SCCG: Selecting the right Warehouse Management System (WMS)
Choosing an ideal Warehouse Management System (WMS) is crucial for streamlining the logistical function. But how do you choose the right WMS? A discussion with Craig Ryder, Director of The Supply Chain Consulting Group.
A WMS is a software solution that helps to control and manage the day-to-day operations within a warehouse, including inventory tracking, order fulfilment, and storage optimisation. It enhances efficiency by automating processes related with accurately tracking when products are received, picked, packaged, and shipped.
For organisations that have significant warehouse operations, having a WMS is immensely important, because they drastically improve operational efficiency, reduce waste and excess costs, and offer real-time inventory tracking using tools like barcodes, RFID tags, and sensors.
Besides that, a WMS can also boost labour management by helping organisations foresee labour needs and create schedules. Relationships with customers and suppliers also see improvement thanks to faster deliveries and fewer errors, which gives a boost to a company’s reputation.
Knowing what is needed from a WMS
“There is no one-size-fits-all solution,” says Craig Ryder, Director of The Supply Chain Consulting Group, an award-winning UK consultancy firm specialised in logistics. “That is because every organisation is different. It depends on the size and maturity of your business, your expertise, the industry you are operating in, your systems landscape and your current level of automation, if any.”
“Making an informed decision means being clear on your requirements and clearly articulating the warehouse processes that the WMS will need to deliver on. The selection process must consider financial elements, system support and service options, flexibility, customer references, etc. Picking a solution that aligns well with your operation is key to unlocking value and avoiding costly modifications.”
The most important thing when choosing the right WMS is that business leaders have a crystal-clear view on requirements before proceeding: How their organisation wants to operate in the future, what resources they will require, and how they will create the capabilities for the chosen WMS to work for them.
“Sourcing the best WMS is usually done through a robust tender process and negotiation before contracting,” notes Ryder.
The main criteria that an organisation should keep in mind must be based on functionality, cost, company viability, reputation, and customer support. “The right WMS solution is the one that best meets the requirements of the business and that will ultimately be an excellent long-term partner – at the right cost, of course.”
While finding a perfect match for all an organisations’ specific requirements is certainly tricky, but it is a must, says Ryder. “Choosing the wrong WMS can be costly, damaging, and will cause major headaches.”
Functional requirements
One part of the equation upfront requires organisations to know exactly what specific functional requirements they have in their warehouse operations for a WMS. With this know-how, they can be sure every operation is covered, and the tool is used to its fullest potential.
“Specifying the ‘who’, ‘what’, and ‘reason’ provides both clarity on what the system is supposed to achieve and why it needs to achieve it. It can also help identify alternative ways to achieve the same end goal,” says Ryder.
Non-functional requirements
Then there are also non-functional requirements to consider, such as system attributes or qualities that the software must have that sit outside of process and functionality.
Those include things like: Speed (or response time), which is the need for the software to work at a rate that can keep up with production; Scalability, which is keeping up with peak volume; Integration, which is how the software fits into the wider system landscape; Deployment options, which can be cloud-based deployment or on-premise systems, among other options; and Security, which also covers regulatory requirements.
“WMS products vary dramatically in their functional breadth, the industry sectors they serve and their long-term flexibility,” Ryder added.
“Vendors may confirm that their product will be able to match requirements without modification, but the reality may be different at the implementation stage. There are dozens of vendors and systems around, so it is key that companies conduct a thorough due diligence.”
