On-demand ERP meets on-demand WMS

By Staff -- Modern Materials Handling, 12/1/2006

Small to mid-sized companies have responded to software offered in an on-demand, software-as-a-service format. On-demand enterprise resource planning (ERP), transportation management, and customer relationship management solutions are selling well. But until now, the market has shown little interest in on-demand warehouse management systems (WMS).

That is beginning to change now that 7Hills, a provider of licensed and on-demand WMS, has teamed up with NetSuite, a provider of on-demand ERP solutions.

Both companies bring Tier 1 functionality in a package designed for small to mid-sized businesses. Both companies also focus on distributors.

"Distributors are not leading-edge technologists," says Curt Leo, NetSuite's senior sales manager for distribution. "They have to weigh spending money on technology versus spending it on more inventory that they can sell."

But now, adds Bob Kennedy, 7Hills' executive vice president for business development, small to mid-sized distributors are required to provide the same level of real-time service as their larger competitors.

"With software as a service, they don't have to make a tradeoff between inventory and technology. They pay a monthly fee and the solution is managed for them," he says.

Kennedy says that 7Hills has seen an increase in the number of inquiries from third-party logistics (3PL) providers and small distributors who are interested in the concept. But it's still early.

"At this point, they want to know what this software-as-a-service option is all about," says Kennedy. "Right now, it's still an educational sell. But we think combining it with an on-demand ERP that allows you to integrate your front- and back-office processes is a compelling proposition."