How to convince management of the company of need of the WMS system?

At the same time, despite the general recognition of advantage of WMS, receiving approval on implementation of a similar system can be a difficult task. Though you can be sure of benefit which will be brought by an automated system, you should convince of it other persons making decisions from the top management of the company. It is very important to gather the managers who are responsible for transactions, IT, finance, chief executives, representatives of Board of Directors precisely to define effect which will bring implementation of WMS. If your company not really differs from others, you will need to pass a number of stages on collecting of information, necessary for the approval of the project. It is the difficult procedure, but it will provide you with the necessary facts and considerably will increase chances of adoption by company management of the positive solution on the project.

Five stages of preparation of approval of an implementation project of WMS

1. Sort out strategic objectives of your company.

In most the companies process of search of specific WMS begins with the general presentation before the top management for receiving initial approval before preproject inspection begins. It is a critical stage. Prior to this meeting you should investigate and completely understand the major purposes and the strategy of the company. Unambiguously to get approval of the budget, the implementation project of WMS should make a direct contribution or correspond to one or several key corporate initiatives. Be ready to offer an exhaustive explanation to why the implementation project of WMS is strategic for business of your company. If the project does not answer strategic objectives, the risk that the project will not be approved or, even worse, will be stopped considerably increases after you enclose in it considerable efforts.

2. Define the main effects of the project for IT, transactions and finance of the company

During an approval process of an implementation project of WMS you need to find a common language with the persons making decisions from three key areas: IT, transactions and finance. Explain how implementation will render positive effect on three of these areas. For IT department questions of system integration, program architecture and technical support of a system will be important. For the division which is responsible for the main transactions of the company important there will be time of reply to the request of the client and increase in efficiency of business processes. For financial service it will be necessary to provide calculations of project system effectiveness which will be implemented. This approval should be executed how it will be established that the project answers main objectives of the company.

3. Research No. 1: Specific information for the main participants of decision-making

You need to understand parts in what information heads of the IT directions, transactions and finance that they supported your project should hear. This research is absolutely necessary.

The head of IT service will be interested in costs of means and time for implementation and support of a system and also in what degree its division will "be involved" in the project. In the conditions of the limited IT budgets of WMS should not require considerable costs for support or modification. If the IT service is able independently to respond to requirements of "operators", customizing a system and entering to it necessary modifications, the budget overrun should not be. Besides it is necessary to study thoroughly technical characteristics of a management system for a warehouse complex, architectural features and complexity of integration with the existing systems. The less system will require costs of time and funds for its support, the better.

The head of operational division needs to know how the functionality of a system answers strategic objectives of the company and also as it influences daily transactions. For example, as improvements in registration of goods in a warehouse will affect overall effectiveness of business.

Finansistov will interest communication between a system and final efficiency of the company and also calculations of return on investment (ROI) and total cost of ownership (TCO) a system.

4. Research No. 2: General information for the main participants of decision-making

- return on investment (ROI)

In effect, return on investment is the additional prize received as a result of investment of capital, divided into the amount of the specified investments. In our case of investment invest in WMS. Sometimes ROI is understood as a payback period of investments made in the project. For most WMS such term does not exceed 18 months, but strongly depends on how the implemented system is used. There is quite large number of techniques of assessment of ROI, select the most suitable for your situation, try to find calculations for a similar case or address to the consulting company which will be able to execute necessary calculation taking into account all complex of internal and external factors which can have an impact on ROI.

- total cost of ownership (TCO)

TCO include not only the cost of licenses and costs for implementation, but also long-term costs for support of a system. A considerable part of the companies does not look further initial investments in a system. They with surprise recognize only afterwards by this reason that permanent configuring of a system for its reduction in compliance with the changing requirements, updating program and the hardware, technical maintenance and other costs for support of a system can become a source of essential additional costs. Very important as it is possible to study in more detail this question in advance.

- functionality

Except two previous indicators a set of functionality of WMS, especially for the direction of transactions of the company is very important. The best solution will be to send to the supplier official request for the commercial offer. It is necessary to be convinced that the functionality of the solution answers the purpose and requirements of the company. Besides, it is necessary to be convinced that the functions declared the supplier really are present at a product, but are not planned to implementation or are excluded from new versions of a product.

- provision of the supplier in the market and responses

Implementation of WMS – the important solution for the company. The supplier selected by you will become the long-term partner of your company. Reduce risk, having found information on market provision and financial opportunities of system provider which you select. Ask questions of how long he is engaged in this business whether it has a financial support of large parent company and whether there are enough at it funds for carrying out Research and Development and user support. If the supplier of WMS is owned by the financial player, for example, of the venture capitalist, then his subsequent resale is very probable. Similar risks are connected with a possibility of purchase of the supplier of WMS by larger player. It is necessary to be convinced that under any conditions updating and support of a product will not be stopped during the term determined by you.

5. Get approval of Board of Directors: we return to strategic objectives

Having secured with support of heads of the IT directions, transactions and finance, you will have to provide final version of the project to the chief executive or Board of Directors of the company. Will interest them as a system will improve final business performance and positions of the company in relation to competitors. Consolidate all information collected by you in a system and structure it according to strategic objectives of the company. By this time you should be "fully equipped" for competent submission and justification of the project.

Conclusion

Process of assessment and approval of an implementation project of WMS is a critical action for your company. Complete understanding of steps which you should undertake for receiving support of key persons at the different levels of management of the company will help to accelerate this process. Though search of the "correct" WMS is integrated to considerable efforts on collection of information and accomplishment of calculations, the received result costs them. Your company will be able to take all advantage of the automated control system for a warehouse complex, having as much as possible reduced the risks connected with its implementation and support.