How to find your WMS game-changer – 5 steps for a successful WMS selection
“Will the WMS meet my key operational requirements?
Can we meet a surge in demand?
Can my WMS adapt as my business changes?
What is the right WMS for my business today and into the future?
What do we need – and not need?”
These are just a few of the business-critical questions a good warehouse management system (WMS) can answer. But which WMS should you select? And most importantly, how do you implement it effectively?
Choosing and implementing a WMS is not a simple ‘off-the-shelf’ decision. Selecting the right WMS demands a considerable investment of business resources: time, money, and people. Given the stakes involved – business operations, outcomes, as well as resources – it is crucial to invest the necessary time to ensure the right choice is made.
The WMS Advantage
The best WMS for your business will allow you to have the right product, in the right place at the right time.
This is vital to business and supply chain success, providing a significant competitive edge. Astute businesses use a WMS for optimal coordination of people, products, robotics, and other automation to maximise productivity, warehouse efficiency, and customer service 24/7 through benefits such as:
• Improved inventory accuracy: Real-time constant visibility for fewer errors
• Increased efficiency: Minimal processing times from receiving to shipping
• Faster fulfilment: Timely and accurate order processing
• Space optimisation: Improved use of warehouse space using data-driven storage intelligence
• Cost reductions: Optimised labour allocation for lower workforce costs
• Scalability: Easy accommodation of new sites, increased stock, and order volumes at peak times
• Continuous compliance: Regulatory compliance, such as safety and traceability of products
As automation, IoT, and cloud technology advance, forward-thinking businesses are embracing modern warehouse management systems. It is estimated the global WMS market is currently worth US$3.45bn and predicted to almost triple to US$9.11bn by 20321, with Australia likely to follow the trend.
Why WMS Selection Fails
Why do so many businesses end up with a sub-optimal WMS and consequently, a poorly performing warehouse?
Many businesses underestimate the commitment, time, and workforce required to install a new WMS or upgrade an existing system, and as such, are often affected by issues such as:
Selection fatigue
Too many systems, too complex to choose. With so many WMS options, selecting the right one can be overwhelming, resulting in buyer regret from picking the one the vendor says is best, the first one presented, the lowest cost option, or the one IT simply says is suitable.
Lack of buy-in
Investing in or upgrading a WMS is a game-changing, company-wide decision. A WMS is not just a ‘warehouse thing’; it influences and affects critical business areas from the boardroom right down to on-the-floor fulfilment – IT, staffing, sales, accounting, and more. All affected users and stakeholders must actively participate in the selection process. It is not a decision that can be left solely to an IT project lead or warehouse manager.
A WMS that only works well and integrates with some areas of the business may as well not be installed at all.
FOMO
Warehouse management system technology and capabilities are progressing fast, and many businesses take decision and implementation shortcuts to play catch-up with competitors in fear of missing out or being left behind. Shortcutting the process is simply a quick route to failure.
Selecting and implementing the right WMS takes time, but with business operations and reputation at stake, it is non-negotiable.
Five Critical Steps for WMS Selection Success
A systematic approach to WMS selection makes all the difference. The following critical decision drivers, which businesses of all sizes can employ, will help to avoid many of the pitfalls discussed above, ensuring that the final WMS decision is well-informed, works for the business, and aligns with future goals:
1. The ‘why and what’ evaluation – Objectives and Requirements
Understanding your ‘why’ right at the start is vital to ensure you invest in a WMS for the right reasons. If you already have a WMS, why do you need to change it? If you do not have a WMS, is there a reason? In many businesses, the WMS is outdated and needs an upgrade to meet current and anticipated business demands. Other smaller businesses are yet to invest in a WMS because they are not ready or do not have the warehouse infrastructure.
Knowing the answers to your ‘why’ is crucial to getting budget and management buy-in.
Of course, once you have answered the ‘why,’ next comes the ‘what’.
What specific outcomes do you aim to accomplish by integrating a WMS into your supply chain operations? What are the essentials and ‘nice-to-haves’? To ascertain this, ask the people using, interacting with, and relying on the WMS daily.
What needs to be done better? How can the WMS make a tangible improvement? What is the ‘wish list’? Warehouse workers, sales, IT, HR and so on will all have different answers. Asking detailed questions early on will give you a list of functional requirements of what the WMS needs to deliver for each critical business area.
2. Understand your data
Having up-to-date data to hand is crucial for successful WMS selection and implementation. This ensures you can confidently assess whether the system you are considering can handle your operational fluctuations and day-to-day demands.
You need detailed figures for all your key business metrics, not just what is coming in and going out but also how you ship, how you store, how you pick, how many workers you need, and so on. Building the right WMS relies on accurate data rather than guesswork.
3. Test, test, and test again
Do not rely on the ‘live’ button as your only test of a WMS. Put each WMS you are considering through its paces. Use your actual data and give its real-world users hands-on access. This ensures that the WMS integrates smoothly, is user-friendly, and is compatible with your existing systems and IT infrastructure so that any issues are identified early on.
When testing, be thorough. Demo scenarios encountered day-to-day. Simulate worst-case, catastrophic situations to see how the system handles them. In case of problems, do all vendors have responsive, hands-on tech support?
4. Allow sufficient time
Selecting and implementing a WMS is a process that demands thorough and careful attention.
Rushing can result in costly errors, such as insufficiently trained staff or infrastructure that is not prepared for the transition.
Invest the time and build in the opportunity to delay, if necessary, to ensure successful and smooth implementation.
5. Understand the total cost of ownership
The financial commitment required for a quality WMS can be substantial, and it is vital to budget for all associated costs, including maintenance and future upgrades.
Ensure the system you choose is scalable and can adapt to technological advances, so you are not left with an outdated WMS soon after installation. Never just focus on ROI; what is the total cost of ownership over the system’s lifespan?
How can you make sure you select the right WMS for your business?
The best WMS implementation starts with the right selection.
Ensuring thoroughness in every aspect of business operations can be challenging, particularly when deeply immersed in day-to-day activities. It’s difficult to guarantee that you have rigorously evaluated every WMS option and vendor – what if there is a superior solution that is better for your business?
The answer? Bring in the external expertise.
Supply chain consultants help businesses select, implement, and support warehouse management systems. They have the agnostic, independent perspective to offer unbiased WMS recommendations from suitable, verified vendors that tick all the boxes – and the on-site, hands-on support to roll it out, make it happen, and navigate any teething issues.
As most WMS require a lengthy and customised implementation process, experienced consultants, such as Extolla, have solutions to reduce the implementation timeline significantly.
Extolla’s Consult-Implement-Operate model de-risks the process and provides a future-proof WMS that will transform your warehouse operations and the entire business.
If there is any WMS doubt, leave it to the experts who will save you time and resources and prevent costly future mistakes.
Make smarter WMS decisions with Extolla.
Contact Extolla
Source:
1. Warehouse Management System (WMS) Market Size, Share, and Industry Analysis 2024-2032, Fortune Business Insights