Are you growing?
Are warehouses part of that growth?
Why can choosing a low-cost warehouse automation solution cost you more in the long run? Read on.
Today’s businesses are under pressure from consumer and market demand for competitive pricing, shorter lead times, and products delivered anywhere in full, on time, and – in the case of retail consumers, more frequently – all in a store-friendly format.
For online orders, customers want up-to-date information on stock availability and access to the real-time status of their orders. On top of it all, businesses continue to contend with increasing labour costs (let alone finding and keeping workers), rising land costs, and pressures from increased regulation and safety requirements. The growth of e-commerce, the pandemic, and other recent developments have only amplified these challenges.
Like synapses in the brain transmitting signals, a customised WMS efficiently transfers data throughout your operations, acting as the neural hub for intelligent automation and data-driven optimisation.
Made4net, for instance, a highly configurable on-premise or cloud solution, is used by organisations of all sizes across the globe. The software streamlines work through system-directed task allocation and real-time performance metrics. After it’s been configured to fit hand in glove with a company’s back-end systems, it can increase productivity by at least 20%.
But, having accumulated over fifteen years providing top-of-the-range warehousing solutions for leading national distribution chains in South Africa, we’ve observed unfortunate situations where organisations ended up dealing with elevated ongoing support and maintenance costs exceeding their initial purchase price.
This article aims to address and prevent such occurrences.
It’s important to remember that the cost of a WMS system is just one factor to consider when making a decision. It is also important to consider the long-term benefits of the system, such as improved efficiency, productivity, and profitability.
The initial cost of the WMS is just a small part of the overall Total Cost of Ownership (TCO).
Why is that?
Total Cost of Ownership is the sum of all costs associated with owning and operating a WMS system, including the initial purchase price, implementation costs, and ongoing support and maintenance costs.
Therefore, it’s essential to look beyond the initial price tag and evaluate the broader implications for your warehouse operations. Consider factors such as how the system will enhance performance, drive cost reductions, and contribute to revenue growth throughout its usage.
This holistic view ensures you invest in a solution that delivers value and supports your business objectives over the long term.
Lower-priced solutions are initially attractive, but they may be because they don’t provide the full range of features and functionality your business may need when you need to expand a year from now.
Then there’s the cost of customisation, integration, training, maintenance, and support. Not to mention hardware and infrastructure costs. And the price of success if you need to scale.
WMS options that seem economical at first may require further investment in add-ons for full functionality, leading to escalating costs. Over time, they might also fail to meet your evolving business needs or simply not be capable of performing the tasks you require.
Also, they may need help scaling to meet the needs of a growing, evolving business, meaning having to upgrade to a more expensive system in the future.
Bottom line: If you’ve chosen the right WMS, your warehouse distribution systems shouldn’t be made to pay a success tax when you need to scale.
It is also important to be realistic about what a WMS can and cannot do.
A WMS is a powerful tool that can help improve your warehousing operations and ensure continuous ROI over the medium to long term. However, it is not a magic pill that will make all the pain points in your distribution system disappear.
For example, if your warehouse has underlying process problems. You’ll need to fix your underlying process problems before or during the WMS implementation to see the system’s full benefits.
What do you hope to achieve with the WMS? What are your specific needs and requirements?
Firstly, what are the specific features and functionalities that your Warehouse Management System (WMS) absolutely must have?
Once you’ve identified the specific features and functionality you need from a WMS, it’s crucial to ensure that the chosen system can integrate with your existing systems and adapt to evolving business requirements. (Some companies call this “future-proofing.”) Remember, a well-selected WMS isn’t just about solving your warehouse management today; it’s an investment in your business’s future efficiency and growth.
Secondly, setting clear expectations helps you to communicate your needs to potential vendors. This ensures that you are getting the best possible solution for your money.
Lastly, be realistic about the time and resources required to implement a WMS. A WMS implementation can be a complex and time-consuming project. It is essential to have a clear project plan and budget. Be prepared for unexpected challenges. And before you jump in, make sure you can trust your vendor.
The right partner can help you achieve your goals and avoid costly mistakes. When choosing a WMS partner, consider the following factors:
Apex is a leading provider of WMS solutions. We offer a full range of WMS solutions to meet the needs of businesses of all sizes and industries at fixed-price contracts.
Check us out if you have any questions: https://apex-rts.co.za/
