How Much Does WMS Software Cost? An in-depth warehouse management system pricing guide

The Descartes Systems Group, Inc. | www.descartes.com | How Much Does WMS Software Cost?

22The Descartes Systems Group, Inc. | www.descartes.com | How Much Does WMS Software Cost?

A WMS is used by warehouse managers and employees to better handle operations and the logistical side of their business.

Introduction: What is WMS Software?

Short for Warehouse Management System, a WMS is used by warehouse managers and their employees to better handle operations and the logistical side of business like:

y Barcode Scanning y Inventory Tracking y Order Processing y Receiving and Put Away y Picking and Packing y Operational Performance Tracking

Different types of WMS software will offer different capabilities and features for their users. Let’s review the WMS options and their costs.

The Two Types of WMS Software Platforms

The more common WMS software models come in two forms:

Integrated ERP – Built as an app that extends an enterprise resource planning system’s (i.e., NetSuite’s) functions into the warehouse, this type of WMS provides barcode scanning capabilities and other warehouse functionality while exchanging order and inventory information with the ERP.

Standalone WMS – This best-of-breed warehouse management system offers a carefully curated feature set to maximize warehouse accuracy and efficiency. A standalone WMS usually integrates with various other programs, such as ecommerce sales channels, ERP, inventory management system (IMS), order management system (OMS), and shipping software.

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WMS Pricing and Cost

WMS software can range significantly in cost and often comes in two different pricing models: cloud-based and on-premise. We are using US dollars for pricing information in this article.

Cloud-Based Pricing Generally, cloud-based warehouse management software will be based on an annual/monthly license fee or subscription. The monthly cost of a cloud-based WMS can range from $100-500 per user per month, depending on organizational size and complexity.

On an annual/monthly subscription pricing model, teams will pay fees based on the number of warehouses, the number of users, and any add-on features or modules. You’ll find some additional costs for implementation, ongoing support, and transactional fees may be charged.

Who best fits this WMS and pricing model? This benefits those looking for a more scalable and flexible solution, helping them save on the expensive pricing of the more traditional on-premise WMS models. It’s also better for those who wish to access their WMS from anywhere without worrying about being responsible for the security and overhead of maintaining servers.

On-Premise Pricing On-premise or licensed WMS models will be a one-time fixed rate that organizations pay up front, plus an annual maintenance charge that ranges from 10-20% of the license costs.

You can find prices ranging from $2,500-$200,000 per facility for a perpetual license for on-premise WMS software. The pricing is based on each WMS category, customer/company needs, features, capabilities, integrations, and more.

Who best fits this WMS and pricing model? This benefits large enterprise organizations with little business volatility. These businesses have on-site operations and want total control and responsibility over the servers, custom enhancements, and cybersecurity. An on-premise WMS is best for businesses that can manage a large up-front payment and want to pay lower ongoing costs over time.

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Other Pricing Factors: Implementation, Users, and Support

WMS Implementation Cost WMS software requires professional implementation/installation, which can cost $3,500-$40,000, depending on the number of integrations and the level of customization needed. On-premise software requires installation, and cloud- based software requires implementation.

WMS integrations add increased capabilities and extensions to WMS solutions. Integrations make working with different organizational units and companies in complex logistics networks easy via web and mobile technologies. This ensures that customers, suppliers, partners, and other service providers are integrated into your processes, aiding in valuable business operations.

While some integrations come included and are free, others you’ll have to pay for - something to consider when you and your team are shopping for a WMS.

WMS Add Users Cost It’s also noted that each user/team member you add to a WMS platform will affect pricing. Therefore, many models limit the number of users on a plan and require an upgrade if warehouses wish to add more users.

WMS Support Cost Some software companies only offer live customer support (i.e., phone support) at higher subscription tiers. If you wish to avoid frustration and wasted time troubleshooting problems yourself, make sure your license includes ongoing live customer support.

WMS At Zero Cost? Free WMS Software Options Everyone likes free…why not save a few bucks when you can? Just a quick Google search for ‘free wms software’ or ‘free warehouse management software’ will give you dozens of results.

Here’s a list of reputable free WMS software platforms you can check out:

y Sortly y Zoho Inventory

y Odoo Inventory y Boxstorm

y SKUsavvy

This may cause business leaders to ask, “Why should anyone pay for a warehouse management system when you can utilize one for free?”

The Reality The reality is that free WMS software is far from as proficient as the paid version. On free plans, warehouse teams will have restricted capabilities, no premium features, and a limited number of users who can utilize the WMS.

A free WMS platform’s primary goal is to get users hooked. When teams quickly outgrow the free version’s capabilities, they will have to upgrade to get the actual benefits of a warehouse management system.

Simply put, ‘free WMS’ models/brands mainly advertise their paid versions. However, they can be an ideal first step for small businesses new to inventory management software.

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Who best fits the Descartes WMS and pricing model?

The business that benefits from choosing a Descartes cloud-based WMS and pricing model is looking for a flexible and easily scalable solution that can grow with its order volume. Leaders want the value of an enterprise-level WMS without the overhead or security concerns of an on-premise/licensed WMS, and they want more robust warehouse functionality than a free WMS can offer.

How Does Descartes WMS Pricing Work?

At Descartes, we offer three robust and secure cloud-based warehouse management systems:

y Descartes Mobile Warehouse for NetSuite y Descartes Peoplevox y Descartes pixi

Each includes a thoughtfully curated set of features and capabilities for a specific ecommerce market segment. The yearly licensing model is based on core platform fees plus per-user charges.

Descartes WMS pricing starts at $600 monthly for 1-2 users.

WMS pricing can vary based on implementation, number of users, and customization. Contact us get a custom price quote or schedule a demo.

Descartes Peoplevox

y Standalone WMS y Highly scalable for

peaks/growth y Android mobile-first app y Popular with fast-growing

D2C fashion brands y Employee performance

tracking

Great for D2C brands

Descartes pixi

y Standalone WMS y Highly scalable for

peaks/growth y German, English &

French UI y Best for lot/batch/

serialization y OMS add-on features

available y Extensive API Webservices

Great for B2C and 3PL

y Integrated ERP WMS y WMS built for NetSuite

(SuiteApp) y Easily implement

barcode scanning y Quickest implementation y For distribution/

wholesale companies with 3+ warehouse workers

Great for NetSuite users

Descartes Mobile Warehouse for Netsuite

66The Descartes Systems Group, Inc. | www.descartes.com | How Much Does WMS Software Cost?

Key Takeaways

y WMS software is used by warehouse workers to handle activities such as barcode scanning, inventory tracking, order processing, receiving, put away, picking, and packing.

y WMS software comes in two main pricing models: cloud-based (averaging $100-$500 per user, per month) and on-premise (ranging from $2,500-200,000 per facility for a perpetual license).

y Implementation fees, add-ons, and the number of users will significantly affect pricing.

y Free WMS software options are available; they often come with limitations and are meant to entice users to upgrade to paid versions with more advanced features and capabilities.

WMS pricing can vary based on implementation, number of users, and customization.

About Descartes Systems Group

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world.

Learn more at www.descartes.com and connect with us on LinkedIn and X.

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