Gartner Research

The Warehouse Management System Business Case: The 13 Signs of the Need for a New or Replacement WMS

Published: 21 April 2017

ID: G00328236

Analyst(s): Simon Tunstall

Summary

Gaining approval for a new warehouse management system is difficult. This research gives supply chain leaders with IT responsibilities key areas to target potential benefits from a WMS.

Table Of Contents
  • Key Challenges

Introduction

  • Approach No. 1 — The End-to-End Functional Review and Assessment of Warehouse Complexity
  • Approach No. 2 — Using an Issue-Driven Approach to Justifying a New WMS

Analysis

  • Identify, Quantify and Validate the Key Opportunities
    • Issue-Driven Signs
    • 1. Accuracy/Quality Issues
    • 2. Double-Handling/High Labor Costs
    • 3. Excessive "Express" Transport Costs and Missed Deadlines
    • 4. Goods In/Receiving and Yard Congestion
    • 5. Storage, Work Areas and Layout Appear Full to Capacity, Poorly Used and Managed
    • 6. Uneven Task Assignment
    • 7. Supply and Demand Fluctuation Issues
    • 8. Reactive Processes, Poor Visibility and a Disorganized Environment
    • 9. Increasing Costs per Item Shipped
    • 10. High Levels of Product Waste:
    • 11. Excessive Facilities and Equipment Costs
    • 12. Inefficient Use of Materials
    • 13. High Level of Dependency on Functional Experts

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