Have you got the budget for a WMS?

You have decided that you need a new WMS and now it is time to sort out whether you have enough budget to implement a system. To most people, this means looking at the functionality a WMS can provide, breaking it down into the ‘must haves’ and ‘would likes’ and seeing how far they can stretch their monetary reserves. However, this is only part of picture.

Modular

Implementing a new WMS can be a large undertaking. Which is why, when we talk about budget, we like to let clients know that they need to consider money, time and effort as the important factors to consider when deciding whether they have the right budget for a project. A shortage in one or more of these areas can lead to a project stalling or, in a worst-case scenario, not getting off the ground at all.

Let’s look at each of the 3 components of the ‘budget’ and why they are important to the process:

Money

The most obvious component of your budget and, perhaps, the easiest to determine. The main question you need to answer is:

How much money do I need to invest? This is the first thing you need to decide. Have a look at your warehouse operation and decide what functions are critical for your WMS to control and what functions would also provide a benefit but aren’t necessary from the outset. Once that’s done. You can get an idea of costs and functionality options from WMS providers and see what best suits your operation and investment level.

Time

Time plays a crucial part in determining whether you have the right budget for a project.

How much time do I need to commit?</strong When dealing with a project, ‘time is of the essence’. Companies will have a date that provides a window of opportunity to deliver the system. Tasks have to be completed by the buyer at different stages of the process before any additional work can completed. This will include signing off the functional specification, approving and making changes, factory acceptance testing and so on. You need to make time for all the relevant parties to be available as well as making decisions in a timely fashion at these critical points to hit your implementation deadline.

<h3<Effort

An often-overlooked part of the budget process but one that requires input from all staff.

How much effort is required to implement a system?</strong This will depend on the complexity of the system, the roles of the individuals and which phase of the process you are in. You will need to make people available for factory acceptance testing, implementation and staff training. Making sure staff are available and on-side with the process is vital in making the project a success.

When looking at what budget you will require to implement a WMS it is crucial to take into consideration all 3 factors – money, time and effort. If you have the cash reserves but can’t afford the time or effort, your budget isn’t at the level required to implement a system and needs to be reassessed.

Written by

Shane Madz

Business Manager

Shane helps companies deploy warehouse logistics with a focus on technology to improve productivity and efficiently.