Why you should consider making the switch to the cloud
Guest Blog by Scott Antoun, Sr. Sales Director at enVista
By now, almost all new warehouse management system (WMS) implementations have moved from legacy, on-premises systems to modern, cloud-based solutions, as the benefits of the cloud have grown stronger and more apparent over the last decade. However, there are still a significant number of companies that haven’t yet made the switch and aren’t 100 percent sold on why they should.
If your organisation is running a legacy WMS on-premises, there are some important questions to consider before making the move to the cloud. For example, while the best option may be to move to a next-generation cloud WMS, when is the right time? And how can you cost justify the move if it’s not absolutely required at this point?
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 executive approval. At a time when many organisations are focused on containing costs and driving efficiency, a move will not be considered without a solid business case.
Evaluating the benefits and features of cloud-based WMS solutions will be critical in making this decision.
Benefits of a Cloud-Based WMS
Just a few benefits of a cloud-based warehouse management system are:
- Scalability: The system can scale to accommodate increased inventory, orders and users without significant infrastructure changes, allowing you to pay only for what you need and scale up or down as demand fluctuates.
- Cost efficiency: Cloud-based systems leverage a more predictable, subscription-based model that includes regular updates and maintenance, eliminating the need for expensive upgrades.
- Accessibility: Your team can access the system from anywhere with an internet connection, which benefits businesses with multiple locations, remote workforces or the need for real-time data visibility across the supply chain.
- Faster implementation: With minimal hardware installation, cloud-based WMS are quicker to implement, allowing you to start realising the benefits of the system sooner, leading to a quicker return on investment (ROI).
- Enhanced security: Advanced security features, including data encryption, regular backups and compliance with industry standards offer protection that may surpass what many companies can achieve in-house.
- Automatic updates: Automatic software updates and new features ensure that the system remains current while reducing the burden on IT teams and minimising costly and time consuming upgrades.
- Improved collaboration: The centralised platform where data is updated in real time enhances cross-team collaboration, improving decision-making, reducing errors and enhancing overall operational efficiency.
Notable Features of a Cloud-Based WMS
Cloud-based warehouse management systems come with several features that are not accessible in an on-premises platform. Here are some 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 ecommerce platforms, streamlining operations.
- Data analytics and reporting: Offers advanced analytics and customisable reporting tools to support data-driven decision-making.
- Multi-location support: Manages operations across multiple warehouses or distribution centres 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. You should consider several factors, 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.
Make sure to properly account for hard benefits like the eliminated cost, effort and risk of future upgrades, 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: Pricing, Integration and More
When switching to a cloud-based WMS, implementation costs can vary. Expenses include software licensing, customisation, 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-based WMS requires careful planning, the long-term benefits mentioned above often justify the investment.
enVista’s WMS Experts Can Help
enVista’s WMS experts specialise in translating an organisation’s overall strategy and priorities 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 your transition to a cloud-based WMS. enVista is here to help you know for sure.
