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Highjump May 2008
   A warehouse management system will take months, even up
    to a year, to install, and cost hundreds of thousands of dollars
    in consulting and services fees.

    o Choose WMS specifically designed for smaller
       businesses.

    o Choose software vendor with the right solution, technology
       and supply chain experience.

    o Choose software vendor who has demonstrated an
       implementation methodology within the planned timeframe
       and budget.
   Any warehouse management system that fits our
    business now will be too small for us in a couple of
    years.

    o Choose a software vendor that can provide what you
       need today but with a technology platform that allows
       for future growth

    o Choose a software vendor who can provide an
       upgrade path to add new functionality or additional
       modules
   Warehouse management solution software is too
    expensive for small businesses.

    o Choose software vendor that offers flexible or
      subscription-based pricing plans.
   Any vendor that can give me a decently priced
    warehouse management system will be out of
    business in a few years
    o Be selective when choosing a software vendor

    o Choose vendor with the right solution and supply chain experience

    o Choose vendor that has financial viability

    o Research several software vendors. Ask about their client base and
      contact a company that is about the same size.
   A low, up-front cost for a warehouse management
    system will automatically provide a lower total cost of
    ownership over the long term
     o An usually low price tag should set off a warning
       signal.
     o The vendor offers a low initial cost but anticipates a
       much higher cost of implementation services.
     o Inquire about the vendors investment in R&D to
       continually improve the product over time
     o Avoid buying a legacy product that has limited future
       liability
   My business is too small to reap any benefits from a
    warehouse management system

    o Any company will save on labor, improve inventory
      management, attain more accurate shipments and
      improve space allocation. This will lead to increased
      customer satisfaction.
    o A WMS will reduce paper-driven processes
    o Typical timeframe to expect an ROI is between 6 to
      18 months. Perform a thorough cost/benefit analysis
      before implementing.
   I don’t need a best-of-breed WMS; my homegrown
    system already works and gets the job done.

    o Evaluate the cost of ongoing maintenance and
      customization of this homegrown application
    o Custom-developed applications become difficult to
      support and become more costly to maintain
    o Custom-developed applications are usually less
      adaptable to changing business requirements
   Training costs will be too high

    o Training does cost time and money, but the right
      WMS should simplify operations, not complicate them
   Examine potential WMS and vendors greatly.
   Choose a software vendor with long-term viability,
    ongoing product support, and strong financial health.
   Choose a WMS that won’t require initially purchasing
    modules that the company does not need.
   Choose a vendor/WMS that provides a straightforward
    and flexible upgrade path.
   Does the vendor provide a straightforward upgrade path,
    or will you require an entirely new installation, product or
    platform?
   Is it possible to add specific supply chain modules such
    as labor or transportation management?
   Does the vendor bring domain expertise and experience
    helping companies that are similarly sized and in the
    same industry?

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Debunking the top eight myths

  • 1.  Highjump May 2008
  • 2. A warehouse management system will take months, even up to a year, to install, and cost hundreds of thousands of dollars in consulting and services fees. o Choose WMS specifically designed for smaller businesses. o Choose software vendor with the right solution, technology and supply chain experience. o Choose software vendor who has demonstrated an implementation methodology within the planned timeframe and budget.
  • 3. Any warehouse management system that fits our business now will be too small for us in a couple of years. o Choose a software vendor that can provide what you need today but with a technology platform that allows for future growth o Choose a software vendor who can provide an upgrade path to add new functionality or additional modules
  • 4. Warehouse management solution software is too expensive for small businesses. o Choose software vendor that offers flexible or subscription-based pricing plans.
  • 5. Any vendor that can give me a decently priced warehouse management system will be out of business in a few years o Be selective when choosing a software vendor o Choose vendor with the right solution and supply chain experience o Choose vendor that has financial viability o Research several software vendors. Ask about their client base and contact a company that is about the same size.
  • 6. A low, up-front cost for a warehouse management system will automatically provide a lower total cost of ownership over the long term o An usually low price tag should set off a warning signal. o The vendor offers a low initial cost but anticipates a much higher cost of implementation services. o Inquire about the vendors investment in R&D to continually improve the product over time o Avoid buying a legacy product that has limited future liability
  • 7. My business is too small to reap any benefits from a warehouse management system o Any company will save on labor, improve inventory management, attain more accurate shipments and improve space allocation. This will lead to increased customer satisfaction. o A WMS will reduce paper-driven processes o Typical timeframe to expect an ROI is between 6 to 18 months. Perform a thorough cost/benefit analysis before implementing.
  • 8. I don’t need a best-of-breed WMS; my homegrown system already works and gets the job done. o Evaluate the cost of ongoing maintenance and customization of this homegrown application o Custom-developed applications become difficult to support and become more costly to maintain o Custom-developed applications are usually less adaptable to changing business requirements
  • 9. Training costs will be too high o Training does cost time and money, but the right WMS should simplify operations, not complicate them
  • 10. Examine potential WMS and vendors greatly.  Choose a software vendor with long-term viability, ongoing product support, and strong financial health.  Choose a WMS that won’t require initially purchasing modules that the company does not need.  Choose a vendor/WMS that provides a straightforward and flexible upgrade path.
  • 11. Does the vendor provide a straightforward upgrade path, or will you require an entirely new installation, product or platform?  Is it possible to add specific supply chain modules such as labor or transportation management?  Does the vendor bring domain expertise and experience helping companies that are similarly sized and in the same industry?