Debunking the top eight mythsPresentation Transcript
Highjump May 2008
A warehouse management system will take months, even up to a year, to install, and cost hundreds of thousands of dollars in consulting and services fees. o Choose WMS specifically designed for smaller businesses. o Choose software vendor with the right solution, technology and supply chain experience. o Choose software vendor who has demonstrated an implementation methodology within the planned timeframe and budget.
Any warehouse management system that fits our business now will be too small for us in a couple of years. o Choose a software vendor that can provide what you need today but with a technology platform that allows for future growth o Choose a software vendor who can provide an upgrade path to add new functionality or additional modules
Warehouse management solution software is too expensive for small businesses. o Choose software vendor that offers flexible or subscription-based pricing plans.
Any vendor that can give me a decently priced warehouse management system will be out of business in a few years o Be selective when choosing a software vendor o Choose vendor with the right solution and supply chain experience o Choose vendor that has financial viability o Research several software vendors. Ask about their client base and contact a company that is about the same size.
A low, up-front cost for a warehouse management system will automatically provide a lower total cost of ownership over the long term o An usually low price tag should set off a warning signal. o The vendor offers a low initial cost but anticipates a much higher cost of implementation services. o Inquire about the vendors investment in R&D to continually improve the product over time o Avoid buying a legacy product that has limited future liability
My business is too small to reap any benefits from a warehouse management system o Any company will save on labor, improve inventory management, attain more accurate shipments and improve space allocation. This will lead to increased customer satisfaction. o A WMS will reduce paper-driven processes o Typical timeframe to expect an ROI is between 6 to 18 months. Perform a thorough cost/benefit analysis before implementing.
I don’t need a best-of-breed WMS; my homegrown system already works and gets the job done. o Evaluate the cost of ongoing maintenance and customization of this homegrown application o Custom-developed applications become difficult to support and become more costly to maintain o Custom-developed applications are usually less adaptable to changing business requirements
Training costs will be too high o Training does cost time and money, but the right WMS should simplify operations, not complicate them
Examine potential WMS and vendors greatly. Choose a software vendor with long-term viability, ongoing product support, and strong financial health. Choose a WMS that won’t require initially purchasing modules that the company does not need. Choose a vendor/WMS that provides a straightforward and flexible upgrade path.
Does the vendor provide a straightforward upgrade path, or will you require an entirely new installation, product or platform? Is it possible to add specific supply chain modules such as labor or transportation management? Does the vendor bring domain expertise and experience helping companies that are similarly sized and in the same industry?