Special Report. Debunking. the Top. Eight Myths. in Your DSD Mobile. Security Strategy. Surrounding Small-Business. Warehouse Management Systems

Transcription

1 Special Reprt Debunking the Tp in Yur DSD Mbile Security Strategy Surrunding Small-Business Eight Myths Warehuse Management Systems

2 Intrductin The era f manual warehuse peratins is drawing t a clse with gd reasn. N matter hw effi cient yur emplyees are, managing space and maintaining inventry with ad-hc spreadsheets, paper-based peratins, r legacy systems desn t prvide the accuracy, r visibility, int the supply chain that yur managers need t succeed. Tday, as businesses f all sizes grw in sphisticatin, they are turning t best-f-breed warehuse management systems (WMS) in an effrt t reduce csts and bst prductivity in the face f increased glbalizatin, regulatin and cmpetitin. There are many miscnceptins that prevent small businesses frm attaining the benefi ts f a best-f-breed warehuse management system. Fr t lng, leading warehuse management systems have seemingly been within the reach f nly large third-party distributrs, r natinal and internatinal manufacturers and retailers. N mre. T stay cmpetitive, mid-sized and small businesses increasingly are turning t best-f-breed warehuse management systems that effectively reduce csts and streamline daily peratins, enabling even the smallest cmpanies t adapt quickly t changing market demands. In fact, research fi rm ARC Advisry Grup s recently published reprt, Warehuse Management Systems Wrldwide Outlk 1, predicts that the wrldwide market fr WMS is expected t grw at a 4.8% annual rate, while their prjectin fr adptin f these systems amng Tier 3 cmpanies is anticipated t grw at a much brisker rate f 8.2%. Yet, the reality is that many small businesses still believe warehuse management systems are t expensive fr their budgets r wn t prvide the benefi ts they need t thrive. This may have been true as recently as a few years ag, but as this reprt will shw, WMS fr small distributrs are nw nt nly within reach and affrdable, but they are als a cmpetitive necessity. The Tp Eight Myths Surrunding Small-Business Warehuse Management Systems Myth 1: A warehuse management system will take mnths, even up t a year, t install, and cst hundreds f thusands f dllars in cnsulting and services fees. Reality: Nt s. While sme larger WMS implementatins can take up t a year and require hefty custmizatin with crrespnding cnsulting fees, there are WMS applicatins specifi cally designed fr smaller businesses. In fact, with the right best practice-based implementatin, deplyment can be achieved within 45 business days, including quickly mapping yur physical warehuse t yur lgical warehuse. Yu just need a sftware vendr with the right slutin, technlgy, and supply chain experience. Sftware vendrs lacking a demnstrated implementatin methdlgy ften see delivery timeframes slip, thus raising the implementatin cst. 1 ARC Advisry Grup reprt: Warehuse Management Systems Wrldwide Outlk. May 2, Warehuse Management Systems: The Operatinal Benefits fr Small Businesses Imprve prductivity Achieve up t 99+% accuracy Increase n-time shipments and fi ll rates Optimize warehuse space Slash shrinkage and spilage Bst custmer lyalty by cnsistently meeting r exceeding expectatins

3 Myth 2: Any WMS that fits ur business nw will be t small fr us in a cuple f years. Reality: Nt always. The trick is t chse the sftware vendr that can prvide yu all f the functinality yu need tday, alng with an underlying technlgy platfrm that enables future grwth. In this way, yur WMS shuld nt require extensive new installatins r custmizatin. The vendr yu chse shuld be able t prvide a straightfrward upgrade path t add new functinality r additinal mdules, such as sltting, labr, yard and transprtatin management systems withut an entirely new deplyment. Myth 3: WMS sftware is t expensive fr small businesses. Reality: Fr less than the annual salary f a skilled prgrammer, WMS slutins are available that prvide everything yu need t imprve the management f inbund rders, receiving, put-away, picking, packing/shipping, replenishment, inventry cntrl and cmprehensive reprting. Sme sftware vendrs als prvide fl exible, even subscriptin-based, pricing plans. This means nearly any cmpany can affrd a WMS that will help it remain fl exible, cmpetitive and prfi table. Myth 4: Any vendr that can give me a decently priced WMS will be ut f business in a few years. Reality: There s n dubt that yu have t be selective when chsing yur sftware partners. That s why it s vital that yu pick a vendr with nt nly the right slutin set and supply chain experience, but ne that als has the fi nancial viability t be there fr the lng haul. Myth 5: A lw, up-frnt cst fr a WMS will autmatically prvide a lwer ttal cst f wnership ver the lng term. Reality: An unusually lw price tag n a WMS shuld set ff a warning signal fr prspective buyers. Sme WMS vendrs may chse t drp their asking price t an attractively lw number in rder t win yur business because they anticipate a much higher cst f implementatin services nce the prject is underway. If the prduct actually is as inexpensive as the price tag indicates, it is reasnable t wnder hw much mney the vendr can invest in R&D t cntinually imprve yur prduct ver time. Make sure yu are nt buying a legacy prduct that has limited future viability. 3

