Debunking the top eight myths


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Debunking the top eight myths

  1. 1.  Highjump May 2008
  2. 2.  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.
  3. 3.  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
  4. 4.  Warehouse management solution software is too expensive for small businesses. o Choose software vendor that offers flexible or subscription-based pricing plans.
  5. 5.  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.
  6. 6.  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
  7. 7.  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.
  8. 8.  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
  9. 9.  Training costs will be too high o Training does cost time and money, but the right WMS should simplify operations, not complicate them
  10. 10.  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.
  11. 11.  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?