Cost Benefit Analysis for investment in a new WMS system.

Proteus has designed a Cost Benefit Analysis as an aid to selecting which is the best and most cost effective method of Warehouse Management System for warehouse operations.

 PROTEUS® Warehouse Management Systems can be delivered in three options to the end user; Paper Based WMS, RF Scanning and Voice Picking, with each method having its own benefits. It can also operate as a Multi -Mode Solution with all three options present in different areas of the same warehouse.

Dependant on the type of warehouse operation; the picking methodology, the frequency of picks, and the size of the operation will govern decisions made for the most suitable system for clients to employ. Utilising the Cost Benefit Analysis Grid, it is a straight forward process to calculate operational costs, in terms of time and money for each system option based on the following criteria: 

  • Number of Warehouse Operatives
  • Number of Picks
  • Number of Order Lines
  • The criteria are then cross referenced with the type of task:

    • Put-away Tasks
    • Replenishment Tasks
    • Picking Tasks 

    It is possible to view costs per pick, costs per operative over a 12 month period, and can be a valuable insight to ways to cut operational costs. 

    The analysis is a great indicator to which system is the most cost effective to operate, and whilst you might think that paper based WMS is the cheapest, it may well be more effective to use RF Scanning, although initially the investment will be more due to scanning equipment and network infrastructure, it will often deliver a complete ROI within 18-24 months, even faster in many situations. 

    Using the analysis set Proteus can calculate the Return on Investment and will be able to give you a fairly accurate timescale of when the system will pay for itself due to efficiency gains made, and the reduction in labour costs, also providing full visibility of the detailed calculations.

    Investment in a Warehouse Management System and the right provider is not a decision to be undertaken lightly. Ideally you need to ensure that you are working with a technology company that can not only ensure that you have the right system for your current needs, but also make sure that your investment is protected and your strategic growth plans are taken into consideration from the very beginning. 

    Proteus Software has a proven track record of working closely with clients, establishing long term partnerships, and future proofing IT systems. Many of our customers have achieved phenomenal growth over a relatively short period of time and have expanded their operations, not only in the UK but venturing into new geographical areas globally. 

    We are more than happy to assist with your WMS Cost Benefit Analysis, and based on our 25 years’ experience as a software provider, are willing to review your warehouse operations to advise on the best system for you. 

    For further information contact Linda Rodway on +44 (0) 121 717 7474 or email moreinfo@proteussoftware.com

     

     

     

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