WHEN DO YOU NEED A WAREHOUSE MANAGEMENT SYSTEM?

Most warehouses need some kind of IT-system to support warehouse operations – when pen and paper doesn’t cut it anymore. This can be a self-developed solution or a WMS module in an ERP system. But when is it a good idea to invest in a more advanced, specialized WMS solution? In this blog post, we give you 3 reasons a “proper” WMS  can be a profitable investment – and some advice on what to look for when you decide to make the leap.

Changing software systems can be quite a big investment, in both time and money. In addition to paying for the actual software you might have to upgrade your hardware, your employees will have to be trained, and productivity in the warehouse might go down for a period of time. Still, investing in an advanced WMS can be a strategic decision when it comes to the long-term profitability of your company – especially if distribution is a critical part of your business. And here are three reasons why.

Why invest in a WMS?

1. To future-proof your system solution

Using a self-developed system for warehouse management can seem to be a cost-efficient solution. But it also makes your organization vulnerable to change. Often only a few people know the system in depth, and if they leave the company critical knowledge is lost. Making necessary updates when your business evolves, or adapting to new technology, takes time and effort for the IT-department, and might steal resources from the daily operations. Changes in the WMS module of an ERP system can also be costly and complicated, since this might affect other parts of the system. Therefore, a specialized WMS from an established vendor is a good way to make your business adaptable to a changing future.

2. To make things better

Any warehouse system support is meant to help keep things in order in the warehouse. But an advanced WMS can do much more than that. It acts as “the brain” of the warehouse, analyzing, optimizing and prioritizing activities and processes in real-time. Faster picking, less picking errors, increased traceability, and optimized storage are all positive effects of an efficient WMS system, and contributes to a fast ROI on your investment. In other words, a WMS doesn’t only get things done, but done better.

3. Reduce labour and equipment costs

By investing in automation for decision-making and goods handling you reduce labour and manual equipment cost. But of course, this must be analyzed in comparison to the automation investment.

How do I choose a Warehouse Management System?

What is the right  WMS solution for you obviously depends on your business needs. To make an informed decision when selecting a Warehouse Management System (WMS), be sure to check out our comprehensive blog post titled How to Choose the Best Warehouse Management System. Explore key considerations like flexibility, scalability, real-time capabilities, and the value of a strong partnership. This valuable resource will guide you towards the right WMS solution for optimizing your warehouse operations.