Warehouse management software for small businesses: what you need to know

As an entrepreneur or small business owner, you might be used to running a dozen key functions at once — whether because you’re the only person who knows how a process works, or because it’s just cheaper that way. It might go against your nature to start passing off business critical tasks, but in the age of viral TikTok success, you could be in over your head basically overnight.

Two areas that are a no-brainer to improve are your warehouse and inventory management processes. Choosing the right warehouse management software (WMS) can get you ready for the big leagues, but the right tech can also transform your supply chain, boost efficiency, and improve your bottom line.

The importance of warehouse management for small businesses

Effective warehouse management is critical for any business that stores and ships physical products. Whether you're an ecommerce retailer, a distributor, or a manufacturer, having the right systems in place can make all the difference. A good WMS can provide a range of benefits, including:

• Improved inventory visibility and control: Gain real-time insights into stock levels, item locations, and product movements.
• Streamlined order fulfillment: Optimize workflows for receiving, picking, packing, and shipping orders.
• Reduced labor and storage costs: Maximize space utilization and automate time-consuming tasks.
• Better customer service: Ensure accurate, on-time order fulfillment to keep your customers happy.

For small businesses, these advantages can be game-changing. With thin margins and limited resources, every optimization counts. A well-implemented WMS can unlock significant cost savings, improve your competitiveness, and better serve your customers.

Key features to look for in a WMS

When evaluating warehouse management software solutions, there are several key features to consider:

Order fulfillment

Streamlining your order fulfillment processes is crucial for delivering a great customer experience. The right WMS should include features like barcode scanning, pick-and-pack workflows, and seamless shipping integration to optimize your order processing.

Integrations

To streamline your workflows, choose a WMS that offers robust integrations with your existing ecommerce platforms, accounting software, and other business systems. The more your systems can talk to each other, the more efficient your operations will be.

Reporting and analytics

Comprehensive data insights are essential for making informed decisions about your warehouse operations. An effective WMS should provide detailed reports on metrics like inventory turnover, order accuracy, and workforce efficiency.

Inventory management

Accurate, real-time inventory tracking is the foundation of any good WMS. Look for solutions that offer robust tools for monitoring stock levels, item locations, and product movements. Automated alerts and reporting can also help you stay on top of inventory and avoid stockouts.

Top WMS solutions for small businesses

When it comes to warehouse management software, there's no one-size-fits-all solution. The best system for your small business will depend on factors like your industry, the size and complexity of your operations, and your specific needs and goals.

Here are some of the top WMS platforms to consider:

ShipStation

While not a full-fledged WMS, ShipStation is a popular shipping software that can be a great starting point for small businesses handling their own fulfillment. It offers features like automated shipping workflows, carrier rate comparisons, and order management. ShipStation's affordable pricing and user-friendly interface make it a solid choice for growing ecommerce businesses.

ShipHero

ShipHero is a cloud-based WMS designed with small to medium-sized businesses in mind. It provides inventory tracking, order management, and integrations with popular ecommerce platforms like Shopify and WooCommerce. ShipHero is known for its intuitive interface and scalable pricing, making it a great fit for companies that are expanding their operations.

Extensiv

Formerly known as 3PL Central, Extensiv is a comprehensive WMS solution that caters to both third-party logistics (3PL) providers and ecommerce businesses. Its features include inventory management, order fulfillment, shipping integration, and robust reporting capabilities. Extensiv is well-suited for growing companies that need a scalable, cloud-based WMS.

Parabola

While not a WMS itself, Parabola is a powerful workflow automation tool that can complement your warehouse management software. Even the best WMS platform may not seamlessly integrate with all your other business systems. Parabola can help bridge those gaps, allowing you to create custom workflows and automate time-consuming tasks across your operations.

Choosing the right WMS for your small business

When selecting a warehouse management system, it's important to carefully evaluate your specific needs and choose a solution that aligns with your business goals. Consider factors like your current and projected order volumes, the complexity of your warehousing and fulfillment processes, and your budget.

Start by making a list of your must-have features and nice-to-have capabilities. This will help you narrow down the options and find a WMS that provides the functionality you need without breaking the bank. It's also a good idea to get input from your warehouse staff, as they'll be the ones using the system day-to-day.

Once you've identified a few promising candidates, take advantage of free trials or demos to get a hands-on feel for the user experience and technical capabilities. Pay close attention to the onboarding and support offerings as well, as a smooth implementation and ongoing assistance can make a big difference in the long run.

Investing in the right warehouse management software can be a game-changer for your small business. By streamlining your operations, improving efficiency, and enhancing the customer experience, a well-chosen WMS can help you gain a competitive edge and set your company up for long-term success.