Inbound Logistics | January 2023

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WMS ROI: Is a New WMS Worth the Investment?

Q What are the 3 steps for a company to begin with a reliable WMS ROI analysis? A The best WMS providers show a return in about a year or less because a WMS eventually saves a company more than it costs. Here are the steps to begin your WMS ROI analysis and sell the platform internally. ● Evaluate current operations: Do an analy- sis of your operations. It can be beneficial to work with a consultant or ask the ven- dors you are exploring to guide you. ● Needs assessment: Find a WMS that can help you improve the most challeng- ing areas while not creating burdens. You should also look for a WMS that can scale with your company as it grows and will work with your existing systems. ● Crunch the numbers: There are many ROI calculators online. However, it is best to work with each vendor individually on the ROI of their WMS. Q Is a new WMS worth the investment? A If the monthly costs of the WMS bring enough savings, then yes, it is worth the investment. Still, not every WMS will be suitable for every business. Finding and partnering with a trustworthy WMS provider that has a proven track record of success is a great way to ensure you get the results you need. Logistics Vision Suite (LVS) WMS: Regardless of where you are in your search for a new WMS, check out our Logistics Vision Suite . It is used by more than 700 companies worldwide because it is advanced, adapts to your needs, integrates well with existing technologies, and delivers results.

When deciding to implement a new warehouse management system (WMS), there will come a point where the return on investment (ROI) is questioned. The right WMS can save you thousands per month, thus it should be viewed as an investment and not as a cost—an investment that protects your inventory, manages labor costs, and streamlines warehouse operations. Q What are the costs to evaluate? A TCO is a well-established practice that provides a holistic view of all the costs associated with the new investment. WMS costs to evaluate are related to: ● Tangible costs: Costs for physical goods or things you can see, feel, or touch. ● Inventory: The stock you have and how you can minimize it. ● Labor costs: Employees’ cost and the man- hours logged. ● Productivity: Optimize your operations and shorten tasks. ● Existing technology: Your new WMS must easily integrate with your other software such as ERP, e-commerce platform, etc. ● Equipment and automation: If needed invest in additional material handling equipment (MHE) or light automation; your WMS must seamlessly integrate with them and drive them. ● Intangible costs: More di•cult to measure and important to consider for any WMS implementations. Further costs to examine are support requirements and employee satisfaction .

Patrick Prasinos Vice President, Sales Mantis Americas www.mantis.group info@mantis.email

56 Inbound Logistics • January 2023

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