Challenges and Strategic best Practices for Successful Implementation of Warehouse Management Systems (WMS)

Abstract

Warehouse Management Systems (WMS) represent an essential part of many modern-day supply chains and allow companies to gain tremendous operational efficiencies, including those related to inventory management, order picking and logistics optimization [1]. With increasing customer demands, supply chains and thus warehouses have become larger and more complex thus necessitating WMS for organization that aims to optimize its warehouse operation [1]. Even so, a WMS is notoriously complex to implement. Not only does the company need to ensure there is no room for error when implementing a WMS, but it also needs to integrate the WMS with existing Enterprise Resource Planning (ERP) systems and prepare employees for new technology adoption [2]. The success of implementation highly depends on choosing the correct wms solution that perfectly meets the business targets and fulfills operational needs. An example of problem that leads to underperformance, inefficiencies and failure the strategic objectives is a mismatch between the system and company’s requirements [3]. Many challenges arise from poor preparation, inadequate stakeholder engagement and insufficient time for system testing. From the beginning, if organizations want to achieve long-term purposes with WMS implementation, they need to focus on concrete business goals [4]. To reduce these risks, there are some best practices that can be adopted. Related to system integration, data fidelity, and ensuring the WMS is fit for purpose Also, these WMS need comprehensive employee training and a well-planned change management strategy for successful compliance with the system. Familiarity with the system allows employees to minimize errors and resistances during the transition period, through those practices; however, this can only be achieved [2,5]. But once the system is implemented, we need to assess it continually to see whether or not it meets business needs and to plan for future enhancements. Such an approach of periodic assessment helps to keep the WMS in line with business needs and objectives as well as achieve operational success [6]. Beyond the existing capabilities of a WMS, new trends like hyper-automation, driven by Artificial Intelligence (AI) and Internet of Things (IoT), will be game-changer in how we manage warehouses. Such innovations have the ability to create even more efficiencies, allowing organizations to forecast demand changes, optimize inventory on a real-time basis and automate repetitive processes adding layers of functionality in WMS systems [3]. As such, organizations that incorporate these strategies and combine them with the newer technological advancements can elicit full benefits from WMS implementation, develop cost-effective-high-performing warehousing systems capable of meeting customer demands while also achieving competitive advantage in the market at a mere expense [1].