We all know that a robust Warehouse Management System helps a business effectively monitor its daily logistics operations, thus setting it on a path of success. Such systems were especially helpful in overcoming the disruptions led by the global pandemic when contactless procedures were important for business continuity. In this blog post, we have presented some effective tips on choosing a WMS that would work for your business.
Warehouse Management Systems [WMS] help you manage your inventory system effectively, thus enhancing your operational efficiency. These systems benefit retailers and supply chain operators by streamlining logistics, fostering collaborative work, improving customer experience, and driving profit margins. We are very aware of how helpful these digital systems have proved during the global pandemic in maintaining business continuity, where minimized paperwork and contactless processes were of supreme importance.
Choosing the right WMS can be daunting, especially with the rapid transition to digital supply chain, logistics, and warehouse management systems. Hence, gathering sufficient intelligence on different systems should be the first step towards making an informed decision. With numerous WMS systems available in the market, it is no wonder that the global warehouse management system market size, valued at USD 3.94 billion in 2023, is projected to manifest a growth at a CAGR of 19.5% from 2024 to 2030.
Let’s explore the following tips to help evaluate warehouse management systems to match your business requirements.
Analyze Your Operations and Warehouse Network
We all know that every warehouse is unique, depending on the business requirements, and can vary in the level of sophistication of its daily operations. So, to make the correct selection, you must analyze the complexity level of your warehouse operations and understand your network in detail. Some of the points of consideration can be the following:
- Which procedures do you want to run through the WMS?
- Which applications or integrations do you require a connection to?
- What are ‘must-have’ and what are ‘would like to have’ features for you?
Check the Options Available
Once you determine what you want and what your business requirements are, start a thorough analysis of the features and benefits offered by each WMS. It’s best to start with a broad and large list and then narrow it down by the process of elimination per your ‘must-have’ features. Apart from that, it would help if you also calculated the ROI from each system to match your budgetary constraints.
Assess Individual Vendor Capabilities and Shortlist the Most Suitable
Evaluate all the vendors carefully to check if they meet your basic requirements. However, it can be tricky because the requirements might change as your business grows. A WMS system that can be customized per your business requirements and customer expectations is more flexible and offers more features.
While selecting vendors, you should consider their dedication, strength, and trustworthiness in keeping a good relationship. Such qualities are imperative in building a strong relationship, as important as meeting your business requirements. Before making a final selection, you should narrow your choices to the top 5 to 10 vendors based on their prices, expertise, progress, and quality.
Decide the Technology
A WMS on a SaaS platform enables you to use software as a cloud service. Using cloud-based WMS has benefits like easy access to the software, strong data security, less need for infrastructure, and easier software updates. It’s important to keep inventory data and task history safe.
Every piece of data that goes through the software is crucial. It’s essential to store this information in the system and maybe even make a copy of it, called a backup. A SaaS-based app efficiently handles backups for any business, keeping data safe and reducing the chance of losing it.
Gather Real-life Data
Various WMS-providing companies promise to save your business money, but it’s vital to get into the specifics and ask them the all-important question: “How would they achieve the cost-savings?”. As they say, “devil is in the details”. For example, if a company claims they can decrease mispicks by 90%, that doesn’t have much significance for your business till they can show you a related case study that shows how they have done it for another business.
Look Carefully for Enhancement Opportunities
Sometimes, it is not easy to justify the cost of installing a WMS in the initial days of its operation. However, you can justify the cost by finding other ways in which the system can enhance operational efficiency, such as managing workers better, streamlining the warehouse workflow, or using more automation. The crucial thing is to find these opportunities and then show the leadership team the noticeable benefits and some of the less obvious ones.
Look Carefully for Enhancement Opportunities
Managing workers, whether in the operations or IT teams, is challenging in warehouses. Check your existing team to ensure you have the right mix of people to get a new WMS up and running. A WMS is not implemented to cut jobs but to improve efficiency, productivity and keep employees happy. Factors like user experience, flexibility of the system, and innovative ways of working contribute to a better-engaged workforce and should be considered significant criteria for shortlisting a WMS vendor assessment.
Conclusion:
So, evaluating different warehouse management systems and finally selecting the one that suits your business requirements is no small feat, especially when the market is swamped with numerous systems, each claiming to be better and more highly functional than the other. However, we hope the tips we shared in this blog post will help you make an informed and measured decision while considering cost and ROI.
However, if you feel overwhelmed and want to outsource your warehouse management and logistics operations, contact XPDEL to see how your business soars.
About XPDEL:
XPDEL is not just another 3PL provider but a growth enabler. We are a leading hi-tech Fulfillment and Logistics company supporting direct-to-consumer (D2C) and business-to-business (B2B) supply chains. Our widespread network of Fulfillment centers enables us to handle nationwide delivery in the US efficiently. Data analytics is at the heart of our 3PL services, powered by advanced technology and led by industry experts.