4 Myth 6: I m t small t reap any benefits frm a WMS. Reality: Virtually any cmpany, n matter hw small, will save n labr, imprve inventry management, attain mre accurate shipments, imprve space allcatin, and ntice increased custmer satisfactin. Because a WMS will give yu a highly accurate picture f yur inventry and increase verall visibility a WMS shuld signifi cantly reduce the amunt f time emplyees will have t spend fi guring ut what tasks and actins they need t perfrm next. And yur WMS will reduce paper-driven prcesses, s yur emplyees will spend less time mving paper, and mre time shipping rders. While there is n set timeframe in which yu can expect an ROI withut a detailed cst/benefi t analysis, the typical time fr return n investment will be 6 t 18 mnths, depending f the effectiveness f the WMS yu purchase and the current details f yur peratins. Myth 7: I dn t need a best-f-breed WMS; my hmegrwn system already wrks and gets the jb dne. Reality: Culd be. But hw much is the nging maintenance and custmizatin f this applicatin really csting yur cmpany? Over time, as develpers leave (alng with their knwledge f the system) custm-develped applicatins becme increasingly diffi cult t budget fr and supprt. The systems get mre cstly t maintain as they becme less adaptable t changing business requirements, and each adaptatin grws mre expensive as dcumentatin ages and trubleshting becmes mre challenging. The reality is that the right WMS shuld be fl exible, adaptable t changing business and market cnditins, and cst less t supprt. Myth 8: Training csts will be t high. Reality: The right WMS shuld be designed t simplify yur warehuse peratins, nt cmplicate them. An intuitive and well-built applicatin shuld make receiving, picking, shipping and ther basic warehuse peratins fl w smthly withut requiring extensive training. And ver the lng term because all f the intelligence f yur warehuse peratins will rest within the system yur business will fl w mre effectively even in the event f emplyee turnver. Anther aspect t cnsider is seasnal emplyment. If yu increase head cunt during certain perids f the year, a strng WMS will direct and cntrl the peratins and enable these temprary wrkers t get up and running mre quickly than befre. Warehuse Management Systems Clearly Benefit Small Businesses Nw yu have it. It s clear that a WMS designed fr small businesses is affrdable and rapidly deplyable. Yur WMS shuld prvide cntinuus tracking and visibility int yur peratin, as well as imprve prductivity, increase accuracy up t 99+%, reduce inventry shrinkage, and imprve custmer lyalty with mre n-time shipments. Since WMS and vendrs vary greatly, it s crucial that yu examine them carefully, invest wisely and pick a sftware vendr with lng-term viability, as well as an applicatin that wn t require yu t purchase mre functinality than yu need tday, yet prvide a straightfrward and fl exible upgrade path in the future. 4

5 What questins shuld I ask ptential WMS vendrs? Sme WMS buyers make the mistake f fcusing t much n the sftware, and dn t lk clsely enugh at the vendr backing it. S be sure that the vendr brings strng fi nancial health, nging prduct supprt, and lng-term viability. Als, check t see if the vendr has a slid base f reference custmers, training and user cnferences. If the vendr has an active user cmmunity, it s a great sign that yu ll have a healthy partnership. When evaluating WMS vendrs, be sure t lk at: Their lng-term fi nancial and business stability. The upgrade path fr their WMS as yur business grws r needs change. Des the vendr prvide a straightfrward upgrade path, r will yu require an entirely new installatin, prduct r platfrm? Is it pssible t add specifi c supply chain mdules, such as yard, transprtatin r labr management? Des the vendr bring dmain expertise and experience helping cmpanies that are similarly sized and in the same industry as yur business? Cnclusin The days when leading warehuse management systems were available nly t large, tp-tier retailers and distributrs are ver. Many small distributrs are nw turning t best-f-breed warehuse management systems t attain the cst reductin and streamlined peratins required t respnd t dynamic market demands and maintain cmpetitive advantage. 5

6 Abut HighJump Sftware, a 3M Cmpany Frward-thinking cmpanies entrust HighJump Sftware t pwer their supply chains. HighJump Sftware simplifi es the art and business f creating, selling and mving prducts acrss glbal netwrks. Building upn 3M s histry f innvatin, HighJump Sftware helps mre than 1,300 clients wrldwide drive grwth and manage change. This dcument has been created and published by HighJump Sftware, a 3M cmpany. This dcument is cpyrighted prperty f 3M with all rights reserved. This infrmatin may nt be cpied in whle r in part withut the prir written cnsent f the cpyright wner. Created in the United States f America. This dcument is fr infrmatinal purpses nly. The infrmatin in this dcument represents the view f HighJump Sftware as f the date f publicatin and is subject t change. HIGHJUMP SOFTWARE LLC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE INFORMATION IN THIS DOCUMENT. 3M All Rights Reserved. HighJump is a trademark f 3M. WSSR1/AUG07 HJinf@mmm.cm