Note: This article includes information specific to the Japanese e-commerce market (e.g., Japan-specific services, regulations, or customs). Some details may not apply outside Japan.
Do you feel your warehouse operations are struggling with accuracy or speed? Many companies are solving these kinds of logistics challenges with a WMS (warehouse management system).
This article gives a complete explanation of what a WMS is, its functions, how it differs from other systems, the pros and cons of adopting one, points to consider when choosing one, and typical cost. We also compare actual services. If your company is considering adopting a WMS, be sure to check this out.
What Is a WMS (Warehouse Management System)?
WMS stands for Warehouse Management System. It's a system for managing goods within a warehouse, and it improves the accuracy and speed of operations inside a logistics warehouse.
Functions of a WMS (Warehouse Management System)
Specifically, it supports the following kinds of warehouse operations.
- Receiving management: incoming shipment schedules, returned-goods receiving, handheld inspection, etc.
- Inventory management: stock lookup, stock adjustment, location transfers, product history, etc.
- Document issuance: issuing delivery notes/statements, price tag printing, etc.
- Stocktaking management: stocktaking instructions, stocktaking reports, handheld stocktaking, etc.
- Shipping management: shipment schedules, picking lists, returns to suppliers
Operators use a handheld terminal or mobile device to scan barcodes while operating the system.
The Difference Between a WMS and a TMS (Transportation Management System)
A TMS (Transport Management System) is a system that manages delivery status after goods leave the warehouse.
- Tracking delivery status
- Managing dispatch of delivery trucks
- Estimating arrival times
and so on.
The Difference Between a WMS and an OMS (Order Management System)
An OMS (Order Management System) is a system that manages order receipt, payments, and similar processes for products. It handles the steps that come before a WMS.
- Entering order information for products
- Creating shipping request forms
and so on.
For more on OMS (order management systems), please refer to the article below.
Pros of a WMS (Warehouse Management System)
Using a WMS can improve the accuracy and speed of warehouse operations.
It reduces human error and helps prevent mistakes such as mis-shipments.
Since the system handles complex calculations, anyone can carry out warehouse work simply and efficiently.
By visualizing warehouse status in real time and grasping progress at a glance, you can improve efficiency through better staff allocation and other measures.
Since the amount of manual work is reduced, you can also cut labor costs, leading to overall cost savings.
Cons of a WMS (Warehouse Management System)
Let's also touch on the drawbacks of a WMS.
There are mainly two.
- Implementation costs money
- It takes time for the system to become fully embedded in operations
Adopting a WMS incurs the cost of the system itself, and you'll also need to adjust your current operations to fit the WMS you introduce.
However, when you look at the total picture from a long-term perspective — including savings on labor costs — adopting one often leads to overall cost reduction.
Also, employees will need to adapt to the new system.
Prepare an operations manual for the WMS you adopt and make use of the system's support resources to help it take root gradually and according to plan.
Typical Cost of a WMS (Warehouse Management System)
The typical cost of a WMS varies depending on the type of service offered.
| Delivery Format | Features | Typical Cost |
|---|---|---|
| Cloud-based | No in-house server needed Low cost, but billed monthly Can be operated over the internet |
A few tens of thousands to a few hundred thousand yen / month |
| On-premise | Installed on your own in-house server, offering high customizability for your business Aimed at large-scale businesses |
Several hundred thousand to several million yen |
| Package-based | Saves the effort of customization, allowing for short-term implementation | Several hundred thousand to several million yen |
In recent years, demand for cloud-based systems has grown due to the spread of the internet, their cost performance, and the reduced effort required to implement them.
Cloud-based systems are especially common among small-scale EC businesses.
Points to Consider When Choosing a WMS (Warehouse Management System)
Since you're likely to use a WMS for a long time, you need to choose one that fits your business.
If you get the selection criteria wrong, the cost of implementation could end up wasted.
Checking the following five points as you choose can help you avoid mistakes.
- It fully has the functions needed for your purpose in adopting a WMS
- It has a solid track record of adoption in your same industry/sector
- It has the scalability to support your business as it grows in the future
- It can share data by integrating with external warehouses, vendors, or other systems
- You can use the accumulated data to drive operational improvements
Representative Services for WMS (Warehouse Management System)
Here we introduce a select few representative WMS services.
We've focused on cloud-based options with a high domestic market share that can be adopted even by small-scale businesses running an EC site.
| Product Name | Delivery Format | Reference Cost | Notes |
|---|---|---|---|
| Cloud Thomas | Cloud-based | From 75,000 yen | Ranked No. 1 in the "WMS" category of the IT Trend material request ranking (2021) Offers extensive support before and after implementation |
| Logizard ZERO | Cloud-based Package-based |
From 60,000 yen | No. 1 in number of active deployments among cloud WMS Built for EC sites 365-day phone support |
| COOOLa | Cloud-based | From 50,000 yen | Includes AI-powered support Won a triple crown of awards in the business-owner-selected cloud warehouse management system category |
| Super-Vision | Cloud-based | Contact for pricing | Built for mass retailers Focused on logistics for "clothing, food, and household goods" |
| mylogi | Cloud-based | From 30,000 yen | Specialized for EC sites API integration with Shopify 3 months of implementation support |
Which WMS Works Well with Shopify?
If you're running an EC business on Shopify, a key point when selecting a WMS is whether it integrates with Shopify.
WMS platforms such as mylogi (introduced in this article), along with SHIPPINNO and LOGILESS, automatically reflect order information in the WMS through a Shopify app or API integration.
This lets you centrally manage the entire workflow from picking to shipping, reducing manual data entry and helping prevent mis-shipments while cutting labor costs.
In Closing
A WMS significantly improves the accuracy and speed of logistics operations. Adopting one takes time and money, but over the long term you can expect a strong return through reduced labor costs and greater operational efficiency.
Using the selection criteria and representative services introduced in this article as a reference, work through choosing a WMS step by step and according to plan. Start by organizing your company's challenges and priorities.
