as it expands and grows, and thus points out the necessity to have an integrated platform to accommodate these new requirements. Additionally, enhanced visibility and communication between warehouse and transportation teams foster better collaboration. When both teams have access to the same real-time data, they can work together more effectively to address challenges, respond to unexpected changes, and ensure smooth operations.

Success of a business is not dependent on the work of a singular unit, but a robust management system like that of WMS+TMS+OMS platform that facilitate seamless coordination in different departments and deliver exceptional value to their customers. 

4. Intelligent Reporting and Analytics

A WMS with detailed analytics and reporting capabilities empowers businesses with real-time insights, performance tracking, and predictive analytics. This provides warehouse managers complete visibility into inventory levels, order fulfillment rates, workforce productivity, and operational bottlenecks.Advanced analytics can identify the historical trends and patterns and can predict future demand trends, enabling managers to adjust inventory levels accordingly. Similarly, analytics on picking times can help managers optimize labor allocation, ensuring that resources are used effectively during peak periods.

Many industries, especially those dealing with pharmaceuticals, food, and regulated goods, require strict compliance and audit reports.  A WMS with automated reporting features ensures that the organization adheres to regulatory compliances and automates audit trails for financial reporting and inventory tracking. With scheduled reports, warehouse managers can quickly generate compliance documentation without manual effort, reducing the risk of errors.

5. Automated Picking and Packing

Automated picking and packing is a critical component of a modern WMS, reducing manual intervention and enhancing efficiency. This feature leverages advanced technologies such as barcode scanning, voice-directed picking, and even robotics to streamline the order fulfillment process. Automated order processing workflows through instant picklist generation, intelligent picker assignment and automated invoice processing helps in accelerating the order fulfillment process. 

Additionally, a WMS should support multiple picking strategies — single order picking for direct-to-consumer shipments, batch picking to consolidate similar orders and minimize travel time, zone picking to allocate specific warehouse sections to designated pickers, and cluster picking for simultaneous multi-order fulfillment. These strategies collectively reduce picking cycle time and improve overall throughput. Furthermore, a robust WMS should orchestrate order fulfillment based on channel-specific priorities, optimizing picking and packing workflows for B2B, B2C, and rapid quick-commerce deliveries. By integrating automation with intelligent workflows, businesses can enhance accuracy, minimize labor costs, and ensure faster, more reliable order fulfillment.

6. Compliance

Various sectors such as pharmaceutical, FMCG, food and beverage, eCommerce, healthcare, logistics and many more operate under strict regulatory compliances and framework. A warehouse management system should not only optimize operations but also ensure that the organizations adhere to industry regulations and safety standards. Adhering to these guidelines is not only non-negotiable but critical to avoid reputational damage and costly fines. An advanced WMS should help in preparing audit trails and detailed activity logs that allows the companies to demonstrate compliance during audits. Moreover, Automated generation of compliance reports, safety documentation, and quality control checklists reduces the administrative burden and minimizes the risk of human errors.

7. Data Protection & System Resilience

Data Security is another critical aspect of WMS. With the rising threat of data leaks and cyber threats, a WMS must incorporate end-to-end encrypted and multi factor authentication to prevent unauthorized access of confidential data of the individuals. Additionally, automated backups and disaster recovery protocols ensure that warehouse operations remain uninterrupted even in case of system failures. 

8. Workforce Management

As the size of the company grows, managing staff becomes more complicated. An efficient WMS should include a comprehensive labor tracking and performance management to keep a track over the warehouse staff performance and their efficiency. Managers would also be in a better position to analyze the reason for any deviation in the staff’s KPI’s and take corrective action accordingly to improve their productivity.

A task based labor allocation system assigns jobs to the individuals on the basis of their competency and experience. Additionally, automated task prioritization ensures that urgent orders or time-sensitive shipments are processed first, improving overall warehouse throughput. Gamification features like leaderboards, reward programs and achievement badges encourage healthy competition and improve overall workforce efficiency.  

The language used to communicate any shift schedules, task updates, and monetary information needs to be very simple and preferably in the region’s native language. The User Interface of the app should be precise and mobile friendly to make it easier for staff to operate. 

9. User-Friendly Interface

A modern Warehouse Management System (WMS) must be accessible on mobile devices and features an intuitive, user-friendly interface to ensure seamless warehouse operations. This allows the warehouse staff to perform critical tasks like picking, scanning, and tracking directly from their devices. Additionally, it removes the need for manual data entry and provides real time access through essential information, ensuring that the warehouse operations are run smoothly all the time. Mobile WMS solutions also empower managers to monitor warehouse operations remotely, ensuring that warehouse solutions run smoothly at all times.

10. Scalability

In an era where businesses keep on evolving every other day, scalability and flexibility have become an essential attribute of a robust Warehouse Management System. A scalable WMS should be capable of adding workflows according to the business needs and seamlessly adjust to increased volumes of inventory, orders and movement. As organizations operate more and more warehouses, a scalable WMS must allow the manager to operate all of these warehouses from a centralized application.This enables seamless and efficient management of inventory levels across multiple warehouses.

Choosing the right Warehouse Management System is a crucial decision that can significantly impact your supply chain efficiency. By focusing on these 10 essential features, businesses can ensure seamless warehouse operations, improve inventory accuracy, and enhance customer satisfaction.

Looking for an AI-powered WMS solution? Shipsy is helping leading businesses achieve:

• 99.9% inventory accuracy
• 95% improvement in shipment quality
• 25% boost in workforce productivity
• 60% decrease in inventory loss due to expiry
• 20% improvement in warehouse space utilization

Book a demo and explore how Shipsy’s advanced logistics technology can transform your warehouse operations!