77% of supply chain execs view WMS/OMS as more profitable
According to a recent survey by Deposco, 77% of supply chain executives believe that investing in a modern warehouse management system (WMS) or order management system (OMS) would ensure more profitability during peak season.
The findings also revealed that 40% of respondents have either invested in WMS and OMS platforms or plan to do so to better navigate peak-season bottlenecks, improve cx and improve efficiency. According to them, getting this platform in place is the first step to making things like on-time delivery and data consolidation possible.
With these systems, it is the hope that operations are offered a wider range of solutions, improving customer experience as a result.
Supporting data and system consolidation for multiple channels
Deposco surveyed 200 supply chain executives working for European retailers, manufacturers, wholesalers, or 3PL/4PL firms and found that 62% of executives now consider Amazon Prime Day a peak event.
Because a WMS or OMS serves as the foundation for inventory, operations and other technology systems, getting this type of platform in place is the first step to making things like on-time delivery and data consolidation possible.
The company has highlighted three reasons that stand out as part of its research - particularly when it comes to why supply chain leaders have invested, or want to invest, in WMS and OMS systems: to support data and system consolidation for multiple channels or locations, to reduce the cost to fulfil orders, and to facilitate on-time delivery and fulfilment speed.
A quarter (25%) of all respondents cited these reasons. As relationships and inventories grow, organisations will need full inventory visibility at every stage, across dock to stock, pick to ship and returns.
Given the emphasis on WMS/OMS systems in 2023, Deposco states that it is not surprising that warehouse management and inventory management are top areas seen as needing the most improvement for peak season.
To achieve this, supply chains are focused on three main strategies:
The first is to expand the supplier network (28% of respondents), disrupting a multi-year trend of supplier consolidation. Increasing held inventory (24%) and new logistics partnerships (22%) are also highlighted. Deposco highlights that risk mitigation through expanding the supplier network is now seen to deliver resiliency in the face of near catastrophic, single-source supply disruption.
Will Lovatt, General Manager and Vice President of Deposco Europe says: “Whether you outsource or not, you must be able to understand what’s going on and react to whatever happens. For example, you may have a key supplier going out of business, external forces might cause supply chain disruption, or you may experience variable demand across channels.
“You must be able to understand what’s going on and react to any situation at any time. The only way to manage that consistently is with great data. A system that provides this, reliably, allows you to reduce uncertainty and boost resiliency.”
Lovatt concludes, “when searching for a WMS/OMS platform to support an organisation’s warehouse KPIs, remember that functionality and features are only part of the equation. Fast time-to-value and time-to-adapt with a quick return on investment are just as critical — especially to the financial decision-makers who hold the power to play or pass on these platforms.
“Choose investments that will be foundational to success and create a clear path to revenue.”
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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine
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