1. FOCUS ON PRIORITIES. It is critical that businesses shopping for a WMS make sure they “understand what it is they’re trying to accomplish,” recommends Dan Gilmore, chief marketing of cer with Softeon, a Virginia-based software company. The business case should drive the decision-making, evaluation, testing and “everything else,” he adds. “In the end, it’s all about developing the business case,” Gilmore notes. “Analyze where the savings and other operational improvements will come from and then work backward: To achieve the return on investment and the results that we have promised, what WMS capabilities do we need?” For example, “If we promised that we can improve labor productivity by 20%, where will that come from? Do we need to break it down by receiving, put-away, order picking, and shipping? It is important to tie the whole selection process to that initial business case.” The WMS selection process starts with understanding your business needs, beginning with your organization’s requirements and goals.
make sure the potential WMS can do those things and do them well,” Gilmore says. “That focus ripples through the request for proposal, through the dialog, and through the demos.” 2. DIG THROUGH THE DETAILS. The intricacies of WMS considerations boil down to three key dimensions: 1. The implementation model. Is it installed within the four walls of an enterprise or on the cloud? 2. The pricing model. Is it a large upfront licensed payment, a subscription contract, or a hybrid? 3. The management model. Will the vendor manage the WMS or will your own team manage it? Different organizations have different preferences depending on their circumstances.
“Identify the pain points in your current warehouse operations and determine the functionalities and features you need in a WMS to address those challenges effectively,” Levy says. Narrow down your priorities based on feedback from stakeholders. Then identify core goals over the next 18 to 24 months and how a WMS can help work toward them. Key questions such as whether you plan to open new facilities, expand your ecommerce efforts, or launch a new business line can help potential providers address your needs. “Focus on how their product adapts with what you have and where you are going,” Jonkman says. “Look at the top two or three initiatives and align with the stakeholders, your business mix, and your service levels and business strategy,” she adds. Some companies waste time evaluating WMS functions that are not critical for their operation, treating dozens or more line items as equal rather than narrowing the emphasis to six to 12 components that are truly critical. “It’s important to identify the functions you need to focus on, and
NARROWING DOWN THE LIST To create a shortlist of potential
WMS providers, consider factors such as reputation, experience, customer recommendations, and industries served. Reference checks can help gauge a vendor’s commitment to customer service. Ask existing customers of prospective WMS vendors about their experience with the system, the implementation process and ongoing support. “This will give you insights into the provider’s commitment to customer service and satisfaction,” Levy says. A vendor who asks unique, compelling questions that help you think about your business more deeply offers promise as a strategic partner who can help strengthen your organization over the long term. Companies should not miss an opportunity to have a dialog with vendors, particularly as the prospect list narrows. When companies have “a real discussion” with vendors about their goals, objectives, and business case, “they learn a lot and improve the project,” Gilmore says. A scripted demo of solutions is a key decision-making tool in WMS selection. Companies shopping for a WMS should take time to ensure the demo is nuanced and speci c to their needs.
North America WMS Market Size, by deployment, 2020-2030 (USD Million)
$723.1M
$636.5M
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
On-premise
Cloud
The global warehouse management systems market size was valued at USD 3,414 million in 2022 and is expected to expand at a compound annual growth rate of 19% from 2023 to 2030. WMS demand will continue to grow due to changing supply chain models and rapidly evolving consumer demand.
SOURCE: Grand View Research
94 Inbound Logistics • September 2023
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