Whether you're looking for a new warehouse management system (WMS), a voice picking system or RFID technology, you won't get your ROI unless you establish a way for the technology's secrets to be passed from one generation of employees to the next. I visited a facility where productivity had gradually degraded over the four years since they implemented a WMS. The average employee turnover rate for DCs is 40% every year. Domain expertise leaves, too. Many don't pass information along or train new people. The person leaving may tell the incoming person just enough to get by. Result? All those bells and whistles you paid thousands of dollars for go unused.

Training can help you improve utilization. Don't invest in a new system if you're not going to train properly. Unfortunately, when budgets get tight and everyone looks at line items, training is the first to go. It's the last that should go. Without it, you'll fail.

Many companies train by having a human resource person do it by the numbers, as prescribed in a manual. They don't understand the process. Therefore, they cannot effectively transfer knowledge to your team.

Even if you do a good job training, it's important to maintain a high performance level. That's why many WMS packages now have a labor management system built in. They help you ensure employee accountability. Accountability ensures accuracy and productivity. If you are able to know every order an employee packed, that employee will be more productivity minded.

That's what should happen on your side of a new system, but what should your vendors be bringing to it? Even before implementation, you need to make sure your potential system vendors are as accountable as you and your employees for its success.

First, ask for a customer list. If a vendor doesn't have one, there's a reason. If they do, don't bother calling any vice presidents on it. They're probably the ones who bought the system and chances are they won't tell you if they made a big mistake. Talk to the individuals using it.

On demo day ask vendors, “Am I going to get everything I'm going to see today?” Then tell them, “If you show me functionality that I won't get as standard, point that out. Many companies configure demos for what you want to see, not what is in the base product. Then, when you sign a contract and don't see the functionality you saw at the demo, they explain that it was a configuration and now you need to pay for it.

That's why establishing a good line of communication with system vendors is as important as the pipeline between you and your employees. When looking at an implementation plan, ask the vendor what your responsibility is for making this project successful. Some vendors don't want you to ask too many questions because when there's a delay in schedule or an increase in cost, they can say you didn't do your part. That's why you should know all the skill sets needed in your company and what everyone's responsibility is before proceeding with the project.

Ask the software vendor who from their team will do the implementation. There are A-level project managers and C and D-level. Find out who the A players are and ask for their record. You want to make sure those A players stay on your project. Add a bonus to the package if they help you make your numbers or do better than you anticipated. This gives them an incentive to do a good job.

What kind of results should you expect if all goes well? You'll get a 10% to 30% increase in labor efficiency from a new WMS, depending on how automated you were and how good your performance was beforehand. If you were paper-intensive you should get a 30% uptick. You'll also get a 5% to 20% space savings, depending on your previous putaway and storage management skills. Just make sure the new skills you develop survive you and are passed on to each succeeding generation of users.