Warehouse management systems have revolutionized the way businesses operate. In the past WMS (Warehouse Management System) were only used by large international companies. With the level of sophistication amongst businesses on the rise, even small businesses have started to adopt the usage of WMS. Even with the advantages of a WMS, small businesses still hesitate to implement the use of a WMS. There are eight reasons in particular that tend to be the leading reasons many businesses still choose to use archaic and inferior systems.
#1 WMS installs take months to a year and the implementation costs are way too high!
Wrong! A WMS can be installed and implemented in 45 days if done correctly. The cost of the WMs varies on the requirements and your businesses needs but the cost isn’t as high as many seem to believe. Just remember you get what you pay for!
#2 In time our WMS will be too small and we will have to start from scratch!
Not always! If a proper WMS is customized for your warehouses needs, the base WMS can be used with minor adjusting or an additional application to meet your needs. By choosing a trusted vendor most times updates are available to minimize even eliminate down-time.
#3 How will we afford a WMS? We are only a small business.
The cost of a WMS is not as much as expected. A simple WMS can be 10 times better than manual warehouse management and can cost little to nothing. It all depends on what you want the WMS to do and the capacity needed. Some vendors even offer payment plans which help your business afford a WMS.
#4 Most decent priced vendors go out of business in a few years!
Many businesses in general go out of business but that is why you have to be very selective in which vendor you choose. Use common sense when choosing a vendor and ask other companies who they chose.
#5 If I pay a low upfront cost then in the long term I will have a lower total cost of ownership.
An unusually low price tag on a WMS should set off a warning signal for prospective buyers. Some WMS vendors may choose to drop their asking price to an attractively low number in order to win your business because they anticipate a much higher cost of implementation services once the project is underway.
#6 My Company Is too small to reap the benefits of a WMS
No company is too small to reap the benefits of a WMS. A WMS will give you a highly accurate picture
of your inventory, and increase overall visibility. A WMS should significantly reduce the amount of time employees will have to spend figuring out what tasks and actions they need to perform next. And your WMS will reduce paper-driven processes, so your employees will spend less time moving paper, and more time shipping orders.
#7 My system already gets the job done, I have no need for a WMS.
That may be true, but how much is the ongoing maintenance and customization of this application really costing your company? Over time, as developers leave (along with their knowledge of the system) custom-developed applications become increasingly difficult to budget for and support. The systems get more costly to maintain as they become less adaptable to changing business requirements, and each adaptation grows more expensive as documentation ages and troubleshooting becomes more challenging. The reality is that the right WMS should be flexible, adaptable to changing business and market conditions, and cost less to support.
#8 Training costs are too high!
The right WMS should be designed to simplify your warehouse operations, not complicate them. An intuitive and well-built application should make receiving, picking, shipping and other basic warehouse operations flow smoothly without requiring extensive training.
Sourced from “Debunking the Top Eight Myths: Surrounding Small-Business Warehouse Management Systems” written by High Jump Software