By PathGuide

You expect a warehouse management systems (WMS) solution to deliver process improvements to your facility. But what might be less apparent is the efficiencies and cost savings an organization experiences in areas other than the warehouse or distribution center. A great WMS solution can boost employee and management morale, improve overall company revenues and help create future paths for growth—and these are just a few of the benefits.

A Better Warehouse

Warehouse or distribution center cost savings go straight to a company’s bottom line. One of the easiest ways to achieve efficiencies is through an investment in a new (or better) WMS that delivers shorter delivery times, lowers transportation costs, or institutes new processes that increase employee productivity.

At its most basic level, a WMS can also reduce paper-based processes that directly hinder company growth. Paper-based systems inherently lead to more errors and customer frustration. And every time a warehouse manager has to resolve an error, it costs the company money. If the company is looking to compete on picking accuracy, delivery and improved customer service, it’s time to abandon paper and toss it out with the whiteboard and markers.

Growing Your Business

The right WMS will help convert tribal knowledge, or knowledge that is held by a single person, into a valuable company asset that is shared by many. It helps avoid scenarios where an informal knowledge holder is suddenly unavailable, causing processes to grind to a halt. For smaller companies, tribal knowledge may not represent a major stumbling block. For companies on a growth path, however, having the warehouse or distribution center’s key processes held solely in the brain of a long-term employee just doesn’t make economic sense.

There are other key management issues that the right WMS can help address. When a more automated system is in place, management stress levels go down and efficiencies go up. Built-in employee performance metrics help managers establish better accountability levels – and enable executives to rely on statistics, not subjective opinions, when evaluating employee performance.

Training with Ease

In addition to reducing labor costs through increased productivity, the proper WMS will help any organization lower training costs. Warehouse turnover can negatively impact the bottom line, so minimizing the number of new employees by keeping existing ones more engaged and freeing up the time spent on new employee training can mitigate cost impacts. The goal would be for a WMS to have enough ease-of-use functionality that a warehouse employee could be productive after a single day of training.

Taking Advantage of the Domino Effect

All things considered, a WMS can have a positive ripple effect over an entire organization, from human resources to the C-suite. It’s time to make this domino effect work for your organization. Look at your WMS to ensure it’s working hard enough to help your business reach its overall goals, and not just streamlining your warehouse operation.

Interested in Learning More?

Of course you are. Join the WMS Group on Thursday, November 15 in Denver to tour CPSDistributors, a customer and user of PathGuide’s Latitude WMS, and Rampart Supply, a customer and user of Infor’s TWL. All distributors with an interest in warehouse management systems are invited to join us for the opportunity to tour these facilities, discuss best practices and participate in focused discussions of all things WMS.

To register for the meeting click here.

As he begins his two-year term as Chairman of TheUserGroup.org, Jamie Hutt-Semple, Vice-President, Operations at Kerr Controls Ltd., is emphasizing the gains and successes the organization can carry forward from past generations of board leadership.

With TUG adopting a more strategic posture as a center for thought leadership in distribution, and the board crafting closer relationships with Infor and dozens of channel partners, Hutt-Semple’s focus for the next year is on building the member participation that is the foundation of the organization’s success.

“Our Infor software is what brings us all together, and information technology will always be an essential focus for TUG. But the shining insight from David White’s term as Chairman is that we’re also all distributors,” Hutt-Semple says. Which is why “TUG now delivers more content that is distribution-driven, with dedicated tracks on operations, purchasing and inventory management, pricing, and finance and a popular executive summit at TUG Connects . That’s an innovation that we’ll carry on and expand over the next two years.”

From Don Green’s recently-ended term of office, Hutt-Semple points to TUG’s excellent working relationship with Infor and the many channel partners that help members capture the best return on our investment in Infor software.

“When our software vendors and we work more closely together, we all win,” he notes. “As users, we drive the efficiencies and strategic insights that build our businesses, and when that happens, we can keep investing in the software that drives our success.”

But that activity both enables and depends on building up members’ participation in their own user group. “I can think of no higher calling, no more urgent priority for the TUG Chairman than to act as a conduit and ​support for that passion,” Hutt-Semple stresses.

His goals for the next year: Helping every member get a better idea of how TUG’s networks work, and making sure everyone who attends a TUG event for the first time knows they’re welcome, and have something to contribute.

“TUG is already an effective, successful organization,” he says. “But the more voices and fresh ideas we can bring to the table, the better we’ll be. That’s an idea I never plan to let up on.”

Distributors have always known that their success would rise or fall on their ability to add value for customers.

But as the definition of added-value extends beyond familiar standbys like local or consignment stocks, next- or same-day delivery, off-hours service, or specialized expertise, TUG Board member Mark Law is urging companies to adopt a three-step approach to making added-value more than a “sound bite”.

