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.
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.
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.
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.
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.