Top 5 Challenges in WMS Implementation (2024)

  • Logistics

WMS implementation is a crucial process for companies that need to streamline their operations and improve efficiency. The implementation of a warehouse management system (WMS) can bring many benefits, such as improved inventory accuracy, reduced labor costs, and enhanced customer service. However, the implementation of a WMS can also be a challenging process, with many potential obstacles to overcome.

So, what are some of the problems you can face when implementing WMS?

On another episode of ‘The Supply Chain Show™’, we sat down with Sergey Bazhenov, CEO of Cleverence, to discuss five of the biggest challenges in warehouse management software implementation and to some practical tips to help you overcome them.

Don’t forget to check out our best practices,tools, and a list of helpfulsupply chain resourceson the website!

Challenge 1: Selecting the Right WMS

Finding the right WMS is the first challenge that companies face during the implementation process. With hundreds and thousands of different WMS options available on the market, it can be a daunting task to select one that is perfect for your business.

“It’s not just about finding the right WMS, it’s about finding the right implementation team who will do all the job of tailoring the software, the processes, and training the personnel,” says Sergey.

The problem is that WMS software is not like a pair of shoes that you can simply choose and everything will be okay. Each warehouse has its own unique set of challenges and requirements, so finding a solution that is a perfect fit is not that simple. Instead of focusing on finding the right WMS, it’s better to focus on finding the right implementation partner. A partner who understands your specific needs and can implement the WMS in a way that will benefit your business the most.

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Challenge 2: Finding the Right Balance Between Rigid and Flexible Rules

Another challenge companies face during WMS implementation is finding the right balance between rigid and flexible rules. Rigid rules can hurt the business by limiting the flexibility of the system. On the other hand, too many flexible rules can result in mistakes and errors that can negatively impact productivity.

Sergey says, “You have to find the right balance between where you want rigidness and where you want some flexible things that don’t really affect the quality of service.”

The key is to find a solution that is customized to your specific business needs. This customization should be a combination of simple configuration that can be done quickly and more complex customization that requires the involvement of developers and IT experts.

Challenge 3: Trading Accuracy for Speed

It’s always tempting to work the old way and skip some scans or use less or no barcodes in some steps to “save time.” However, this can have a negative impact on accuracy and result in mistakes that will need to be corrected later.

“Don’t forget that all the time saved will be spent on fixing the mistakes,” Sergey pointed out.

The key is to strike a balance between accuracy and speed. It’s important to invest in a WMS that will help you achieve both, so you can maximize productivity and minimize errors.

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Challenge 4: Telling One Barcode from Another

Another challenge companies face when implementing a WMS is telling one barcode from another. In real life, products, packages, documents, and bins can often bear the same indistinguishable barcodes. To avoid this problem, it’s important to plan ahead and relabel items if necessary.

“One has to plan ahead and sometimes relabel,” said Sergey.

This will ensure that the WMS can accurately track and manage all your items and inventory.

Challenge 5: Having Good Wi-Fi

“Most WMS work online and don’t tolerate bad access points, roaming, high latency, dead zones, and other Wi-Fi installation and configuration problems,” Sergey provides.

WMS solutions are typically operated online, and as such, they require a reliable Wi-Fi connection. Poor Wi-Fi can lead to a range of problems, including slow performance, data loss, and other issues that can disrupt the smooth functioning of the WMS solution. The implementation team must work with the IT department to ensure that the Wi-Fi infrastructure is up to the task and that there are no issues with installation or configuration.

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To sum it all up…

Implementing a warehouse management system can be a challenging process, but with the right preparation and team in place, you can overcome these challenges and reap the benefits of a well-run warehouse. By selecting the right WMS and implementation team, finding the right balance between rigid and flexible rules, prioritizing accuracy over speed, ensuring that items have unique barcodes, and having a reliable Wi-Fi network, you can make the implementation process smoother and more successful. With these tips in mind, you can be well on your way to a more efficient and effective warehouse operation.

You can find the full episode with Sergey right here on our SCMDOJO YouTube channel.

