According to data platform Statista, in 2020, there were around 151,000 warehouses globally, with 25,500 located in North America. The surge in e-commerce is projected to increase the number of warehouses worldwide to nearly 180,000 by 2025.
Importance of a WMS
A Warehouse Management System (WMS) is a software solution that provides real-time visibility into the entire inventory of a warehouse and tracks products throughout the fulfillment process. It is a powerful tool that enhances efficiency by optimizing key functions such as resource usage, labor, and space utilization.
A Warehouse Management System offers detailed insights into supply operations, inventory movement, and picking processes, and can identify errors in the fulfillment process. Various WMS options are available, each with functionalities ranging from intelligent labor management to automating financial procedures. Selecting the right WMS requires thoroughly analyzing your business needs and the operating environment.
A Warehouse Management System can significantly impact a business’s bottom line. Choosing the right system is a crucial business decision that enhances efficiency and maximizes the use of existing space and resources. A quality WMS should also be scalable to grow with your business. Therefore, it’s essential to consider current and future challenges when selecting a WMS.
Steps to Choose the Right WMS
Know Your Requirements and ROI
Define your requirements and list associated costs to accurately calculate the ROI for a WMS. Different WMS tiers offer various features, from basic tracking in tier-3 to advanced order flow controls and reporting in tier-1. Choose a WMS that meets your organization’s needs within budget constraints.
Evaluate Vendor Capabilities
Evaluate vendors based on their ability to meet your requirements and their potential for future advancements in warehouse management. A dynamic WMS that incorporates specific feedback and adapts to trends will provide extra functionalities and a clear upgrade path.
Shortlist the Best Vendors
Shortlist vendors based on commitment, reliability, cost, expertise, and development quality. Consider vendors offering detailed action plans to address challenges and scalable solutions to grow with your organization. Analyze software demos to ensure they meet your business needs.
Form a Project Team
Oversee the vendor selection and implementation process with a dedicated project team, typically the supply chain management team. Ensure the WMS is customized to meet the business unit’s needs rather than just IT requirements.
Implement Technologies to Improve Processes
Consider a SaaS-based WMS for easy access, high security, reduced infrastructure needs, and smooth upgrades. This setup ensures data security and backup, essential for managing growing volumes and preventing data loss.
Leverage Business Intelligence and Reporting
Use the WMS’s business intelligence solutions for periodical analysis, trend forecasting, and real-time monitoring of warehouse operations. Effective reporting features should enable quick error identification and resolution.
Meet Training Requirements
Provide proper training on the WMS and its customized features to your team. Ensure they are familiar with reaching out for vendor support. Include training for any updates or additional features released by the vendor.
Ensure Provider Commitment and Continuous Improvement
Establish a continuous improvement team to maximize WMS features. Measure the vendor’s commitment and improvement based on what is promised and delivered. Aim for continuous enhancements in your warehouse management processes.
Conclusion
Since warehouse operations can differ significantly based on industry and a company’s specific needs, it’s essential to thoroughly research options to find the best fit for your requirements. For instance, a food producer will have different warehouse management needs compared to an electronics manufacturer, and a midsized business may have different priorities than a large enterprise.
A WMS should be intuitive and easy to learn, provide real-time insights into all aspects of your operations, be flexible enough to support business growth, adapt to changing market conditions, and integrate seamlessly with other business applications. At eSoftLabs, we customize Korber HighJump WMS to suit your specific needs- be it enhancing warehouse efficiency or improving customer satisfaction with faster order processing and on-time deliveries. Talk to us to optimize your warehouse management!
