On-premise vs cloud WMS: which is best for your warehouse?

Every warehouse needs to be managed – and a warehouse management system (WMS) is an indispensable part of any management approach.

The advantages are numerous. A WMS enables warehouse managers to improve inventory accuracy, speed up order fulfilment and maximise their use of space, all backed with accessible real-time data. This is true whether you run one or more warehouses and whether you're a fledgling brand or an old hand.

Not all systems, however, are built the same. The main distinction is between on-premise warehouse management software and cloud-based warehouse management software.

An on-premise system lives on-site and is installed on a piece of physical hardware. It's a server that you have to maintain and upgrade yourself.

A cloud-based system, by comparison, outsources management, resources and updates to a third-party provider. Updates and upgrades are often automated, saving you time and money.

Both do the job, providing end-to-end visibility into all aspects of your warehouse operations, from inventory management to order fulfilment. But which is right for you?

It all depends on who you are and what you want to achieve. Put simply, an on-premise WMS is often best for large enterprises looking for advanced customisation tools and complete local control over data. A cloud-based WMS is the better option if you're looking for scalability and the ability to incorporate remote or hybrid working into your operations.

There's also the question of money. The cloud gives you management tools at lower long-term costs.

Because of its localised nature, an on-premise system can lead to higher overall ownership costs – not least because maintenance and upgrades are in your hands, not your provider's.

Those are the broad strokes. In this article, we dig into the details. We hope it helps you choose between these two main types of WMS.

What are the pros and cons of an on-premise system?

An on-premise system can be the best option if your priorities are advanced customisation and control. This is especially the case if you're a large organisation handling large volumes of sensitive data.

In these scenarios, the cloud is secure – highly secure – but not necessarily secure enough. You may want the added security of having complete control over your data.

The same goes for customisations. If you deal with highly specialised processes, you may want the ability to lift the bonnet and carry out tweaks and improvements yourself.

Another use case for on-premise systems is when your warehouse is located in a weak or unreliable internet environment. In this case, you may literally lack the bandwidth to leverage the remote accessibility that the cloud provides.

These advantages, however, come with some serious caveats for most businesses. The most obvious is the cost of installation. But once installed, the system will also need a lot of TLC.

If you want to scale up or upgrade your systems, you'll need expertise on hand to make the changes – and these changes can be accompanied by unwanted downtime.

In some cases, too, the potential for customisation isn't quite as rosy as it initially seems. This is especially true when products are available (such as EDGE, our enterprise WMS) that give you plenty of advanced customisation tools alongside the advantages of the cloud.

What are the advantages of a cloud-based WMS?

If complete control of data isn't your priority, a cloud-based WMS is the way to go. It offers a scalable, flexible solution that – nine times out of 10 – fits well into a hybrid working environment.

Scaling up an on-premise system takes time and money. A cloud-based system, by contrast, can be scaled up rapidly. Often, it's simply a case of updating your subscription.

Cloud-based systems are, by definition, accessible from any location and at any time. All you need is a working internet connection and the right access permissions. Armed with these, you can access your data whether on the train, working from home or on the beach in Barbados. This takes the end-to-end visibility of an on-premise system and adds round-the-clock availability.

Working with the cloud means you're outsourcing core administrative tasks to a third party. Updates are managed and automated by the vendor, enabling you to redirect human resources to the million other things you need to do.

Cloud-based systems can be rapidly deployed. In the case of Minster WMS's systems, you can be up and running within weeks, not months. The learning curve for staff at all levels is gentle – no costly training required.

And if these advantages weren't enough, you get all this at a low upfront cost – certainly compared to an on-premise equivalent. The subscription-based nature of cloud solutions means you can plan effectively and make long-term savings.

Which option is best for me?

From one perspective, choosing a WMS is as important as choosing your warehouse location. It can make all the difference when providing a speedy, accurate service for your customers.

There's no right or wrong answer. If your business needs complete local control of data, go with an on-premise WMS. This will give you the administrative control you need to stay secure and compliant.

You might also choose an on-premise WMS if you want advanced customisation tools. However, these are now often available with cloud-based systems such as our very own EDGE offering.

A cloud-based WMS fits almost all other use cases – and you can still expect high levels of security, compliance and accuracy. Your data is now available around the clock, and your capacity can be scaled up (or down) as required quickly and easily.

What's more, you can be up and running rapidly and have your staff up to speed in no time. And when things go wrong, troubleshooting is outsourced and in many cases automated, meaning you don't have to squander valuable time battling IT gremlins.

Are you looking for a cloud-based WMS? At Minster WMS, we create highly capable and flexible warehouse management solutions that offer end-to-end visibility and can be deployed with minimal downtime. To learn more, explore CORE, our entry-level solution, or EDGE, our enterprise option.