The document discusses key considerations for choosing a warehouse management system (WMS). It notes that [1] implementing a WMS can take months and cost hundreds of thousands, so choosing the right software vendor and solution is important. It recommends selecting a vendor with experience implementing within budget and timeline as well as a technology platform allowing for future growth. [2] Flexible pricing plans and financial viability of the vendor are also important factors. [3] Benefits of a WMS like improved inventory management and increased efficiency can provide returns within 6-18 months, so companies of any size can benefit.

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Highjump May 2008

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.  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.  Warehouse management solution software is too
expensive for small businesses.
o Choose software vendor that offers flexible or
subscription-based pricing plans.

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.  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.  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.  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.  Training costs will be too high
o Training does cost time and money, but the right
WMS should simplify operations, not complicate them

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.  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?