strategicinsight
BY JAMES A. COOKE, EDITOR AT LARGE
Know your integrator
Picking the right
systems integrator
for the job requires
checking alliances,
references, and
résumés. Here are
some tips on what
to look for.
PLANNING TO AUTOMATE YOUR WAREHOUSE? THEN YOU’LL NEED MORE
than just the right blend of software and material handling equipment. You’ll also
need to have the right team of systems integrators on board. Since it’s the integrators’
job to make sure the facility’s equipment and software can “talk” to each other, choosing the right contractor for the job is key to ensuring the smooth flow of product in
and out of the distribution center.
As necessary as their services are, they don’t come cheap. For a typical project, integration costs will run to roughly 30 to 40 percent of the combined costs of the software and equipment. Given the amount of money at stake, you want to be sure to
pick a contractor that will also get the job done on time and on budget. And that
requires checking résumés, references, and alliances of any systems integration firm
under consideration. Here are some tips on how to do that and what to look for:
1Be wary of “alliance bias.” Many times, systems integrators have ties to specific developers of supply chain software—in particular, warehouse management systems (WMS). While that may be a good thing—for instance, it’s pretty much a guarantee that the integrator knows the software inside and out—the arrangement could
also create a potential conflict of interest. Either way, it’s something you as a customer
will want to be aware of.
“Most of the systems integrators have ‘pay to play’ relationships with the software
community,” says Marc Wulfraat, president of the firm MWPVL International Inc.
“For example, in the WMS industry, you might pay $25,000 to 35,000 per year to a
