Warehouse management systems, or WMS, are there for a reason. While managing a small family business is easy enough, at a certain stage, the amount of effort that needs to be put into tracking inventory, storage, picking, and shipment, rises exponentially. The good news is that WMSs are no longer just for large enterprises, and there are options for businesses that keep it small for now and intend to grow. Here, we explore how not to get lost while choosing the right WMS for your growing business.
Signs you’ve outgrown spreadsheets
As comfortable and familiar as spreadsheets are at the very start, over time, things get muddled – and it’s a good sign: your business is growing. Here are some of the clearest signs it’s time to move on:
- Manual updates are now taking forever. Once your team finds itself spending more than several hours a week on inventory records and fixing errors, it’s time to think about a WMS. Without one, manual errors will likely start to accumulate.
- Real-time visibility is no longer taken for granted. That is, when things speed up, and sales orders, returns, receipt, picking and shipping start happening simultaneously, the lag in updates becomes costly enough.
- Inventory discrepancies and fulfillment delays are mysteriously piling up. The reason is likely relying on disconnected systems or files that need manual updates, so that there’s always some sort of mismatch between what’s in the spreadsheet and what’s in stock – and a WMS will help sort things out.
What exactly does a WMS do? (and what you might not need)
The common complaint from smaller and growing businesses that want their first warehouse management system is that with many popular options, they end up paying more for the functionalities they don’t really need – when in reality it’s the upfront cost and the system’s worth for its money that matters. So what will you actually need?
Most small to mid-sized businesses benefit from the essential features found in nearly all WMS platforms.
- Inventory tracking – Automatically updates stock levels across SKUs, locations, and channels.
- Order management – Coordinates picking, packing, and shipping in sync with incoming orders.
- Receiving and putaway – Ensures new stock is logged and stored in the right place with minimal effort.
- Picking and packing workflows – Helps your team fulfill orders faster and with fewer errors through batch or wave picking options.
In most cases, the right mix of inventory management features can work wonders. For companies with around 400-600 SKUs, even the combination of inventory tracking and streamlined picking can help make fulfillment about 30% faster.
Of course, this doesn’t mean that the more advanced functionalities are just bells and whistles. They aren’t; yard management, labor management, automation, predictive analytics – these are awesome for larger enterprises, but they also drive costs up. But if you run a couple hundreds of orders per day, it’s not like you will absolutely need these (yet).
However, integrations matter, especially if your business is operating in eCommerce.
Aligning business needs with key features of warehouse management systems
The name of the game when choosing the WMS is to align the choice with the actual need of your business (a) right now, (b) in the near future. The key questions to ask would be:
- What’s your average order volume? A business shipping 50 orders a day doesn’t need the same complexity as one shipping 500, but the core order-picking and shipping features should be impeccably convenient.
- How many SKUs do you manage? For a few dozen SKUs, advanced inventory forecasting might be overkill. But if these come in multiple categories, then tracking needs to be a bit more sophisticated.
- How many warehouse staff do you have? A small team benefits from easy-to-use interfaces and streamlined workflows. Features like barcode scanning and guided picking can dramatically boost productivity without needing extensive training.
- What integrations do you need? If you work with eCommerce, is it Shopify, Etsy, WooCommerce, Amazon? Additionally, you will very likely need integration with shipping tools and probably also accounting (QuickBooks and the likes).
- Finally, what will you need in 12-18 months? Will you expand to a second warehouse or use a 3PL? Will your order volume double during peak seasons? Are you planning to introduce kitting, bundling, or subscription boxes?
It’s a good idea to look for systems that let you start small—but offer optional modules or upgrades for when your operations scale.
Current favorite WMS for growing businesses
Of course, it would be near impossible to fit every possible platform into one article (it would quickly turn into an encyclopedia), but let’s look at some of the most popular options for small and mid-size businesses:
ShipHero
A favorite among eCommerce brands and 3PLs, ShipHero is a cloud-based WMS with clean UI and fast setup. In terms of functionality, it offers inventory management, order management, mobile picking and returns automation – the basic kit you can plug into your workflows any time and just work with it.
Zoho Inventory
This part of the Zoho suite is intended to (you guessed it) integrate well with other apps, theirs and others. There are core functionalities for inventory tracking, order management, and multichannel selling, making it best for businesses that need basic inventory control with light automation.
NetSuite WMS
Part of Oracle’s NetSuite ERP, this WMS is mostly for businesses that scale very fast, offering real-time inventory visibility, barcode scanning, and wave picking. Thus, it offers more in terms of advanced reporting and automation. You might consider this one if you want one unified platform to manage finance, inventory, and fulfillment.
Cin7 Core (formerly DEAR Systems)
Cin7 Core is meant for omnichannel sellers with complex SKUs, and it shows: there are powerful inventory features, plus seamless integrations with Xero, Shopify, Amazon, and more. It supports batch/serial tracking, BOMs (Bill of Materials), and light manufacturing, making it great for sellers with layered operations.
Overwhelmed? Here’s how to navigate the warehouse management platform landscape
With dozens of warehouse management systems on the market—each promising powerful features and integrations—it’s easy to feel overwhelmed. But choosing the right WMS doesn’t need to be a headache if you follow a structured approach.
A sophisticated system is useless if your team can’t use it efficiently. Look for platforms with intuitive dashboards, mobile accessibility, and minimal training requirements. User-friendly systems shorten the learning curve and reduce disruption during implementation. As a rule of thumb, if your team can’t pick up the basics in a day or two, it’s probably too complex.
For growing businesses, cloud-based WMS platforms are usually the better choice. They offer faster deployment, automatic updates, and remote access without the need for costly servers or IT support. On-premise systems may offer more control, but they come with higher upfront costs and maintenance responsibilities.
Always take advantage of free trials and demos. During your trial, test how intuitive the platform is, how well it integrates with your existing systems, and how responsive support is. A strong trial experience is often a good predictor of long-term satisfaction. Ask: Can we complete a full order cycle without needing tech support?
When custom WMS development might be worth it
Off-the-shelf warehouse management systems work well for many small and mid-sized businesses, but they’re not a one-size-fits-all solution. If your business handles both B2B and D2C orders, uses unconventional storage systems, or relies on complex kitting or bundling, an out-of-the-box WMS may feel limiting.
This is where custom development allows you to tailor the platform around your exact processes, reducing the need for workarounds or disconnected tools. The problem is, it can require a higher upfront investment, both financially and in time – but in reality, software developers who work with supply chain solutions (like Lionwood.software) work with modular systems and can create a custom solution quite fast. In the long run, that control can reduce inefficiencies, licensing fees, and reliance on third-party vendors—especially for companies with in-house technical teams or trusted software partners.
Whether you’re exploring off-the-shelf tools or wondering if a custom WMS is the smarter long-term move, we’re here to help. At Lionwood.software, we’ve worked with fast-growing businesses to design solutions that actually fit—without the fluff. Contact our experts to talk about what your warehouse really needs – and start developing a perfect solution.
