WMS security: How secure is your data?

To fully grasp where warehouse management system security comes in, we need to look at what your data will look like with and without a WMS security platform:

Without WMS security:

• You could end up with large volumes of sensitive data unprotected and highly susceptible to unauthorised access or breaches.
• You risk exposing confidential customer data (e.g. purchase history, payment details, and personal information) to cyber threats and other malicious attacks.
• A breach or data loss could lead to an operational warehouse shutdown, leaving inventory management, order fulfilment, and overall supply chain efficiency uncovered.
• Once you lose personal data or fail to comply with security regulations you could face several GDPR penalties and fines.

With WMS security:

• Your data will be encrypted so it’s not exposed to unauthorised access.
• Your customer’s data is stored and processed securely to maintain confidentiality.
• Secure WMS backs up your data so only the personnel you authorise can access it, leading to fewer warehouse and operational disruptions.
• You can comply with GDPR requirements and avoid hefty fines.

WMS solutions work using a series of common mechanisms and functionalities that your next platform should have. These include:

Encryption

Imagine leaving your phone lying around with all your sensitive personal information on it and no password to secure it. Encryption works like a safe: It turns sensitive information into a mix of letters and numbers that are impossible to read by people who don’t have a decryption key.

Multi-factor authentication

Multi-factor authentication goes to a larger extent by acting like a fort. When in place, you’ll be asking users for a password, a message code sent to their phones, or a secret solution to one more step. Any malevolent person would have to go through multiple layers of security and break them. This is not impossible though so that’s why you need the next mechanisms in place too.

Audits and traceability

Ever been in a shop with one of those security cameras glaring down at you? That's what audits and traceability are like for your warehouse data. When something goes wrong, you can go back and check the footage to find out exactly who accessed what and when. This makes it considerably more difficult for anyone to sneak around without leaving a trail.

Updates and patches

Things will still likely go in the wrong direction at some point. This is fine as long as you’ve got a risk management plan in place as well as an action list for improving your future data security efforts. But it’s not just about when a security breach or leak happens. Regular updates and patches should be part of your analysis to keep the data warehouse from being vulnerable to hackers.

Data back-ups and recovery steps

Back-ups will save your data in case something goes wrong and your data takes a nosedive. This way, if your data gets lost or corrupted, you can quickly restore it and avoid a total crash in the warehouse.

To decide which security WSM option will work best for your business, we’re looking at how each system works and what benefits/disadvantages each brings.

Cloud-based warehouse management system security

Cloud-based warehouse management systems offer convenience and flexibility, with your data stored on remote servers rather than on-site. But does that make it more or less secure than an on-premise system? Let’s weigh the pros and cons.

Pros

●     Your data is hosted on external servers, so there’s no physical location for it. This means you don’t need to worry about securing servers in the warehouse or on company property.

●     With cloud-based WMS, your service provider handles maintenance. Everything’s managed for you. You don’t need to worry about the costs of keeping hardware secure or upgrading systems.

●     Data in the cloud is usually encrypted, hence protected as it moves across the Internet. Just like sending your data through a highly secure tunnel.

●     Cloud services typically offer automatic, redundant backups, so your data is safe in case of system failure or other issues. You don’t have to manually back everything up yourself.

Cons

●     With a cloud-based WMS, you’re trusting a third-party provider to keep your data secure. If they experience a breach, your data could be at risk. It’s like handing your house keys to someone else and hoping they lock up at night.

●     Cloud-based WMS systems can still be susceptible to phishing, social engineering, and scams. If your team falls for a scam, the cloud service could be compromised, opening the door to potential data theft.

On-premise warehouse management system security

On-premise WMS are installed directly on your company’s hardware. While this gives you more control, it comes with its own set of challenges.

Pros

●     The servers and storage are on your premises, using your own hardware. This gives you full control over the physical security of your data. No one can access it unless they physically break into your facility.

●     One of the biggest benefits is that you control the security measures around it. From firewalls to antivirus software, you have the flexibility to implement your own security protocols. You are the one who decides what’s best for your data as you’re no longer relying on a third-party provider.

