How to Choose the Best WMS System in Asia

Are you struggling to achieve efficiency with inventory and warehouse operations in the competitive Southeast Asian market? Your warehouse is stocked up with clients’ inventory, but orders are delayed, stockouts are frequent, and your team is constantly strained. Do these challenges sound all too familiar? Managing warehouse operations in the fast-paced, diverse economies of Southeast Asia can be a logistical nightmare without the right tools in place.

The key to conquering your warehousing challenges lies in choosing the right Warehouse Management System (WMS). A WMS can transform chaos into order, giving you real-time visibility, streamlined operations, and the agility to meet customer demands. Yet, with so many options on the market, each promising to be the best, how do you make the right choice?

That’s where our blog comes in. Whether you’re struggling with manual processes, dealing with fluctuating demand, or aiming to scale across multiple locations, we’ve got you covered. In the following sections we’ve broken down everything you need to know about selecting the best WMS in Asia. That includes:

• The Importance of a WMS System in Asia
• Understanding the Different Types of WMS Systems
• Key Features to Look for in a WMS System
• Factors to Consider When Choosing a WMS System in Asia
• How to Research and Shortlist Potential WMS vendors

Importance of a WMS system in Asia

Southeast Asia’s rapid economic growth has driven a significant increase in demand for e-commerce, logistics, and manufacturing. The GMV of the e-commerce sector alone grew to $139 billion in 2023 and is expected to reach $186 billion in 2025 [1], and the logistics and manufacturing segments are not too far behind. This highlights the need for robust inventory management and warehouse optimization.

While that might be the case, warehouses in Asia face unique challenges, including diverse product portfolios, complex supply chains, and varying regulations across countries. A well-designed Warehouse Management System (WMS) can help overcome these challenges, leading to better customer satisfaction, lower operational costs, and higher profitability.

As the demand for automation and technology in Asia’s supply chains continues to grow, WMS technology has become more critical than ever. The Southeast Asia Warehouse Automation Market is expected to expand from USD 0.72 billion in 2024 to USD 1.31 billion by 2029 [2], with WMS software playing a pivotal role. By integrating with modern tools like barcode scanners, RFID systems, and automated storage and retrieval systems into a single platform, a WMS not only enhances real-time inventory tracking but also optimizes overall operations, enabling your business to remain competitive in a fast-evolving market.

Understanding the Different Types of WMS Systems

In Asia, there are several WMS options to choose from, each with its own unique features and capabilities. Understanding the different types of WMS systems can help you identify the one that best fits your business requirements. Here are the options available:

• On-Premise WMS: Traditional on-premise WMS solutions are installed and hosted on the company’s own servers, providing complete control over the system and data. These systems often require significant upfront investment in hardware and IT infrastructure, as well as ongoing maintenance and upgrades.
• Cloud-based WMS: Cloud-based or Software-as-a-Service (SaaS) WMS solutions are hosted on the vendor’s servers and accessed through the internet. These systems offer a more flexible and scalable option, with reduced IT infrastructure requirements and easier software updates. They are suitable for businesses of all sizes with limited IT resources.
• Hybrid WMS: A hybrid WMS combines on-premise and cloud-based components, allowing businesses to leverage the benefits of both deployment models. This approach can provide the customization and control of an on-premise system with the scalability and accessibility of a cloud-based solution.
• Industry-specific WMS: Some WMS systems are designed and tailored for specific industries, such as retail, e-commerce, manufacturing, B2B or B2C. These industry-specific solutions often come with pre-configured features and workflows that cater to the unique requirements of the target industry, potentially reducing implementation time and complexity.
• Open-source WMS: Open-source WMS solutions provide businesses with the flexibility to customize and integrate the system based on their specific needs. That said, they may require more technical expertise to implement and maintain.

Key Features to Look for in a WMS System

When selecting a Warehouse Management System (WMS) in Asia, it’s crucial to focus on key features that align with your business needs. Essential functionalities include comprehensive inventory management, which allows for accurate tracking of stock levels and goods movement using tools like barcode scanning and inventory forecasting. Warehouse optimization features are also critical, helping maximize space utilization and streamline workflows through slotting algorithms and task management. Additionally, advanced reporting and analytics capabilities are vital for generating customizable reports and tracking key performance indicators (KPIs) to drive data-driven decisions.

Integration capabilities are another important consideration, as the WMS should seamlessly connect with your existing ERP, TMS, other essential business applications, client retail platforms, and relevant carriers to ensure smooth information flow.

“A lot of 3PLs are unaware of the inventory in their warehouses collectively, by location, or client. Individual items cannot be tracked, so there is no real-time data available when required,” says Kamalanathan Magedran, Country Head, Anchanto Malaysia.

This is why the best WMS solutions in Asia include integrations that provide real-time inventory updates, which can be shared with clients, marketplaces, reconciliation tools, partners, and more.

