The emergence of
the Software as a Service (SaaS) model has provided companies with an
alternative to the exponential costs involved in having to buy, build, and
maintain IT infrastructures. Today, organisations can subscribe to services
built on shared infrastructure via the internet. The SaaS model has gained
momentum because of the many benefits it offers to businesses of all sizes and
types.
The model holds great cost and efficiency benefits for all sectors with the complex world of warehouse management being no exception.
WMS-as-a-Service
Technology advancements have been
the driving factor in the viability of renting software solutions from
companies that make them available through hosted environments. Some of
the benefits include the fact that solutions are easily deployed as software is
hosted & maintained centrally. Infrastructure is hosted & shared - the
hosting of servers provides an increased level of security, fire protection and
infrastructure redundancy while taking away from the client the necessity of
setting up server rooms and back-up environments. The IT resource requirement
is significantly reduced with all system administration tasks being executed
and managed centrally.
Service levels are a
priority. Providing a solution as a service enables the vendor to improve
support with timeous upgrades and produce a better working relationship going
forward. Support costs are lower due to centralised servers being
managed and response times are much shorter – basically it’s as though support
is actually always on site.
The SaaS model has proven in general to have as much as a 70% lower total cost of ownership when compared with traditional on-premise and purpose built systems. The monthly rental method of payment removes software capex requirements and the operational model is more tax efficient.
How do ERP
stock systems stack up against WMS?
When discussing warehouse
management software, there is often confusion between the inventory management
functionality - provided by many of the ERP systems - and that provided by a
full Warehouse Management System.
Typically, the inventory management functions view the stock from an accounting perspective, using accounting principles, without considering the complex operational processes. By using a best of breed warehouse management system, businesses can optimise many of the processes, achieve greater accuracy and visibility and control the movement of stock through the facility.
Why is an ERP
not as effective as a dedicated WMS
It should be noted that one
fundamental difference between the two is that ERP is transaction based and the
WMS is an execution level system.
The WMS module of an ERP system
is one of many areas of focus for the providers of ERP software, whereas with
companies providing WMS this is not the case, the provision of the warehousing
software is their core focus and competency. What differentiates an ERP
warehouse function versus true WMS functionality is that the latter offers a
fully integrated system across all operations.
In examining the functionality of
a WMS versus that of ERP several questions need to asked, including:
·
How closely does the
system functionality fit to actual movements & operations taking place on
the floor?
·
What controls, checks
& balances are there on an operational level to ensure that the operations
are running effectively i.e. requiring a real time environment to achieve this?
·
Does the ERP provide
on an operational level to ensure ops are running effectively?
·
Can the ERP measure
forklift and other utilisation?
From a (Best-of-Breed) WMS
perspective the answer to all of the above is “yes”. A WMS yields real
value and ROI by providing:
·
Fully integrated
Wi-Fi service connectivity / integration as opposed to paper based tasks.
·
Real time task
interleaving.
·
Load building and
scheduled release of work to the floor.
·
Tracking of specific
products into multiple physical locations within the warehouse.
·
Capability to track
batches through the warehouse from receipt to storage to customer.
·
Multiple packing
configurations and bar code labelling per pack configuration.
·
Accurate staff
performance capabilities where time taken per activity can be monitored and
used for capacity planning.
A WMS is so much more than simply scanning stock in and out of the warehouse system. It can and does, closely fit the system functionality to actual operations on the floor. It provides all the checks and balances necessary to guarantee that ops continue to run effectively and measures utilisation of labour and key assets such as forklifts.
Contributed by: Steve
Mallaby, CEO, Cquential Solutions
