Not Sure if You Need a New WMS? Answer These 5 Questions!

If you’ve been in business for any length of time, you understand just how important your Warehouse Management System (WMS) is to both your growth and your success. Are you wondering if you’ve outgrown your current system?

It can be hard to know exactly when the right time is to make that move and invest in your future. But we’re helping you simplify the process!

Just answer the following questions to figure out if you should consider investing in a new WMS.

#1: Are current industry trends on your radar?

Being able to assess customer expectations and keep an eye on what your competition is up to ultimately plays a huge role in how quickly you can adjust, adapt, and if needed, course correct.

Do you struggle with this? Keep in mind just how important it is that you regularly research increases in market demand and innovative technologies. Keeping your finger on the pulse of what’s influencing your industry is essential to growth.

WMS systems are incredible assets to achieve this goal, as they strengthen accuracy, boost customer satisfaction, add transparency and increase efficiency.

Smarter Warehouse Management
Real-time inventory visibility, barcode scanning, and streamlined operations—purpose-built WMS for your warehouse.
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#2: Is EDI compliance important to you?

The majority of large retailers now use what’s known as electronic data interchange (EDI). EDI allows for automatic transmittal of all order information direct to your accounting database and/or warehouse systems.

Effective WMS software makes working with top, major, national retailers a possibility.

#3: Is growing your eCommerce a goal?

Do you sell online? If so, the right WMS system can help you achieve your goal to grow. WMS software allows you to handle an influx of transactions and expand your customer base.

Other benefits? Trust, loyalty and the likelihood that satisfied customers will become repeat customers (and refer you to others!). WMS systems can improve inventory management and order accuracy while getting shipments out the door, fast! eCommerce integration with a WMS solution equals ROI gold.

#4: Have you recently invested in any new equipment?

Have you invested in growing your business through the purchase of big-ticket items like equipment? If you’ve recently purchased:

• Carousels
• Conveyors
• Reach trucks
• Handheld scanners
• Forklifts
• AGVs
• or more…
• …it may be time to think about upgrading your WMS system.

What if you haven’t upgraded equipment recently? This is the honest truth: if you have old, outdated equipment, you might want to think about waiting to invest in a new WMS. Once you’re fully committed to the latest equipment that will allow you to do more to grow your business, a powerful WMS will be essential. It will help you integrate and optimize the performance of your automation tools so you can maximize warehouse efficiency.

#5: Have you moved to a larger warehouse space?

If you’ve relocated to a bigger, newer facility, implementing a WMS that can help you eliminate bottlenecks and inefficiencies is probably a smart move. Design your new space for streamlined, efficient processes. This will help your business flow to run as smoothly and effectively as possible.

Upgrading to a new, more powerful, advanced WMS system can be a true game-changer for your business in 2020 and beyond.

Still have questions about whether or not now is the right time to invest in a new WMS system? Request a demo today to learn more about all the benefits a powerful WMS software offers.

Related reading: Software for 3PL providers

Calculating the Real Cost of Your Current WMS Limitations

Before committing to a new warehouse management system, you need to understand exactly what your current limitations are costing your operation. Many businesses operate with inefficient systems for years without realizing the cumulative impact on their bottom line.

Start by tracking these key performance indicators over the past 12 months:

• Labor costs: Calculate overtime hours spent on manual processes, data entry, and error correction
• Inventory shrinkage: Document losses due to misplaced items, expired products, or counting discrepancies
• Order fulfillment delays: Track how often late shipments result in chargebacks, expedited shipping costs, or lost customers
• System downtime: Measure productivity losses when your current WMS experiences outages or slow performance

A typical mid-sized warehouse losing just 2% of revenue to these inefficiencies could justify a WMS investment of $50,000-$100,000 within the first year. If your calculations show significant losses in multiple categories, your current system may be holding back profitability more than you realize.

Hidden Costs That Add Up Quickly

Beyond obvious inefficiencies, consider these often-overlooked expense categories:

• Manual reporting and compliance documentation consuming 10-15 hours weekly
• Duplicate inventory purchases due to poor visibility
• Customer service time spent tracking orders and resolving shipping issues
• Missed opportunities for bulk discounts due to inaccurate demand forecasting

Does Your Current System Support Multi-Location Operations?

As your business grows, managing inventory across multiple warehouses, distribution centers, or retail locations becomes exponentially more complex. If you’re operating with separate systems or manual coordination between locations, you’re likely facing significant operational challenges.

Modern WMS solutions provide centralized visibility and control across all your facilities. This capability becomes critical when you need to:

• Transfer inventory: Move stock between locations based on demand patterns or seasonal requirements
• Optimize fulfillment: Route orders to the closest warehouse or the location with available inventory
• Standardize processes: Ensure consistent picking, packing, and shipping procedures across all sites
• Consolidate reporting: Generate unified performance reports and KPI dashboards

If you currently manage multiple locations through spreadsheets, phone calls, or disconnected systems, you’re missing opportunities for cost savings and improved customer service. Companies with three or more locations typically see 15-25% improvement in inventory turns after implementing a unified WMS.

Integration Capabilities You Actually Need

Your WMS should seamlessly connect with existing business systems without requiring extensive custom development. Essential integrations include:

• ERP systems for financial data synchronization
• Transportation management systems (TMS) for optimized shipping
• Customer relationship management (CRM) platforms
• eCommerce platforms and marketplaces
• Third-party logistics (3PL) partner systems

If your current system requires manual data entry or file exports to communicate with other business applications, you’re creating unnecessary bottlenecks and increasing the risk of data errors.

Frequently Asked Questions

What are the signs that you need a new warehouse management system?

Key indicators include struggling to keep up with industry trends, inability to meet EDI compliance requirements from major retailers, challenges scaling eCommerce operations, difficulty integrating new warehouse equipment, or recently moving to a larger facility. If your current WMS creates bottlenecks, causes order errors, or cannot support your growth plans, it may be time to upgrade.

Why is EDI compliance important when choosing a WMS?

Most large retailers now require electronic data interchange (EDI) for automatic transmission of order information directly to your accounting and warehouse systems. Without EDI-capable WMS software, you cannot efficiently work with major national retailers who mandate this technology. Effective WMS systems handle EDI compliance seamlessly, opening doors to larger business opportunities.

How does a WMS help grow eCommerce operations?

A modern WMS helps eCommerce businesses handle increased transaction volumes, improve inventory accuracy, and speed up order fulfillment. This leads to faster shipping times, fewer errors, and higher customer satisfaction. Satisfied customers become repeat buyers and provide referrals. WMS integration with eCommerce platforms delivers measurable return on investment through improved operational efficiency.

Should I upgrade my WMS after purchasing new warehouse equipment?

If you have invested in modern equipment like carousels, conveyors, handheld scanners, forklifts, or AGVs, upgrading your WMS helps you fully leverage these investments. A powerful WMS integrates with automation tools to maximize warehouse efficiency. Conversely, if you have outdated equipment, consider upgrading your hardware first before investing in a new WMS.

When is the best time to implement a new WMS after relocating?

After moving to a larger warehouse facility, implementing a new WMS helps eliminate bottlenecks and design efficient processes from the start. A modern WMS enables you to optimize your new space for streamlined workflows, better inventory management, and improved order accuracy. Starting fresh in a new facility provides an ideal opportunity to upgrade your technology infrastructure.