Trade isnt about goods. Trade is about information. Goods sit in the warehouse until information moves them

Warehouse management systems

“Trade isn't about goods. Trade is about information. Goods sit
in the warehouse until information moves them.”

Introduction
As we have seen in earlier chapters, the introduction of technology can
significantly improve warehouse productivity, increase utilization, reduce
costs and increase customer satisfaction.
As customers become more sophisticated, requiring accurate, secure,
fast
data exchange, and as the competition becomes more intense, companies need
to have the information-technology tools to support the business and build
reliability, speed, control and flexibility into the warehouse operation. The
ability to communicate in real time is crucial in today's fast-moving
technological world.
Paper-based warehouse management systems or even spreadsheets can
fulfil a need and manage stock accurately if managed well. However, I still
find it incredible that companies can operate a warehouse without a location
system, relying on staff knowing where the items are located in the
warehouse.
Other warehouses have stock control systems that tell you where the
stock is and how much there is of it, but don't provide optimum pick paths or
slotting functionality.


If a company is going to compete effectively it needs to introduce a
real-time warehouse management system.
The cost of these systems has reduced significantly over the past few
years and today companies are able to rent systems on a month-by-month
basis.

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Warehouse Management

Choose a vendor you are comfortable working with. Try to find a
vendor who is culturally similar to your company, is professional and well
respected in the industry. Ask for a large list of customers and visit the
customer sites that you decide upon.
. Choose a partner that has reasonable modification rates and is willing
to set up a realistic budget based on your needs assessment, prior to
formalizing the relationship. Alternatively, look to set up an agreement where
your own IT staff are able to introduce certain modifications.
• Resources. Make sure that the WMS provider can fully support you
during the implementation phase.
• Select a partner that has an adequately staffed help desk and that is
available during your company's hours of operation. Time zones can cause
innumerable problems if they are not taken into account at the outset.


• Select a partner that has established partnerships with hardware
providers.

Before the final decision
Ask prospective WMS providers for case studies where they have
previously interfaced with your organization's specific ERP, transport
management or accounting system. Ask to visit sites where this has happened
and is currently happening.
Prior to making a final selection, ask the WMS provider to share a
detailed implementation plan that includes an installation timeline and

resource commitment.

Selecting a partner
This is not the type of purchase you would make through an e-auction.
As with many large service offerings such as outsourcing, the likely success
of the project will ultimately come down to your relationship with the people
at the software vendor. As a previous manager of mine told me, 'People buy
people', therefore it is very important to meet the vendors, not only the sales
staff but also the operations and support staff.
The main aspects to look for in a partner include the following:
• Experience. Look for providers that employ staff with significant
operational experience as well as staff with the ability to produce best-in-class
WMSs. Not only will the operational staff have had input into the WMS but
they will also be able to understand your own requirements better. Choose a
vendor who listens effectively and understands your organization fully.


• Longevity. Check how long the company has been in business and
what their creditworthiness is like; be assured, they will certainly check yours.
• Choose a vendor who emphasizes the benefits of the software, not just
the features. Furthermore, choose a provider that has already installed WMS
systems with clients in your industry.
• Ensure that the vendor can supply not only the system but also the
installation, training, maintenance and help-desk service.
• Verify that your prospective WMS provider is reinvesting significant
capital into research and development, and future product enhancements.