3 Questions to Ask Before Finalizing Your WMS Budget
By Jim Laverty
Your budget is much larger than you think. Analyzing the following metrics within your supply chain will unveil a stockpile of extra money to add to your next WMS budget.
Look beyond the cost of a warehouse management system, and focus on what it will cost your organization to not buy it. From increasing efficiencies, to cutting expenses throughout your supply chain, the final sticker price of your WMS should not be the only determining factor when weighing multiple options.
Here are three questions you need to ask yourself when making your next budget for a new technology purchase in your supply chain:
How Much Will I Save by Increasing My Accuracy?
The quickest way to increase profitability, and in turn your budget levels, is to cut costs out of your supply chain. Switching to a new WMS will give you the power to overcome errors and inaccuracies that you previously budgeted as simple a cost of doing business. From missed shipments to charge backs and regulatory fines, analyze every expense that resulted from not having a warehouse management system with virtual 100% accuracy. No longer are these errors a cost of doing business, it’s money that you don’t have to see walk out the door any longer because of a single technology upgrade.
How Much Will I Save with Labor Management Tools?
Labor costs make up the single largest part of a warehouse’s operating expenses. Not having the proper tools in place means you won’t be able to accurately determine whether or not your employees are being productive and earning their pay. Reducing your labor costs by up to 25% in your warehouse is not out of the question for most organizations with proper labor management tracking and reporting. Think about how labor would be affected by your new WMS purchase, and how much working labor management functionality into your budget can save your company over the long run and help you to consistently raise the level of your staff’s performance.
How Much is My Currently Technology Costing Me in Lost Business?
If you’re consistently losing out on new business opportunities because of shortfalls in your technological capabilities, those are also “costs” that can be factored in when determining your new WMS budget. There are a number of features that give organizations vying for new business a competitive edge over these others, but these stand out above the rest:
- Integration/Onboarding - cutting edge technology allows you to onboard clients and integrate with all of their systems in just a matter of hours/days, instead of weeks.
- Billing - cutting edge technology allows you to bill accurately every time, and on any billing schedule the client wants.
- Mobile Technology - cutting edge technology allows cost-cutters like smartphones and tablets to quickly integrate with and control your systems.
- Multilingual Capabilities - cutting edge technology allows all of your employees to easily use your systems and maximize their potential, regardless of the language they are most comfortable with.
The money you save elsewhere can be added to your budget to help justify an increase in costs. The difference in the benefits you receive when choosing one warehouse management system over another could be huge, and worth the extra money. When you’re buying a new warehouse management system, it’s not just about how much more the new technology will cost, but how much more it will save on operational costs and create new revenue for you.
This is the third part in our ongoing series about how to best budget for new technology within your supply chain. Learn more about how irms|WM’s supply chain solutions will fit in your budget and help boost revenue and business growth by answering a few easy questions in our WMS Quick Quote form today.
Related Blog Posts
- How Your Budget Predicts Your Revenue Potential
- How to Budget for a New Warehouse Management System