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How much should my business pay for Warehouse Management Software?

If you’re thinking about investing in Warehouse Management System (WMS), cost will be an important factor in which solution you choose. The average cost of a WMS system depends on a number of factors but is mostly determined by the size of the business and the features available within the software.

There are many benefits from using a WMS. You may be an online retailer, a 3PL or a warehouse, but one thing is for sure, automating many of the tasks associated with managing a warehouse will make your business become more productive and profitable.

From tracking inventory levels to calculating optimum storage layouts and generating pick lists, a suitable WMS can help your business improve efficiency and productivity. By reducing errors and generating cost savings, investing in the right WMS system can generate healthy returns on investment as well as improving customer satisfaction through greater accuracy and fulfilment speed.

No doubt you're aware of how important an WMS is for running a solid stock-based operation. So, if you’re ready to invest in a solution like Mintsoft, or move from your current provider, price is going to be a major factor to consider.

7 mins

Written by The Access Group

How much does a warehouse management software system cost?

According to the latest figures from Software Path, the average cost of a warehouse management system is around $14,00 AUD per user (calculated over a five-year period). The average cost per month works out at around $240 AUD, per user per month.

When calculating costs per user, however, it does not reflect the total cost when taking into account the number of users who need to access the software. Therefore, it’s likely that your WMS will cost anywhere from $15,000 to $30,000 AUD – depending on the size of the warehouse (or warehouses), the number of users, and whether you require mobile barcode scanning.

The good news is, at Mintsoft, we don't limit your number of users, so there’s no incremental increase on software costs related to system users. We instead offer pricing that grows alongside your order volume, which allows our customers to scale without risking cashflow.

We offer three different plans for the Mintsoft WMS:

  • Medium WMS – from $640 per month. This includes everything in entry level, plus inventory management, and is suitable for businesses processing up to 5000 orders. Read this super helpful article if you’re unclear on the difference between order management and inventory management software, and which is right for your business.
  • Large WMS – from $1,340 per month. This includes everything above and is best suited to businesses fulfilling up to 15,000 orders every month. This level of software can accommodate businesses working across multiple sites and/or with multiple brands, so is ideal for 3PLs and those running multiple warehouse locations.
  • Custom WMS – is assessed on application to suit your individual needs. To give you an idea of what’s included, all of the above come standard, but can also be customised with additional features such as accounting and warehouse integrations, and our powerful mobile barcode scanning app.

Contact us to discuss your warehouse management requirements and we can help you find the package that best suits your needs.

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Learn more about warehouse management systems in our comprehensive guide.

What features are included in the cost of a WMS?

Most WMS packages come with basic out-of-the-box features that are enough to support a small ecommerce business or warehouse. These features include inventory tracking, picking and packing, shipping, as well as returns.

For larger businesses, 3PLs or those looking to scale, more features (such as third-party integrations and other customisations) may be needed to deliver the functionality required to manage larger volumes of stock, often across multiple locations.

Here are three of the most common factors that are likely to impact your pricing:

  • Business size: larger entities typically require more complex systems and customisations to meet their requirements.
  • Automation requirements: the level of automation required will affect the cost of a WMS, with automated workflow features such as Advanced Shipping Notices (ASN), on and off hand stock locations, and default pick locations requiring more advanced software.
  • Level of customisation: an WMS can be as custom as you need it to be – but beware, any changes to the out-of-the-box system will generally incur a cost. Some WMS systems are not built to be customised, which often means messy workarounds. Our advice? Make sure you have a full scope of what’s needed, before you sign on the dotted line.

Hidden costs to be aware of

When you invest in any software – and a Warehouse Management System is no exception – there are often other costs that aren’t included in the software subscription itself.

On-boarding and training
As with any change to business, your staff will need to be trained in the new system. Sometimes these costs are included, but more frequently they attract additional fees, so make sure you ask the question up front.

When it comes to your IT staff, they will need specific training to help maintain the system as they will have new responsibilities related to the WMS. This could include additional consulting fees or business costs that you had not previously considered.

A new WMS may not be compatible with your old or existing IT infrastructure. This can be an issue for a number of reasons, but namely, it can limit the functionality of your new software, and can also cause security and compliance issues. If you’re looking to move to a cloud-based WMS like Mintsoft, existing on-premise solutions could require a full upgrade of servers, hardware, and even the PCs running the software. This can have a significant knock-on impact to your budget if you’re not fully aware of the downstream impacts.

Data security
Storing and being able to analyse data is a big part of many WMS systems, and delivers many business benefits. From providing reporting and insights to support productivity improvements and increased order fulfillment accuracy, through to choosing shipping lanes and consolidating items. However, being able to leverage these insights can come with additional talent costs if you do not have the data analysis capability already on your team.

One of the big benefits of Access Mintsoft is its reporting dashboards, which allow anyone on the business to pull meaningful reports and make powerful recommendations, even without a background in data analysis. Learn more by downloading the Mintsoft product brochure.

With some WMS vendors, implementing more complex clients may come at extra cost. With Access, we have a FlightPath program to support the implementation of our software, including Mintsoft. Our implementation services ensure you realise the full value of your software investment via a straightforward and streamlined approach that ensures you are always supported, yet remain in full control.

You may be interested in watching our 30-minute webinar that looks at the pain points of software implementation, and how you can avoid them with proper forward planning.

CASE STUDY | A business benefiting from WMS systems

Black Bear Fulfillment have a simple mission: To provide the high levels of fulfillment service to Australian customers, which they experienced as a former eCommerce seller in the US and UK. An eCommerce 3PL specialising in smaller consumer items, such as clothing and cosmetics, Black Bear Fulfillment are 100% Australian owned and operated. They are based in Melbourne and employ more than 40 people after launching just three years ago.

Unlike most 3PL’s they aren’t just focused on the logistics and warehousing side of the business, but also, importantly, the customer. Fulfillment is about people as much as it is logistics, and they needed a software solution to help bring this customer-centric vision to life.

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Read the Black Bear Fulfillment case study to learn more about how this Australian 3PL has leveraged the power of the Mintsoft solution to grow their business and deliver a world-class customer experience.

Book your free demo or download our brochure today to discover how Access Mintsoft can help your 3PL, warehouse or a  ecommerce business save time, reduce costs and stand out from the competition.

Find out more about Access Mintsoft our cloud warehouse management system