There are important differences in the way business system providers, i.e. ERP & WMS, and equipment providers support their customers. One is contractual with on-going provider responsibilities clearly stated, the other is more informal and user initiated. In either case, the user must take action to insure that their systems stay current.
Holste Says... |
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| Users must take steps to protect their investment against operational obsolescence through regularly scheduled system audits and updates. |
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With few exceptions, companies that provide logistics and business management software programs do not provide physical material handling equipment/systems. They typically offer a broad array of highly specialized, proprietary software packages such as, Enterprise Resource Planning (ERP), Warehouse Management System (WMS), product slotting, inventory management programs, etc., plus related educational, training and support services, all of which are offered under an ongoing licensing type of agreement included in the initial sales contract.
Material handling equipment manufactures and system integrators provide software that is specifically written to enable operational functionality for the equipment they provide. This “machine” software may run on a PLC or PC. Additionally, there may be several small microprocessor applications. They may also provide (sometimes through a third party controls engineering firm) an integrated material handling system controller/director, referred to as a Warehouse Control System (WCS) that interfaces with the host system (ERP/WMS) and is capable of receiving downloads, executing operational commands as well as providing system performance data and related summary reports. All of this type of software is provided under the material handling system sales, installation, and equipment warranty contract. As such, software covered under this warranty, unless otherwise stated, may be limited to 90 days from system acceptance.
The following will provide some insight as to what this means to the user: Business Enterprise Logistics & Management Software Providers:
As a matter of policy, software companies specializing in providing business management software systems (ERP/WMS) to a broad range of users, regularly upgrade their software programs to keep 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 system configuration. However, other times users are required under their license agreement to accept and install critical software code changes/revisions. In most cases the software provider makes the required code changes through a modem directly into the users system.
These upgrades and code changes are intrinsic to the development of advanced software technology. As such, based on the typical software license agreement, the provider is required to keep their software current as well as providing appropriate levels of training, and the user is required to accept the updates.
In addition, every few years an entirely new version of the software program may be launched. When this happens if the user does not agree to move to the new version, they run the risk of eventually losing the ongoing software support normally offered by the provider. So, because no one wants that to happen, frequent upgrading of this critical business management software is a fact of life. This practice is therefore accepted by most users as insurance against operational obsolescence.
Material Handling Equipment & Systems Providers:
Material handling equipment manufacturers and system integrators are primarily focused on designing, engineering, building, and implementing the physical material handling system for their customers. For the most part, the on-going maintenance of that system is the responsibility of the user, although many vendors offer optional follow-up audit and PM programs, as well as emergency troubleshooting services.
Within the physical material handling system there will most likely be subsystems and peripheral equipment not manufactured by the system contractor. It is not unusual for system integrators to outsource equipment and subsystems that are not a standard part of their tool box, such as automated picking, weighing, labeling, packaging, wrapping, auto-palletizing and robotics just to mention a few. Most of these subsystems have their own PLC/PC or microprocessor control and software programs, which are being directed and managed by the WMS or WCS.
It should be noted that outsourcing system controls engineering and software to a third party is a common practice for some contractors.
Once all of this “individual” software is commissioned, debugged and becomes stabilized it can be expected to function reliable (in the background) for many years.
This is both good and bad news. The only time the proprietary software provided with the various subsystems, including the WCS will become the center of attention is when physical changes to the system and/or processes are required. Until then it can be essentially “forgotten” for many years, or until there is a problem, at which time the software code may no longer be supported.
While it is true that mechanical equipment (conveyors, sorters, etc.) can remain serviceable for many years with routine maintenance, the controls and software that enables them can go extinct in just a few years. Therefore, users must take steps to protect their investment against operational obsolescence through regularly scheduled system audits and updates.
Final Thoughts
Of course, users should be cautious against the onslaught of new features that fall into the nice-to-have category. However, protecting your aging material handling system investment against operational obsolescence is squarely on the users shoulders! Left unchecked, at some point a hard drive failure, or even a relatively minor control device breakdown, could have a catastrophic effect on the DCs ability to ship orders in a timely manner.
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