Scalability and flexibility are also essential for adapting to business growth, supporting new warehouse locations, and integrating emerging technologies. Finally, mobility and accessibility features are valuable, enabling warehouse staff to access real-time information and perform tasks on-the-go using mobile devices, which enhances productivity and responsiveness.

Factors to consider when choosing a WMS system in Asia

When selecting a WMS system for your business in Asia, there are several key factors to consider so you make the right choice. Generally, you would consider your current and future business requirements and the total cost of ownership. But, you’ll also need to take into account factors like:

• Scalability and growth: As your business expands, your WMS system should be able to scale accordingly. Consider factors like the system’s ability to handle increased transaction volumes, support multiple warehouse locations in Asia, and integrate with new technologies or processes as they may be required over time.
• Integration capabilities: Evaluate the WMS system’s ability to seamlessly integrate with your existing and future local systems and platforms such as your ERP, TMS, or e-commerce platforms. This integration will ensure a smooth flow of information and data across your business operations and systems.
• Vendor reputation and support: Research local WMS vendors’ reputations in the Asian country you plan to expand to. Look into their industry experience and track record of successful implementations. Assess the level of technical support and ongoing maintenance they provide to ensure the long-term success of your WMS system.
• Compliance and regulations: Understand the specific regulatory requirements and customs procedures in the Asian countries where you operate. Ensure the WMS system you choose can handle these complexities and support your compliance efforts. At the same time, make sure the system you choose can accommodate the relevant currencies.

How to Research and Shortlist Potential WMS Vendors

Once you have a clear understanding of your business requirements and the key factors to consider, it’s time to start researching and shortlisting potential WMS vendors in Asia. Here’s a step-by-step approach to help you in this process:

• Utilize online resources: Leverage online review platforms, industry publications, and vendor websites to gather detailed information about the WMS solutions available in the market. Read case studies, whitepapers, and customer testimonials to understand the strengths and limitations of each vendor.
• Conduct comprehensive market research: Explore industry directories, attend trade shows, and leverage your professional network to identify leading WMS vendors operating in the Asian market. For example, GAI logistics in Malaysia found the perfect WMS software after doing some thorough research and speaking with their peers in the industry. Gather information on the product provider’s offerings, industry experience, and customer references.

• Request product demonstrations: Ask the vendors you shortlist to provide a detailed product demonstration, showcasing the key features and functionalities of their WMS system. Use this opportunity to ask clarifying questions, understand their implementation process, and gauge their level of expertise and customer support. It will also help you assess the system’s user-friendliness, configurability, and overall fit with your requirements.
• Seek a comprehensive implementation plan: Work closely with the WMS vendor to create a detailed implementation plan that outlines the project timeline, milestones, resource requirements, and the roles and responsibilities of both your team and the vendor’s team. Everbest Group sought in-depth training and an onboarding plan from their WMS provider in Indonesia. This ensured they thoroughly understood the scope of the technology they planned on using.

Conclusion and Final Thoughts

In the Asian e-commerce landscape, having an efficient Warehouse Management System (WMS) is crucial for companies to stay competitive and thrive. By implementing the right WMS solution, you can streamline your warehouse operations, optimize inventory management, and improve overall efficiency, ultimately leading to enhanced customer satisfaction and increased profitability for your venture in Asia.

Hopefully this comprehensive guide will help you identify the key factors to consider when selecting the best WMS system in Asia. Just remember to do your due diligence by understanding the different types of WMS systems, evaluating vendor options, and ensuring a successful implementation and integration process. We have also highlighted the importance of providing comprehensive training and onboarding to your warehouse staff, as this is essential for the long-term.

FAQs

What is multi-warehouse management?

Multi-warehouse management refers to the ability of a WMS to efficiently oversee operations across multiple warehouse locations from a single platform. It helps businesses track inventory, manage orders, and optimize stock levels across various facilities, ensuring smooth logistics and fulfillment.

What is stock accuracy?

Stock accuracy refers to the consistency between actual inventory levels and the data recorded in a WMS. High stock accuracy ensures reliable inventory tracking, reducing errors in order fulfillment and improving overall warehouse efficiency.

How do customs impact your WMS selection?

Customs regulations play a crucial role in choosing a warehouse management system (WMS) because the system must support compliance with international trade requirements. A suitable WMS should automate the generation of necessary customs documentation, such as invoices and packing lists, and calculate duties and taxes based on destination country regulations to prevent delays and penalties. Additionally, the WMS should integrate seamlessly with customs brokerage systems and compliance tools and offer flexibility to adapt to changing customs regulations. By ensuring these features, a WMS can streamline customs processes, reduce compliance risks, and enhance overall efficiency in cross-border operations.

References –

[1] – Temasek.com – e-Conomy SEA 2023 report

[2] – Mordorintelligence.com – Southeast Asia Warehouse Automation Market Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029)