Expert Insight: Guest Contribution
By Chad Collins,
VP of Marketing & Strategy,
HighJump Software
Date: July 8, 2009

Supply Chain Perspective: My Friends are Getting Old, Your WMS May be Getting Old Too!

 

Friendly Advice - Consider Replacing Outdated WMS with Modern Technology

While talking with a friend the other day, the topic of Facebook came up. This friend had joined Facebook, but become disengaged quickly saying he just didn’t “get it.” Rather than embracing the technology, engaging with friends and trying to figure out why millions of people are flocking to social networking, he threw up his hands in disgust. It reminded me of my grandmother trying to program the VCR. My friend is inflexible, unable to change, and unable to support the new process of communication. 

Many warehouse management systems (WMS) suffer from these same challenges – inflexible, unable to change and unable to support new communication processes.

Many companies implemented a WMS in the late 1990s and early 2000s to support their growing operations. While the initial value and return on investment of these systems has been achieved, the current state of these systems is a concern for many IT and supply chain executives.

 

Changing the system to meet new operational needs.

Your distribution and supply chain operations are probably significantly different than when you initially deployed your WMS. Product mix changes, increases in volumes, changes in material handling equipment and new distribution strategies can have significant impact on warehouse operations. Many warehouse management systems provide you with just two, less-than-optimal options to address these business changes: pay the software vendor to customize the software for your new process, or develop a workaround outside of the system. 

 

Relatively high total cost of ownership.

It is widely known that a WMS is one of the most customized software applications in the enterprise. This is especially true of systems implemented five to ten years ago.  Not only are many companies dependent on the vendor to make ongoing system changes, the cost of system upgrades is extraordinarily high because source code modifications must be reapplied to future versions. Additionally, many enterprises with aging WMS technologies are paying significantly higher fees than those who recently implemented modern technology platforms. It just doesn’t make sense, why should you pay more for an older platform that doesn’t fit your business?

 

Uncertainty about your vendor’s strategy for the product line.

Many warehouse management systems implemented five to ten years ago were provided by vendors who are no longer market leaders in WMS.  Many of these vendors have been acquired by financially-focused firms that collect software maintenance and support fees without re-investing in product development and customer service. Can you trust your distribution operations to a software vendor with questionable long-term viability?

Do you have these symptoms of an aging WMS?

It is possible to move from aging WMS platforms to modern technology platforms with a simplified upgrade path.  In many cases, the annual cost of the new software is equal to the current costs of the aging platform. 

I will not replace my friend because he is aging, but you might want to consider replacing your aging WMS!


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profile About the Author

Chad Collins leads HighJump Software’s global strategy and marketing initiatives. He joined the company in 2002 and has more than 12 years of experience using technology to deliver innovative supply chain solutions. Prior to HighJump Software, he was in the supply chain practice of Cap Gemini Ernst and Young Consulting, where he managed supply chain technology projects for the world's leading manufacturers. Mr. Collins holds a Bachelor of Science degree in electrical and computer engineering from Marquette University and an MBA in supply chain management from the University of Minnesota's Carlson School of Management.

 

Collins Says:


It is possible to move from aging WMS platforms to modern technology platforms with a simplified upgrade path.


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