How to choose the right WMS for your company

With this guide, we want to support you in this process and provide some practical tips on what to look for when selecting a Warehouse Management System.

At the beginning of the WMS selection process, most companies ask themselves: What does a warehouse management system actually need to be able to do? However, the selection process often heads in the wrong direction at this point. The key question is really: What does my warehouse management system need to be able to do?

This shift in perspective can determine whether a WMS implementation succeeds or fails. Defining your own requirements first and only then comparing different providers creates the foundation for a solution that remains a good fit over the long term. The key points at a glance:

• A thorough analysis of your own processes, goals, and requirements should be the starting point for every WMS selection.
• What matters is not the number of functions, but how well the system's standard functionality supports your warehouse processes.
• In addition to current requirements, consider factors such as integration, scalability, and investment security.

What does my warehouse management system need to be able to do?

Before comparing different providers during the WMS selection process, you should have a clear understanding of your own needs. Analyze your existing processes, define clear goals, and consider what requirements your future warehouse management system needs to fulfill.

This step is often underestimated. However, one study shows that insufficient customer-side knowledge of their own processes was a major factor in 76 percent of all postponed or canceled WMS projects. After all, if you do not know your own processes, you cannot select software that is a good fit for your needs.

The starting point for WMS selection: Create a requirements specification

Creating a requirements specification is the first step in the WMS selection process. It describes all requirements for the future system as well as the project's general conditions.

It can also be viewed as the customer's "wish list": The focus is not on the eventual solution, but on the requirements the warehouse management system needs to fulfill. Based on our experience, we recommend involving all affected areas at this stage.

Management, IT, logistics management, and warehouse personnel view processes from different perspectives and often have very different goals and needs. This helps avoid subsequent adjustments during the project and increases acceptance among the people affected by the project.

How do I define my requirements?

• Involve all colleagues affected by the project.
• Define the budget.
• Put your processes—whether manual or automated—to the test.
• Distinguish between current and desired future functions.
• Prioritize particularly important functions and requirements.
• Summarize the results and requirements in a requirements specification.

Which requirements are essential for a warehouse management system?

A requirements specification is only as good as the requirements for the warehouse management system described in it. It is therefore worth structuring these requirements systematically. In addition to the actual warehouse processes, interfaces, technical requirements, and future developments play an important role in selecting the right WMS.

Ask yourself questions such as: Which processes need to be fully supported digitally? Which ERP, shipping, or automation systems need to be connected? Should the Warehouse Management System be mobile or integrate scanners, forklift terminals, and other hardware?

Categories that should be included in every requirements profile:

• Warehouse strategies such as FIFO or FEFO
• Lot and serial number management
• Integration with ERP systems, shipping software, and warehouse technology
• Scalability as order volumes increase
• Cloud or on-premise operation
• Data protection and GDPR compliance
• Extensibility for future requirements

Efficient warehouse logistics starts with the right strategy: By considering topics such as WMS integration, scalability, and investment security during the WMS selection process, you can avoid costly retrofits and isolated solutions. Instead, you create the foundation for a long-term integrated system landscape.

What types of warehouse systems are available?

Before comparing providers as part of the WMS selection process, it is worth taking a look at the basic system options.

While standalone, specialized warehouse management software offers a particularly broad range of functions for complex warehouse processes and can be flexibly adapted to individual requirements, warehouse modules within an ERP suite offer seamless integration across the company. Which solution makes the most sense for your company depends on the complexity of your warehouse processes and your existing IT landscape.

When asking "What types of warehouse systems are available?", the operating model is another important distinction. Cloud solutions enable a fast start, flexible scaling, and less operational effort. On-premise systems, on the other hand, provide maximum control over infrastructure and data and are often chosen when company-specific security or compliance requirements apply.

Another important decision is whether to use standard software or a customized solution. Modern warehouse management systems often rely on a high degree of standardization while still allowing them to be adapted to individual processes. This enables companies to remain release-capable, reduce maintenance effort, and create a future-proof foundation for growing requirements.

