In our previous broadcast, we discussed 5 of our top 10 catalysts for adopting a new WMS.

As a quick review, those 5 WMS project drivers were:

  • You are Experiencing Rapid Growth
  • You are Opening a New DC
  • You are Making Significant Logistics Strategy Changes
  • You have or are Consolidating Facilities
  • You Want to Significantly Increase DC Automation

Now, let’s add 5 more...

Logistics Insights @ Podbean.com

Full Transcript:  

In our previous broadcast, we discussed 5 of our top 10 catalysts for adopting a new WMS. As a quick review, those 5 WMS project drivers were:

  • You are Experiencing Rapid Growth
  • You are Opening a New DC
  • You are Making Significant Logistics Strategy Changes
  • You have or are Consolidating Facilities
  • You Want to Significantly Increase DC Automation

Now, let’s add 5 more:

No. 6 - Distribution Costs are Rising: For any number of factors, including the rapid growth, a company may find its distribution costs are rising, as a percent of sales, per unit or case, or some other measure. The advanced capabilities of today's WMS software can often move that cost curve in the downward direction.

No. 7 - Your Current WMS Technology is Really Old: Many companies are still running Warehouse Management Systems installed years ago - sometimes as far back as the 1990s. These systems might have been developed in-house, or were purchased from a WMS vendor now long gone and have become "legacy systems" supported internally. At some point, the cost, inflexibility, or challenges of maintaining skills sets to support these systems drive companies to seek a more current software platform.
 
No. 8 - You are Facing New Omnichannel Fulfillment Requirements: Omnichannel fulfillment is disrupting DC operations at retailers, consumer goods companies and more, often driving companies into heavy piece picking operations for the first time. All this, perhaps with new value-added service requirements, may simply exceed what a company's current WMS can enable efficiently. A new WMS may be needed to add efulfillment capacity and capabilities.
 
No. 9 - You Want to Move to a Cloud-base System: This factor is connected to the point about having really old WMS technology, but is worthy of standing on its own. Cloud-base systems can substantially reduce the internal IT support resources required to maintain traditionally deployed WMS systems, among other benefits.
 
And finally - 

No. 10 - You want to Standardize on a Single WMS Platform Worldwide: Obviously this is a driver only for large multinationals, but many companies in the past were content to have a hodge podge of WMS systems in facilities across the world. That scenario makes it difficult if not impossible to standardize practices worldwide, compare performance across facilities, and to roll out new changes in DC processes on a global basis. A number of companies have made the move to replace those different systems with a single global WMS, though that changeover usually takes years.


There you have it – our 10 key drivers to new WMS adoption. You can learn more about Softeon's WMS solution right here.