A warehouse management system (WMS) is the backbone of the warehouse operation. Every company has its logistics unique selling points. A good WMS will strengthen it and give the company a competitive advantage, but a bad WMS will weaken the company. There are many WMS packages, but how do you find the system that fits your business processes and can take them to a higher level of performance? WMS expert Martijn Scholtes (Optimum Logistics) explains.

A good WMS is the foundation of a successful logistics operation. It fulfills the control function over all warehouse processes and ensures that those processes run on time, without errors and efficiently. WMS is also an enabler to make better decisions. It contains the data needed to analyze the productivity of people and departments and provides a basis for making improvements.

Perfect connection to processes

To achieve a competitive advantage, a WMS must perfectly match your processes and what makes your company unique. The world is constantly changing and technological developments are moving fast, so don't end up with a system that no longer fits. Then your WMS becomes a disabler instead of an enabler .

Struggling with Excel

Companies that wait (too) long to replace an outdated WMS can even run into continuity problems. They become too rigid to be able to adapt to the changing circumstances. I also see young companies and web stores getting stuck with Excel or self-developed 'solutions'. They no longer get the growing flow of orders out on time and can no longer keep what they promise to their customers (ordered today, delivered tomorrow). I notice this especially with companies that, in addition to standard warehouse tasks, also have to carry out all kinds of 'added value' activities (VAL) such as adding folders, labels or special packaging. To properly manage all those extra actions, an advanced WMS is indispensable.

Anticipating staff shortages

A new WMS is like a flywheel that can take the entire supply chain operation to the next level and boost productivity. Certainly in view of the shortage on the labor market, it is becoming increasingly important to make the best possible use of scarce capacity. Mechanization or robotization can help with this, but that too stands or falls with good management and integration with a WMS. Using the data, you can inventory and analyze bottlenecks where capacity is lost. It allows you to forecast the workloadand anticipate this with your capacity planning. Or spread orders to smooth out the peaks. There are companies where this so-called data-driven working has led to productivity improvements of up to 30 percent, with a better service and a higher quality level for customers.

Poor selection process

A good WMS is crucial for a smooth supply chain, but what is a good system? More than thirty suppliers are active in the Netherlands alone, so finding the WMS that best suits your way of working is anything but easy. I know plenty of companies where a faulty selection process – the logistics manager did add it for a while – has led to a mismatch in process, system and organization. Performance on the important KPIs is structurally below the standard, because specific sub-processes such as return processing, invoicing or excise duty handling, are not covered by the WMS as completely as the supplier had promised. Companies lose their competitive advantage and realize a lower profit margin because they have to incur high costs.

Don't be put off

If you have made a pre-selection, you can be sure that you have all suitable packages in the picture. But then the work really begins, namely the detail work. What exactly does that specific module from supplier X, which should support your most business-critical activity, look like? And not in a PowerPoint, but in real life, so in the software; let the pre-selected WMS suppliers demonstrate this based on your business case. Also ask them about their development plans for the future; does their roadmap match your plans for the future? The next step is the reference visits where you will listen to experts by experience. Don't be put off with a tour by an account manager, but really talk to the end users who have experience with the package.

Go for the best

In summary: a modern, well-chosen WMS is the basis for an excellent warehouse operation. Understanding data enables you to make better decisions and systematically improve productivity. In this uncertain period with a harrowing shortage of personnel, the maximum utilization of resources is more important than ever. Don't settle for a WMS that only partially supports your process from a supplier you happen to know, but go for the best supplier that suits you perfectly. Using a selection tool is a first step in this and provides a shortlist of suitable suppliers. The 'devil is in the details'and making the final decision based on these details requires expertise and in-depth knowledge of the WMS market. Do not hesitate to bring in external help for this. Every euro you invest in this will pay for itself.