How to select a small business WMS

When comparing warehouse management systems for your small business, it's essential to evaluate your specific needs.

While these often align with those of larger businesses (e.g., reducing costs, increasing efficiency, boosting profitability, and improving customer satisfaction), smaller warehouses face unique constraints.

This article will guide you through what to look for in a small business WMS, covering:

• What is a WMS?
• Picking
• Put-away
• Dock scheduling
• Labor management
• Cloud WMS
• ERP integration
• Some of the best small business WMS vendors

What is a WMS?

WMS is software that enhances a business's ability to manage inventory and keep it moving through a warehouse.

Warehouse management systems for small businesses streamline processes like receiving, picking, packing, shipping, labor tracking, and reporting to keep products moving through the warehouse smoothly.

One major difference between small and large businesses is the resources available. Budget constraints play a critical role; a $100,000 investment might be manageable for a larger business but overwhelming for a small one.

Staffing limitations also matter. A small business might have just 25 employees, with only one or two familiar with WMS software. Because of this, small businesses need a cost-effective, easy-to-implement WMS that minimizes disruption and maximizes efficiency.

Picking

Every warehouse requires a system to efficiently retrieve inventory for orders, a process known as picking. In a small warehouse, a single employee might handle picking. If the warehouse management system software for small businesses provides an optimized list sorted by shelf location, the picker can move through the warehouse using the shortest path.

Larger businesses may use wave picking, where multiple employees move through the warehouse in coordinated waves. Regardless of size, the goal remains the same: minimize unnecessary movement while ensuring order accuracy and efficiency.

Put-away

A small warehouse might receive some boxes from UPS once or twice a day. A large warehouse might have a never-ending flow of trucks and trains bringing stuff to be stored all day, every day. Regardless of volume, put-away efficiency is critical. Small businesses often rely on employees' instincts for placing inventory, but a WMS can automate this process.

Some items are already on hand, and they put the newly received items in the same place or nearby. A brand-new item will go wherever there is some empty space or, perhaps, where that space can be created by moving a very few other items.

By establishing custom put-away rules, a WMS ensures frequently picked items are stored near the shipping area, reducing travel time. Items needed immediately for outgoing orders can be cross-docked directly to the shipping area, eliminating unnecessary movement.

Dock scheduling

Even the smallest warehouse is subject to Murphy’s Law. Only three receipts are due today, but that law tells us that all three trucks will arrive at the same time and want to use the only dock we have. Warehouse management systems often include dock scheduling tools that require suppliers to book delivery appointments.

Browse and compare WMS systems using our WMS software comparison tool to find one that meets all your requirements

These systems allow businesses to prioritize critical shipments and ensure the right resources are available at the right time. For example, frozen goods can be assigned to the dock nearest the freezer, while conveyor belts can be scheduled for large parcel deliveries.

Labor management

While large warehouses adjust staffing levels based on demand, small businesses typically operate with a fixed crew. A WMS helps optimize daily workloads by reallocating tasks dynamically. On slower days, the system may shift labor toward put-away and slotting, ensuring efficient operations without unnecessary downtime.

Cloud WMS

Most platforms are now cloud-based, using Software-as-a-Service (SaaS) models. These require no significant upfront investment. Instead, businesses pay a monthly fee.

Cloud WMS providers typically offer onboarding assistance, helping businesses upload inventory data, configure workflows, and establish rules. Look for a WMS with an intuitive interface to ensure smooth adoption by employees.

ERP integration

Many small businesses use ERP systems for accounting and sales. Some ERP solutions include warehouse management system modules, allowing seamless inventory tracking and order processing.

Integrating a WMS with an existing ERP system ensures real-time inventory visibility and optimizes stock locations within the warehouse.

What's the best WMS for small businesses

To find your best-fit best small business WMS, start by narrowing down your must-have features. Research available solutions, read user reviews, and request demos to ensure compatibility with your business processes.

Here are some popular options to add to your shortlist:

• Da Vinci Unified WMS by Wolin Design Group
• Catalyst WMS by Aptean
• Epicor WMS, from the well-established ERP provider
• Odoo Inventory, an open-source solution for tech-savvy businesses

Honorable mention: MRPeasy. Not a WMS, but a popular AI-powered MRP system for small manufacturers.