And while you’re at it, don’t forget to check out these other blogs on managing warehouses with great insights:

  • Warehouse Automation Definition, Benefits and Issues
  • Top Warehouse Safety Checklist – 14 Categories to be Risk-Free
  • 5 Basics Warehouse Activities You Should Focus to Improve
  • Warehouse Space Optimization: 17 Tactics That Can Be Used to Improve Space

About the Author-Dr Muddassir Ahmed

Dr MuddassirAhmedis the Founder & CEO of SCMDOJO. He is aglobal speaker,vloggerandsupply chain industry expertwith 17 years of experience in the Manufacturing Industry in the UK, Europe, the Middle East and South East Asia in various Supply Chain leadership roles.Dr. Muddassirhas received a PhD inManagement Science from Lancaster University Management School. Muddassir is a Six Sigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals andteams to thrive by providing best-in-class knowledge content, tools and access to experts.

You can follow him onLinkedIn,Facebook,TwitterorInstagram

Top 5 Challenges in WMS Implementation (2024)

FAQs

What are the risks of WMS? ›

A WMS can improve your efficiency, accuracy, and customer satisfaction, but it also comes with some risks. One of the most serious ones is a data breach, which can expose your sensitive information, disrupt your operations, and damage your reputation.

What are the phases of WMS implementation? ›

Before diving into the implementation process, it's crucial to assess your current warehouse operations. This phase involves understanding your existing workflows, identifying pain points, and setting clear objectives for the implementation. A comprehensive assessment provides the foundation for a successful WMS plan.

What is the latest trend in WMS? ›

The latest trends in warehouse management include robotics, inventory transportation, fleet management, and the Internet of Things (IoT). The transition from manual work to digital automation and the reduction of human involvement in hazardous tasks make warehouses safe and lower operating expenses.

What's the #1 challenge warehouse managers face? ›

1. Inaccurate Inventory Information. Inaccurate inventory management can be one of the several warehouse challenges. It causes picking problems as workers can go to a location where the product isn't available.

What's the most challenging aspect of managing warehouse staff? ›

Labour costs are a significant expense for warehouse operations, and it's essential to manage them effectively. One of the most common challenges warehouse managers face is spending too much on labour. This can happen if you have too many workers or if you're not using your existing workforce efficiently.

What are the four 4 challenges in operations management? ›

As operations managers work in multidisciplinary environments, they must be aware of and effectively respond to the challenges presented by globalization, sustainability, ethical conduct, effective communication, and system design.

What is the future of WMS? ›

Artificial intelligence and machine learning

AI and ML capabilities will play a crucial role in WMS, enabling predictive analytics, demand forecasting, and process optimisation. These technologies can analyse large datasets to identify patterns, optimise inventory levels, and streamline warehouse operations.

What is the impact of WMS in warehouse? ›

A WMS helps streamline the inbound and outbound processes by automating and optimizing receiving, putaway, picking, and shipping processes. This significantly reduces lead times and increases efficiency.

Why WMS should be implemented in a warehouse? ›

Improved operational efficiency: WMS systems automate and streamline warehouse processes from inbound receipts to outbound deliveries – for improved efficiency, smoother operations, and the ability to handle higher volumes. They reduce errors in picking and shipping goods and eliminate duplicate and unnecessary work.

What are the key management challenges involved in building operating and maintaining information systems today? ›

The primary management challenges involved in building, operating, and maintaining information systems include: Not understanding the problem that needs to be solved, which results in a lack of an information systems strategy that will enable and satisfy the integrated needs of the business and its operating model.

What are the major challenges in building information system? ›

The major problem areas are design, data, cost, and operations. Problems with an information system's design, data, cost, or operations can be evidence of a system failure.

What are the disadvantages of multi client warehousing? ›

Disadvantages of Multi-Client Warehousing

One of the primary drawbacks of multiple fulfillment locations are the fixed costs. Sharing warehouse space with other companies means that you may have to pay for double the inventory space and handling costs.

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