Benchmarking survey reveals common WMS practices
When it comes to warehouse management systems, most companies rely on custom solutions and focus only on core functionality.
-- Modern Materials Handling, 12/14/2006
A good warehouse management system (WMS) is hard to find, so most companies just build their own. That’s one of the findings of a recent WMS benchmarking survey conducted by the Supply Chain Consortium, a group of retailers and retail suppliers who work together to rate their supply chain operations.
Tom Singer, a principal at consulting firm Tompkins Associates, authored a report on the survey and notes the following key findings:
1. Out-of-the-box fits remain elusive
Only about 10% of the survey’s 100 respondents use a WMS right out of the box. More than 40% use a custom developed system, and the rest use a highly modified version of a packaged WMS.
But packaged solutions usually have more functionality and are easier to upgrade than custom ones, says Singer. Continuously supporting a customized WMS is expensive, he says, and that cost may leave companies unable to improve their systems fast enough to respond to market changes.
2. Core functionality is still the focus
Many companies leave money on the table when it comes to their WMS investment, says Singer. Businesses have a tendency to focus on core business processes such as receiving, putaway, picking and shipping, and they never get around to implementing extended WMS functions such as slotting or labor management, despite the productivity gains those functions could provide.
3. Integration is essential
“Integration with other business systems is the key to effectiveness in WMS,” Singer says. “Those members who got the most value from their system had it integrated and available to a wide range of internal and external touch points.”
The Supply Chain Consortium includes names such as Target, Best Buy, Home Depot, Hallmark and Coca-Cola.
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