Supply chain leaders are hard-pressed to improve risk management, optimize networks, and cut costs, while driving business growth.
The right Warehouse Management System (WMS) can help manage some of these priorities by allowing for smarter, more integrated, end-to-end supply chain visibility, powering informed decisions, and building a resilient network.
We sat down with TMX Supply Chain Manager, Daniel Clutterbuck, to discuss the benefits, challenges, and process of implementing the right WMS – “the wrong WMS can be crippling for business, while the right one can produce game-changing benefits,” he said.
What is a WMS & when do you need one?
The right WMS is a powerful business tool, offering a complete view of inventory and logistics operations throughout the warehouse lifecycle. Not only can it optimize workforce, space, and equipment investments, but it can also streamline resource management and material flow.
While this may be the case, many businesses still use legacy systems that are unable to meet future technical or functional performance needs and lack adaptability.
With customer demands ever evolving, your business will struggle to grow without efficient supply chain operations – which is why considering a WMS upgrade or replacement could be useful.
Where do you start?
Firstly, a clear understanding of your business process, objectives, and future-state is required, allowing you to develop specific needs and highlight functional flows, data, and integration. This will help you establish vendor selection and associated costs.
It is important to note that vendor selection and WMS requirements are more than just functionality and price. Other key considerations are:
1. Strategic alignment
2. Proven history of successful deployments
3. Project management and ways of working alignment
4. Resourcing experience and availability
5. Post go live support
WMS selection and implementation should be looked at as a partnership and not as a transactional relationship if you wish to maximize benefit from the solution in the long run.
Ensuring success
A WMS is only as good as its implementation. By following the below requirements, you can maximize implementation success.
- Know your requirements: Understand your detailed requirements prior to vendor engagement.
- Stakeholder engagement: Involve key operational staff early in the selection, design, and testing phases to address their concerns and foster buy-in.
- Clear communication: Establish open communication channels, with regular meetings and workshops to ensure shared understanding during design and implementation.
- Don’t let poor implementation get in the way: Horror stories of WMS implementations are common, with the associated cost and reputation impacts felt long-term. Poor WMS implementation can be due to an imbalance between IT and operational input, or a lack of operational maturity. By aligning business requirements, the full benefits of a WMS will be uncovered.
- Strong project management: Appoint a Project Manager or SME with cross-functional expertise to oversee communication, review design specifications, and ensure project deliverables.
- Ongoing reporting and communications: Ensure all involved remain updated on progress once the WMS has been implemented – highlight the value, efficiencies, and challenges, creating a clear feedback loop.
Benefits of the right WMS
Implementing a WMS can enhance growth across an entire business, including:
1. Cost reduction: A successful WMS implementation can reduce internal IT costs through reduced administration resources and infrastructure spend.
2. Warehouse transformation: A WMS can form the basis for transformational enablement, such as implementation of automation, by providing real-time visibility over inventory, order tracking, stock levels and more, helping you use space in the most efficient way.
3. Safety: Safety is a priority in every warehouse. A WMS ensures adherence to safety and legal requirements by providing real-time monitoring and alerts to mitigate risks and maintain a secure working environment.
4. Increased visibility and efficiency: A WMS will enable greater visibility and accuracy of inventory and operator level performance, creating overall efficiency through applying appropriate methodologies based on order profiles and customer requirements.
5. Improve employee retention: A modern WMS can implement user interfaces and gamification of tasks, increasing employee satisfaction and thus, retention.
Undertaking a WMS selection and implementation project with the respect it deserves, delivers real benefit for your organization - identifying and eliminating wasteful processes along the way. A properly designed and implemented WMS will ensure a solid platform to support your future growth while allowing for adaptability, building a resilient supply chain.
Find out more about our supply chain offerings here.
Daniel Clutterbuck is a manager in TMX's Supply Chain division.
