WMS (Warehouse Management System): Why Businesses Need It, How It Works, and What to Choose — SaaS or On-Premise
Introduction
Today, a warehouse is no longer just a place to store goods but a crucial link in the supply chain. Errors in order picking, slow processing, and lack of inventory visibility lead directly to financial losses.
To avoid this, companies implement WMS (Warehouse Management System) — a solution that improves efficiency at every stage of warehouse operations.
Why Companies Need a WMS
- Error reduction in receiving and shipping through the use of handheld data terminals (HDTs).
- Faster order processing — essential for e-commerce, FMCG, and logistics.
- Optimized inventory management: fewer stockouts and overstocking issues.
- Transparency — real-time visibility of where each item is located.
- Cost reduction: less time and labor required for routine operations.
💡 According to Gartner and Aberdeen Research, WMS implementation increases order accuracy up to 99%, speeds up picking by 20–30%, and reduces inventory counting time by 2–3 times. Typical ROI is achieved within 12–24 months.
How Warehouse Processes Work with a WMS
- Receiving — staff use HDTs to scan barcodes or QR codes, with photo verification and automatic order matching.
- Putaway — the WMS suggests the optimal storage location.
- Storage — control by batch, expiration dates, FIFO/LIFO rules.
- Order picking — optimized routes, mobile terminals, and even voice-picking systems.
- Shipping — automatic document generation and integration with ERP/TMS.
- Analytics & reporting — KPIs, warehouse load, staff productivity.
Key Steps in WMS Implementation
- Analysis of current processes.
- Design of the target model tailored to business needs.
- Choosing the deployment model — SaaS or On-Premise.
- Integration with ERP, CRM, and automation systems.
- Staff training.
- Pilot launch and scaling.
SaaS vs On-Premise: Which One to Choose?
- SaaS (Cloud WMS)
- Fast deployment
- No server costs
- Automatic updates
- Internet dependency
- On-Premise WMS
- Full data control
- Deep customization of processes
- Suitable for large distributors and manufacturing plants
- Higher upfront and maintenance costs
👉 At Vexor, we offer both options — the solution is tailored to the specific needs of each client.
FAQ
What is a WMS in simple terms?
It’s a system that manages all warehouse processes — from receiving and putaway to shipping and inventory counting.
How much does WMS implementation cost?
It depends on warehouse size, number of users, and deployment model (SaaS or On-Premise). On average, ROI is achieved within 1–2 years.
Can WMS integrate with 1C or ERP?
Yes, modern WMS solutions integrate with 1C, ERP, CRM, and even with robotic systems.
Are handheld data terminals (HDTs) mandatory?
Yes, HDTs are a core tool for WMS. They scan goods at every stage and eliminate manual input errors.
Is WMS suitable for small warehouses?
Yes. For SMEs, SaaS WMS is ideal since it requires no servers and can be launched within weeks.
What’s the difference between SaaS and On-Premise WMS?
SaaS runs in the cloud, is quicker to deploy, and cheaper upfront. On-Premise runs on local servers, suits enterprises with strict security and customization needs.
Conclusion
WMS is not just “software for a warehouse” — it’s a tool that makes businesses work faster, more accurately, and more efficiently.
With the growth of logistics and e-commerce in Kazakhstan, implementing a WMS is becoming a true competitive advantage.
📩 Want to know which WMS model fits your warehouse best? Contact us for a consultation — Vexor experts will audit your processes and prepare a tailored solution.
