For logistics companies, who depend on Warehouse Management Systems (WMS) to run their DC operations, system upgrades are an accepted reality. However, many of those same companies are slow, or even reluctant, to upgrade their material handling automation (MHA) control and software systems. Why is that?

It’s understood that WMS providers will upgrade their software as required to keep their users “current”. For the most part upgrades within a particular “version” are minor enhancements to existing programs or modules. Oftentimes, users have the option of accepting the upgrades, or not, depending on the particulars of their individual system operation.

Then every few years an entirely new version is offered. In this case if the user does not upgrade to the new version they will eventually lose the ongoing software support services normally offered by the WMS provider. Obviously, this is a serious concern for companies that depend on the WMS and have little or no internal IT support resources.

So, frequent upgrading of the WMS is a fact of life. It’s seen as an investment akin to getting regular oil changes for your car.

But, this is not always the case when it comes to controls and software programs associated with material handling automation (MHA). Here, the typical mind set is - Don’t fix it unless it’s broken.

Need a Strategy To Protect Your MHA Investment

Unlike WMS - unless there are physical changes, MHA applications do not need a complete changeover to a new operating system every few years.

But, they do need upgrades – probably more often than most logistics managers would think. For example, it’s a safe bet that any batch order picking and sorting system installed within the last 10 years or so, includes vendor provided control devices and customized/proprietary software programs. Quite a few of these systems are currently operating with outdated controls and software programs.

I recall one such system for a privately owned auto parts distributor. The MHA vendor engineered, installed, and commissioned a batch order picking and sorting system in 2001. Over the years the vendor “suggested” replacing and updating various aging control devices with new components. The company never could justify the cost. After all, the original control devices were working just fine and the software was stable and dependable – great, no problems.

As time went on the vendor informed the company that many of the critical control devices were no longer available and supported by the manufacturer. In addition, time was running out on the vendor’s ability to support the now extinct software programs running their system. Still, the company was not inclined to take action.

Eventually, the company hired an IT person who panicked when he realized the system controls and software programs were obsolete and no longer supported by the vendor. In fact, much of the existing control equipment, including PCs / PLCs, and bar code scanners were no longer available from the manufacturers and may not even be repairable.

The IT person realized that the entire MHA was in a state of operational obsolescence. At this point even a relatively minor system failure could have a catastrophic effect on the DCs ability to ship orders to its customers.

Yet another proposal was provided by the vendor, and submitted to the Board of Directors for emergency funding. Yes, it was very expensive because at this point the entire controls and software system had to be updated PDQ.

Unfortunately, this story is not all that uncommon. Part of the blame lies with vendors who do not want to upset their customers with doomsday scenarios. Part of the blame lies with executives who see MHA upgrades as an unbudgeted cost instead of an incremental investment.

Now I know, often, probably too often for many of you, MHA vendors come out with new features and functions for controls, software programs. A really good example is the current emphasis on Warehouse Control System (WCS), which can provide many important operational benefits. Your hand probably moves to cover your wallet “automatically” when the salesman calls.

And yes, one should be cautious against the onslaught of new features that fall into the nice-to-have category. Having said that, protecting against operational obsolescence is on your shoulders!

Final Thoughts

The best way to deal with the question of when to upgrade and/or incorporate new features and functions is to develop a strategy. First, where are you now and where do you want to be in the next few years? Then plan regular intervals for reviewing your MHA controls and systems, and upgrade them accordingly. Not only will this approach protect your operation by keeping critical control devices and software programs up-to-date, it is way more cost effective to upgrade incrementally.

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