Why the big drop? Just as end users are getting more mileage out of their lift trucks and conveyor systems in this recession, they’re probably thinking twice about upgrading or replacing a WMS system unless they have to.
Does a WMS deliver real results? Absolutely. But I think many users are going to try to make due for now.”
So, if you’re a WMS systems developer or integrator, the future must look pretty bleak right now.
Or does it?
True, a lot of companies in distribution and manufacturing implemented new ERP systems in the mid-2000’s. True, a lot of companies are “keeping it close to the vest” when it comes to anything new, not just WMS. And true, a lot of companies are in the “if it ain’t broke, don’t fix it” mode.
So why should manufacturers and distributors be bullish on implementing a WMS right now?
Time, competition, green initiatives and price.
TIME.
The downturn in the economy has given a lot of companies time to flush their inventories. It doesn’t matter whether the inventory is raw materials or components used in manufacturing or items on the shelf waiting for orders from customers, smart operators squeezed the pipeline in an effort to drive inventories throughout the supply chain down.
With inventories at record lows, they now have the time to look at the benefits they can get by implementing a WMS. Why? So they can continue to manage inventories at the lowest possible levels in the future. The smart operators know that they have the give of time to look at and implement a WMS that will give them greater control over their inventories.
COMPETITION.
Believe it or not, a lot of companies see this gift of time as an opportunity to gain a competitive advantage. Think of this: Going from paper orders to automated order entry eliminates errors, which eliminated picking errors, which eliminates shipping errors which creates happy customers. Competitive advantage.
Instituting automated cycle counting and min/max quantities based on order lead times, purchasing trends and quantity discounts, ensures materials needed for shipment or manufacturing are available when they are needed and in the right quantities to fill orders. The result? Lower inventory costs, which falls right to the “P” side of ledger.
Implementing real-time, wireless automated data collection from receiving through to shipping not only increases accuracy, but speeds order processing as well. End result? Increased productivity which means doing more with the same or fewer numbers of workers. Another competitive advantage.
Know what we call competitive advantage? Profit.
GO GREEN.
Everyone remembers the commercial where the group is sitting around a conference table trying to come up with ideas that will save $13 million dollars. One guy finally pipes up: “How much does all of this cost?” he says as he waves his hand across a table laden with charts, reports, printouts, graphs and books. “Could be millions” says the overwrought executive.
Is millions. Not could be. Is.
Paper is dangerous. It can be lost, misplaced, torn, faded, misfiled or shredded. Yet it is the blood that pumps through the veins of every company in the world. Smart operators are looking at the paper generated throughout the customer order, purchasing, receiving, manufacturing, quality control, put away, picking, staging and shipping process. Why? Because most of it is so unnecessary. With the right WMS system, like A3 Technologies Fontana IMS, paper is replaced with images, images that can be accessed by whoever needs them instantly. No more waiting for the inter office mail. No more “50 copies and a distribution list.” The WMS system eliminates paper and helps the company go green at the same time.
PRICE.
The relative cost to implement a fully integrated WMS system has been falling and is at its lowest point in years. Smart operators know that as the economy picks up, so will demand for WMS and so will the price. Now is the time to look at a WMS system that can deliver what they want, the way they want it and at a price they can afford.
To learn more, contact A3 Technologies about Fontana IMS.
