Submitted on Wed, 2013-11-20
By Jim Laverty

The most important way a cloud-based WMS will impact your budgeting is the decreased costs.

impact of the cloud on warehouse management systems

The business world is evolving. 83% of companies use cloud solutions in their daily operation, with those solutions making up an estimated 30-50% of their overall IT architecture. The cloud is cheaper, faster, and better integrated – especially when talking about warehouse management systems. The cloud is changing the way businesses budget for their new WMS, and expenditure that was previously expected to last for ten years.

The reasons for switching to the cloud are undeniably attractive, with each point impacting how a business should plan its budget. CompTIA compiled an in-depth survey of businesses to find out why people are moving to the cloud. Take a look:

 


The most important way a cloud-based WMS will impact your budgeting is the decreased costs. The lowered costs are felt every step of the way for a cloud-based system. Quotes and easier and cheaper to get. Typically, you just need to fill out a little bit of company information to get a quote, instead of the in-depth quote process for a traditional WMS.

A cloud-based WMS will have lower monthly operating costs and not require a huge investment to get up and running. A more traditional, on-premise WMS has large upfront costs associated with it. The cost difference makes the expense much easier to get approval for.

Budgeting for a cloud-based WMS removes any IT costs from the equation. No longer do you have to budget for hardware, maintenance, recovery, upgrades, etc. All of that is included into the cost of the monthly fee.

Implementation costs are much lower as well. The time it takes to get up and running with a cloud-based WMS is much quicker than a traditional WMS, so it’s easier to recoup your costs and increase value to your customers faster.

A cloud-based WMS can also impact your labor costs and efficiencies. What is your total cost of getting an order or shipment out the door? Labor adds an immense cost to new and existing business. But with a new or improved WMS you can actually increase output without impacting labor. So if you’ve been turning down business or are looking to add business, your labor costs may not have to rise accordingly.

More than the tangible expenses though, not upgrading to a cloud-based WMS can cost your business a lot in missed opportunities. Newer, better technology wins deals. Can you calculate the cost of business lost because the system could not respond quickly enough or wasn’t agile enough to keep up with your business or client needs?

The cloud has changed the way to budget for a warehouse management system. Getting up and running with a traditional WMS can be a long, painful, frustrating, complicated, and costly process. Cloud-based systems are making all of these challenges a thing of the past. A cloud-based WMS is low-cost, quick and easy to install, and extremely flexible. Schedule a cloud-based WMS demo for yourself today to see how it can start making your warehouse run more efficiently.

Blog Type: 
IRMS WM Blog