Guest Blog by Scott Antoun, Sr. Sales Director at enVista

Should your organization’s warehouse management system (WMS) be running on a cloud-based WMS platform? If you are evaluating or implementing new cloud-based WMS software, the answer is likely a simple ‘yes.’ The technology barriers have dissipated, and the WMS benefits are compelling. The marketplace has also shifted rapidly, with most software providers offering cloud-first or cloud-only options.

If your organization is running a legacy WMS on-premise, the question may be a bit more complicated. The direction is almost certainly to move eventually to a next-generation cloud warehouse management system, but is now the right time? And how can you cost justify the move if it’s not absolutely required at this point? Evaluating WMS features and the potential advantages of cloud-based WMS solutions will be critical in making this decision.

Benefits of a Cloud WMS: Building the Business Case

For many, the challenge is to build an effective and accurate business case that quantifies the costs and benefits, can be used to evaluate options and justify the project and secure approval. At a time when many organizations are focused on containing costs and driving efficiency, a move may not even be considered without a solid business case. Understanding and documenting the benefits is crucial to making an informed decision. Benefits include:

Scalability

One of the primary benefits of a cloud-based WMS is its scalability. As your business grows, your WMS can easily scale to accommodate increased inventory, orders and users without significant infrastructure changes. This flexibility allows businesses to pay only for what they need and scale up or down as demand fluctuates.

Cost Efficiency

Cloud-based WMS systems often reduce the need for upfront capital investment in hardware and infrastructure. Instead, businesses can shift to a more predictable, subscription-based model that includes regular updates and maintenance, eliminating the need for expensive upgrades.

Accessibility

With a cloud WMS, your team can access the system from anywhere with an internet connection. This accessibility is particularly valuable for businesses with multiple locations, remote workforces or the need for real-time data visibility across the supply chain.

Faster Implementation

Implementing a cloud-based WMS is typically quicker than an on-premise solution, as it requires minimal hardware installation. This faster implementation allows businesses to start realizing the benefits of the system sooner, leading to a quicker return on investment.

Enhanced Security

Cloud-based systems often come with advanced security features, including data encryption, regular backups and compliance with industry standards. Providers invest heavily in securing their platforms, offering protection that may surpass what many companies can achieve in-house.

Automatic Updates

With a cloud WMS, software updates and new features are automatically rolled out by the provider, ensuring that your system is always up-to-date with the latest technology and capabilities. This automatic updating process reduces the burden on IT teams and ensures that the WMS remains current without costly and time-consuming upgrades.

Improved Collaboration

A cloud-based WMS enhances collaboration across teams by providing a centralized platform where data is updated in real time. This real-time access to information improves decision-making, reduces errors and enhances overall operational efficiency.

Notable Features of a Cloud-Based WMS

• Real-Time Inventory Tracking: Provides up-to-the-minute visibility into inventory levels across multiple locations.
• Mobile Accessibility: Allows users to access the system from mobile devices, improving flexibility and on-the-go management.
• Integration Capabilities: Easily integrates with other business systems such as ERP, CRM and e-commerce platforms, streamlining operations.
• Data Analytics and Reporting: Offers advanced analytics and customizable reporting tools to support data-driven decision-making.
• Multi-Location Support: Manages operations across multiple warehouses or distribution centers from a single platform.
• Automated Workflows: Automates routine tasks, reducing manual effort and increasing operational efficiency.
• User-Friendly Interface: Provides an intuitive interface that reduces the learning curve and improves user adoption.
• Security and Compliance: Includes robust security measures and compliance with industry standards, ensuring data protection and regulatory adherence.

Developing a compelling and credible business case can be more involved than it might initially seem. A myriad of factors should be considered, including a comparison of SaaS and maintenance fees, third-party software savings, access to future innovation, IT savings, security and scalability considerations, extensibility and more. Properly accounting for removing the cost, effort and risk of future upgrades must also be at top of mind, as well as softer benefits like employee engagement and retention. Accounting for these factors and others is a critical part of the decision-making and approval process. If now isn’t the right time, then the business case should recommend where the migration falls in the future roadmap.

What It Takes To Switch: WMS Pricing, Constraints and More

Switching to a cloud-based WMS involves understanding the costs and potential constraints. Implementation costs can vary. These expenses cover software licensing, customization, data migration, training and system integration.

Integration with ERP Technology

A major advantage of a cloud-based WMS is its ability to seamlessly integrate with ERP systems. This integration streamlines workflows, reduces data silos and provides a comprehensive view of operations, improving accuracy and efficiency across your supply chain.

Additional Considerations

Businesses should also consider data migration, user training and change management. While transitioning to a cloud WMS requires careful planning, the long-term benefits—such as scalability, enhanced security and regular updates—often justify the investment.

How enVista Can Help With WMS

At enVista, we have experts that specialize in understanding and advising on your organization’s overall strategy and priorities and translating these into a detailed cost/benefit analysis for a potential WMS cloud migration. enVista has extensive experience with the leading warehouse management systems, as well as the operational and technical skills to evaluate and quantify the key factors that lead to the right decision for long-term success.

The time may be now to start the journey to the next-generation distribution platform. enVista is here to help you know for sure. Let’s have a conversation.®