1、Complete Guide to Evaluating Warehouse Management Software(WMS)How to Evaluate,Select,and Implement a WMSIntroduction The 6 Stages of Buying Warehouse Management SoftwareCreate Internal Alignment Research Solutions Narrow Your SelectionsPurchase a Solution Prepare for Change Implement for SuccessPro

2、ject Timelines Conclusion About Extensiv 3PL Warehouse ManagerComplete Guide to Evaluating Warehouse Management Software1Table of Contents234567891010Each year,warehouses make decisions about technology infrastructure that will define their ability to grow and meet customers needs.But where do you s

3、tart?Evaluating,selecting,and implementing a warehouse management system(WMS)marks one of the biggest decisions a third-party logistics(3PL)warehouse can make.This step-by-step guide helps you identify the most important activities for each stage of buying and implementing a WMS,as well as who shoul

4、d be involved.Most importantly,this guide will help you avoid common pitfalls in the implementation process and help manage the change of implementing new software.You will get access to checklists and timelines to ensure that your evaluation goes smoothly.The Six Stages of Buying Warehouse Manageme

5、nt SoftwareBuying software shouldnt be hard,but it can be if you dont have a solid plan.To avoid getting inundated,start with a plan in mind and break the process into manageable parts with defined completion criteria.When you consider purchasing new WMS software,it is easy to get overwhelmed.The ty

6、pical process for buying warehouse management software has six defined stages.Introduction1.Create Internal Alignment2.Research Solutions3.Narrow Your Selections4.Purchase a Solution5.Prepare for Change6.Implement for SuccessBelow,you will find these stages outlined with an easy-to-use checklist of

7、what to do to successfully manage and complete each stage.Complete Guide to Evaluating Warehouse Management Software2What is the first step to investing in warehouse management software?Building internal alignment.In the internal alignment stage,think about everything you need in a WMS,as well as an

8、y challenges your business would like the software to solve.For instance,here are some questions you may want to answer:Do you have real-time views of inventory status and availability?How are you receiving orders from customers?Is this done manually or through integrated shopping carts or marketpla

9、ces?Are you able to measure your teams productivity?Do you know how to increase throughput?How many mis-picks do you have per month?Do you want to improve order accuracy?Would you like to implement a paperless warehouse for improved accuracy and safety?How much do you intend to grow this year?Will t

10、he WMS allow you to scale to add new customers?Do your customers have real-time access and visibility into their inventory?Will they need to as they grow?Can you accurately invoice customers for all warehouse activities and understand customer-level profitability?Do you want a cloud-based solution o

11、r on-premises?Do you want to easily connect and integrate with other 3PL warehouses to create a 4PL network?Consider these things prior to initiating your search for a WMS partner.Make a list of all the things your 3PL warehouse needs,as well as any other features that could help improve productivit

12、y or efficiency.Clearly outlining your needs will help you build out a business case you can validate with key stakeholders.In most cases,key stakeholders will include members from your Operations,IT,and Finance teams.Getting buy-in prior to the WMS implementation may determine whether your program

13、implementation is successful or not.Alignment generally takes two to four weeks,but the timeline ultimately depends on your teams availability.Buying software shouldnt be hard,but it can be if you dont have a solid plan.To avoid getting inundated,start with a plan in mind and break the process into

14、manageable parts with defined completion criteria.Checklist Make a list of all required and nice-to-have WMS features.Build a business case.How much do you need to save to make the investment worth it?Select baseline key performance indicators(KPIs)you wish to improve.Identify key stakeholders and g

15、et buy in.Create Internal Alignment1Complete Guide to Evaluating Warehouse Management Software3After you create internal alignment,you can begin your search.But what WMS solution providers should you talk to?With so many options for warehouse management technology,youll have to find ways to create a

16、 shortlist of potential partners.For example,if you need a WMS that offers solutions specifically for third-party logistics(3PL)warehouses,that will immediately narrow the field.To identify potential solutions,return to your list of key functionalities needed.Match your functionality checklist creat

17、ed in the previous section to the capabilities listed on vendor websites.Look for answers to the following questions:Do they offer the required features and functionality needed?Can they support your warehouses order volumes with room for growth?What do their customers say about them?Check for custo

18、mer quotes or case studies on their site,as well as on review sites like Software Advice and Capterra.How long have they been in business,and do they have sufficient size and scale to support you?What resources and support do they provide online?Check for applicable blogs,webinars,and other resource

19、s that could help in the evaluation process.Conduct research on each software provider you are considering and the companys reputation.If youre a small or mid-sized 3PL warehouse,you may immediately rule out a WMS solution that advertises for supporting large businesses.Search for news or informatio

