When has your warehouse outgrown Excel? 10 signs you need a WMS
Excel is a useful and flexible tool. For many businesses, spreadsheets, printed picking lists, and manual routines work well when the inventory is clear and the order volume is limited.
The challenges arise as the business grows. More items, orders, employees, locations and sales channels make warehouse operations more complex. Information is distributed between the ERP system, Excel files, paper lists and employees' own experience.
At some point, working faster is no longer enough. The warehouse needs better system support.
Here are ten clear signs that your warehouse may have outgrown Excel and is ready for a Warehouse Management System – better known as WMS.
1. Inventory does not match reality
The ERP system or spreadsheet shows that an item is in stock, but the item is not where it should be. Perhaps it was moved without being recorded, picked for another order, or placed in the wrong location.
When inventory is not reliable, it has consequences for the entire business:
Sales promises goods that cannot be delivered
Purchasing orders too much or too little
The warehouse spends time searching
Customers receive delayed or split deliveries
The inventory count reveals major discrepancies
A WMS records inventory movements as they occur. Items, quantities, and locations are continuously updated through scanning, giving the business a more accurate inventory in real time.
2. Pick lists are printed or updated manually
Paper-based picking lists can work when there are few orders and employees know the warehouse well. At higher order volumes, it becomes more difficult to prioritize, distribute and follow up on picking.
A printout also doesn't necessarily show the most recent information. The order may have been changed, the item may have been moved, or another employee may have already picked it.
With a WMS, updated picking orders are sent directly to a scanner or handheld terminal. The system can prioritize tasks, display the correct location, and verify that the employee is picking the correct item and quantity.
3. Incorrect picking and returns are increasing
Mispicking is costly. The warehouse has to process the discrepancy, ship the correct item, handle the return, and update inventory. At the same time, the customer gets a worse experience.
Common causes of incorrect picking are:
Products with similar names or packaging
Goods in the wrong location
Outdated picking lists
Manual registration of item number and quantity
Lack of inspection before packaging
High work pressure during busy periods
Barcode and location-based picking reduces risk. The warehouse operator scans the item and receives immediate confirmation that the correct product, location and quantity have been selected.
4. The warehouse is dependent on specific employees
In many warehouses, there are employees who know where everything is, which items are often mixed up, and how to handle special customer orders.
This experience is valuable, but the business becomes vulnerable if the knowledge only exists in the minds of a few people. Illness, vacation, retirement or employee turnover can quickly affect capacity and quality.
A WMS makes work processes clear and accessible in the system. Tasks are managed digitally, and the employee is given the information they need to perform the job correctly. This makes the warehouse less dependent on people without losing the value of practical experience.
5. Inventory counting requires full or partial inventory shutdown
Traditional inventory counting can involve several days of preparation, counting, and post-processing. The warehouse may need to be closed while employees count shelves, compare to lists, and try to explain discrepancies.
If the count is only conducted once a year, errors may have developed over a long period of time.
With rolling stock counting, selected items and locations can be checked throughout the year without stopping daily operations. Deviations are detected earlier, and inventory maintains a more consistent and higher quality.
6. Employees spend a lot of time looking for items
Time spent searching creates no value. Yet it can take up a significant portion of the workday if locations are not clearly recorded and updated.
The problem increases when:
The same item is located in several places
Goods are moved without registration
Temporary storage locations become permanent
Returns are not processed quickly
New items are placed where there is random availability.
Multiple employees working simultaneously
A WMS shows where the item is located and can guide the employee to the correct location. This results in shorter walking distances, faster picking and better utilization of warehouse space.
7. More orders require more employees
As order volume increases, it is natural that the warehouse needs more capacity. However, if the number of working hours increases as quickly as the number of orders, it may be a sign that the processes are not scaling.
Manual routines often create unnecessary work:
Orders must be sorted and distributed manually
The same information is recorded multiple times
Employees go to unnecessary lengths
Items and locations must be checked manually
Errors require additional treatment and follow-up
A WMS standardizes and streamlines work processes. The warehouse can handle more orders without the need for time and staffing necessarily increasing accordingly.
8. New employees spend a long time learning the warehouse
If a new employee has to learn the location of thousands of items before they can work effectively, warehouse operations are largely based on local knowledge.
This becomes particularly challenging when:
Seasonal peaks
Use of temporary workers
High employee turnover
Rapid growth
New warehouses and locations
With task management on a mobile handheld terminal, the employee receives step-by-step guidance. The system shows where the item is located, what needs to be picked and where the item should go next. Scanning checks that the work is being carried out correctly.
