A high-performing warehouse management system can influence the performance of both the workforce and the space they inhabit. Logistics News ME catches up with two vendors for their investment and ROI tips
How widespread is the adoption of warehouse management systems (WMS)?
Brian Mozhdehi: In EDI we have 350 customers in 12 countries, including at least 10 customers in the Middle East, which includes Dubai, Lebanon, Saudi Arabia and Pakistan to name some countries. For WMS, we have approximately 60 customers in the USA, Canada and Cameroon. Our WMS software has been on the market for four years and EDI for nine. We are hoping to achieve a similar trajectory of adoption for WMS in coming years.
Sanjeeve ST: The current business scenario, demands good systems in place to meet growing customer demands. It is even more demanding when you operate within free zones to maintain free zone related documents and ledgers. Though the demand of such systems werent critical in the gulf region, the scenario is changing with global brands entering into the market. As market grows in the coming years, the adoption becomes inevitable to service customer demands.
What kind of ROI can the implementation of WMS solutions achieve?
BM: For WMS, our software is extremely powerful out of the box and provides configuration based functionality as opposed to customised in the field function. This allows end users to drive customer requirements much more rapidly to meet ever changing logistics needs without incurring excessive costs and long timelines. For EDI, our solution has a similar concept insofar as it is driven by configuration, enabling the connection of, in addition to EDI, such functions as Web Services, XML, HTTP, Flat Files all in a dynamic, easily configured toolset. This again allows rapid low cost deployment of interfacing solutions.
SS: The ROI is achieved in less than a years time in implementing good WMS solutions. The larger the operations, the faster the ROI. The ROI is achieved based on multiple factors. These can include: Streamlined processes and operations, would help in substantial reduction of operational expenses; accurate order fulfillment leads to on-time deliveries and better customer service; inventory shrinkage could be controlled to a good extent eliminating loss in inventory; efficiency in operations is huge saving on longer tenure.
In the case of third party logistics accurate and flexible billing methodologies helps in revenue losses. At the same time system approvals and controls stops revenue leakages in all fronts. Finally, a good system is as good as the facility, and future business opportunities are tightly linked with the system in place.
How can a software solution be optimised so ROI can too be maximized?
SS: The majority of the good solutions are optimised to handle the operations. It is down to the management to ensure all the operations are system driven thereby avoiding manual processes. Well trained users and a whole-system understanding is mandatory for faster ROI. Dynamic tuning of existing processes and reducing transactional time lines would also help in achieving faster ROI.
What are the primary barriers to adoption you see in the industry currently?
BM: I believe primary barriers are cost of change, both in terms of currency and investment to train on new systems. Existing systems investments are significant and it requires economic driving factors to enable change to more efficient systems.
SS: Warehousing business comes from a conventional background, hence the investment is the primary barrier in its adoption. A good WMS system never comes cheap and justification on investment at times poses challenge at the adoption stage.
In selling your solutions how do you overcome these barriers?
BM: When we pitch our solution(s) we must show a short term and enduring ROI. Since our software has extensive, configurable capabilities and is built on a modern platform, it is faster and more efficient than our competition. With labour savings, reduced maintenance and consulting costs, the latter achieved by highly functional software, configuration vs code and modern tools, it is often possible to provide immediate cost benefit to our customers.
SS: A good system is an inevitable factor when it comes business opportunities. Good systems play a prominent role in retaining existing customers, providing the right services and generating accurate reports. Future business demands integration with third party applications and EDI services when it comes to global brands and these such business acquisitions demand enterprise systems.
Tips For Implementing WMS
Expert: Sanjeeve ST
Company: Flexigistics
Company founded: 2016
Operating territories: GCC
Tips
1) The firm must have a good clarity about what WMS can and cannot achieve
2) The firms must have a clear understanding about the objectives and results that would be achieved in implementing such systems.
3) Choosing the right vendor with a proven history in implementing such systems is quite important for successful implementations and roll outs.
Brian Mozhdehi
Role: president, Ramp Systems
Company founded: 2006
Operating territories: 12 countries, including USA, Canada, Ireland, Cameroon, Mexico, Chile, Dubai, Lebanon, Saudi Arabia, Australia, New Zealand, Pakistan
Tips
1) Software should have functions that you need now and functions, either existing or planned, that you might need in the future. The logistics industry is rapidly changing and with globalization, the pace of the same shall continue to accelerate. The solutions are simply too expensive to not have both long term and short term durability to meet business needs.
2) Services: The third party/outsourced logistics industry is service intensive by its nature. Customers demand immediate solutions. Providers need software solution providers that are always available and ready to help meet their customers needs.
3) Technology: Any selected vendor should have a commitment to stay current with recent technology and provide solutions that are not restricted by platform. These should include not only traditional platforms such as Windows and Unix/Linux but also private cloud/high availability platforms, mobile devices, tablets in its current manifestation. As time goes on, the commitment needs to be present to keep pace such as to continue to be able to meet end-customer needs