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    November

    2 2017

    Grow out of your dreary WMS – Think Wise and Invest Nice

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    Grow out of your dreary WMS – Think Wise and Invest Nice - Cygnet Infotech

    50% organizations feel that their WMS failed to deliver ROI.

    Customers today have limitless options and with tight delivery window than ever before, your failure to meet business and retail customer expectations could hurt your bottom-line.

    Are you trying to succeed in a highly competitive environment with an ageing, inferior and unstable legacy WMS? You’ll never be able to manage the complexities of modern supply chains with multiple sales channels.

    Further, your inability to meet the needs of your new customers, replenishment shipments or ecommerce orders in line with retail industry compliance standards could see you losing potential sales and future earnings. What if Amazon, Metro, Flipkart and other big ticket massive retailers, that have plenty of  options when looking for suppliers take their business elsewhere from you.  WMS is critical to optimize your operations, meet challenges of the day and stay ahead of the competitors.

    Although cloud WMS has its benefits, the key to deploying a successful WMS is justifying how WMS will lead to increased efficiencies and cost savings. Therefore, WMS must be implemented when it is time to do so else it will only consume and devour your enterprise resources.

    So…Who SEEKS a New WMS Solution?

    Have you held back from investing in an integrated system because of perceived disadvantages and challenges and complexities or are you looking for a new WMS, it is likely that you fall in one of these groups:

    • Group 1 - Fast Growing Business without a legacy WMS system (using excel/ paper)
    • Group 2 – Established Enterprises using legacy software and seeking a new WMS
    • Group 3 - You’ve already tried WMS but, IT’S USELESS!

    If you fall in the first group, you are ready for change and investing in a cloud based WMS presents various established benefits including improved inventory accuracy, flexibility, reduced labor inefficiencies, low deployment costs and low maintenance. It is much more cost and time efficient to adapt your process to shelf software and since you don’t have any processes.

    However, WMS deployment is way too costly, time-consuming, resource-intensive and drains all your internal resources if it does not truly impact your bottom line. Therefore, you need to constantly evaluate and ask ‘Does the WMS meet my organizational goals?  

    Enterprises in the second group have a good understanding of the warehouse processes but are locked into legacy warehouse technology although they have the capital to either upgrade their outdated system or invest in a modern WMS for the first time. Asking “What is the cost of not replacing or upgrading the WMS? How long will it take before the benefits become immediately clear and begin to outweigh the costs?”, will help you set a realistic budget estimate, whether long-term or short-term, to achieve ROI.  

    The third group -you are most likely disappointed with WMS’s failure to allow you to achieve the desired result and expected ROI. You believe that the software overpromised and underperformed and have probably even stopped using the product and are searching for new products. An increasing number of businesses are looking to replace their ineffective WMS. As per a latest research by Aberdeen group, almost 60% of the retailers surveyed plan to upgrade or implement a new warehouse management system in the next 18 months.

    Does your company belong to one of these group? If yes, then here is what you need to think about

    Is it the right time to Invest in WMS?

    You don’t need a raincoat if you live in desert!

    Especially for those in group 1, you must spend on WMS only when you need one because it is resource draining. However, you may need a new WMS, if

    • You pay more and more people to handle your inventory each year
    • It’s difficult to generate pick lists using your current system
    • You have no way to measure the performance of your pickers and warehouse workers
    • You can’t keep track the correct number of goods in the warehouse
    • You receive customer complaints regarding slow shipment
    • It takes a lot of time to find out when and what arrives to the warehouse and what order it belongs
    • You are going to use RF Scanners / RFID tags
    • You want high logistical productivity because your receiving area gets backed up for a long time
    • You have incorrect items or missing ones during the shipping / picking process
    • It’s difficult to generate pick lists using your current system
    • You can’t keep track the correct number of goods in the warehouse

    While these are just few telltale signs, if you can identify with these, then your company should consider replacing your current system with a brand-new-upgraded WMS that can meet your needs for the next 5-10 years rather than just immediate requirements.

    Spend on WMS only when you need One. Of-course WMS delivers multi-fold benefits, including 99.9% inventory precision, reduced inventory levels, optimum use of warehouse space, optimized picking efficiency and accuracy, improved customer order fulfillment and increased labor productivity. However, WMS installs are costly and drain your resources, so if all you are going to see are standard benefits rather than real impact to your bottom line, it’s best to continue with your current system.

    Will You Be Spending Right by Replacing Your Existing WMS?

    Whether you have an inflexible WMS or a legacy system that is restricting your company’s growth, you may need to invest in a new WMS if:

    • You find yourself constantly working for workarounds for new business requirements that legacy technology or existing WMS cannot support, such as compliance or value-added services
    • Maintenance and support for your legacy on-premise WMS is becoming increasingly expensive and hurting your ability to add new functionality
    • Your WMS takes an inordinately long time to respond because the program can no longer handle rising demands
    • Does your legacy or existing have limited functionality to cater to continuous improvement initiatives?
    • Your WMS provider lacks sufficient vertical domain expertise or funding and as a result you may be stuck with a functionally stagnant system
    • Can your WMS vendor be relied upon to support your growth over the next 5-10 years?
    • Your in-house and legacy WMS is incompetent to observe latest industry policies and technology as a result you’re subjected to raising supply chain costs
    • It has outdated UI and menu structures that make it difficult and time-consuming to complete tasks and retrieve data

    The major challenge with WMS is the integration of processes before implementation and the choice of the best-fit WMS that supports your business growth, responds to ever changing and escalating customer requirements while also complying with dynamic industry standards.

    Thus, to ensure that you’re spending right on WMS, you need the help of experts who work with you to find the solution with features and functionality that your warehouse needs. As experts in developing WMS, Cygnet Infotech has built WMS for major automobile giant and best-of-breed warehouse booking systems for one of the largest trade and logistics company that was accessible across all the seven Emirates of UAE. The new supply chain ecosystem is a complex world and our experts at Cygnet helps simplify it.

About Cygnet

Our motto ‘IT is About You’ is more than just a tag line – it is the very heart of Cygnet. We always ensure the continued success of our clients and employees by placing problem solving ahead of anything else and walking the extra mile when needed.