Changing business conditions carry risk. When it comes to distribution operations, the last several years have brought drastically changing requirements, and mounting operational pressures. The steady march of ecommerce, which grew by nearly 15% last year in the U.S. , has tightened order cycle times and led to a greater number of SKUs. While the impact of serving multiple channels is most keenly felt in retail and consumer goods markets, nearly every distribution sector is dealing with heightened expectations from digital era customers.
At the same time, the economy has been in growth mode since the recession of 2008, and when combined with the need to get goods out to multiple channels, this has ramped up volumes, velocity, and DC complexity, while the need for cost control remains a priority. In fact, according to an industry report from MHI and Deloitte, the top four challenges for supply chains are:
Think about these changing conditions for a moment. We have more business volume, more goods to move to multiple channels, under tighter cycle times. Throw in factors like labor shortages and more stringent regulatory requirements and the pressure on warehouse operations with legacy systems is greater than ever. These conditions have companies pondering how to meet operational pressures. Can I meet my customers accelerated delivery requirements? Can I accurately stock and fulfill customer orders without incurring additional costs? Plus, can my information technology (IT) and warehouse management system (WMS) keep up?
The reality for many companies, the pressure is so acute that they have no alternative but to get a new system. However, bringing in a new WMS carries risks. This is the situation many companies face today. They must bring in a robust WMS to keep up with changing requirements, but they must do it in a low-risk, low-cost way. All of these conditions have elevated the importance of leveraging the strengths of a robust WMS and its implementation model. Deployment needs to be rapid to fit a company’s needs and ensure low total cost of ownership (TCO). Download this whitepaper for information on to fast track your warehouse management system from the evaluation process to implementation.