20、n about each software provider.This will help you identify if any companies specialize in certain types of fulfillment or if they are able to help you scale your business.Researching WMS solutions can take one to four weeks depending on how much detail you need and how much time you have.Research So

21、lutions2Checklist Research WMS companies online.Ask other 3PL warehouses what software they use.Create a feature requirement checklist.Determine capabilities unique to your success.Refine shortlist to two to four companies.Complete Guide to Evaluating Warehouse Management Software4By far,narrowing y

22、our selections and evaluating the vendors will take the most time in your software evaluation process.From completing the prior stage,youll have your shortlist of two to four companies that you want to engage with.Make sure you review and demo,at minimum,two solutions to give you a sense of differen

23、ces and get a good idea of broader capabilities.However,evaluating too many WMS solutions may create overload and confusion,so try to keep the evaluation list at a maximum of four.To start,build out a scorecard.List out your requirements and your nice-to-haves for system functionality.Also,add a sec

24、tion for the more intangible items like experience,expertise,and team follow-through.List out the scenarios and questions you want to review during each demo so that you enter the conversations feeling prepared and can limit back-and-forth of additional questions after the demo.Keep the priorities y

25、ou built out during the first internal alignment stage in mind as you build out the scorecard and scenarios.Identify who should attend the warehouse management system demos and what role each person needs to play.You may want to include someone who will use the system daily so they can help assess e

26、ase of use for operations.If you need numerous shopping cart or marketplace integrations,you may want to make sure you have a technical resource to review system functionality.While everyone will be interested in the demos and evaluation,make sure you keep it to a manageable team and that each perso

27、n has a defined role in the process.Once your team has completed the demos,regroup and complete a vendor scorecard to see what system and company will best fit your 3PL warehouse.This will help you assess WMS vendors on an even playing field.As a reminder,while critical for the WMS to have the funct

28、ionality you need,make sure they offer ongoing support and training.Launching a solution and living with it are two different things,so ask vendors about detailed implementation information and lifetime support.They should have plans on how to share expertise,partner with you for growth,and advocate

29、 for your successful adoption of the system in the future.This stage typically takes one to three weeks depending on your availability and timeframe.Narrow Your Selections3Checklist Using your shortlist,schedule two to four demos of WMS software.Look for functionality fit.Identify attendees for demo

30、s and what role they should play(e.g.,review integrations capabilities,employee ease of use).Come up with questions and scenarios to cover during demos.Create a scorecard to assess functionality requirements.Assess post-launch support,training,and account management.Complete Guide to Evaluating Ware

31、house Management Software5Once you have found your favorite WMS,you can begin the negotiation and purchase stage.Congratulations on making such an important decision for your business!During this stage,you will need to validate with key stakeholders they are ready to proceed and that the vendor you

32、selected meets your companys requirements.Return to your core team of stakeholders(like Operations,IT,and Finance)to get them engaged.Your chosen WMS partner will send you a contract and pricing for your review.Carefully review to ensure it meets your needs.Check the length of contract,payment sched

33、ules,and other key clauses.Review with legal and provide redlines back to the software provider as necessary.Make sure to work with your Finance or Accounting teams to ensure budget is approved and allocated for the software purchase.Have internal or external IT resources available to review securit

34、y and integrations.Once youve coordinated internally,sign the contract and get ready to implement.The purchase process can take as little as two days to two weeks.Purchase a Solution4Checklist Review,edit,and finalize contract.Get final budget approval.Loop in IT or external developers to scope out

35、integrations.Complete Guide to Evaluating Warehouse Management Software6Many businesses underestimate the need for change management in the implementation process.Although the WMS will benefit many parts of the business,having a clear internal owner and advocates across different parts of the busine

36、ss will prove critical to success.When adopting new technology,there will always be team members resistant to change.Allow them to voice their concerns upfront,but ensure they understand that adopting new technology will prove critical to their success and the companys success.In fact,many warehouse

37、s like to have one“nay-sayer”on the implementation.They can help identify concerns quickly so that you can find ways to overcome those concerns promptly.Also,when employees see one of their peers embrace the solution,they will be more likely to embrace it as well.Build a communication plan.People fe

38、ar what they dont know.By communicating early and often,employees will feel like part of the solution and will have time to learn and understand what you want to achieve with the WMS.Make sure to paint a picture of what success looks like.Employees often feel like technology will disrupt or replace

39、their jobs,which results in fear.By speaking to employees about the benefit of technology and how it can help advance their careers,make their jobs easier,and allow for more future growth,warehouses can turn a fearful situation into a positive one.The change management stage is ongoing but planning

40、for it can take one to two weeks.Prepare for Change5Checklist Assign an internal project manager.Assemble the implementation team.Build a communication plan.Identify users of the system and what permissions will be needed.Identify key KPIs to measure for return on investment.Complete Guide to Evalua

