WMS has Bloatware problems

published: cw 01, 2007 in Supply Chain Software

In a recent report, Steve Banker of ARC Advisory Group notes that much of the warehouse management system (WMS) software on the market has become “bloated” with too much functionality.

Banker sees an imbalance between agility and a buildup of unnecessary functionality that can bog down a company’s ability to manage its warehouse operations. On the positive side, he does see some instances where high functionality helps rather than hurts warehouse performance. Banker says that the need for high functionality in WMS software depends on whether a company wants a speedy supply chain or needs to manage a big, complex operation.

When the supply chain is a competitive factor, a trimmed-down WMS offers agility for the speedy movement of goods. “When the supply chain is a competitive factor, a very efficient distribution center is important,” says Banker. “When your supply chain differentiates you, your distribution begins to morph into something that looks like a third-party logistics operation. So you need agile solutions.”

Banker also notes instances where high-functionality — or the bloated software approach — is preferred. “If you have a big operation and you don’t anticipate very many changes in the operation, a functionally rich solution may be the way to go,” says Banker. The rule of thumb is that highly changing supply environments need stripped-down WMS systems, while big, complex distribution systems that don’t face fast-paced, continual change are better off with WMS systems that come with highly robust out-of-the-box functionality.

Source: Logistics Management