How to select a small business WMS

When comparing warehouse management systems for your small business, you should consider your business's needs.

In general, those are much like those of a larger business, such as lower costs, increased efficiency, more profit, and better-satisfied customers.

In this article, we'll discuss what small businesses should look for in their WMS, covering:

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

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 WMS can list those items ordered by the inventory 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 every required item is picked in time to meet the customer’s expected delivery.

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.

A warehouse management system can direct the flow for us using rules we created based on the needs of our warehouse; 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.

What we are doing with our WMS is automating the process, and the rules we set might allow the worker who just started today to benefit from the knowledge another worker stored up over years because that knowledge is now available to anyone through the warehouse management system.

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 allow suppliers to book delivery appointments.

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

They can make the appointment online, so the burden is small and the payoff is the ability to receive the most important delivery first and space out our work.

If we know a delivery is a trailer full of parcels, we can schedule our conveyor to be at the dock when it is needed. If we know the delivery is frozen items, we can schedule it to be at the dock door next to our freezer.

We can now schedule the right workers to be at that door when they are needed so all of our resources are optimized.

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 warehouse management system for small businesses

To find your best-fit 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
• Finale Inventory, a cloud-based WMS built for small teams moving off spreadsheets
• 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.