Page 19 - Warehouse Annual 2022

WMS

What to consider for a

Software-as-a-Service WMS

BY CHAD KRAMLICH, COURTESY WWW.SUPPLYCHAIN247.COM

Discover what every supply chain organisation needs to know about Software-as-a-Service (SaaS) to
make an informed decision on its next warehouse management system (WMS) deployment.

s on-premises software deployments give way Those companies willing to surrender the touch-and-
to the proven economics of deploying on the feel of servers find the remote connectivity afforded in a
Acloud, another option has surfaced in recent years SaaS deployment provides tremendous cost savings in
that is gaining much momentum among supply chain terms of hardware and labour (cloud-based benefits), but
businesses: Software-as-a-Service (SaaS). also great flexibility across geographies (where Internet
connectivity is reliable).
More and more companies are choosing SaaS as
the way to run their warehouse management systems It comes down to what you want to invest in. The
(WMS), and for good reason. However, to appreciate current trend sees warehouses operating with more
the advantages, it is important to first understand the automation and fewer people on the floor. As SaaS
differences between these three viable options: becomes more popular, IT staff can be reduced or
repurposed, lowering overhead while pushing system
On-premises deployment: You own the hardware and management responsibilities to a qualified provider.
software. You are responsible for maintaining and upgrading
it. You control the systems and data internally. Upfront The issue of modifications
capital costs and ongoing maintenance costs are high and As a word of caution, if you do a lot of system modifications,
provisioning during peak demand might be a challenge. you may want to retain your IT staff. It has been found that
system modifications raise enough problems to consider
Cloud deployment: You purchase the computing a ‘no modifications’ approach as best practice. This is
power. The provider then owns, provisions and maintains because every time you modify your software, you create
the hardware. Your software and data are hosted there unexpected downstream complications that require more
and you pay on a monthly, quarterly, annual or per-use workarounds, ultimately leading to systems falling out of
basis. Capex is eliminated, while business resiliency and warranty or becoming prematurely obsolete. And while
scalability are assured. modifications are possible in a SaaS environment, the
idea that each warehouse or operation is totally unique
SaaS deployment: SaaS is software delivered over the has become rather quaint.
cloud. Your software is accessible online via a controlled
subscription. You own the data, but your provider stores Modern supply chain software has reached a critical
and manages it. SaaS is quick, easy and efficient to deploy. mass where very few operations fall out of a base
However, it does not offer the scale or control you get with WMS product norm. Most facilities operate the same
cloud or on-premises deployments. way. By keeping your modifications to a minimum,
you enhance the continuity of your operations across
A matter of priorities your operating footprint, warehouse training becomes
Deciding what deployment model is best for you depends more standardised, expansions become simplified
on your business strategy and operating philosophy. and cost is lowered. And with a standard product
Traditionally, WMS installations have been facility-specific. running everything from the cloud, speed-to-market is
WMS is an execution-based system and governs the way enhanced.
products are shipped from location to location. As a result,
many firms are reluctant to relinquish control of their WMS. If you’re ever inclined to modify something, first think
about how you can approach the change operationally
Over the past five years, however, SaaS has proven to before writing new software code. You will likely save
be quite dependable, especially in terms of performance. yourself many headaches in the process. •

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