WMS: Doing your homework before implementation
Successful warehouse management system implementation takes planning, training and budgeting.
By Allison Manning, Associate Editor -- Modern Materials Handling, 11/20/2008
Implementing a successful warehouse management system is not just a plug and play process, many companies discover. Chris Werling, president of supply chain management consulting firm Cornerstone Solutions, has implemented over 50 WMS projects, spoke on what companies need to watch for at October’s Parcel Forum.
“A WMS has a significant impact on a company’s bottom line,” Werling told Modern. “With a WMS, companies will save 15-25% in inventory because they’ll have the ability to turn inventory more quickly.”
Nearly perfect inventory accuracy and ongoing cycle counting is possible with WMS technology, as well as a 20-30% reduction in labor costs to receive and ship the same volume of product, Werling said.
These benefits make WMS very attractive to companies, who may rush to implementation without properly vetting the system and process.
Many companies stumble when implementing WMS by planning poorly, not training properly, performing inaccurate item analysis or choosing the wrong technology, Werling said.
WMS implementation also isn’t one size fits all, with several approaches to rolling out the software, including by facility, all at once, by process or by item grouping, Werling said.
Successful implementers understand their operational strategy by looking at their supply chain and needs.
“It’s key to understand your distribution centers, plants, 3PLs and vendors/customers and how each component works together,” Werling said. “Skipping this step can actually cause the application to be implemented improperly or at the wrong locations.”
Recognizing technology gaps and performing proper pre-project budgeting specific to your company is also essential, including recognizing “corporate culture,” expected ROI and labor costs.
Considering personnel and getting your whole implementation team on board can also make or break the project. A strong project team consists of warehouse and operations personnel, sales, IT, customer service and finance, Werling said.
“They communicate up front that implementing a new system can be an overwhelming undertaking,” he said. “However, you also want to make sure that you don’t discourage them too much either.”
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