 A robust warehouse management system (WMS) can help an organization work collaboratively. Selecting a WMS requires thorough research and study. The right WMS can aid seamless operations, thereby driving an organization’s profit margins.
Warehouse management systems help businesses maintain their day-to-day operations and inventory management processes more efficiently. These systems have been especially helpful during the pandemic, where minimized paperwork and contactless procedures have been essential to run a successful business. A 2020 Credence Research report Opens a new window found that the WMS market will grow at a rate of 16% over the coming years.
WMS platforms offer benefits to both traders and those involved in the supply chain. Most WMS platforms can be set up at a nominal cost, but supply chain vendors should consider certain specifications and conditions while selecting a WMS that suits their organization’s needs.
Source: Credence ResearchOpens a new window
1. Understand What Makes WMS Beneficial
Every small/medium business looks for expansion, which introduces the need for a robust warehouse management system. WMS is generally more beneficial when larger operations and multiple processes need to be handled seamlessly.Â
As the scale of a business increases, the complexity of managing inventory grows along with other processes such as billing, product shipment, etc., thus increasing the requirement of a suitable WMS. Such a system allows visibility of inventory, storage capabilities, product/material expiry dates, sales, and customer service. Analyzing changes in the current process, examining shipments, and checking the volume of orders can be easily done with the help of an appropriate WMS in place.Â
2. Know your Requirements and ROI
Supply chain vendors should define all their requirements and enlist the costs associated with these requirements to accurately calculate return on investment for a WMS. Even while choosing specific vendors, project managers can easily estimate when the ROI will turn positive. Though different WMSs have various features such as customer service, logistic management, inventory tracking, etc., it is extremely important to select one that meets your organization’s requirements.Â
Budget constraints also apply at this point, with the least expensive tier-3 WMS providing basic tracking features such as ordered, packed, shipped, and received. A higher level tier-2 system can come with extra options such as restocking, work directing, optimization, and minimum reporting. Tier-1 solutions offer complete sophisticated order flow controls, strong response times irrespective of transaction volumes, forecasting capacities, and allocation of labor. These systems also provide advanced levels of reporting, such as the status of the warehouse floor, among others.Â
3. Request for Related Information
Usually, it is advisable to maintain a vendor list as broad as possible, targeting two to three most important requirements. You should also consider the time to value, where after implementing the WMS, it might take a month or a year to see the required ROI. This information should be requested for — how quick is the time to value in achieving the ROI target.Â
Request for information is a simple yet vital step that needs to be carefully carried out. This information can include a list of features that the software supports, training services available, the estimated cost of the WMS software, cost of training, additional configurable features, if any, and support for any third-party integrations.Â
4. Study Individual Vendor Capability, and Advancements & Developments Offered
Evaluation of all the vendors fulfilling your minimum requirements is essential, and it is here where things get complicated, as requirements change with evolving processes. The closest match to all your requirements might seem attractive, but you also need to ensure that there will be further developments considering current and future trends and changes.Â
A WMS platform that incorporates specific feedback from the organization and customers can prove to be more dynamic and provide extra functionalities. In other words, the upgrade path of the WMS is a key aspect that needs to be taken into consideration.Â
5. Shortlist the Best Vendors
Here, vendors whose commitment, robustness, and reliability in maintaining a cognitive relationship are key factors, apart from the main criteria of meeting your specific requirements. The top 5 to 10 vendors can be shortlisted based on different factors such as cost quoted, knowhow, development, and quality, to name a few.Â
A vendor offering a WMS that can identify actions specifically to address challenges and look into details on a line-by-line basis has more usage and scope. Also, a vendor might be having tried and tested methodologies, but implementation should be as per the requirement so that the system provides the optimal solution right at the start. An ideal WMS should be able to scale up as the organization grows, providing solutions as and when required in a timely manner. Â
Make an analysis of the software from different vendors, and tabulate all their features to support all your business requirements, besides cost, software licensing, training cost, support cost, and maintenance.Â
A good approach to identify the best WMS is to view a demo of the software and understand the various features that it supports. With this, your business will have an opportunity to incline its real-time data, analyze/test various functions, check for failures or areas that do not meet your requirement, incorporate required integrations, and also work with the vendor to get things customized as and when needed.
6. Form a Project Team
The entire process of studying available vendor solutions, and implementation, right from designing to going live, should be overseen by a specific project team. It depends on the organization, but most probably, this team would be known as the supply chain management team.Â
The team should have the required management privileges to ensure that the WMS is customized as per the organization’s requirements. The organization’s business units should determine how the WMS should work for them, rather than the IT department. The impact of a WMS on business unit operations can be precisely structured when there are required inputs at the right time. Â
7. Determine Technologies That Improve Processes
A WMS can be serviced through a SaaS platform — a way to use software as a cloud service. Advantages include easy access to the WMS software, high information security, reduced infrastructure (as it is cloud-based and can handle growing volumes), and smoother software upgrades/changes. Inventory data and history of processes/tasks accomplished require data security.Â
All the data processed through the software is important, and this information needs to be managed in the system that might also require a backup in place. A SaaS-based application helps maintain such backup for any sized business and eliminates data loss risk.Â
8. Important of Business Intelligence and Reporting
Periodical analysis and forecasting trends & fluctuations can be done through business intelligence solutions of a WMS. It is a sophisticated process that can assist an operation in looking into the past and as well as the future. Each and every operation that is taking place on the warehouse floor can be monitored on a real-time basis using reporting capabilities.Â
Usually, quick error identification and resolution in a detailed manner should be part of WMS reporting features.Â
9. Training Requirements
Ensure that your team is given proper training on the software and guidance on the procedures that the business shadows through this software. It is advisable to train on the finalized software that has accommodated all your customizations.Â
Besides training, the team should also be well-versed in reaching the vendor for technical support for smoother installation, integration, and maintenance. Involve the team in revised training programs when the vendor releases a software update with additional features.
10. Gauge Provider’s Commitment and Continuous Improvement
There always needs to be continuous improvement in every process, and the same implies for WMS. By establishing a continuous improvement team, the organization can classify and deploy ways to make the most of the features that the WMS has to offer. A vendor’s relationship with the organization should be measured with the level of commitment and improvement — not only what is promised but also what is delivered on a timely basis.
A WMS can be used to fulfill the needs of different sectors, from ecommerce businesses to medical firms. These systems have become especially helpful in supporting ecommerce operations, a sector that is having to cater to the huge demand that has arisen due to the COVID-19 outbreak. We hope these tips help you choose the right WMS for your organization.
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