Does a WMS Equal ROI?
Does a WMS = ROI? Recently in a meeting with a company contemplating replacing their old, home-grown WMS with a shiny new one from one of the premier WMS vendors, I asked a simple but potentially controversial question: Why are we doing this? Seeing the vendor’s jaw drop at this question and lots of side discussions quickly ensue, I clarified my question. If we are going to spend many hundreds of thousands of dollars and add the short-term risk involved with doing one of these implementations, I surmised, I think we better have some pretty clear objectives. Whenever anyone does one of these systems, there is always lots of talk about ROI and improvements, etc. The problem is that these things are not automatic. Having architected my share of this type of software, I am a huge proponent of them, but in my mind, it is incorrect to make the jump from getting a WMS to automatically getting improvements, let alone ROI. Instead, you should think of a WMS as a platform for continuous improvem
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