Choosing labor management system software for your warehouse is a big decision. Make the wrong call, and you could disrupt operations. Wait too long, and you risk missing out on efficiency gains or losing revenue to ongoing redundancies.
As a warehouse leader, you have the clearest view of day-to-day challenges and are well positioned to select technology that will drive productivity and reduce operational costs. Still, it can feel overwhelming. That’s why we’ve put together this quick guide to simplify the selection process and highlight what matters most.
Just like a good fulfillment workflow, the goal is to understand your needs, evaluate the best path forward, and make the implementation as seamless as possible. Here’s how to choose the best on-premise or cloud-based warehouse labor management system for your operation.
Investing in New Labor Management System Software: Clarify Your Why
Start your search by clearly identifying why you’re exploring new labor management system software. Understanding the “why” helps steer the rest of the decision-making process.
Common reasons include:
- You see workforce optimization as a way to increase revenue through better labor cost control.
- You’re experiencing operational issues—such as human error in data entry—that may be solvable with better labor management and tracking tools.
- Your current system isn’t cutting it, or a new piece of software requires a more robust labor management system to integrate smoothly.
- Your business is scaling, and you need tools that can grow with you while improving budgeting and performance.
Each scenario influences what features you’ll prioritize. If you’ve used labor management system software before, your experience will also shape your list of must-haves and deal-breakers.
Evaluate Your Users and Form Your Team
Once you’ve looked inward at your business needs, turn to the people who will actually use the system.
Assess their current experience with similar technology. How much automation can they realistically support? Identify any knowledge gaps or process inefficiencies. These can help pinpoint where warehouse labor management system software might have the greatest impact—or where training will be needed.
Collaborate with your IT team to gauge how much support they can provide during and after implementation. Technology can bridge gaps and provide clearer performance data, but buy-in from both management and floor staff is key to success.
At this stage, outline which departments will be involved with the system and appoint representatives to participate in vendor selection and rollout planning. A cross-functional approach will help ensure smoother adoption across your organization.
Assess Your Current Tech Environment
Your warehouse labor management system software should integrate well with the tools and infrastructure you already use.
If there are systems that absolutely must work together, be transparent with vendors and ask whether they’ve handled similar integrations before. You want proven experience, not experimentation.
Don’t stop with software—review your hardware environment, as well. Mobile devices, barcode scanners, PCs, wireless infrastructure, and other equipment should be compatible with the new system. Selecting a solution that supports your existing hardware helps minimize additional costs and downtime.
The latest platforms support a wide range of mobile technology, including RF scanners, mobile printers, and even smart gates—making it easier to track labor and inventory across complex workflows like cross-docking or value-added services.
Build a Detailed LMS Requirements List
Now that you’ve reviewed your team and your tech stack, map out your operational workflows. From daily tasks like receiving and packing to monthly activities like cycle counts and seasonal labor planning, document what your system needs to support.
This becomes your requirements list—the foundation for comparing vendors. Break it into categories like task management, performance tracking, scheduling, reporting, and integrations. You can even consult templates (such as those from Made4net) for inspiration.
Make sure to look beyond just the warehouse floor. Think about how labor impacts the broader supply chain: from inbound shipments to customer service interactions. The right labor management system software should help close gaps in visibility, communication, and accountability across your business.
Factor in Unique Labor Needs and Exceptions
Every operation has unique challenges—and labor is no exception. Be sure to consider any non-standard workflows in your operation. These could include:
- Handling returns that require special verification or repackaging
- Labor-intensive kitting or lot splitting for ecommerce orders
- Seasonal workforce changes or complex shift management
- Specialized handling or safety checks for regulated items
Not all systems handle these scenarios out of the box. Ask vendors how their solution addresses such variations, and be sure to add them to your list of requirements.
Review Proposals and Vet Each Vendor Thoroughly
Once you’ve sent out RFPs based on your detailed requirements, it’s time to dig into the responses. While price matters, don’t let it be the only factor—prioritize features and support that align with your business needs.
Cutting corners on cost can lead to missing critical functionality, forcing costly customizations or even a full system replacement down the line.
Evaluate the track record of each vendor. Look for experience in your specific industry and ask for references. How long have they been in business? Do they support companies of your size and complexity? It’s fair—and smart—to ask.
Also consider long-term costs beyond the initial implementation. Think about your team’s ability to maintain and customize the system internally. The more self-sufficient you can be, the lower your total cost of ownership.
Ready to Explore Labor Management Software Solutions?
If you’re looking for guidance, we’re here to help. Whether you want to learn more about warehouse labor management platforms or see a live demo of what’s possible, we’re happy to walk you through your options and help you move forward confidently.
