The modern information management systems available today to logistics businesses of all sizes generate measurable improvements in warehouse operational efficiency. These systems impact floor operations, administrative operations, transportation systems and billing processes. They reflect a new set of realities that make advanced information systems a requirement for short- and long-term success. Traditional Warehouse Management Systems (WMS) were stand-alone products primarily focused on inventory control and the creation of certain routine documents.

The customers' expectation towards external providers is continually growing. Third party logistics companies are necessary to continuously invest in procuring technologies and developing skills to meet growing expectations. Sometimes, the required internal capabilities in order to provide the broad set of skills, technology and strategies go beyond the capabilities of third party logistics companies. So as to meet the expectation of customers, the third party logistics companies may align with leading edge consulting 4 firms, technology providers, and other logistics providers to enhance their own capability and provide integrated service to customers. This group of organizations can be called Fourth-Party Logistics Providers (4PL). It defines “a 4PL is an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build and run comprehensive supply-chain solutions”

Secrets. They’re everywhere, even where you’d least expect to find them. The warehouse management system (WMS) industry is no exception. As you evaluate systems to manage your distribution operations, you’ll want to know everything you can to make the search process better. It’s not a small project to evaluate, select and implement a WMS. These endeavors take diligence, time and a thorough understanding of your business goals to achieve operational excellence and competitive advantage over the long term. Learning how to critically compare WMS vendors and their various offerings will put you ahead of the game.

The effective management of your warehouse and fulfillment/distribution operations is critical to the ongoing success of your business—but you’re unsure whether to select your ERP’s warehouse module or a best-of-breed warehouse management system (WMS). Unfortunately, the answer is not simple. In today’s tight economy, there is significant pressure to use the warehouse module from your ERP vendor because its price is usually heavily discounted as part of the original ERP license or the cost of integration is presumed to be lower. The fact is, implementing an add-on ERP module without fully understanding the implications to your business could actually prove more costly when considering the potential impact on total cost of ownership (TCO), competitive advantage and customer satisfaction. Your system’s total cost of ownership is determined by all costs associated with initial implementation, which includes functionality fit, any up-front business process modifications, and integration; the ease of adapting the solution to your ever-changing requirements on an ongoing basis; and the upgrade process. In today’s highly competitive economy, the ability to respond to changing business and customer requirements more effectively and more quickly than your competitors is a key consideration. The strategic importance of your selection cannot be overstated. Budget overruns, dissatisfied customers and lost competitive advantage are very real threats.

Conventional wisdom might say that it’s too expensive; return-on-investment takes too long for smaller and medium sized companies; it’s too complex; too expensive; too difficult. If you listen to the conventional wisdom, you might believe that the technological edge WMS offers is strictly for huge companies. There’s just one thing: conventional wisdom has been known to get it wrong. In recent years, the technology, like many other technologies, has improved and become more affordable. It scales to small and medium sized companies much easier than it ever has before.