“We need to have a process in place to identify the added-value and document it,” says Law, Group IT Manager with the Hayley Group in Doncaster, UK. That makes it essential for distributors to:

• Understand what customers see as added-value and get their sign-off on the definition
• Identify opportunities to add value that benefit the distributor’s business, as well as the customer’s
• Document the savings in time and dollars, so that customers can readily see the value you’ve added.

“It’s not necessarily about picking out specific issues,” Law stresses. “There’s no rule that applies to every business. So we have to have a process in place” to identify the issues that matter most to each customer.

Avoiding the Commoditization Trap

In an era of fast production and mass automation, individualizing a distributor’s service offering sounds like something new. But Law says distributors do it all the time—or if they don’t, they should.

“It’s always been there,” he explains. “Otherwise, we end up just being the cheapest vendor, which is a game none of us should want to get into.”

But as the business environment gets tougher and customers become more discerning, it takes more to make the offer stick.

“In the past, we could just say we had the best service in our area. Now, customers want us to prove it.” That begins with understanding what changes or improvements will matter to them most—even if it means getting a different story from each major account, and responding accordingly.

“You have to have that conversation with the customer before you start doing anything,” Law stresses. “If the customer needs help reducing stocks, you have to ask what it’s worth to them.” With the details clarified and the customer signed on, “you can start keeping a record and reporting back on what you’ve achieved for them.”

Learning to Be the Best

So how does a systematic strategy for adding value help build your business? Law says a customer-centered approach positions the distributor as a trusted advisor, not just a supplier of a particular product line. And those in-depth conversations about what constitutes value will bring you ideas and insights that you can generalize to other customers.

When adding value works, it can cover many different aspects of a customer’s business, from revenue to asset management, from administrative savings to training and technical support. The focus can range so widely, in fact, that Law stresses the need to set priorities.

Register today for an open forum on Value-Add functionality in SXe, August 8, 2016 at 11:00 AM EDT. Whether you modify product internally or send material out for fabrication, coating, assembly, etc, this discussion will prove fruitful!

With Don Green starting his two-year term as Chairman of TheUserGroup.org, watch for continuing emphasis on helping members get the most out of their information technology systems—and the business systems behind them.

For Green, Director of Operations at Choctaw-Kaul Distribution, it’s all about adopting change.

“We’re going to continue to help members realize a return on their technology investment, whether it’s on the current version of their software or on any upgrade they’re considering,” Green says. “It’s our job to help them continually drive the value of their overall investment.”

The other big takeaway is that adoption is not about IT alone. For Green, the ah-ha moment came from a breakout session at TUG Connects! 2016.

Technology and More

“What was amazing was how the group came to the conclusion that the greatest potential related to non-technical dimensions,” he recalls. “In the end, it was simple. How do we get our employees to adopt change? How do we address factors that really don’t have anything specific to do with software and technology? It was more on the human side to drive change all the way through an organization.”

He cites the executive track at TUG Connects! as another example of a non-technical discussion that brings a broader, more mature focus for the organization. “It used to be a group of users, a bunch of techno-geeks who got together to talk about software solutions,” he says. “TUG still does that, and it’s an important part of who we are. But in today’s TUG, there’s a much broader vision of the strategic planning we can offer impacting the whole organization, beyond just the technology group.”

Members Helping Members

The term “user-to-user”, or U2U, is almost as old as TUG itself. Green cites the transition to cloud computing as an area where the concept is as important as ever.

“So many people are embracing the concept that cloud is a bona fide business solution, and at TUG, you’ll find many members who are already making the transition,” he notes. “The ‘pay it forward’ sentiment is so essential to the TUG community, so you know people are going to share their experience and best practices.” Whether a user has a question about their Infor software, or about other cloud products, “TUG members are there to help each other out.”

Building the Community

Green says his priority as TUG Chairman will be to encourage more members find their own reasons to get involved with the organization. And he says the Board as a whole is in a strong position to carry on the growth and development TUG has seen over the last two years.

“I’m honored to be in a position where I can serve the membership in this way,” he says. “We have a strong board, we have a really strong membership, and I very much look forward to continuing to serve such a dynamic member group.”

Contributed by Eric Allais, CEO, PathGuide Technologies

If you’re thinking about switching to a new WMS, you’re probably more than a little intimidated. That’s normal—it’s a vital business decision, and you want to be sure you’re making the right one. Replacing your WMS might pay off in the long run if the new system offers enough improvements over the old one to make the implementation process worthwhile.

When contemplating a better WMS, the most important question is how your current WMS is holding back productivity. Matching requirements to functionality will help you identify the areas where you need to improve warehouse operations, making it easier to know what features to look for in a new system.

The following points will help you navigate the selection process.

Does your WMS integrate with your ERP system? This is the most obvious question. Many smaller WMS providers now support major ERP systems, so you’re no longer locked into the WMS provided by your ERP vendor.

