Drivers of Modern-Day Warehouse Management System Adoption
Demand for more warehouses is evident throughout the industry. Aside from building new warehouses, major retailers, such as Sam’s, have transformed traditional shopping centers into new distribution centers. In addition, the number of workers needed to fill warehouse positions is expected to continue climbing. As the industry expands, the ability to fulfill orders and move product will affect customer service and profitability. Thus, more companies will reconsider warehouse management system adoption, including upgrading to entirely new systems, reports Modern Materials Handling. To understand where a modern WMS comes into play, supply chain leaders must first recognize the drivers of warehouse management system adoption.
The Growth of E-Commerce and Omnichannel Are Top Driving Factors in Warehouse Management System Adoption
The growth of e-commerce and omnichannel stand out among the drivers of modern-day warehouse management system adoption. E-commerce and omnichannel sales have continuously broken records for demand and volume. The 2018 holiday shopping season saw more customers shop for online-only purchases through Amazon, as well as a record number of shoppers in traditional brick-and-mortar stores. In addition, Walmart saw a significant increase in the number of purchases made online and picked up in store. The days of using legacy systems and manual processes are inefficient and ineffective at handling the strong demand placed upon the industry by the growth of e-commerce and omnichannel.
Worsening of the Talent Shortage
The talent shortage of supply chain management is continuing to grow worse. More than 50,000 baby boomers retire each day, and the industry is struggling with attracting members of the newer generations, including millennials and Gen Zers. As the talent shortage worsens, supply chain executives will be forced to adopt a new warehouse management system capable of managing scarce labor resources and deploying automation in warehouses, distribution centers, and logistics networks alike.
Technological Obsolescence of Existing Systems
The technological obsolescence of existing systems is another factor driving more companies to warehouse management system adoption. SKU proliferation exceeded the limits of most homegrown WMS solutions and even those that have managed to keep up still struggle with updates and improvements necessary to meet the demands of e-commerce and omnichannel. Therefore, the costs of maintaining an in-house or homegrown WMS may be higher than adopting a new system that leverages the latest technologies and functionalities.
Automation in Warehouses, Distribution Centers, and Logistics Networks
Automation in warehouses, distribution centers, and logistics networks is essential as companies have moved away from regional networks and toward globalization. Today, consumers may shop from anywhere in the world, so the increase from e-commerce and omnichannel is much more significant than it appears. Automated technologies, including virtual reality, automated storage and retrieval systems, RFID, AIDC, pick to light and put to light, automated conveyors and even order streaming systems, require advanced integration with WMS platforms. In addition, the variety of platforms and systems in use necessitate an open architecture that exists in modern, cloud-based WMS. In other words, open architecture allows systems to integrate more readily and with fewer coding changes if any.
Inventory Visibility and Optimization, Including Reslotting and Order Streaming
Staying competitive with Amazon, Walmart, Target and other Big Box retailers requires an unmitigated level of inventory visibility and optimization. Seasonal and sudden changes in product demand and variety mean warehouses must continuously reslot items to reduce pick times and ship products faster. These demands can be met with modern-day warehouse management system adoption.
Start the Search for the Right, Modern-Day WMS for Your Supply Chain Now
Implementing a warehouse management system is one of the most effective and essential steps in maintaining a competitive advantage and meeting the demands on today’s supply chains. Instead of risking it all to keep your existing system running, start looking for a new system immediately, and if you are uncertain where to start, Veridian can help.
Veridian, a Manhattan Associates, HighJump, and JDA warehouse management system implementation company, can help you realize your supply chain success. Fill out the contact information below in order to schedule a consultation call with one of our supply chain professionals.