5 Signs It’s Time to Upgrade Your 3PL WMS

Change is difficult – especially in larger organizations. However, the disruption and time associated with upgrading a WMS are minuscule compared to the cost-saving benefits and efficiencies that come with having a state-of-art system. If any of these are occurring with your current WMS, now is the time to consider implementing a new WMS.

1. The Product Has Limited Functionality

Most software companies start out with good intentions – create great a solution that solves a problem and sell it to as many customers as possible. Sometimes the original product is designed in a way that makes it difficult to adapt with the changing market demands. Features that may have been innovative when the system was first purchased are now standard within the industry.

Not having the latest technology can put a business at risk. If a 3PL’s competitors are able to offer more services at lower costs because they have technology that makes them more efficient, the business will eventually lose clients and stop growing.

Not all databases are the same. Sure, many systems use the familiar SQL Server, Oracle, DB2 or MySQL. However, structuring, securing and accessing the database can be accomplished in a variety of ways. Some software providers understand the efficiencies better than others do. For example, a task that takes one WMS solution 10 seconds to perform might take another WMS solution 3 minutes, just based on how the system manages calls to the database.

As months and years go by, the accumulation of data can also be a factor in the speed of the system, if not managed appropriately. If done properly the WMS can provide efficient access to historical data.

3. The System Does Not Integrate Easily

Today’s world is all about networks – connecting people and systems together in order to collect, process and use data. Ensuring that systems work seamlessly together is a key component in the success of a WMS. When a system is not integrated with other systems, warehouse processes will require a lot more manual entry (time) and more opportunities for errors.

Furthermore, without seamless integration, the advantages of real time information visibility are lost. The 3PL will not have access to shipping rate information, accounting systems will have delayed billing data and clients will not have timely access to inventory information.

4. Lack of Vendor Support

Just like Microsoft does with its Windows operating system, most software companies limit their commitment to supporting and updating outdated versions of their software. When the client with an outdated version needs functionality, the software vendor is sometimes forced to do custom-modifications to the software, resulting in a highly modified solution. The system will become increasingly harder to support until it eventually becomes unsupported.

While the custom modifications may work in the short-term, not doing upgrades as they become available means jumping several versions in one upgrade, leaving the business with a substantial upgrade project and/or and unsupported WMS.

5. The System is Too Costly

There are many considerations when looking at the costs associated with a warehouse management system. In general, costs can be grouped into 4 buckets: licensing, implementation, hosting and on-going support. Some 3PLs prefer to host the software on their own servers (i.e. on premises), which would include additional hardware costs and maintenance. Others elect to go the SaaS route and pay a monthly subscription fee.

Over time licensing and support costs can creep up when using an antiquated system that isn’t getting the job done. Total Cost of Ownership (TCO) should be analyzed from all angles. When you start throwing good money after bad, it may be a sign to look for a new WMS.

If any of these ring true for your operation we'd love to help! Complete the form to the right and we'll get back to you to learn more about your business.