How many SKUs before you need a WMS?

There is no magic number. How you work matters more than how many SKUs you have: lots and expiry dates, several operators at once, many small orders or customers asking for traceability justify a WMS sooner than any article count.

Do I have to reorganise the warehouse?

Not to start with. The racks and slots you already have are coded with labels, and the WMS works on top of them. Later, with turnover data, the layout can be improved.

Can I keep using Excel for reports?

Yes. WMS data can be exported, and with Caotic the Tracker portal already shows stock, inbound, outbound and KPIs.

What do I need to buy?

RF terminals (Android or Windows), a label printer and the server or cloud the WMS runs on. We tell you which ones to choose for your operation.

How long does it take to go live?

It depends on the modules and the integrations; a distribution warehouse goes live in weeks.

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Comparison guide · Excel, paper and WMS

Excel or WMS: when the spreadsheet is no longer enough.

Updated on 27 October 2026 · Binari Software Solutions

Short answer

Excel and paper work while the warehouse is small and run by the same people, who know by heart where everything is. They stop being enough when SKUs, orders or operators grow: the stock in the spreadsheet lags behind the real stock, picking errors only show up when the customer complains and stock counts mean stopping work. A WMS records every movement as it happens, with the barcode scanned by the terminal, and tells each operator what to do. The switch does not have to happen all at once: you can start with receiving, put-away and outbound.

Comparison

Criterion	Paper and Excel	WMS
Where everything is	In people’s memory or in a sheet someone updates.	In the system, by location, pallet and lot, in real time.
When stock is updated	When someone types it in, sometimes at the end of the day.	With every movement, when the barcode is scanned.
Picking errors	Discovered when the customer complains.	Prevented: the terminal will not confirm the wrong article or lot.
Expiry dates	Checked by hand, if there is time.	FEFO when reserving and automatic blocking of expired goods or goods pending quality checks.
Stock count	Counting with the warehouse stopped.	Permanent inventory and counts without stopping operations.
Traceability	Digging out delivery notes and asking around.	Lot or pallet → where it came from and who it went to, in one query.
If a key person is missing	The warehouse slows down or stops.	The system guides whoever is there; training is shorter.
Upfront cost	Almost nothing.	Licences, implementation, terminals and integration.

Why the spreadsheet works at first

Because it costs nothing, everyone knows how to use it and in a small warehouse the person picking the orders is the person who knows where everything is. The problem is not Excel: it is that the data depends on someone typing it in, sooner or later, correctly or not.

Where it starts to fail

With more SKUs, more orders a day, several shifts or lots and expiry dates. The spreadsheet is always behind the warehouse, errors show up at the customer’s end and every stock count costs you a weekend. And there is almost always one person without whom the warehouse does not work.

What a WMS changes

Every operator works with an RF terminal or by voice. The system tells them which slot to put goods into, which order to pick and in what sequence; they scan the barcode to confirm. If the article or lot is not the right one, the terminal warns them there and then. The stock the office sees is the warehouse’s stock, not yesterday’s.

How to switch without stopping the warehouse

One part at a time. First the locations are coded and you start with receiving, put-away and outbound on a few terminals. Once that works, you add stock counts, replenishment, transport or the customer portal. Go-live is supported on site and operator training is short, because the terminal guides them.

What suits you

Stay with Excel if…: you have few SKUs, no lots or expiry dates, errors are rare, stock counts add up and you do not depend on one single person.
It is time for a WMS if…: picking errors turn up every week, stock counts do not add up, expiry dates slip through, customers ask for traceability or to see their stock, or the warehouse is about to grow.
Start with one part if…: the change worries you: receiving, put-away and outbound solve the most urgent problems, and the rest is added when you need it.

Frequently asked questions

How many SKUs before you need a WMS?: There is no magic number. How you work matters more than how many SKUs you have: lots and expiry dates, several operators at once, many small orders or customers asking for traceability justify a WMS sooner than any article count.
Do I have to reorganise the warehouse?: Not to start with. The racks and slots you already have are coded with labels, and the WMS works on top of them. Later, with turnover data, the layout can be improved.
Can I keep using Excel for reports?: Yes. WMS data can be exported, and with Caotic the Tracker portal already shows stock, inbound, outbound and KPIs.
What do I need to buy?: RF terminals (Android or Windows), a label printer and the server or cloud the WMS runs on. We tell you which ones to choose for your operation.
How long does it take to go live?: It depends on the modules and the integrations; a distribution warehouse goes live in weeks.