REALIZING THE PROMISE OF SUPPLY CHAIN SYSTEMS INVESTMENT

Transcription

1 REALIZING THE PROMISE OF SUPPLY CHAIN SYSTEMS INVESTMENT Warehouse Management System research report Key findings Based on 100 Professional interviews

2 RESEARCH OVERVIEW Objective Realize the potential of IT investment for the supply chain Respondents Supply chain executives Target Audience Complex supply chain organizations Sample Data 100 executive interviews

3 RESPONDENTS CITED THE FOLLOWING ONGOING COSTS AS MOST SIGNIFICANT RELATIVE TO OPERATING WAREHOUSE MANAGEMENT SYSTEM 88% Ongoing cost of upgrades 86% Cost of IT support staff 80% Integration with ERP & other software 61% Cost of IT contractors & Consultants Companies are constantly trying to find ways to improve performance of warehouse operations to gain maximum efficiency at minimum cost

4 IS YOUR SYSTEMS SUPPORT EXPERIENCE EFFORTLESS? It is very important for warehouse managers to get direct visibility of work-force s efficiency, improving system performance to streamline business processes and enable easier flow Warehouse Management Software (WMS) to increase productivity. A final indicator can be found in the vendor s overall focus to improve warehouse operations support

5 MANY COMPANIES ARE NOT REALIZING THE FULL BENEFITS OF THEIR WAREHOUSE MANAGEMENT SYSTEM INVESTMENT Reasons systems are not fully deployed Find multiple site deployment cost prohibitive 70% 80% Upgrades & systems need support by internal IT Staff Don t have the IT staff to support deployments across a large geography 30% Cloud technology combined with SaaS subscription models have helped with these issues

6 SURPRISINGLY, THE MAJORITY OF COMPANIES ARE USING OUTDATED VERSIONS OF THEIR WAREHOUSE MANAGEMENT SYSTEM Cost Saving Shortcuts Partial Deployments Incomplete integration Out of date Software These mistakes deny access to innovation & insure your ability to take proscriptive action is limited or not available 70% cited capital expenditure for the upgrade as the reason for the lapse

7 TOP 5 REASONS FOR INVESTING IN WAREHOUSE MANAGEMENT SOFTWARE Optimization of supplier & carriers Increase customer demand for fast & accurate time-lines for shipments Managing diverse suppliers over large distances Proactive management of in-transit inventory The right WMS provides the visibility and flexibility you need at every point in your supply chain across channels, geographies, suppliers and locations E-commerce/direct to consumer shipment A warehouse management system is a critical tool for effectively managing your supply chain operation. Supply chain operations are changing. If your business is not using a modern warehouse management system that can be readily adapted to meet the needs of your business and that of your clients, your profitability could be impacted Ensuring you get the right products to the right place at the right time profitably

8 COMPANIES MUST INVEST IN CLOUD BASED SaaS DEPLOYMENTS GIVEN THE PREFERENCE FOR BEST OF BREED SYSTEMS INTEGRATION & SUPPORT COST ARE PITFALLS FOR COMPANIES THAT ARE UNPREPARED COMPANIES PREFER TO BUY SPECIFIC WAREHOUSE MANAGEMENT SYSTEM INSTEAD OF SYSTEMS THAT ARE PART OF A SOFTWARE SUITE BY A 3 TO 1 MARGIN 71% 28%

9 ARE YOU RUNNING THE MOST CURRENT VERSIONS OF YOUR WAREHOUSE MANAGEMENT SYSTEM <10 years Out of date software suffers from these issues: 16% 3-5 years Its not optimize for the cloud Its not build to connect to other software through API s The older it gets the more time it takes to patch and maintain. >2 years 22% 37% 25% Using outdated technology can be holding your business back. Take a critical look at your current warehouse management system to see if you could benefit by replacing or upgrading your current WMS years

10 RESPONDENTS DESIRE A COMPLETE WAREHOUSE MANAGEMENT SOFTWARE PACKAGE THAT INCLUDES 60% Infrastructure Software Implementation Upgrades & support Data integration Actionable & proscriptive analytics What functionality would you like to improve in your WMS system? All this in a monthly subscription payment plan

11 WHY NETLOGISTIK

12