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Warehouse management systems “Trade isnt about goods Trade is about information Goods sit in the warehouse until information moves them ” Introduction As we have seen in earlier chapters, the introdu. Warehouse management systems“Trade isnt about goods. Trade is about information. Goods sitin the warehouse until information moves them.”IntroductionAs we have seen in earlier chapters, the introduction of technology can significantly improve warehouse productivity, increase utilization, reduce costs and increase customer satisfaction.As customers become more sophisticated, requiring accurate, secure, fastdata exchange, and as the competition becomes more intense, companies needto have the informationtechnology tools to support the business and buildreliability, speed, control and flexibility into the warehouse operation. The ability to communicate in real time is crucial in todays fastmoving technological world.Paperbased warehouse management systems or even spreadsheets can fulfil a need and manage stock accurately if managed well. However, I still find it incredible that companies can operate a warehouse without a location system, relying on staff knowing where the items are located in the warehouse.Other warehouses have stock control systems that tell you where the stock is and how much there is of it, but dont provide optimum pick paths or slotting functionality.If a company is going to compete effectively it needs to introduce a realtime warehouse management system.The cost of these systems has reduced significantly over the past few years and today companies are able to rent systems on a monthbymonth basis.
Warehouse management systems “Trade isn't about goods Trade is about information Goods sit in the warehouse until information moves them.” Introduction As we have seen in earlier chapters, the introduction of technology can significantly improve warehouse productivity, increase utilization, reduce costs and increase customer satisfaction As customers become more sophisticated, requiring accurate, secure, fast data exchange, and as the competition becomes more intense, companies need to have the information-technology tools to support the business and build reliability, speed, control and flexibility into the warehouse operation The ability to communicate in real time is crucial in today's fast-moving technological world Paper-based warehouse management systems or even spreadsheets can fulfil a need and manage stock accurately if managed well However, I still find it incredible that companies can operate a warehouse without a location system, relying on staff knowing where the items are located in the warehouse Other warehouses have stock control systems that tell you where the stock is and how much there is of it, but don't provide optimum pick paths or slotting functionality If a company is going to compete effectively it needs to introduce a real-time warehouse management system The cost of these systems has reduced significantly over the past few years and today companies are able to rent systems on a month-by-month basis 198 Warehouse Management Choose a vendor you are comfortable working with Try to find a vendor who is culturally similar to your company, is professional and well respected in the industry Ask for a large list of customers and visit the customer sites that you decide upon Choose a partner that has reasonable modification rates and is willing to set up a realistic budget based on your needs assessment, prior to formalizing the relationship Alternatively, look to set up an agreement where your own IT staff are able to introduce certain modifications • Resources Make sure that the WMS provider can fully support you during the implementation phase • Select a partner that has an adequately staffed help desk and that is available during your company's hours of operation Time zones can cause innumerable problems if they are not taken into account at the outset • Select a partner that has established partnerships with hardware providers Before the final decision Ask prospective WMS providers for case studies where they have previously interfaced with your organization's specific ERP, transport management or accounting system Ask to visit sites where this has happened and is currently happening Prior to making a final selection, ask the WMS provider to share a detailed implementation plan that includes an installation timeline and resource commitment Selecting a partner This is not the type of purchase you would make through an e-auction As with many large service offerings such as outsourcing, the likely success of the project will ultimately come down to your relationship with the people at the software vendor As a previous manager of mine told me, 'People buy people', therefore it is very important to meet the vendors, not only the sales staff but also the operations and support staff The main aspects to look for in a partner include the following: • Experience Look for providers that employ staff with significant operational experience as well as staff with the ability to produce best-in-class WMSs Not only will the operational staff have had input into the WMS but they will also be able to understand your own requirements better Choose a vendor who listens effectively and understands your organization fully • Longevity Check how long the company has been in business and what their creditworthiness is like; be assured, they will certainly check yours • Choose a vendor who emphasizes the benefits of the software, not just the features Furthermore, choose a provider that has already installed WMS systems with clients in your industry • Ensure that the vendor can supply not only the system but also the installation, training, maintenance and help-desk service • Verify that your prospective WMS provider is reinvesting significant capital into research and development, and future product enhancements