PSI Blog

Top 7 Reasons to Implement a WMS

23 Sep 2020 - Logistics, Technology

The introduction of a warehouse management system offers many advantages. Source: ESB Professional/Shutterstock
The introduction of a warehouse management system offers many advantages. Source: ESB Professional/Shutterstock

Warehouse operators are pressured to drive the digitalization of their warehouse to remain competitive. This is the result of the current study “Digital transformation opportunities” carried out by BVL. Before you decide on a digitalization measure in your warehouse, your motives should be clear. What added value does the conversion to a digitalized warehouse offer you? Why do you want to digitalize it now and what are the benefits? Are you missing out on a trend now or the chance to gain a decisive competitive advantage?

Digitalization – a trend or competitive advantage?

There are many good reasons for switching to a digitalized warehouse. But which ones are relevant for you and your company? According to the BVL study, the digitalization of business processes and transparency in the supply chain are the most important trends that should be driven more from within companies in the future. If IT measures are introduced for the wrong reasons, things can become expensive. The digitalization of your warehouse should create added values which make it worthwhile to adapt your established warehouse processes. Take a look at the seven questions below and formulate your own concrete reasons for digitalization.

Motives for the introduction of a warehouse management system (WMS). Source: PSI
Motives for the introduction of a warehouse management system (WMS). Source: PSI

Important questions that you as a warehouse operator should ask yourself before implementing a WMS

  1. What goals does your company pursue by introducing a WMS?
  2. Which core processes must be mapped and which functionalities are important for you?
  3. Which usability requirements of the WMS are important for your company?
  4. What added value does a WMS introduction create for your company?
  5. What changes in processes and organization are crucial for the success of the WMS project?
  6. How can the associated change management be accompanied?
  7. Does the project plan fit your current strategy?

When is the right time for a conversion?

If your intended goals cannot be achieved without a digitalized warehouse, the time is right for a conversion. BVL formulates one of its recommendations for action even more explicitly in its study:

“The latest time to go digital is now.”

However, the digitalization of your warehouse should not be an end in itself but should be introduced since your requirements can no longer be met with the present resources. The most important thing is that your digitalization measures are made measurable. Because by collecting and analyzing your data, you can exploit all the advantages of your warehouse IT.

The implementation of Warehouse IT enables...

  • the reduction of error rates,
  • the increase in process and inventory transparency in the warehouse,
  • the reduction of response and throughput times,
  • the increase of the readiness for delivery and productivity of the warehouse.

What added values does the implementation of warehouse IT offer?

The introduction of warehouse IT allows customers to output information at the right place, at the right time and in the right way. This ensures that you can retrieve the relevant information at any time during the ongoing process. Above all, access to data via mobile devices is highly relevant and will be considerably expanded in the future, according to a result of the BVL study. The information and data transparency are the basis for all competitive advantages that are brought into your warehouse by warehouse IT. What additional savings potential can the introduction of a WMS offer you?

Good reasons to implement warehouse IT

  1. Lower error rates also lead to lower costs.
  2. Faster response tim and
  3. shorter throughput times create flexibility in the ongoing warehouse process.
  4. Higher process transparency and
  5. higher inventory transparency are a prerequisite for efficient forward planning.
  6. Increase in productivity and
  7. higher readiness for delivery reduces travel times and saves resources.

Are you ready for the digitalization of your warehouse?

Do you remember the questions asked at the beginning about the introduction of warehouse management systems? Do your answers coincide with the reasons for introducing a WMS? If so, you are ready for the digitalization of your warehouse. If not, you now know your personal reasons that currently argue against taking a step towards digitalization.

If your answers are reflected in the reasons for digitalization, we offer you a transparent and efficient start into your warehouse IT with our warehouse management system PSIwms. Customize your user interface easily and individually to your needs. At the same time, you always maintain an overview thanks to the mobile data terminals. PSIwms already supports all relevant types of warehouses and warehouse technologies in the standard version.

Your advantages using PSIwms:

  • Best practice approach ensures project realization and execution on time & within budget
  • Standard interfaces enable a fast and safe launch
  • Fast and secure data exchange with HOST system through integrated automatic test
  • Flexibility and adaptability for your individual needs and processes
  • Investment security through pioneering JAVA technology and continuous further development (annual release)
  • Efficient and stable even with high system loads
  • 24/7 support, individual service level agreement, own data center
  • More efficient processes through self-configuring system, depending on events (e.g. volume and dates)

The new WMS was initially intended to support the conversion from a manual warehouse to automated processes with data material in terms of information technology. Using PSIwms, we were also able to check and optimize the planned processes and the exact tailoring of the IT to our requirements in advance.

Peter Schlechtinger
Project Manager, Würth Elektronik eiSos GmbH & Co. KG

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Hartmut Braun

PSI Logistics GmbH
Head of Business Development