How experienced is your implementation team? Switching to a new WMS may involve changing warehouse processes, retraining employees, and adapting to the new system, but a well-planned and executed implementation makes this much easier. Ask how much experience the vendor’s implementation team has and how their past implementations have gone. This will give you perspective to help make the WMS migration as minimally disruptive as possible.

Is your WMS customizable, and how easy is that process? This question is vital. Every company has its own unique business processes and the WMS will usually have to be tweaked to fit them. How responsive is the vendor? Make sure to take the cost of enhancements into account when calculating the overall price of the upgrade. If it’s difficult to modify the WMS, how will that affect your workflow? On the other side, an easily customizable WMS can improve your warehouse in ways you might not realize. As examples, we have customers that have created unique will-call systems or customized modules for managing cut items, such as wire.

What kind of support do you offer? Will I get a live person on the phone when I call? Can I call 24 hours a day? What’s the average response time? Problems will come up with any new system, so be sure you can solve yours quickly. Find out as many details as you can about the training process ahead of time, because this will let you know how easy (or difficult) you can expect it to be. Being able to talk to a local product expert any day of the week is much different than getting a phone number for a help-desk call center in a foreign country.

Can your WMS integrate with carousels, vertical lists, and/or conveyors? Many small and medium-sized distributors find that these material handling systems are good ways to expand their operations without adding more floor space. If you’re a growing company, looking for a WMS that integrates with these can make it easier to expand a few years down the line.

Can your WMS extend to provide small parcel carrier shipments, including less-than-truckload? With the rise of ecommerce, single-item shipping is only going to increase, so make sure your new WMS can handle it.

Does your WMS automate the handling of inbound dock scheduling? We’ve seen a trend in the WMS industry toward modules that let you schedule incoming freight. Some WMS vendors also offer transportation management systems. This could be a good way to make your unloading and shipping processes more efficient, particularly if your company isn’t big enough for a full Yard Management System.

Upgrading your WMS doesn’t need to be complicated, as long as you plan for it. Armed with answers to these questions, you’ll be well prepared to make the right decision to create significant opportunities for your company. Best of luck in your search!

At TUG Connects! 2016 last month, anyone who attended one of the three sessions delivered by Grant Howard, CEO of Grant W. Howard Co., came away with a new sense of their business mission.

For years, Howard has been urging distributors to focus on three key objectives: Customer experience, profitability, and growth. At his much-anticipated best practices inventory management spring workshop, he’ll be hammering away at the message he delivered at TUG Connects!: We know what to do, and it’s time to deliver.

Vision to Results

The connection from vision to results is where the best strategies often go off the rails. “What matters here is helping distributorships develop their mission, their strategy, and their strategic objectives, but then ensuring that what we do at the tactical, action level lines back up with that,” Howard says. “It’s basic, but it’s an area where companies struggle so much.”

From the executive level on down, that means a standard formula for success: set objectives, establish ownership, then measure performance.

Metrics and Measurement

Measurement “is the huge missing piece in most companies,” Howard notes. “We geared a lot of the discussion at TUG Connects! around how to set objectives you can measure, then how to measure to drive results. Because measurement is what connects the strategy with the tactics and results.”

The key takeaway: While software enables solid measurement, it can’t do the whole job on its own. “They call it business intelligence and business analytics, but unless you know what to do with the tools, it isn’t very intelligent or analytical,” he says. “The real question is whether your data search is well enough aligned to take you on a guided fishing trip, rather than an unguided voyage where you hope to find something.”

Inventory

All 10 of Howard’s inventory management best practices are embedded in all of Infor’s current distribution ERPs, but the right tools can’t deliver against poor strategy or weak implementation. The first step in getting strategy right is to understand distribution’s unique, indispensible role in modern supply chains.

“Inventory is the reason for being for distributors,” he says, because “distributors are the buffer. Manufacturers can’t produce to demand, and they don’t want to produce to warehouse it. End users don’t want to buy in large quantities.”

So “distribution was formed in the middle,” with the result that “inventory is the core of our being. That’s what our business is. And yet, so many distributors just do such a poor job with it.”

An Inventory Strategy that Pays for Itself

The great thing about a strategic approach to inventory management is that the effort pays for itself.

“If your company is not making best use of the new technology available from Infor to manage your inventory, it’s missing the tools and processes to drive stellar customer experience, profitability, and growth,” Howard warns. He’s more modest about describing his own workshop as an essential tool for success, but the testimonials from last year’s event tell the story.

“Easy to follow step-by-step of how it all works and see the big picture,” wrote one purchasing manager. “Presentation was great—energetic. Experience was educational—Not the least bit boring. Time flew by—Open to all questions—Great information!”

“I have been with my company for almost eight years, and I’ve learned more in three days than I’ve learned in those eight years,” agreed an inventory analyst in the class of 2015. “You’ve hit on every point that I’ve been missing to make my job so much easier. I greatly appreciate you for making this so simple.”

Click here for more information on Best Practices Inventory Management with Grant W. Howard, June 7-9, 2016 in Novi, Michigan.