We’re often asked: how much does WMS cost?
When selecting your WMS system, you want to meet all your requirements, remain within budget, and be sure that your system is going to grow with your business.
It can be difficult to determine what your WMS budget should be.
What should your budget include, does your total cost vary on how many users you have or what features you require?
We’ve taken the latest WMS research from real-life selection projects to share with you how much your WMS should cost.
We’ll start with an example company: company X.
It’s a moderately sized company with 150 employees. Our research shows that businesses of this size typically have 23.8% of employees as users of their WMS system. This means there will be 36 WMS users to account for in their budget.
On average, 27.93% of employees are WMS users across businesses of all sizes. This number increases as the number of employees decrease as we expect more cross-departmental users in smaller businesses.
We can expect a company to spend $10,000 per user on their WMS system over a five-year period.
This figure accounts for businesses of all sizes.
When we break this down further we can see this is a yearly user cost of $2,000, or a monthly cost of around $167 per month.
When we consider company X and their 32 user system, we can expect they’ll pay $6,012 per month. This amounts to $72,144 per year for their system.
This cost then amounts to $360,720 over a five-year period.
Companies of a similar size to company X are most likely to implement a WMS system to support their growth. This suggests that companies see a WMS as an important factor in their scaling plans.
The second and third top reasons for implementing WMS are focused on making gains in functionality as well as efficiency. WMS is an important factor in businesses making improvements to their processes and realizing the benefits from the software.
Interestingly, the most common reason for implementing across businesses of all sizes was also to support growth. It’s positive that businesses of all sizes are looking to expand with WMS. Additionally, this illustrates why the budget expectations of businesses are the same as they look for the same functionality and scope.
Now you know how much you can expect to pay for a WMS system, you can factor this into your budget planning.
Don’t forget that cost is only one part of your WMS selection project, when you’re selecting software remember the ACE software selection process: affordability, cost, efficacy.
