The Essential Steps for Selecting the Right Warehouse Management System (WMS)"

Selecting the right Warehouse Management System (WMS) can prove to be a daunting task for any business that wants to improve its operations. A WMS can streamline a business's operations, improve inventory accuracy, and reduce costs. However, selecting the right system is a complex process that requires careful planning and evaluation. In this article, we'll outline ten steps to help businesses select the right WMS for their operations.

The first step in selecting a WMS is to form a project team that includes a project manager and a sponsor who can make necessary decisions from higher-ups. The project manager should have knowledge and experience in operations, while the sponsor should possess the authority to make decisions and allocate resources.

 Next, is to define requirements by considering functional areas such as inventory management, kitting, and shipping systems. It's important to avoid letting WMS vendors write the requirements to save money and ensure a comprehensive internal requirements document. The document will help businesses compare WMS vendors and systems against each other.

After defining requirements, the next step is to create a shortlist of 4 or 5 qualified WMS software vendors based on functionality and costs. To save time and resources, we advise selecting the pre-qualified shortlist.

Once you have a shortlist, the next step is to write a detailed request for proposal (RFP) that includes requirements and pricing and send it to the shortlisted vendors. In addition to requirements, request pricing for licenses, services, equipment, and annual support. Request the vendor's methodology, agreements, references, and other essential information. This step will help businesses compare and evaluate each vendor's proposal.

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 After reviewing vendor responses, pick 2 to 3 vendors for software demos and select a preferred ve on the demos and final pricing. It's important to put together a detailed list of functionalities that businesses want to see in the demo and send it to the vendor in advance so they can prepare.

Before making the final selection, perform reference calls and site visits to ensure the vendor can meet your needs. Connect with provided references and others who use the system to determine if they finished their installation on time and on budget. Determine if they are achieving the goals they expected to gain from the new WMS.

After selecting a preferred vendor, start project planning and determine where the benefits lie within your operations. Discuss the implementation methodology and determine your responsibilities. Who will be your internal project manager? Don't leave all PM duties to your preferred WMS vendor.

As with any investment, determine your return on investment (ROI). Determine the areas of savings and intangibles that you can expect. The major savings can come from better direct and indirect labor use, inventory tracking throughout the enterprise and all processes, better utilization of distribution center space through inventory management and slotting, and more. Each company must determine where the benefits are within their operations.

Before signing any contracts, have an intellectual property attorney review the various contracts including user licenses, annual support agreements, 3rd party hardware/software licenses, and support agreements. It's important to ensure the contracts are fair and protect your interests.

Finally, celebrate your success! Implementing a WMS is a significant accomplishment, and it's important to recognize the hard work that went into selecting and implementing the system.

Chat with JGA to explore how they can assist you with selecting and implementing the right WMS package for your business needs.

Info@goldmanwms.com

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