WMS In The Cloud: Real-World Business Option Or Just Fluff?

So the world probably doesn't need another whitepaper detailing the benefits of a warehouse management system (WMS) – which, by the way, are increased productivity, real-time access to information, up to 99+ percent inventory accuracy, faster shipping, better collaboration with partners and improved customer service, to name a few. But perhaps you've been putting off installing a new WMS because you're not sure you could articulate how those benefits outweigh the potential risks to your business. You're not sure you're quite convinced yourself. "Do I have enough staff to install and support such a sophisticated system? Our IT department is pretty overwhelmed already. And all the infrastructure costs…" You wonder if a WMS will deliver a return that makes the time and financial investment worthwhile. Are we getting warm?

Warehouse Management in the Cloud: Four Reasons to Consider it for Your Business
Have you heard all the talk about cloud computing lately? WMS technology is now available in a cloud delivery model from some providers, offering a lower cost, reduced risk option. Not entirely sure what cloud computing is? Wondering if it is a real possibility for your business, or just a fancy new buzzword? Cloud computing for WMS means that your WMS vendor will host the software application and hardware infrastructure for you as an on-demand, scalable and elastic service. It shifts the burden of WMS technology administration to the WMS technology experts. There is no hardware to purchase or maintain, patches and upgrades are done automatically, implementation is dramatically simplified, no capital expenditure is required and there is less risk for you. You access the WMS via a Web browser and gain the functional benefits of a new WMS without the up-front costs and IT drain.

Let's look at cloud computing in supply chain terms – it is basically the IT equivalent of a third party logistics provider that manages physical distribution for you. Just like a 3PL supplier provides you with warehouse space, your cloud WMS provider will host your hardware and software and maintain it on your behalf. There is no capital expenditure because you are essentially renting the system. There is also less risk – implementation time is much shorter and demands on your IT staff are lessened. Plus, you can try the solution for a time and if it doesn't turn out to be the best option for your business, you can simply walk away. That's a fresh option that you don't normally get with high-end software systems.

Read on to learn four solid reasons why putting your warehouse management system in the cloud may make the most sense for your business – and how it can affect your bottom line with a faster return on investment.