Overwhelmed by your WMS choices?

published: cw 21, 2005 in Supply Chain Software

If you are overwhelmed by your WMS choices, the number of options can be daunting. Here’s how to narrow down the field. The thing that baffles so many people about the market for warehouse management systems is how there can continue to be so many vendors of that category of software. Although the market has seen a large number of mergers and acquisitions recently, a surprising number of providers still remain active. While this variety means that WMS buyers aren’t locked into working with one or two big companies, it can leave them feeling a little like a grocery shopper in the cereal aisle: overwhelmed by all the choices. With so many options?and more coming all the time?how can you ensure that you’re selecting the very best product for your company? Here are nine considerations that can help you shape your decision.

1) Functionality

The perception in the market is that all WMS providers basically offer the same capabilities, and to a degree that’s true. Buyers need to seek out differentiators?that “killer solution,” perhaps, or some function that solves a specific problem. For most buyers, the main consideration will be whether a product includes features that meet their particular business needs.

One way to assess the gaps between your requirements and a WMS system’s capabilities is to run “scripted demos”?the warehouse equivalent of a dress rehearsal. These trial runs can identify a system’s shortcomings, and what it might cost to address them. ” Demo scripts can flesh some of that out.

Conventional wisdom says “best of breed” vendors offer the best functionality. But ERP providers say they’ve greatly improved the functionality of their WMS modules.

2) Integration

Buyers are no longer looking just at the functionality of the WMS, they’re also assessing how well it integrates with other solutions, such as transportation management, order management, and labor management applications.

Buying several solutions from a single provider does cut down on integration and customization costs. Oracle and SAP argue that one advantage of working with an ERP vendor is that both supply chain execution software and back-office solutions will be operating off of the same data, so there are no worries about integration. That’s why many shippers are putting their ERP providers on the short list of potential WMS vendors.

3) Technology Environment

All companies must consider both the operational and the technological sides of an implementation. Every selection team, therefore, should include representatives from both operations and IT.

4) Flexibility

Keeping future needs in mind goes hand in hand with flexibility. When your business changes, will your WMS continue to support your operations? How easy will that transition be?

5) Industry Knowledge

Buyers should also consider how familiar a WMS provider is with their particular industry.

6) Realistic Cost

Before entering into a WMS purchase, you should have a good idea of what kind of price tag you’re looking at. The cost of basic warehouse management systems has dropped, but they’re still not cheap. After adding in all the licenses, hardware, printers, integration, and more, most companies are still looking at a project costing half a million dollars or more.

7) Financial Viability

If you buy a WMS based on price, give equal weight to the vendor’s financial viability.

8) Internal Operations

Before you even approach a WMS provider, you need to have a solid understanding of your own operations. Often this will require mapping your warehouse operations so you can provide potential vendors with an outline of your business flows.

9) Internal Strategy

Take into consideration your company’s broader vision and strategic direction. Therefore, understanding what logistics means to your company and where it is going is very important.”

Source: Susan Lacefield, Associate Editor, Logistics Management