As warehouses become more automated, there is an increased demand for real-time transaction management. Warehouse Control System acts like a manufacturing execution system because it directs the tasks

The warehouse control system (WCS) is designed to manage activities within the four walls of a facility just like an MES (manufacturing execution system) for manufacturing. Large companies with many distribution centres will tend to have a dedicated WCS for many reasons. Although wide area networks have become more efficient, the fact remains that networks do get dropped periodically. When that happens, the network is not available to talk to the host system. No picking gets done. With a WCS, on site, the order fulfillment process, which includes picking, replenishment and shipping, can continue.

Factors to consider

The first question when considering a purchase of any new software, particularly something as plant floor specific as a Warehouse Control System is: Whats the ROI? The questions continue beyond an acceptable return on investment.

Total Cost of Ownership must also be considered, including the Initial Cost (purchase cost of WCS, new hardware computers, terminals, printers, and all other related costs). The reoccurring costs such as a maintenance contract, modifications, and upgrades will also be considered by a CFO. Other questions may include the need for additional resources that are required when the distributor or large manufacturers install an order management system.

These and other questions are best handled by at least one very knowledgeable WCS person or staff. The questions will continue as some initial threshold of responses are addressed.

Testing the efficacy of the new WCS purchase

Scalability, begs the question: When will we outgrow it? An operations manager will express the improvements with the new WCS system whereas the CFO will inquire about the life expectancy of this technology. The CFO wants to know the tax implications and, whether the company can depreciate the expense.

If a large company wants to know the cost to install at multiple sites as well as the stability, financial status and size of the WCS company, it is quickly addressed by establishing referrals and a strong industry reputation. Depending on the organizations objectives, source code availability may also be a concern.

The cost of doing nothing may be most expensive.

Rich Hite, President of QC Software, suggests, The most important aspects of WCS for major distributors include dependability, modular functionality, configurable flexibility, and reliability. WCS is more dependable becauseit uses standardized modules that are field proven, versus customized software. Many of the WCS modules have been running for over more than six years.

WCS modular functionality is important because additional functionality can be added as required. The system can grow as the customers need to grow. You dont lose your initial investment when new functionality is needed. Weve seen this growth in clients ranging from Tommy Hilfiger to Under Armour to Arbonne, Hite noted.