System Selection Process for WMS

Selecting the best Warehouse Management System (WMS) that fits your company is is likely the most critical strategic decision you will make in the next 5 years. A WMS that fits your companys must allow for scalability as your business grows. It should be capable of handling increasing order volumes, expanding product lines, accommodating additional warehouse locations and any other planned or contemplated strategic business decisions. A well-suited WMS enables efficient warehouse operations by optimizing processes such as inventory management, order fulfillment, picking and packing, shipping and other possible value-add services your company offer (eg. Kitting, repacking, co-packing, 3PL. It can automate manual tasks, improve accuracy, reduce errors, minimize stockouts, and increase overall productivity. Choosing the right WMS ensures that your warehouse operates smoothly and efficiently. It must give you real-time visibility over your business situation.

There are certain ways to approach the selection/procurement and installation/implementation process of getting a WMS. You can hire a consulting company to do the heavy lifting or you can do it in-house. Either way it is important to understand that the strategic competitive advantage objective must drive the need to automate your warehouse and distribution process. Once your company understands the strategic objectives (short-term and long-term), a situational assessment of the current challenges will most likely define the need for change. A definition of your “burning platform” issues (defined in quantifiable measurement) and the expected return on investment or ROI (in dollars over time) . A real-time integrated WMS is “mission critical” to your warehouse operations, thus is it paramount to choose the best WMS provider and solution that fits not only your current operational processes but any foreseeable needs.

The system selection process for a warehouse management system (WMS) typically involves several key steps to ensure the right system is chosen for a company’s specific needs. Here’s an overview of the selection process for a WMS:

1. Define requirements: Begin by with meeting with your key stakeholders and senior management/ownerhip and understand what are the key forward looking objectives of the business – what is the vision of the company, what is the business expected to look like 5 to 10 years out, what is that ‘Grounded Vision’, what are the key design parameters a new system must satisfy. Knowing this you can begin clearly identifying and documenting the specific requirements and objectives of the WMS that aligns with the Grounded Vision. This absolutely critical – as an example – the Grounded Vision say you will grow the business 5x in 3years – it is very likely your current business processes must be changed to accommodate this exponential growth. This will likely have you looking at different business solutions – without knowing this key parameter, you likely would have picked a limiting solution. Therefore your evaluation involves understanding the company’s current and future business processes, volume of inventory, order fulfillment strategies, integration needs with other systems, reporting requirements, and any other unique requirements. Typical company strategic requirements may include:
   • Growth and performance characteristics that business processes and a new solution must satisfy
   • Legal requirements which may enforce strict serial/heat/batch/lot control at product level (e.g. Food safety/medical/military regulations);
   • Improving customer service levels by ensuring accurate sales order picking. This will reduce customer returns
   • Inventory accuracy not less than 99%
   • A system that can connect to popular ERP software
   • Cost – A WMS system that has a short ROI period
2. Research and shortlist: Conduct market research to identify potential WMS solutions and implementation partners that align with your requirements. Consider factors such as industry reputation, functionality, scalability, technology compatibility, implementation and support services, and cost. Create a shortlist of WMS vendors that seem suitable for further evaluation.
3. Request for Proposal (RFP): Prepare an RFP document that outlines your company’s requirements and invites WMS vendors to submit their proposals. The RFP should include details about your organization, project scope, desired features, implementation timeline, budget, and any other relevant information. Distribute the RFP to the shortlisted vendors.
4. Vendor evaluation: Evaluate the received proposals based on factors such as compliance with requirements, system functionality, scalability, technology stack, implementation approach, organization cultural fit, support services, and total cost of ownership. Shortlist vendors based on their proposals and their fit with your organization’s needs.
5. Demonstrations and proof of concept: Invite the shortlisted vendors to provide product demonstrations and, if feasible, conduct a proof of concept (POC) to assess the system’s capabilities in a real or simulated environment. During this phase, pay attention to user experience, system performance, ease of configuration, and the ability to meet your specific business needs. Culturally are they listening to your needs or are they just selling.
6. Reference checks: Request references from the shortlisted vendors and contact their existing customers to gather feedback about the system’s performance, vendor support, and overall satisfaction with the solution and the solutions provider. This step helps validate the vendor’s claims and provides insights into the system’s real-world performance.
7. Vendor selection: Evaluate all the gathered information, including the RFP responses, demonstrations, POC results, and reference checks, to make an informed decision. Consider factors such as system fit, vendor credibility, implementation timeline, ongoing support, and the vendor’s long-term viability.
8. Contract negotiation and implementation planning: Once the vendor is selected, negotiate the contract terms and conditions. Define the implementation plan, including milestones, responsibilities, and timelines. Allocate internal resources required for the implementation and establish a project team. In the contract you must define with your vendor what the quantifiable measurement of success is going to be, what is each party responsible for, are you looking at ‘time and material’ or ‘fixed price’?
9. Implementation and testing: Work closely with the vendor and the internal project team to execute the implementation plan. Configure the WMS according to your requirements, integrate with other systems if necessary, and thoroughly test the system to ensure it meets the desired functionality and performance criteria.
10. Training and go-live: Provide comprehensive training to the end-users who will be utilizing the WMS. Conduct user acceptance testing (UAT) to validate the system’s readiness for production use. Plan a go-live date and execute the transition from the old system to the new WMS. Post-implementation evaluation, measure project success against previously negotiated criterion. What are the training materials available, who is responsible for training and what defines success:
11. Evaluate the performance and effectiveness of the implemented WMS after a period of time: Gather feedback from users and stakeholders to identify any areas that require improvement or additional customization. Address any issues or concerns that arise and make necessary adjustments to optimize the WMS.

In summary, selecting the best WMS solution and the implementation partner that fits your company is vital for achieving efficient warehouse operations, scalability, seamless integration, customization, data-driven decision-making, customer satisfaction, and a strong return on investment. By following the steps above, an organization can conduct a comprehensive selection process to identify and implement the most suitable Warehouse Management System for their specific needs. I have always said – there are always 4 to 5 solutions that can run your business – it is your implementation that will make you successful. You can be amazingly successful with an excellent implementation partner and a lesser solution. You can pick the absolute best solution and fail with a less-than-quality implementation partner.

For more information regarding the selection process of a WMS, give us a call. We have experts with 30+ years of experience in the logistics field and we would love to partner for success with you. Click here to setup a demo call.