Blog

Do You Really Need to Replace Your WMS?

Mar 20, 2014

Ian HobkirkBy Ian Hobkirk
Managing Director of Commonwealth Supply Chain Advisors

 

 

 

Yesterday, Supply Chain Management Review published a cover story I wrote for them, “Do You Really Need to Replace Your WMS?” I thought I’d take this opportunity to share a few highlights from the article with our readers.  

 

The advancement of our supply chains over the last 15 – 20 years has created a long list of new process requirements for distribution centers. Today’s facilities must accommodate SKU proliferation, multi- channel distribution, a host of compliance mandates, increased security measures, and increasingly competitive service requirements.  While the distribution capabilities required to efficiently support these demands could be enabled by most WMS’s available today, many companies are hesitant to make an upgrade or to implement a new system due to the cost, risk, and sometimes, lack of perceived value. Luckily, there are a handful of interesting alternatives – technologies that provide the required functionality with lower risk, less cost and ultimately with a shorter time-to-value.

 

When it comes to WMS, companies typically fall into one of two categories:

 

Class A: These companies implemented their existing WMS when there were fewer demands on their supply chain. The standard features of these older WMS systems don’t adequately meet today’s demands on the distribution center.
Class B: These companies do not currently use a WMS. They operate with paper-based picking instructions, spreadsheet-based inventory tracking, and manual data entry. A surprising number of well-known companies fit into this category.

 

Here’s a closer look at what specific functionality is pushing these companies to consider upgrading or replacing their WMS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Because the barriers associated with wholesale WMS changes are high, many of these companies are turning to creative alternatives:

 

Voice-Enabled Warehousing

We’ve written extensively about voice-enabled warehousing in the past. Surprisingly, some voice applications are very capable of extending a company’s WMS capabilities while providing the hands-free benefits. Companies like Voxware and Lucas Systems have created software that can be easily configured to create new workflows. This approach give companies the warehouse flexibility they require with less risk. Since voice deployments take place on top of existing WMS systems, a failure in implementing one of these systems often will not impact the existing WMS. Additionally, voice providers continue to offer attractive pricing and are more likely to provide a fixed cost for implementation. Despite all of these benefits of voice as an alternative to a WMS upgrade, one drawback is that it does increase IT complexity. Nonetheless, we’ve seen this approach quickly achieve ROI for clients.

 

Warehouse Control Software

Warehouse control software (WCS) used to simply be a development platform for providing a single point of communication for various islands of automation: conveyors, carousels, scanners, printers, etc. However, many of today’s WCS systems have made significant leaps forward with flexible architecture which can be used to fill gaps in WMS functionality. Many of these WCS’s are capable of balancing workload across zones in pick modules and enabling advanced picking methods (like cluster picking) that reduce walking distances and improve picking efficiency.

 

In conclusion, while sometimes a large WMS upgrade or implementation is inevitable, many companies can get by efficiently by deploying lower-cost, lower-risk interim solutions to address mid-term operational needs and shorten time-to-value.

 

To read the full version of this article as published in Supply Chain 24/7, click here: http://www.supplychain247.com/article/do_you_really_need_to_replace_your_warehouse_management_system

 

Recent Blog Posts

Archives

Categories

Request a Consultation

We understand that you may have immediate needs. We encourage you to reach out! Click the link below to complete your inquiry and we will connect you with one of our expert supply chain consultants.

Start Today