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  • Writer's pictureRoss Bright

How much does Warehouse Management Software (WMS) cost? What is it, and do you need it in 2022

Warehouse management software (WMS) is the logistics industry's latest tool up its sleeve to deliver gains in efficiency, drive down operating costs and provide a more seamless experience for customers.


Warehouse management software refers to any system that tracks and manages the day-to-day operations of a warehouse or distribution centre. The main characteristics of a WMS are the ability to track stock and inventory, handle shipments, control manual or automated picking and help keep track of items ready to be shipped.



Many of these software suites take advantage of cloud computing to offer SaaS (software-as-a-service) models. With cloud-based WMS systems, managers can remotely access the system’s dashboard and check the status of stock and operations at a warehouse. Supply chains with real-time visibility into their inventory and operations can actively improve their operational efficiency.


In this article, we’ll explore how much warehouse management software costs, why you need it and some options for WMS providers.


Why do I need Warehouse Management Software?

Firstly, warehouse management software helps create a far more adaptable workflow for warehouses. Adapting quickly is the key to staying competitive in today's new fulfilment climate.


WMS takes advantage of the increased digitalization of processes in the logistics industry, and this allows for all stakeholders to remotely check on the progress of various tasks and shipments. With cloud-based WMS solutions, outsourced customer service is possible as agents can find out the exact status of an individual order.


With the shifts in customers' buying patterns towards online shopping and tracked deliveries, consumers are demanded accurate and up-to-date information about their shipments. WMS systems can help provide shipment updates and real-time visibility directly to the customer.


How much does WMS cost?

The exact cost of WMS deployment varies depending on the pricing model of your provider, the size of your organization and your specific use case. The most accurate way to get a quote is to speak directly with the sales team of your chosen provider.


However, according to research by SoftwarePass, the average spend on WMS is $167 per user per month. Small facilities with 5 users should expect to spend around $500 a month per warehouse.


What to look for in Warehouse Management Software

When selecting the right warehouse management software for your business, it’s important to be familiar with the components of WMS packages.


Firstly, is your WMS cloud-based? This makes it far easier for stakeholders, employees and customers to access the information stored in your WMS database. Also, cloud services inherently include a degree of location redundancy. In the event of a disaster on-premises, the sensitive data stored in your WMS is easily retrievable. No lost customer details, no lost inventory lists and no lost orders.


Secondly, what features does this WMS have? Any quality WMS should cover the fundamentals well:

  • Order picking and fulfilment

  • Inventory tracking

  • Shipping and receiving

  • Labor management

How well does this WMS integrate with any existing ERP (Enterprise Resource Planning) systems? Some providers – as we will see later on – have an integrated ERP and WMS environment. If you don’t have pre-existing ERP database, these providers may be a good shout!


Thirdly, what is the pricing structure like? There are three main licensing models to choose from:

  • Software-as-a-Service (SaaS) – This option reduces the IT overhead needed to implement the software. It is characterized by greater support and better scalability. If you want software that grows with your business, this is a good option.

  • Leasing: A flat monthly or yearly fee to use the software. Leased software often requires more tinkering and management.

  • Perpetual licensing/one-time fee: For one lump sum, you get a licence forever by purchasing the WMS outright. You'll then be responsible for maintaining your WMS database and fixing any problems that may arise. Usually, you'll need to pay for updates and new releases.


Option 1: Oracle Warehouse Management Systems

Oracle is one of the biggest cloud service providers in the world, providing cloud-based software to multiple industries. Their Warehouse Management package is commonly regarded as the best-in-class for medium-to-large enterprises.


Organizations of all sizes can use Oracle WMS thanks to its cloud compatibility - and as a Software-as-a-Service (SaaS), the infrastructure behind it can be scaled up as your business grows.


Warehouses can improve productivity, increase accuracy, and reduce inventory costs by organizing, optimizing, and streamlining warehouse capacity.


The cost of Oracle's WMS differs depending on the size of your organization and the specific features you're looking for. However, a good baseline is their Warehouse Management Enterprise Edition which comes in at $50 a month per 1000 warehouse transactions. Therefore, a warehouse handling 10,000 transactions a month will only be looking at $500 a month for their ground-breaking WMS system.


Option 2: Infoplus

Infoplus is another cloud WMS provider, geared towards smaller businesses. Using a single platform, Infoplus allows customers to manage inventory, orders, and shipments across many warehouses and clients.


Infoplus’s strengths lay in real-time data analysis. Alerts and daily reports help you stay on top of inventory changes as they happen for the quickest response times and the most accurate insights.


Their WMS automates key workflows based on the recommendations of machine learning technology – for example, identifying the best way to group and process orders. This helps make your operations more efficient and reduce the likelihood of costly errors.


With these added tools comes an added cost over Oracle. As with most tailored solutions, the cost changes based on your warehouse size, number of transactions and specific needs. Saying this, a good indication is their starting price of $695.00 per month.


Conclusion: Want to learn how to reduce your software costs?

There we have it, a whistle-stop tour of Warehouse Management Software. A quality WMS is vital for adapting to the changing demands of the fulfilment sector. Implementing a cloud-based WMS system can help drive down operating costs and improve the customer journey for both B2B distribution centres and B2C alike.


Want to learn more about how to reduce your software costs? smartcost.io is the perfect tool for getting a better price on your WMS deployment.


We leverage our experience and proprietary pricing database to find savings opportunities for your business, potentially saving you thousands! Get in touch with us today to see how we can help or answer any questions you may have.

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