What capabilities does a good WMS need to have?
This question is the first hurdle in the search for a warehouse management system. You could just as easily ask what a car must be able to do. A better question to ask is what your company is looking for in a WMS. Before choosing a system, it is essential to define your needs, your processes and your goals. Analyse the status quo, what you need and what you want to achieve. In 76 percent of all postponed or cancelled WMS projects, it was lack of awareness of their own processes that led customers to postpone or cancel projects.
The first step is to create a requirements document. This document defines what customers require of the contractor. The customer’s requirements for achievement of the project goal are also detailed. And the general conditions under which the project is to take place are described. The end result is a structured document defining all project requirements. The requirements document is a type of customer wishlist, in other words. But first things first: the requirements document should describe the requirements and not the solution.
Our advice is that you get all departments on board to create the requirements document. Needs and objectives can vary substantially from one department to another, since company managers, warehouse managers and warehouse staff all see things from a different perspective. Getting everyone involved right from the start increases acceptance and helps you to make better, faster decisions. We also recommend that you designate at least two employees from the same corporate level to carry out research and select a provider. By making decisions together, they’ll reduce the influence of personal preferences and increase objectivity.
How to define your requirements?
- Get all relevant colleagues on board.
- Define your budget.
- Put your manual and automatic processes to the test.
- Distinguish between the functions you need now and those you’d like in the future.
- Give priority to especially important functions/requirements.
- Summarise the results/requirements in your requirements document.
How do I find the perfect WMS?
Research sources
Once you‘ve defined and weighted your requirements, the next step is to find a suitable provider and system. In addition to unbiased research of your own in business directories, professional journals, online search engines and provider websites, we can recommend the following methods:
You can work with a consulting firm to find professional WMS providers. Consulting firms can generally help you throughout the entire process, from the creation of the requirements document through to the final selection of a provider. You‘ll benefit from their extensive expert network and cumulated logistics expertise. However, consulting services are usually associated with very high fees.
The Fraunhofer Institute for Material Flow and Logistics IML can also be recommended as a provider of neutral consulting services. Use their WMS online selection tool at warehouse-logistics.com to find suitable providers. Simply enter your requirements and perform an online search.
How do I choose the right provider?
- Always take a critical look at what the provider claims.
- Make sure that the references provided cover a wide range of sectors.
- Get a feel for how the company ticks.
- Does the provider have in-depth expertise in logistics?
- Is the information provided authentic and substantiated?
- Beware of someone who promises too much.
- You should have the feeling that you are in good hands at every stage.
- Select two employees to look for a WMS – this immediately makes the decision more objective.
It’s also crucial not to be blinded by customer references and the number of installations but to take a critical look at the facts and figures. Sometimes the figures on provider websites are contradictory or a little ‘dressed up’. An example would be a WMS provider claiming on their website to have installed 1100 systems in 30 years, equivalent to 36 systems per year or three per month. This figure seems utopian given an average project duration of 12 months for manual or 18 months for automated warehouses.
Make sure that providers do not have too narrow a focus, but can provide references from a wide range of industries. This minimises the risk of providers and software quickly reaching their limits. References from a diverse range of sectors indicate a broad base of knowledge and expertise and that processes are adaptable enough to meet a wide range of requirements. They also suggest a solid economic foundation. And companies serving a range of industries are much less susceptible to any crises that may occur in individual sectors.
How do I find the right system?
- Always take a critical look at system functionality!
- Define your requirements in a requirements document.
- Involve all members of staff who are affected by the project.
- Get an impression of the look & feel of the system.
- Is the system suitable for everyday use?
- What percentage of your requirements can be mapped in the standard system?
- Can use cases be backed up with references?
- Arrange visits to reference customers.
- Have you seen a live demonstration of the system or just a few PowerPoint slides?
- Are processes explained comprehensibly and properly documented?
Conclusion: There is no perfect WMS
The conclusion of our white paper is consistent with its title: There is no perfect warehouse management system. The complexity of the systems available on the market and the huge diversity in terms of the requirements of the companies looking for a WMS mean that the perfect WMS simply cannot be defined.
But the good news is that there is a warehouse management system that is a perfect match for you and your processes. The selection process will help you identify that system. There are some basic points to consider.
First of all, give some thought to what you need and how your processes are mapped. Only once you know your company and have identified your needs and requirements can you go to a WMS provider with them.
When choosing software, make sure you select a flexible, highly standardised system with a wide range of functions. If your processes can be mapped in the standard system, scalability and upgradeability are ensured. Your processes are then secure and up-to-date both today and in the future.
The complete whitepaper on this topic can be found at: https://bit.ly/3uZc3ns
Do you have any questions? Our experts are happy to help you:
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