This provides shorter training time and makes it easier to increase staffing during busy periods.
9. Multiple warehouses and locations create poor overview
As your business expands to multiple warehouses, stores, or remote locations, Excel sheets and manual updates become increasingly difficult to keep in sync.
Without a comprehensive overview, the business may experience:
An item is purchased even though it is available in another warehouse
Sales don't know which location can deliver
Inventory transfers are not being recorded
The same product receives different information in different systems
Inventory becomes difficult to control
A WMS provides a comprehensive overview of goods, locations and warehouse movements. The business can work according to uniform routines while each warehouse retains control over its daily operations.
10. Customers and management lack up-to-date information
When information has to be gathered from paper, Excel and various systems, it becomes difficult to quickly answer simple questions:
Has the order been picked?
When will it be sent?
Which employee processed it?
Where is the item located?
Why was the delivery delayed?
What is the actual inventory?
Where do bottlenecks occur?
A WMS documents events throughout the entire warehouse process, providing better traceability and a more reliable decision-making basis for warehouse management, sales, customer service, and the rest of the business.
Excel is not the problem – lack of control is the problem
There is no specific size or number of orders that automatically means your business needs a WMS. Two warehouses with the same number of items can have completely different complexity.
The need depends, among other things, on:
Number of orders and order lines
Number of products and variants
Delivery speed requirements
Number of employees
Number of warehouses and locations
Need for batch, series and shelf life management
Customer-specific requirements for picking, packing and labeling
Integrations with ERP, online store and carriers
Documentation and traceability requirements
Excel can still be useful for analysis and planning. The challenge arises when the spreadsheet becomes the engine of operational warehouse operations and multiple people rely on manual updates to always be performed correctly.
A simple checklist: Is the warehouse ready for WMS?
Ask these questions about today's warehouse operations:
Do we always know what we have in stock and where the goods are located?
Can a new employee pick correctly without knowing the warehouse?
Are all inventory movements recorded as they occur?
Can we track an order from receipt to shipment?
Can we document who has performed a task?
Can we carry out a stock count without stopping the warehouse?
Can the warehouse handle significantly more orders with current routines?
Can we manage multiple locations in the same solution?
Are ERP, online store and transportation solutions connected to the warehouse process?
Does management have access to updated key figures?
If several of the answers are no, the business should explore what a WMS can add.
What changes with a WMS?
A WMS does not replace the ERP system. The solutions have different roles and work best together.
ERP typically handles orders, finances, purchasing and overall master data. WMS manages the operational warehouse operations:
Goods receipt
Storage and locations
Warehouse relocation
Order picking
Packing
Shipping
Return handling
Item counting
Traceability
Information is automatically exchanged between systems, reducing double-entry and providing both the ERP system and the warehouse with more up-to-date information.
From Excel to WMS – how to get started
The transition should start with a mapping of current work processes. The goal is not to copy all existing routines into a new system, but to find a better and more standardized way of working.
A good process usually includes:
Mapping the flow of goods from receipt to shipment
Identification of bottlenecks and manual routines
Quality assurance of product and inventory data
Establishment of locations and barcodes
Clarification of the integration with ERP
Testing with realistic orders and goods
Training of warehouse operators
Planning the transition to a new solution
With clear responsibility, good data and employee involvement, the transition can be carried out in a controlled manner and with low risk.
InStock WMS – Norwegian warehouse management for further growth
InStock WMS is a modern, cloud-based warehouse management system developed for businesses that need better control over the flow of goods.
The solution manages warehouse processes from goods receipt to shipment and provides warehouse operators with updated work tasks on Android-based scanners and handheld terminals. Barcode and location management contributes to fewer errors, better traceability and a simpler workday.
InStock WMS integrates with ERP and other central systems, so that orders, inventory and warehouse movements flow between the solutions. The system can be used across multiple warehouses and locations and further developed in line with the business.
InStock WMS is delivered as Norwegian software with Norwegian project and Norwegian support.
Has the warehouse outgrown Excel?
A conversation and demonstration can provide a concrete picture of which processes can be improved, which integrations are required and whether a WMS is right for the business.
Book a no-obligation demonstration of InStock WMS. We'll take your warehouse, ERP system, work processes and growth plans as a starting point – and give you an honest answer on whether InStock is right for you.