●     On-premise systems give you full control over your backup processes. You can schedule regular backups and ensure they’re stored in a secure, remote location, just in case.

Cons

●     If your servers fail, your warehouse could experience serious downtime until repairs are made. Hardware failures could lead to data loss if backups aren’t properly maintained.

●     Upkeep for your own infrastructure can be a headache. Regular updates, patches, and system checks require dedicated resources, and any security flaws need to be promptly addressed by your team.

●     On-premise systems tend to be much more costly upfront. From hardware purchase to software licensing, the costs add up—and that’s before considering ongoing maintenance.

●     Let’s not forget about the additional risks of physical storage. Your physical storage is at risk from common hazards like fire, flooding, or theft. If disaster strikes, not only could you lose your hardware, but you could lose the valuable data stored on it.

Both cloud-based and on-premise WMS options come with their own unique set of security risks and benefits. Choosing the best one depends on your company's specific needs, risk appetite, and ability to manage security effectively.

To truly protect your warehouse management system, you first have to address the human element with actionable steps that reduce risk.

Here’s how to take a hands-on approach to WMS security through specific training practices and policies.

Start with providing comprehensive training to employees

Instead of just “teaching the basics,” opt for a practical, hands-on training program for your team.

Set up fake phishing emails to test your employees’ ability to spot suspicious messages. This can help them get familiar with the types of threats they might encounter. Review the results in a debrief session, reinforcing good practices and identifying areas for improvement.

Develop training modules specific to the roles within your warehouse. For instance, inventory staff should focus on securing data while handling stock, while management should learn how to configure security settings and monitor access logs. Use real-life scenarios in these trainings to ensure the team can apply the knowledge on the job.

Ensure logins aren’t shared with unauthorised people

Give your staff an encrypted password manager for storing and generating complex passwords. This prevents the temptation to write passwords down or share them. If shared access is absolutely necessary, make it temporary and controlled. Use a system like time-bound access that automatically expires after a certain period, so there's no risk of forgotten, unmonitored logins.

Run these audits regularly by setting up automated reports that flag unusual login patterns or simultaneous logins from different locations. You can later use this data to investigate if logins are being shared or misused.

Provide GDPR training to stay compliant

GDPR compliance isn’t just about understanding the law—it's about creating a culture of responsibility. Don't just have a generic GDPR session. Tailor training to different roles in your team. For example, customer service should know how to handle personal data requests, while IT staff should understand how to configure the WMS to ensure compliance with data protection regulations.

Simulate situations where employees may encounter personal data, such as a customer asking for data deletion. Guide them on how to respond in line with GDPR requirements, from data retrieval to secure disposal.

Your team should be the first to report an incident. Teach them how to report a breach, no matter how small it seems. Implement a simple “red flag” system where staff can quickly escalate potential security issues.

Mintsoft is a cloud-based warehouse management system provided by The Access Group, trusted by thousands of companies worldwide. 

With robust security policies around data protection, Mintsoft ensures your warehouse data remains safe, compliant, and secure. The system benefits from continuous maintenance and updates, ensuring that the latest security protocols are in place at all times.

Key security features of Mintsoft include:

• Data is hosted in secure cloud environments, with strong encryption to protect sensitive information.
• Mintsoft follows strict policies to ensure your warehouse management processes comply with data protection regulations such as the GDPR, reducing the risk of costly fines.
• User access is tightly controlled, ensuring that only authorised personnel can interact with sensitive data.
• Mintsoft undergoes continuous audits to ensure the highest levels of security and traceability.

You can integrate Mintsoft with your existing systems, including ecommerce platforms, couriers, and accounting software. The platform also lets you track stock levels, orders, and shipments in real time, providing full visibility of your warehouse operations.

Whether you're a small business or a large enterprise, Mintsoft can scale with your growth, offering flexibility as your needs evolve.

Ready to see how Mintsoft can enhance your WMS security and efficiency? Book a demo now to see how Mintsoft can transform your warehouse operations.