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PathGuide Technologies ● 22745 29 th Drive SE, Suite #150, Bothell, WA 98021 ● www.pathguide.com ● clientservices@pathguide.com About the Author Eric Allais, President and CEO of Washington-based PathGuide Technologies, Inc., has over 35 years of experience in marketing, product management and sector analysis in the automated data collection industry, including warehouse management practices in wholesale distribution. Contact Eric at eric@pathguide.com. You can learn much about how a company treats its customers by asking to speak with some of their other customers. One distributor shared that "users were satisfied with the support and service they received. Also, any questions were answered in a timely manner." Good customer support ensures that any issues arising before, during and after implementation can be resolved quickly, which can help to minimize disruptions to warehouse operations. Return on WMS Investment Of course, any conversation with distributors about why they chose a WMS must cover ROI. They assess the potential for time savings and cost reductions relative to the upfront and ongoing costs of the WMS. Not surprisingly, numerous success stories underscore the financial advantages of a WMS. As one distributor explained, "We figured we could calculate how much it was going to cost us upfront and monthly and how much time we anticipated that it was going to save. We decided that it was definitely a worthwhile investment." Another distributor shared, "The first evaluation is how can we offset the cost. The biggest is a reduction in workforce – doing more with fewer people. Once you know where you're at in terms of lines per employee, we can back into the math. You can either grow exponentially or reduce your force to offset some costs. At the same time, you can get a better handle on your inventory, which will help improve your working capital, too. These are all factors we looked at to justify the cost." This financial evaluation includes considering the potential benefits, such as increased productivity, reduced operational costs, and better inventory management, to make an informed decision about investing in a WMS. Based on my discussions, distributors recognize that a WMS can help them manage their inventory more effectively, which reduces errors, minimizes physical inventory variances, and thus leads to cost savings. Or, as another distributor put it prior to deploying a WMS, "Even if we see half the savings presented to us, the ROI timeline on this project is around two years." The insights gathered from various distributors shed light on the many factors that influence the adoption of warehouse management systems. Improved efficiency and productivity, enhanced speed and accuracy, seamless ERP integration, customer support, and financial evaluation are among the top considerations for distributors when selecting a WMS. By learning from these experiences, distributors who have yet to implement a WMS can make more informed decisions and ensure the system they choose aligns with their ongoing operational needs and strategic goals.

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