Since Covid-19 pandemic most organisations no longer have the resources to spend big on WMS implementations so what will the ROI be on the WMS project is an important question. At The RIC Group we have always believed in an incremental approach for WMS projects.
Our WMS and TMS projects always use an intelligent phased implementation. We deliver an agile and phased approach while transforming businesses to drive results. The Intelligent Phased approach to implementation allows customers to go live quickly, allows customers to drive fast time to value and better ROI.
The gain of investment is the amount of money you stand to gain from implementing the new software system. When implementing Warehouse Management Solution one of the safeguards the right WMS solution will do is dramatically reduce the number of returns you receive from your customers. The money you don't pay in credits and the time for processing the return is a gain in investment.
WMS should bring in efficiencies. It is important to remember where all the efficiencies come in as well when implementing a Warehouse Management Solution. When processing orders manually customers should remember that often pieces of paper are printed, and then written on by pickers and packers, and then administration staff receive the paper and have to then manually enter in the information from the piece of paper. The printing of pick slips, writing on paper and staff then entering the information back into the ERP manually can be automated. With The RIC Group's WMS there is automation. The picking slips are displayed automatically digitally on the RF or Tablet device, capturing the pick and pack qty's are through the WMS and the update to the ERP is completed via automation. This means there is efficiencies gained in the overall process of picking orders. In other instances the Warehouse Management Solution could be replacing an older WMS which is costing money to run. The money you will not spend to run the old system will also be a gain of investment.
With overall efficiencies there is a decrease in costs.
Cost of the investment is the money you spend on implementing and maintaining the new software system. There can be additional costs which are above the licencing fees, support, subscription and deployment. When staff are training in the new system, educating themselves on the new system this is opportunity cost. There will be a period of diminished productivity during this time as well while staff adjust to the new system.