Maximizing Warehouse Management ROI to Enhance Peak Season Performance
Rewritten Article:
Navigating the logistics tech market can be a headache, especially when you're trying to find solutions that'll boost your fulfillment operations. If you're preparing a business case for software investment, it's essential to understand the return on investment (ROI) you'll get from your chosen solutions.
According to a survey conducted by Deposco and Supply Chain Dive's studioID, 92% of retail supply chain leaders believe modern warehouse management systems (WMS) and order management systems (OMS) are the answer to their fulfillment woes. Of these, 70% are actively implementing WMS or OMS platforms for peak season 2023.
The survey, which involved over 150 retail and supply chain executives, found that warehouse management was the top concern for nearly half of respondents (48%). This underscores the need for investments in WMS and OMS platforms.
Should you invest in WMS or OMS, or is it a question better left unanswered? According to Michael Johnson, vice president of business consulting at Deposco, there's a 22% of retail leaders who understand the benefits but don't plan to invest in 2023. Lack of a convincing cost-benefit analysis often hinders these supply chain professionals from making the leap.
Johnson advises that when building a business case for WMS or OMS, it's crucial to focus on both short-term and long-term ROI. With the right software, you can realize value within a few months, especially with solutions designed for quick implementation without disrupting your existing operations. "By doing so," Johnson says, "you'll not only have a fast ROI but also be ready to scale easily after the initial implementation."
To build a strong ROI story, look for a WMS or OMS that integrates seamlessly into your ERP, ecommerce platforms, and sales channels. It should also offer real-time inventory visibility across all channels, increase order throughput and accuracy, and scale quickly to support growth without heavy IT resources or custom projects.
To ensure your investment delivers both fast ROI and long-term value, consider a partner who offers a comprehensive understanding of your operation, can identify and eliminate implementation barriers, and shifts burdens from your people to your processes. This translates to improved productivity, a better employee experience, and increased worker retention.
WMS and OMS platforms set the foundation for inventory, operations, and other technology systems. To start seeing ROI quickly, consider launching a small project to show immediate success instead of implementing all new systems, technologies, and processes at once. Your partner should offer predictable, flexible growth plans to help you scale your business.
The right warehouse solutions can lay the groundwork for automation, which more than half of survey respondents are also prioritizing this year. To get started on the right foot, begin with a small project that demonstrates success from day one, and ensure your choice of software allows for incremental upgrades as your business grows.
Are you ready to take your warehouse solutions journey to the next level? How does your approach to peak season compare to other retail leaders? Download the full research report to learn more about the priorities, concerns, and challenges in 2023.
Insights:
- Short-term ROI can be achieved by cost reductions through labor optimization, minimized stock loss/damage, and improved picking accuracy. Immediate productivity gains can be achieved through features like cross-docking and packing management.
- Long-term ROI comes from scalability benefits through AI-driven forecasting and space optimization via data-driven layout adjustments. Revenue growth is possible due to enhanced service levels and the capacity to handle market expansion.
- To ensure system compatibility, look for solutions that integrate with existing ERP, transportation, and inventory systems to avoid data silos. Customization flexibility and real-time data exchange are key for synchronizing order processing with warehouse operations.
- A strong partnership with your software provider is essential for successful implementation. Look for providers who offer change management expertise, comprehensive training programs, and alignment with your growth strategy in terms of AI/automation development plans.
- To manage risks, factor in hidden expenses like temporary labor during WMS onboarding, minimize operational disruption by phasing deployments using pilot testing, and opt for modular systems that allow incremental upgrades instead of rigid enterprise solutions.
- The logistics tech market can be challenging, particularly when seeking software investments to enhance fulfillment operations.
- According to a survey, 92% of retail supply chain leaders find modern WMS and OMS crucial for resolving fulfillment issues.
- By 2023, 70% of these leaders are actively implementing WMS or OMS systems for peak season.
- Warehouse management was the top concern for nearly half of the surveyed executives, underlining the need for WMS and OMS investments.
- Michael Johnson, a business consultant, suggests focusing on both short-term and long-term ROI when considering WMS or OMS investments.
- To build a strong ROI story, seek a WMS or OMS that seamlessly integrates with ERP, ecommerce platforms, and sales channels.
- A strong partnership with your software provider is essential for successful implementation, with the ability to align AI/automation development plans with your growth strategy.
- To ensure fast ROI and long-term value, consider launching a small project to show immediate success and opt for a provider offering flexible, predictable growth plans.
