A successful warehouse management system (WMS) implementation can provide an 18-24 month return on investment. A WMS also serves as a foundation for instituting a continuous improvement culture and facilitates on-going annual benefits ranging from 5-10%. For some companies, justification in a WMS is a matter of survival. Having the right material available at the right place and at the right time is no longer enough. The new requirements include: compliance labeling, floor ready displays, advanced ship notices, postponement, light manufacturing, and collaboration. Leading companies are realizing information has a specific shelf-life value that diminishes over time, often by the hour or minute. Many of the processes and activities being managed and monitored by Supply Chain Event Management (SCEM) applications relate directly to warehouse operations. As the focus on SCEM applications continues to grow, the need for real-time activity tracking and inventory visibility offered by a WMS becomes even more critical to your organization.
“Cost is a consideration but not a critical decision factor for our distribution facilities. Our distribution operations are a constraint controlling the flow of cash through our business. The faster I can get product shipped out to customers, the faster I can add cash to our organization.”
VP of Distribution for a US pharmaceutical company
Regardless of your perceived need for a WMS, an effective campaign to procure and implement a new system could depend on a solid business case. A good business case will include both tangible quantitative dollar justifications and the qualitative, intangible benefits difficult to enumerate
In the coming months we identify benefit categories for potential inclusion in the business case and discusses areas of opportunity within the various benefit categories. In the meanwhile, you can learn more about “WMS Business Case Development” by downloading the whitepaper here.