Four suggestions for an affordable WMS

Author without image icon
Marcel te Lindert
31 August 2015
4 min

During a barbecue, a director friend of a medium-sized logistics service provider told me that he is looking for a warehouse management system (WMS). Whether I had any tips. Well, here we are: some suggestions for a new and, above all, affordable WMS.

The logistics service provider in question has not been in warehousing for terribly long. For a long time, the scanning module of the transport management system (TMS) that was implemented a long time ago was sufficient, but it is now starting to fall short in terms of functionality. A new WMS is necessary, and automatically I assumed it would have to be an affordable solution above all. After all, the logistics industry has been about low margins for years, even though I read last week that transport prices have risen to record levels. Anyway: those who want an affordable solution should keep an eye on technological developments above all. Some tips:

1.Cloud-based WMS
Who wants to have their own server in their warehouse, with all the associated hassle? These days, there are WMS systems available that run in the ‘cloud’. Companies no longer need to invest in licence and implementation costs, but instead pay, for example, a fixed amount per user per month. This includes server maintenance and WMS updates. Is your warehouse becoming busier over time? Then extra users can be added in a matter of seconds. Do you need to temporarily rent storage space elsewhere? All you need is a computer with an internet connection to use the WMS there too.

Apart from a low-threshold entry and no more hassle with servers, a cloud solution also offers great advantages when it comes to security. The server farm in which the WMS runs is more secure than your warehouse against fire, power failures and other problems that could compromise the availability of the system.

2. Using a smartphone as a scanner
Why buy expensive barcode scanners when you can use cheap smartphones instead? One WMS supplier has already developed an order-picking app: an app that can be installed on any Android device, allowing order pickers to get straight to work. This can be done using a smartphone, but also, for example, with a tablet mounted on an order-picking trolley. And as well as barcode scanning, they can also be used for voice picking. Of course, an industrial handheld terminal is more robust than a simple smartphone, but on the other hand, for the cost of one such terminal, you could probably afford to drop and break five or more smartphones.

I must admit that I don't know exactly what the experiences are with consumer electronics deployments in warehouses. What I do know is that the lightning-fast developments in consumer electronics will spill over into the warehouse. In transport, you can already see charters bringing their own Android device, on which they then install the on-board computer app of the transport company that hires them. That way, the transport company can track the charter just like its other trucks in real time. Who knows, we might get something similar in warehouses: temporary workers who have to bring their own smartphone to be able to pick orders.

3.Stick to the standard
In a warehouse not managed via a WMS, anything is possible. As a logistics service provider in particular, it is tempting to accommodate all of a client’s requests. Does a client want all picked goods to be stacked on pallets in alphabetical order or sorted by colour? The customer is king.

Those looking to implement a WMS then will discover that far from every system - especially the more affordable ones - can handle all processes equally well. So don't opt for expensive customisation that will only prove to be a block in the future, but conform to the standard way of working that the WMS does support.

What about those specific requirements from clients? Explain to them that their wishes can be met, but calculate to them how much extra cost will have to be incurred to do so. Or even better: engage with them, try to find out what problems the wishes stem from and look for better solutions together. Chances are that this will lead to a much more efficient, more manageable way of working.

4.Choose a supplier with industry experience
The Netherlands has a large number of WMS suppliers offering systems with extensive capabilities, but these are not simply interchangeable. One supplier focuses exclusively on logistics service providers, whilst another specialises in wholesale and retail. You should therefore choose a WMS supplier with proven experience in your specific sector, whether that’s the chemical industry with its hazardous substances or the food sector with its tracking and tracing requirements. You probably won’t need to explain your challenges to this supplier; they’ve heard them many times before. What’s more, they’ll be familiar with the best practices in your sector, which you’ll benefit from at no extra cost.

Why reinvent the wheel?