Warehouse Management Systems can greatly help companies achieve inventory optimization and streamline their supply chain. An important calculation with this technology is Return on Investment. Warehouse Management Systems (WMS) applications are truly the realm of Big Data. They capture every scan, every move, the start, middle and end of every task in order to support measuring the activity, business volumes, quality and individual response. This data is the Bible of the company’s supply chain supporting the users in continuous improvement through training, the supervisors in process improvement and inventory accuracy, customer care through having the facts about what was shipped and when, and executive management in reviewing real time KPI’s and business analytics. Measurement brings life to the ROI. ROI CHECK POINT: Measurement should be expressed individually
Mid-sized companies have their own tribal knowledge and way of looking at information. The speed of decision making often replies on the individual’s unique way of looking at data. Ensure the solution not only captures the depth of data, but is able to craft ways of looking at the data uniquely to the individual.
The ROI process within companies varies. Some expect the CFO to review a formal submission with focused line items, benefits and dates when the benefits will be\ achieved in order to fund the solution. Typically, the benefits are tangible and should be somewhat conservative.
Some companies just know they need a WMS…they need it for growth. Regardless of the process, one should always follow some sort of ROI process when evaluating WMS solutions. In doing so, the software search will be based upon a set of indicators that reflect the “value” in the word “evaluation”.
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