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How do you choose the right warehouse system?

Via data, clear goals and the right strategy to the optimal warehouse solution.

Andreas LöweAndreas Löwe·06. Februar 2025·5 min read
How do you choose the right warehouse system?
In a nutshell

Selecting a warehouse system doesn't have to be complicated. This article covers:

  • Data analysis: Analyze rotation and inventory data to define realistic requirements.
  • Clear goals: More capacity, fewer errors or higher efficiency? Your goals determine the choice.
  • Facts instead of emotions: Make data-driven decisions and include real user opinions.
  • Don't forget soft facts: Flexibility, scalability and maintenance requirements are critical factors.

In the end, it's not about personal taste, but which solution is mathematically and economically the best!

Selecting a warehouse system – simpler than you think

At first glance, selecting a warehouse system often seems like a gigantic puzzle. There are countless technologies, vendors and marketing promises – no wonder the process is often portrayed as extremely complex. But in reality, the decision is much simpler if you focus on what matters and proceed systematically.

A common mistake when selecting a warehouse system is letting personal taste or emotional preferences come into play. But that has no place here. The decision should be purely mathematical. Criteria such as performance and price are obvious factors, but less visible points such as system availability, maintenance requirements or the need for local service personnel must also be considered. Interestingly, such details are not always openly communicated by vendors – this is where it's important to ask targeted questions and pay attention to vendor transparency.

Start with data: The most important first step

Without accurate data, every decision is a shot in the dark. A detailed analysis of rotation and inventory data is the key to an informed decision. Which items have particularly high turnover rates? Which form a long tail with low sales but high inventory? This is often where the potential lies to optimize processes.

Tip: Look more closely at the outliers! Products that sell exceptionally fast or barely move may place special requirements on the warehouse system. These should be identified early on.

For future planning, it's also not enough to work with general growth assumptions like "We grow 10% every year." Instead, a detailed forecast should be created that is based on product segments and oriented toward realistic business plans.

ABC analysis: Use an ABC analysis to classify inventory by value and turnover frequency. This helps to optimally align the warehouse strategy and make the system efficient. But don't just look at the final result of the ABC analysis – supplement it with an XYZ analysis and look more closely at individual items (see tip).

Clearly define requirements, infrastructure and goals

Every warehouse system must fit the local conditions. Building dimensions, available floor space and hall height largely determine which solutions are even viable. But existing infrastructure and team know-how also play a major role.

Important questions:

  • How complex can the solution be?
  • How much maintenance effort is acceptable?
  • Will the project ultimately become an IT project because the existing software landscape needs extensive adaptation?

Don't forget: Fire protection measures can have a significant impact on the economic viability of a project. In many cases, fire protection is one of the biggest cost traps – especially when a building has no corresponding systems to date. Therefore, all relevant regulations and requirements should be reviewed early on.

Also important: a clear definition of goals. Is it about more storage capacity, higher throughput or fewer picking errors? Clear goals not only help with selection, but also later in evaluating whether the investment actually delivers the desired results.

Technology openness: No emotional decisions

Caution is advised here: Marketing promises and emotional preferences must not dictate the choice of system. Being guided by glossy brochures or enthusiasm for a particular brand can become expensive in the long run. Instead, the focus should be on an objective evaluation of the technologies.

A good way to get a realistic impression is to talk to the actual users of the systems – not just the salespeople or management. We didn't want to miss the little pitch: Platforms like even-logistics.com offer independent reviews that can provide valuable insights.

Let the numbers speak: Keep ROI and TCO in view

A critical point when selecting a warehouse system is calculating the Total Cost of Ownership (TCO). This is not just about acquisition costs, but also all ongoing costs such as maintenance, energy consumption and service. At least five years should serve as the observation period – or even better, the entire depreciation period of the system.

Additionally, opportunity costs should be included. What costs currently arise from picking errors, inventory errors or inefficient processes? And how can these be reduced by the new system? Such a total cost calculation gives a realistic impression of which solution is really the best.

Don't forget soft facts: In addition to hard cost factors, topics such as flexibility and scalability are also critical. What happens if requirements change? Can the system be easily expanded or reduced? These aspects should be included in the decision-making process.

Test the best options: From paper to reality

At the end of the process, several systems usually remain that best meet the requirements. At this point, it's time to get into detail:

  • Have the vendors create concrete simulations or test runs.
  • Visit reference projects to experience the systems in practice. Tip: And talk to the operational people on site. This perspective is often forgotten.
  • Clarify worst-case scenarios: How long does it take to procure spare parts? What is the probability of failure? How redundantly does the system operate?

If uncertainties remain, it may make sense to obtain an expert opinion to identify possible pitfalls early on.

Conclusion: Structure beats chaos

The decision for a warehouse system may seem like a Herculean task at first glance, but with a clear structure it becomes manageable. Personal preferences, hypes and emotional decisions should be left aside. In the end, what counts is which system best fulfills the defined goals and causes the lowest total costs in the long term.

With a structured approach – based on data, clear requirements and realistic cost considerations – selecting a warehouse system suddenly becomes quite logical.

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