By Ian Hobkirk
Managing Director of Commonwealth Supply Chain Advisors
No substantial software implementation is easy and Warehouse Management Systems (WMS) are certainly not the exception. Before, during, and even after implementation there are numerous steps that must be taken and plans put into place to ensure a smooth transition from an existing system—or the smooth adoption of a brand new solution.
Three big obstacles that tend to trip companies up during the WMS implementation process are:
- Not allowing enough time upfront to properly prepare for the project
- Not allocating enough time for the actual implementation phase
- Not knowing when to delay the “go-live” date
Let’s look at each of the issues and the steps that can be taken to avoid these problems altogether when implementing a new WMS.
1) Not Allowing Enough Time Upfront
Project preparation should be a defined phase of your project that requires about four weeks to complete. During this phase, you’ll want to clearly define roles, processes, and execution, as well as disseminate relevant information to all stakeholders. Here’s a checklist of documents that should be developed before the warehouse management system implementation project officially starts:
Integrated Project Plan: Use a platform like Microsoft Project to create an integrated plan. Doing so will ensure that the dependencies among the different work streams are rationalized.
Detailed Roles and Responsibilities Document: This is a matrix that clearly defines all of the tasks that your team will be accountable for, and which ones the WMS vendor will handle. Here’s a sample task list excerpt:
Risk Management Plan: Successful IT projects are all about balancing risk in the areas of cost, time delays, or a disruption to shipping. An experienced WMS project manager can help anticipate and ward off possible risks during implementation. As part of your Risk Management Plan, perform an organizational impact analysis to identify major impacts to other areas of the business outside of distribution. The Risk Management Plan should answer questions like:
- What constitutes an issue?
- How are issues to be reported?
- Who is responsible for collecting the issues?
- What is the process to review and decide on actions to resolve the issues?
- How will issues be prioritized?
- What are the criteria for successfully resolving an issue?
- What happens when issues cannot be successfully resolved?
- What is the escalation plan for unresolved issues?
Answering these questions before project kickoff will ensure that the necessary processes are in place to track and resolve issues.
Develop Systems Architecture Plan: Identify the systems architecture that will support the new systems.
Financial Reporting Plan: Use a document, Excel spreadsheet, or your ERP’s financial reporting function to track project spending and to keep financial stakeholders updated on project finances. Your company may also have a template and procedures that specify what and how to track spending. Larger companies may use a financial report out of their ERP system.
2) Not Allocating Enough Time for Implementation
“What is a realistic time frame for a WMS implementation?” is a common question.
In rare instances, I’ve seen very simple (with no changes or customizations) WMS implementations take 6-8 weeks. I’ve also seen implementations take well over a year, especially if the WMS project is part of a new building or major material handling automation project.
3) Not Knowing When to Delay the “Go-Live” Date
No matter how determined you are to get your new WMS up and running, it pays to take a step back and make sure the system is indeed ready to go live. Do this by conducting a WMS readiness assessment to evaluate your company’s level of preparation in these six areas:
1. System readiness
2. Interface readiness
3. Visibility and reporting
4. Training
5. Data conversion
6. Inventory condition
Much like you would have a marine engineer check out your boat before launching it, a readiness assessment ensures that the system and its users are actually ready to begin working. Delay go-live and you may have to use your existing systems for a few more days, but jump the gun and risk everything from shipment delays to errors to unhappy customers. Which would you rather have?