How do I identify the right provider?

Once you have made your decision regarding the warehouse management system, the next step is to find the right provider. Project success depends not only on the system's functions, but also on the provider's experience and way of working.

When selecting a provider, pay particular attention to the following points:

• For broad expertise, place a high value on references across different industries.
• Develop a sense of the provider and its employees.
• Does the provider have in-depth logistics expertise?
• Are the information and figures authentic and well-founded?
• At every stage, you should feel that you are in good hands.
• Assign two employees to search for a WMS.

This makes the decision more objective.

Our tip: When reviewing providers' references and installations, be sure to critically question the information and figures. Provider websites sometimes contain highly contradictory or embellished figures.

A real negative example is a WMS provider that advertises 1,100 installations over 30 years on its website. That amounts to 36 installations per year, or 3 per month. Given an average project duration of 12 months for manual warehouses and 18 months for automated warehouses, this figure seems more than unrealistic.

How do I identify the right system?

• Get an impression of the system's look and feel.
• Does the WMS system's user interface appear practical for everyday use?
• Can your requirements be covered by the system's standard functionality, and to what percentage?
• Can prepared use cases be supported by references?
• Arrange reference visits.
• Can processes be represented in the system? Are processes demonstrated directly in the system, or are they presented solely through discussions and presentations, such as PowerPoint?
• Are processes documented and explained clearly and understandably?

Your WMS selection checklist

We have summarized the most important criteria for evaluating providers and systems in this compact checklist. Feel free to use this template for internal discussions between management, IT, and logistics:

• Are requirements and processes fully documented in the requirements specification?
• Are at least two employees involved in the WMS selection process?
• Have references from different industries been reviewed?
• Can the most important requirements be covered by the system's standard functionality?
• Has the provider demonstrated your processes directly in the system?
• Are scalability, release capability, and extensibility secured for the long term?

A warehouse management system should not only meet current requirements but also be able to grow with your company.

One example is PROLAG World. Our modular warehouse management system combines a high degree of standardization with the ability to address individual requirements. This allows companies to optimize their processes for efficient warehouse management with a future-proof approach, without giving up the benefits of standardized software.

Conclusion: The right WMS selection starts within your own company

The best software is not necessarily the one with the widest range of functions, but the one that reliably supports your processes through its standard functionality and integrates seamlessly into your IT landscape. A successful WMS selection therefore starts by aligning the system with your own processes and clearly defining your company's requirements.

By considering factors such as customization, scalability, and investment security from the outset, you create the foundation for future-proof warehouse logistics.

Would you like to take a structured approach to selecting your WMS or determine which system is right for your warehouse logistics? With more than 40 years of WMS experience, we support you from requirements analysis and system selection through to the long-term development of your intralogistics. Schedule your free consultation now!

FAQ - Frequently asked questions

What is the difference between WMS and warehouse inventory management software?

A warehouse inventory management system (LVS) primarily focuses on inventory management. A warehouse management system (WMS) goes significantly further: It controls and optimizes all warehouse processes—from receiving and order picking to replenishment and shipping—and connects to other systems such as ERP or automation technology.

How long does WMS selection take?

Depending on the size and complexity of the company, WMS selection typically takes between three and six months. The process includes requirements analysis, creating the requirements specification, evaluating different providers, system presentations, reference visits, and finally making the decision.

How much does a warehouse management system cost?

Costs depend, among other things, on the range of functions, the number of users, the operating model (cloud or on-premise), and the integration effort. In addition to license costs, project, training, maintenance, and operating costs should also be included in the overall assessment.

Is there also a solution for smaller companies? 

Yes. Not every company needs a Warehouse Management System with a very broad range of functions. For smaller warehouses or less complex requirements, leaner solutions such as PROLAG One are available. They digitize all key warehouse processes and can be connected to existing IT structures.