E-commerce dictates that order fulfillment must be immediate.
The principles of lean operations demand that inventories and warehouse footprints must be reduced.
And speed, accuracy and integration serve as an all encompassing warehouse mantra.
So are the themes laid out by Mary Shacklett and the industry experts gathered for the piece, ‘Warehouses Go High Tech,’ published recently in WT100.
As each theme evolves from words on a page to the demands of the real world, it is IT and warehouse management technology that makes achievement possible. So why is it that IT and warehouse management technology continues to be seen as a potential bottleneck for several organizations?
The answer lies in legacy.
As one of Shacklett’s experts states, many companies are continuing to trust either old or homegrown Warehouse Management Systems (WMS) – without taking the time to integrate newer, future-ready warehouse management technology. The result of this lack of investment are bottlenecks and errors that add up to greater overall business expense – transforming the warehouse from the healthy, beating heart of an organization, to a sore spot that must consistently be medicated to simply keep breathing.
Because my company provides warehouse management software solutions, I will be biased against trying to find the cons in warehouse technology. Especially when we revisit our initial statements above:
- E-commerce dictates that order fulfillment must be immediate
As one of Shacklett’s experts states, warehouses must offer real-time visibility to their customers in order to meet this demand. A robust warehouse management system, offering a portal accessible by all stakeholders, can be counted as a necessity. - The principles of lean operations demand that inventories and warehouse footprints must be reduced
Just In Time (JIT) operations depends on inventory living in as close physical proximity to customers as possible. Companies can achieve this by carrying less inventory – at multiple, smaller locations. Real time visibility made possible with warehouse management systems is vital to meeting this demand. - Speed, accuracy and integration serve as an all encompassing mantra
Companies depending on legacy or homegrown WMS, as another of Shacklett’s experts points out, are commonly concerned about being able to quickly and accurately serve their customers. And oftentimes, this concern is fed by accurately negative client feedback calling out errors resulting from outdated warehouse technology.
So again, where are the cons in a warehouse technology investment?
As Shacklett states,
“Technology that is available today can solve most of the pain points standing in the way of warehouses transforming themselves—but there are barriers to getting there, and many of these barriers exist in the mindsets of warehouse decision makers themselves.
It’s common knowledge that warehouse technologies are among the last to get funded, and there is resistance to change because people are accustomed to the systems they have used for years. On top of this, you need to make capital investment when you usher in new technology. In some areas of the warehouse, like reverse logistics, the warehouse is already producing big losses—so why invest in it?”
In other words, whether legacy or future-proof warehouse technology is trusted, the warehouse will produce losses. So why rock the boat?
The problem with this thinking is that said boat is already sailing on a sea of new consumer demands. Not rocking the boat matters very little if the boat you are sailing in has sprung a leak.
Companies that adhere to this philosophy will likely be the same companies that must rush into action, with little research and potentially too great of an investment, when they find themselves sinking deeper and deeper – losing money due to errors and simply unable to meet the demands of their customers.
And biased or not, this is why I struggle to see any cons in a high tech warehouse management technology investment.
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