DC Velocity - June 2014

from “unforeseen configuration issues.” Others cited a failure to understand the upfront requirements or a lack of resources.

IN-DEPTH EXPERIENCE REQUIRED

All survey respondents, including those who had not done a project in the past five years, were asked some general questions about challenges and issues associated with systems integration. For example, all survey participants were asked to name their number-one criterion for selecting a systems integrator. Twenty-seven percent answered “in-depth experience with equipment.” Another 24 percent cited marketplace reputation, while 21 percent said it was past experience with the vendor that counted first and foremost. Interestingly, although systems integrators charge top fees for their expertise, making such projects a costly endeavor, only 16 percent cited price as their main selection criterion. (See Exhibit 3.)

Many industry experts have argued that using cloud-based software could make the process both quicker and easier. For the most part, readers are not buying that claim. Although 34 percent said cloud-based software would make integration easier, 24 percent disagreed and 42 percent said they weren’t sure whether it would or not.

The survey indicates that systems integration will continue to be a hot area of activity in distribution. That’s because a majority of survey takers said they were planning to do more systems integration work in their DCs. Fifty-three percent of readers said they would undertake a project in the next two years.

OBSTACLES TO SUCCESS

As for the challenges involved with systems integration, it’s probably no surprise that many survey takers pointed to financial issues, such as keeping the project within budget or justifying the return on investment. Others raised “soft issues” involving personnel and work culture when asked to name their biggest obstacles. “Getting all employees to embrace the system,” wrote one survey taker. “Keeping our talented staff who does this work for us,” replied another.

Another issue raised by readers was “mission creep,” the expansion of the project’s scope once the work has gotten under way—a situation that typically leads to delays and cost increases. Another was pressure from vendors to use their affiliates instead of letting the company determine which integrator would be the best fit for the job. “Integrators always want you to use their partners instead of best-of-breed,” wrote one respondent.

One of the most interesting responses came from a
respondent who cited a lack of common definitions for
the scope of work as the biggest issue. “Each area that
needs to be integrated typically has its own ‘language,’” the
respondent wrote. “Establishing a project vocabulary that
is understood throughout and not confusing is difficult.”
As more companies turn to software and automated
equipment to boost throughput in their DCs, more logistics
managers will likely find themselves involved in systems
integration projects—and therefore, facing some of the
issues cited above. So what can they do to help ensure suc-
cess? Judging from the survey responses, they would do well
to pay close attention to project terminology, adherence to
work schedules, and employee engagement as they embark
on the systems integration journey.
Connecting data exchange between applications 72%
Connecting material handling equipment to a warehouse
management system 51%
Connecting material handling equipment to a warehouse
control system 42%
Connecting radio-frequency technology 41%
Connecting voice technology 27%
Connecting sensor technology 18%
Connecting radio-frequency identification (RFID) technology 12%

Material handling equipment vendor 25% Software vendor 20% A third-party (outside) systems integrator 17% Consultant 9% Other 29%

In-depth experience with equipment 27% Marketplace reputation 24% Past experience with vendor 21% Price 16% References 10% Background checks 2% EXHIBIT 1