Risks of a Poor WMS Selection Process

November 22, 2017 BY Charles Fallon

20171107 - selection process 2.jpgWMS selection requires a comprehensive process that must both meet the company’s current needs and enable business growth. LIDD’s team has guided clients through the selection journey so they can avoid these kinds of situations:
1. The WMS is an inadequate solution
Without a rigorous search, thorough vetting and well-managed implementation, you could be left with systems that doesn’t adequately address your functional needs. The result is an operating penalty that impacts your supply chain on a daily basis.

2. The vendor is an inadequate partner
Vendors make poor partners for a host of reasons – financial instability, owner exit strategies, R&D / marketing focus, poor customer service. One or more of these situations can result in a poor relationship that adversely affects the outcome of your new WMS.

3. The partnership is good, the WMS is adequate, but the costs are astronomical
Capital is precious and any growing company has a myriad of initiatives competing for that capital. Investing too much in a WMS not only raises your total supply chain costs higher than necessary, it also robs other initiatives – new stores or sales territories, new product lines – of that precious resource.

Also, keep in mind that implementation fees usually account for 50% of the total cost of a new WMS. That means if you do not budget for it properly, and you allow for scope creep and endless reconfigurations, your costs will grow exponentially.

Interested in learning more? LIDD’s eBook Warehouse Management Systems in a DC: How to select and implement a winning system shares insights into finding prospective WMS vendors, what to ask for in a WMS demonstration and what makes for a good selection and implementation process. Download the eBook to get more info on picking the right WMS for you.

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