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What They
Don’t Tell You About Warehouse Management Systems |
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| Software designed exclusively for warehouse management systems
(WMS) is a useful tool to manage physical distribution. But there are vital
questions to ask before jumping on the WMS bandwagon. Do you know what
they are? The answers can be crucial in today’s competitive market.
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| It is important to determine real needs, establish budget priorities before
implementation and not allow the new software to bend operating procedures.
Let’s look at some principles to keep in mind. |
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| The WMS appeal |
| Inventory accuracy is the key to maintaining an efficient warehouse. The
real-time information provided by a WMS lets customers track order status,
whether it’s being picked, packed, or shipped. |
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| Other benefits include promises of reduced errors, reduced paperwork,
more efficient space utilization, and better workload control. |
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| The WMS appeal is built around systems that offer flexible, scalable
products that are easy to support and maintain and that facilitate continuous
improvement on the warehouse floor. |
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| Identify real needs |
| A vital question at this stage is: What do I want the system to do? The
company needs to help answer such questions as: What is everyone else
doing? Is it time to outsource? Should my plant and warehouse be separated?
Am I taking advantage of strategic traffic routes? How good are we at checking
inventory and out-of-stock items? |
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| Function determines form |
| A wise rule of business, especially in the warehouse distribution area, is
function determines form. A good WMS is a tool to help you execute your most
improved and responsive distribution process. |
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| It’s important to seek flexible, scalable, robust WMS products that are
easy to support and maintain and provide a means for continuous improvement
of warehousing operations. |
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| Budgeting: Hidden agendas |
| When considering any WMS implementation, it’s wise to start budgeting
procedures as early in the process as possible. |
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| First there may be an initial startup cost. Then comes the much larger
outlay that should cover needs (not wants). Plan cost scheduling with
prospective software partners. Don’t let the software supplier run the process. |
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| WMS do’s and don’ts |
- Don’t overbuy. Work for balance. Choose software that is neither
too robust nor too sensitive. Keep the macro in balance with the
micro.
- Don’t minimize the problems of installation. A
thorough, upscale changeover can take as long as a year. Ask how
this installation will affect fastchanging product lines.
- Do check out prospective installers and service providers. The old question, “How did they work with another customer,” is still
a good one.
- Don’t ignore the cost of updating WMS as business changes. Some suppliers have more experience and flexibility than others.
Get the best within budget limits.
- Do stay focused on the “Big Three” values. How this installation
affects product search time, operator travel time, and customer
delivery time are topics that all successful distributors try
to keep before them.
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| Three proven principles |
| In the end, it boils down to three
dynamic principles. |
- Calibrate front-end planning
with day-to-day operations and identify your needs.
- Let form follow function. Don’t bend warehouse processes to fit
glitzyseeming software. The mystique leads too many distribution managers
to compromise their distribution process that is unique to their customers.
- Exercise control over the budget from Day 1. Question every element
of cost and be sure you know what you’re getting from your investment. The
promised land of flexible, scalable WMS is in view. Don’t settle for
less.
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