How to Integrate a Warehouse Management System

This practical guide explains what a Warehouse Management System (WMS) is, the benefits of using one, and why warehouse management system integration is essential for modern supply chain operations. It also covers how to evaluate WMS solutions, compare On-Premise vs SaaS systems, and create a solid business case for leadership approval. Understanding Warehouse Management System

Picture of José Ambe
José AmbeSCMDOJO Expert
$20Free for NISCL Subscription Clients
Slide 1
  • Icon 3.42 MB
  • Icon 14 Readers
  • Icon Unlimited access, anywhere, anytime
  • Icon Upgrade to Student or Pro plan to avail more discounts and perks

Table of Contents

    • What is the Warehouse Management system (WMS) & Benefits3
    • Why consider a WMS for my operation?4
    • Evaluation of a WMS5
    • On-Premise vs. SaaS7
Bullet
About Book

This practical guide explains what a Warehouse Management System (WMS) is, the benefits of using one, and why warehouse management system integration is essential for modern supply chain operations. It also covers how to evaluate WMS solutions, compare On-Premise vs SaaS systems, and create a solid business case for leadership approval.


Understanding Warehouse Management System Integration (WMS Integration)

A Warehouse Management System improves operational efficiency, inventory accuracy, and workflow standardization. Effective WMS integration ensures that digital tools, warehouse processes, and people operate in sync, providing real-time visibility and improved warehouse control.


How to Integrate a Warehouse Management System – Table of Contents

  • What is the Warehouse Management System (WMS)?

  • Benefits of a Warehouse Management System

  • Why Consider WMS Integration for My Operation?

  • Evaluation of Warehouse Management Systems

  • Definition of the WMS Solutions to Be Evaluated

  • On-Premise vs SaaS WMS

    • Adaptation to New Technology

    • Personalization Capabilities

    • Software Updates

    • Hardware Upgrades

    • Investment Considerations

  • How to Create a Business Case for Warehouse Management System Integration

    • Creating a Business Case With Expected Results

  • Warehouse Management System Integration & Implementation

    • Three Edges of Integration: Technology, Processes, People

  • Expanding the Value of a Warehouse Management System

    • Voice Picking

    • How Voice Picking Works

    • Courtyard Administration

    • Productivity Management

    • Business Intelligence Tools

  • Success Stories

    • SELENUSA

    • JULIO

    • SAHUAYO


Why Consider Warehouse Management System Integration for Your Operation?

Integrating a WMS enhances control over warehouse activities and ensures accuracy across receiving, storage, picking, packing, and shipping. A robust warehouse management system integration strategy helps reduce errors, eliminate inefficiencies, and accelerate order fulfillment — ultimately improving customer satisfaction.


Evaluation of Warehouse Management Systems

Before starting any WMS integration, assess systems based on:

  • Functional capabilities

  • Scalability for future growth

  • Ease of integration with ERP and other platforms

  • User experience and training requirements

  • Total cost of ownership

  • Vendor expertise and track record

A well-structured evaluation ensures you select a WMS aligned with business goals.


On-Premise vs SaaS for Warehouse Management System Integration

When designing your warehouse management system integration, you must choose between On-Premise and SaaS deployment models.

Adaptation to New Technology

SaaS WMS allows faster adoption and remote accessibility.

Personalization Capabilities

On-Premise offers deep customization; SaaS provides standardized best practices.

Software Updates

SaaS updates automatically, reducing IT workload.

Hardware Upgrades

On-premise requires internal servers; SaaS eliminates this need.

Investment Considerations

On-Premise = higher upfront cost.
SaaS = subscription-based operational expense.


How to Create a Business Case for Warehouse Management System Integration

A strong WMS business case includes:

  • Current operational challenges

  • Expected improvements from WMS integration

  • Quantified benefits (cost reduction, accuracy, lead time improvements)

  • Technology impact and scalability

  • Change management requirements

  • Investment overview and ROI estimate

This ensures stakeholders understand both the strategic and financial impact of integrating a WMS.


Warehouse Management System Integration & Implementation

Successful warehouse management system integration requires aligning:

1. Technology

System configuration, connectivity, testing, and IT readiness.

2. Processes

Reengineering workflows to match WMS best practices.

3. People

Training, communication, and change adoption across teams.

Together, these three pillars ensure smooth deployment and long-term WMS success.


How to Expand the Value of Your Warehouse Management System

Once integrated, a WMS can deliver even more value through:

Voice Picking

Hands-free picking increases accuracy and speed.

How Voice Picking Works

Operators receive instructions via voice commands, improving productivity.

Courtyard Administration

Enhanced control of inbound/outbound vehicle flows.

Productivity Management

Tracking labor efficiency and performance KPIs.

Business Intelligence Tools

Leveraging dashboards for data-driven warehouse decisions.


Success Stories in Warehouse Management System Integration

SELENUSA

Improved operational visibility and reduced manual errors.

JULIO

Optimized order fulfillment processes and reduced cycle times.

SAHUAYO

Enhanced inventory accuracy and warehouse productivity.


About the Author – José Ambe

José Ambe is an Industrial Engineer from Universidad Iberoamericana with advanced studies at Berkeley University in Strategic Logistics and Strategic Project Management. He also completed coursework at Harvard in Leading Professional Service Firms and holds a Master in Business and a Master in Finance from Tecnológico de Monterrey.

He is currently CEO of LDM, a consulting company with over 21 years of experience, operating in 11 countries and completing more than 1,000 supply chain projects involving WMS implementation and warehouse management system integration.

Learn more at: https://soyldm.com/


Download the Warehouse Management System PDF & Word Version

SCMDOJO Student and Pro Members can download this guide using their monthly credits.

If this guide is helpful, you may also benefit from:

Modern Warehousing & Distribution Centers

https://www.scmdojo.com/academy/courses/modern-warehousing-distribution-centers

Best Warehouse Audit Tool to Improve Performance

https://www.scmdojo.com/best-practices/best-warehouse-audit-tool-to-improve-performance

Warehouse Safety Audit Tool

https://www.scmdojo.com/tools/warehouse-safety-checklist-tool/

Warehouse Management System Integration Guide | SCMDOJO