Can a WMS replace your spreadsheets?

When your business starts to expand, so does the volume of data. The expansion in e-commerce and online activity puts pressure on manual paper-based systems. As your operations grow in complexity, managing all aspects of warehouse management on spreadsheets will become very challenging. 

The disadvantages of using spreadsheets for warehouse management.

Spreadsheets have traditionally been used for tracking inventory levels and the location of items in small to medium-sized warehouses. They are not the ideal solution for larger warehouses supporting e-commerce or with more involved fulfilment operations. For a third-party logistics (3PL) provider handling products for multiple customers in one or more warehouses, the explosion of spreadsheets becomes even more complex. Today's fast-moving logistics industry demands accuracy and real-time responsiveness to meet customer service obligations. Traditional manual inventory control methods using spreadsheets could be more efficient and non-scalable. 

The main drawbacks are: 

1. Data entry and validation  

Spreadsheets require repetitive manual input, which takes time and effort. Errors are unavoidable. These errors in data entry multiply when the data is processed, and you are making decisions based on incorrect information. Spreadsheets do not have functions that highlight errors when they are made. A spreadsheet is typically a static document with one or more users. There is no facility to validate human input or detect formula errors. The use of multiple spreadsheets compounds these problems.

2. Version Control Issues

In a busy warehouse, it's common for multiple users to be working on shared spreadsheets simultaneously. Managing the many and often interconnected spreadsheets to control different tasks rapidly increases inefficiencies and errors. This is particularly evident in version control, where keeping track of which versions are correct becomes an obstacle to decision-making.  The wrong version can give an inaccurate picture of the actual status in your warehouse, highlighting the need for a more streamlined solution.

3. Integration with other functions

Spreadsheets have limited capabilities for importing input from other applications or devices and sending its output to different applications. For example, customer master data held in ERP or other systems is complex to integrate and validate with data held on spreadsheets.

The benefits of adopting a warehouse management system (WMS)  

A better solution is to migrate to a warehouse management system (WMS).  Various cloud-based, easy-to-use solutions are available for every type of warehouse operation. A significant benefit is that any approved user can access a WMS from any device via a web-based online portal.  A WMS has only one version of data, updated in real-time. There is no risk of working with incorrect inventory information. Data is uploaded automatically from mobile and other linked devices to provide a real-time view of your warehouse's current inbound and outbound activity status.

A WMS:

• automates tasks you would otherwise need to handle manually
• prevents data-entry errors by applying validation techniques
• saves on human resource requirements
• is available 24/7
• tracks change and create an audit trail
• will pay for itself through improved productivity and efficiency

A roadmap to transition from spreadsheets to a more efficient solution.

Here's a tried-and-tested process for moving from spreadsheets to a more effective and reliable warehouse management system.

1. Document your As-Is situation.

Map your current warehouse processes and identify pain points and inefficiencies. Decide what functions you need, such as inventory tracking, order management, and financial reporting. A poor definition of business needs can lead to the failure of a WMS implementation.

2. Investigate suitable WMS solutions that fit your budget.

Request demonstrations from WMS vendors to understand the capabilities of their systems.

Evaluate the functions of each WMS against your selection criteria. Understand your organisation's unique needs and objectives. Speak with other companies that have implemented that WMS to understand their experiences. Consider the vendor's expertise in integrating with your other systems. Select the solution that is the best fit for you.

3.  Plan the transition

Plan how you will migrate data from spreadsheets to the new WMS. This includes cleansing and organising data for smooth migration. Develop a detailed project plan outlining tasks, timelines, responsibilities, and milestones.

4. Prepare Your Data

Standardise data formats to match the requirements of the new WMS.  Ensure all data in your spreadsheets is accurate, up-to-date, and formatted consistently. Conduct a test migration with a subset of data to identify and resolve any issues.

5. Change Management

Communicate the benefits and changes to all stakeholders to ensure buy-in and reduce resistance. Provide comprehensive training for all staff who will use the new WMS.

6. Testing and Implementation

Extensive testing of the WMS ensures all functionalities work as expected. To address unforeseen issues, consider a soft launch or pilot run before full implementation. Have end-users perform tasks in the system to ensure it meets their needs and expectations.

Regularly monitor the WMS performance and user feedback to identify areas for improvement.

7. Documentation and Reporting

Maintain detailed documentation of the WMS processes and any customisations made. Use the WMS's reporting functionalities to gain insights into warehouse operations and drive continuous improvement.

These steps ensure a smooth transition from spreadsheets to a WMS, leading to more efficient and effective warehouse management. Be realistic about the time needed to invest in the project. There are no shortcuts.

SCCG has extensive experience in running RFPs and negotiating with WMS vendors. If you're starting a WMS project selection or need help implementing the right solution, contact us at +44(0)1926 430 883 or email info@sccgltd.com.

The Supply Chain Consulting Group