Selecting a systems integrator

Picking the right consultant or systems integrator can be as important to the success of your next project as the design and equipment you install in your facility.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 3/3/2008

Once upon a time, most large companies didn’t need a materials handling consultant to help design and implement a new system. They had materials handling engineers on staff. In fact for years, Modern’s core readership was comprised of engineers intent on keeping up on the latest trends and equipment.

Thanks to downsizing and outsourcing, that’s no longer the case. For that reason, materials handling consulting firms, systems integrators and even OEMs that are increasingly looking for a piece of the design action play a vital role when it comes to designing a new process, system or facility.

In fact, there are two reasons companies turn to outsiders for project support, according to Bryan Jensen, vice president of business development for the St. Onge Company.

1) A lack of horsepower on staff to get the job done, or to get it done as fast as it needs to get done. “Today, a director of distribution or logistics is likely to have administrative support plus a team to manage the warehouses,” says Jensen. “Instead of hiring more staff just for a project, it makes more sense to pay a consulting fee and get that firm’s experience.”

2) Lack of what Jensen calls “bandwidth.” A large retailer or consumer packaged goods manufacturer may have an enormous amount of experience running facilities. But when it comes time to design a new system to meet tomorrow’s challenges, they may not have the depth of experience to design multiple solutions to solve a problem and get the best payback from a variety of perspectives. “If you want alternatives to make sure you’ve left no stone unturned, that’s another reason to bring in a consultant who can draw on best practices from a number of clients,” says Jensen.

Selecting for success

As with choosing an equipment vendor or a warehouse management system, there is a discipline and process behind selecting the right partner to design and manage a project.

Creating a list: Where do you find a consultant? Jensen suggests it can be as simple as a Google search for materials handling consultants or supply chain design with the addition of some details about your business. “You want someone who not only does materials handling design, but also does your kind of materials handling fulfillment,” says Jensen. He also suggests taking advantage of industry resources like the Material Handling Industry of America and industry events like the North American materials handling show or ProMat, or an industry-specific trade event.

Define your needs: Even before a formal request for proposal (RFP), it’s important to define the scope of the project. Do you need a new facility? Do you want to improve throughput or increase storage capacity in an existing building? How important is accuracy to your customers? “This document can be as simple as a bulleted list that highlights your goals,” says Jensen. “What’s important is that all the potential partners are looking at the same criteria.”

Ask for a sit-down: At this point in the project, they’re trying to sell you on their capabilities. Invite perspective partners in to review the scope and talk about potential solutions. Most important of all, make sure everyone is bidding on the same scope and the same project. “When we’re engaged, we typically provide a client with three or four solutions for the same problem, with varying levels of capital investment,” says Jensen. “We think it’s important that a proposal response should clearly state that multiple proposals will be developed and compared to a baseline solution. You don’t want just one solution to choose from.”

Check references: Just as with a WMS vendor, it’s important to check a consultant’s references. Jensen’s tip: “As for a reference who isn’t on their formal reference list but is included as a client in their marketing materials,” Jensen says. “And if you know someone who works for one of the clients on their list, call them and see if you can learn more.”

Following those steps, you can compare proposals on price, chemistry and timeline with the assurance that they’re going to do the job for you.