Signs You Should Replace Your Current WMS

Transcription

1 Signs You Should Replace Your Current WMS Presented by: Sponsored by: Chuck Fuerst Director of Product Strategy 2014 MHI Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 Introduction 17 years experience in technology and enterprise software markets HighJump customers include high tech, manufacturing, retail and consumer products companies Closely monitor WMS industry trends

3 WMS Replacement A Growing Trend ARC Advisory Group: 2012 calendar year worldwide revenue for WMS market was more than $1.4 billion Warehouse Management Systems Market Size and Forecast 2012 to 2017 CAGR = 6.4%

4 The question is Does your current system strengthen or hinder your ability to execute business strategies that will help you build competitive advantage, respond to constant change and grow your business?

5 Strengthening or hindering? Do you create workarounds for new business requirements? Does your WMS support several languages? Can your WMS support the robust interoperability of systems worldwide via a services-oriented architecture (SOA)? Can your WMS vendor support you over the next ten years?

6 What you ll learn today Key indicators that it may be time to replace your WMS How to know whether your system is constraining your company s reach and growth Factors when selecting a new WMS vendor

7 TELLTALE SIGNS

8 Short-sighted technology architecture Are you creating workarounds for business? Do you notice a slowdown in response time/hanging system?

9 Support is becoming increasingly expensive A homegrown WMS carries big risks Delaying a complex upgrade may require maintaining older versions of related infrastructure The WMS is one of the most customized software applications in the enterprise To compensate for functionality, your employees may begin using manual processes that are impossible to effectively standardize and control

10 Limited functional footprint Does your WMS allow continuous improvement initiatives? SCE Suites allow you to execute business processes across the entire supply chain

11 You can t adapt to change Investing in new equipment A configurable and adaptable WMS supports and enables your unique business processes Modular approach and architecture supports evolutionary process in step with business practices Enforce common industry best practices and allow for innovation

12 Risky and expensive to upgrade if you can upgrade at all! Changes may require custom coding which don t carry through upgrades Often requires development time or expensive vendor engagements Upgrading a legacy or custom-code based system may cost as much as or more as a new WMS

13 External factors make your WMS Increased globalization of supplier network, customer base or facilities New customer demands, order anywhere, fulfill anywhere Regulations require technology and interoperability your WMS cannot support obsolete

14 CAN T I JUST UPGRADE MY CURRENT WMS?

15 Should I upgrade my current WMS? Your existing system might be so aged or homegrown that even relatively simple improvements become costly and time-consuming May cost hundreds of thousands of dollars every few years Be aware of the technical foundation the server, the database or the layered products might be going out of support.

16 WHAT TO LOOK FOR IN A NEW WMS

17 The ideal WMS solution Fits functional business requirements today Addresses core business issues Easily integrates with existing systems Rapidly and cost-effectively responds to change Meets ever-increasing customer demands Builds competitive advantage Leverages technological advances

18 WMS systems are inherently complex WMS software tends to be among the most customized enterprise applications. -Steve Banker, ARC Research Page 18

19 Conventional Approach Business Requirements Future Requirements Changes in your business will require additional custom code Page 19

20 Adaptable Approach Business Requirements Future Requirements NO CUSTOM CODING Empowers businesses to respond to dynamic requirements Page 20

21 TCO and Adaptability Dramatic implementation cost savings Rapid upgrades you can perform yourself Quick and easy incorporation of change orders Elimination of custom code modifications

22 Initial cost is not the end of the story Additional factors and questions when evaluating TCO: Average WMS lifespan is 8-12 years Are you forced to go to the technology provider to make business process changes? What is the typical cost of the upgrade? Are vendor consultants required? How are source code modification managed through the upgrade process? Don t let technology drive processes

23 Points to remember The potential benefits from a WMS is great, but also great is the possibility that a weak WMS is hurting your business An ineffective WMS may constrain potential for adjoining business process improvements, global growth or adding new customers An adaptable, flexible WMS can help position your business to better leverage your supply chain and take advantage of new opportunities

24 Other Considerations Company growth, vision Industry growth, competition Internal IT skillset, core competency

25 For More Information Speaker Website: Or visit MODEX 2014 Booth 4310