41、ting Warehouse Management Software7Now that youve selected your WMS software partner,signed the contract,and messaged this new investment to the teamits time to implement.Great news!Optimized processes and improved productivity are only a few weeks away.After completing the purchase of your new WMS

42、technology,you should have assigned a project manager and identified key team members to involve in the implementation.Start by making sure youve allocated time for them to meet with the WMS partners implementation team to create a reasonable and mutually-agreed-upon timeline for implementing,testin

43、g,and going live.During this time,your team will need to pull warehouse,customer,and inventory information to import into the WMS.Most implementations follow a“4D”process:Discovery,Design,Develop,and Deploy.During Discovery,youll align on objectives,review key best practice workflows,and finalize sc

44、ope.In the Design phase,you will work with your WMS partner to provide integration,warehouse,configuration,and billing/invoicing automation details.In the Develop phase,you will jointly configure workflows,test the system,train the team,and prepare for go-live.During the Deploy phase,the system goes

45、 live.Going live isnt the end point,though.Once you go live,you will need to continue to optimize to fit your environment and also work with your team to ensure user adoption.After this,you should ask about steady-state support and success tools to ensure you and your team get the most return on inv

46、estment from your new warehouse management system.Most importantly,you invested in a new WMS for a reason,so make sure to schedule time approximately 90 days after launch to review the key performance indicators you wanted to improve.That way,you can continue to optimize your program as needed to ge

47、t the best return possible.Implement for Success6Checklist Create project plan with milestones.Set up user accounts.Import warehouse,customer,and inventory information.Set up customer views of inventory.Create a test plan.Document workflows and train your team.Launch WMS with company-wide communicat

48、ions.Connect with the go-forward Support or Success team.Plan KPI review to identify performance improvements.Complete Guide to Evaluating Warehouse Management Software8From start to finish,researching,selecting,and implementing a warehouse management system can take from three to six months.To dete

49、rmine when to kick off your search,consider important times of year for your warehouse.Consider important timelines for your business,including:Project TimelinesTimingWhen is your peak season?(i.e.,Does it tend to align with the end-of-the-year holidays or another part of the year?)Youll want to mak

50、e sure you have ample time to test and launch during the less-busy time of year.CustomersDo you have any new customers starting soon?Getting the system up and running with your new customers will allow for a start fresh in the system and help you avoid migrating data.HiringDo you plan to hire new em

51、ployees in the coming months?If you implement prior to a large hiring event,then you will only have to train them once.This could also align with seasonal al temps.Financial ReportingHow do your fiscal periods(e.g.,monthly and yearly)align?You may want to consider having a clean cutover to the new s

52、ystem on the first day of a new month or fiscal period to avoid any invoicing challenges or cobbling together of different systems.Complete Guide to Evaluating Warehouse Management Software9About Extensiv 3PL Warehouse ManagerExtensiv 3PL Warehouse Manager is the leading cloud-based warehouse manage

53、ment system(WMS)solution built to meet the unique needs of the 3PL warehousing community.Serving as the backbone of our customers operations,our platform quickly transforms paper-based,error-prone businesses into service leaders who can focus on customer satisfaction,operate more efficiently,and gro

54、w faster.Offering a comprehensive warehouse management platform,we make it easy for 3PLs to manage inventory,automate routine tasks,and deliver complete visibility to their customers.Youre now ready to launch your process of evaluating,buying,and implementing WMS software.If you follow the above che

55、cklists and timelines,you may find that the buying processfrom internal alignment to implementationis simple and efficient.While the process can seem long,the advantages will impact your warehouse for years to come.Make sure to align with key stakeholders and choose a solution that is right for your

56、 business and your customers.As always,the goal of warehouse technology should be to improve efficiency,optimize operations,increase throughput,and better serve your customers.ConclusionWant to learn more?Interested in learning how Extensiv 3PL Warehouse Manager can help your warehouse implement a c

57、omprehensive WMS platform and share our expertise in building best practices across your warehouse?Complete Guide to Evaluating Warehouse Management Software10About ExtensivExtensiv is a visionary technology leader focused on creating the future of omnichannel fulfillment.We partner with warehouse p

58、rofessionals and entrepreneurial brands to transform their fulfillment operations in the radically changing world of commerce and consumer expectations.Through our unrivaled network of more than 1,500 connected 3PLs and a suite of integrated,cloud-native warehouse management(WMS),order management(OM

59、S),and inventory management(IMS)software,we enable modern merchants and brands to fulfill demand anywhere with superior flexibility and scale without painful platform migrations as they grow.More than 25,000 logistics professionals and thousands of brands trust Extensiv every day to drive commerce at the pace that modern consumers expect.2022 Extensiv I All rights reserved.833-983-6748REQUEST A DEMO HERECongrats!