Howes is hardly alone in his views. Most of the
systems integrators interviewed for this article agreed
that deployment of cloud-based WMS solutions
still requires some degree of integration—in fact,
they say, the level of work needed is roughly the
same as it is with an on-site WMS. Here’s why
integrators believe that the scope of work is
essentially unchanged by a WMS user’s decision
to go “cloud.”
HEADING INTO THE CLOUD
Although cloud-based WMS applications have been
around for nearly a decade, companies are just starting to warm to this model. A survey of DC VELOCITY
readers conducted earlier this year found that while
64 percent of the 230 respondents had deployed a
WMS, only 8 percent of those WMS deployments were
cloud-based.
At first glance, that low percentage is somewhat
surprising given all the trumpeted advantages of cloud
computing. And those advantages can be significant.
For one thing, because the software provider hosts the
applications on its servers, the user avoids the expense
of hardware needed to run the solution. For another, since the software can often be “rented,” the user
avoids a hefty upfront expenditure on licensing fees.
Furthermore, because the software provider assumes
responsibility for upgrades, the user avoids the costs of
software updates and maintenance.
“We’re seeing a lot more customers saying they’re
open to a cloud-based WMS,” says James T. McNerney,
a principal with New Course LLC, a systems integrator
based in Toledo, Ohio. “They can ‘buy’ it on a sub-
scription basis [instead of paying a licensing fee] and
get a quicker ROI [return on investment].”
For the reasons cited above, a company that oper-
ates multiple warehouses or DCs might find it makes
sense to use a single cloud-based application that can
be accessed by multiple locations. But it’s important
to keep in mind that although one cloud-based WMS
can oversee more than one warehouse, it still has to
interface with the sophisticated material handling
equipment used in each of those facilities. And that’s
the rub. Configuring the WMS to exchange informa-
tion with equipment or other software programs used
in the warehouse requires the involvement of an inte-
grator to build those data connections.
“Systems integration requirements are the same
regardless of whether the WMS application is installed
on-premise or in the cloud,” says Al Reigart, a principal
at the York, Pa.-based consulting firm St. Onge and the
current chair of MHI’s supply chain execution systems
& technologies group. “The WMS application either
has the “hooks” [application programming interfaces]
for the required connectivity or it does not. If it does
not, the integration will require that additional imple-
mentation services be performed by the provider, a
systems integrator, or the client/owner.”
As for what’s involved, consultant Marc Wulfraat
says there are six components to any systems integra-
tion project, regardless of the type of WMS involved.
First, there’s the task of writing interfaces between
the WMS and other software applications, such as an
enterprise resource planning (ERP) system, a TMS, or
a warehouse control system. Second, the WMS must be
modified to accommodate the specifics of a particular
warehouse operation. Third, a database must be set
up for the WMS. Fourth, the system has to be tested
and validated. Fifth, it has to be rolled out. And sixth,
workers must be trained to use the system.
These steps are necessary whether the WMS is based
in the cloud or installed on the company’s servers, says
Wulfraat, who is president of the Montreal-based consulting firm MWPVL International Inc. “None of these
six components are really changed, and they make up
the lion’s share of work that needs to be done as part of
a WMS project.”
NO LESS WORK
Given that a cloud-based WMS generally requires the
same amount of integration work as its on-premise
counterpart, that’s unlikely to be the deciding factor
when companies go to choose a software delivery
model. For his part, Wulfraat believes that companies
should opt for a cloud-based WMS in only two situations. Small and medium-sized companies should go
“cloud” when they need a WMS but lack the internal
resources or capital to deploy a system, he says. Larger
companies should select a cloud solution when they
need a WMS for multiple sites and want the efficiency
of managing the WMS infrastructure through one
access point.
Regardless of the company’s size, one of the main
advantages to going the cloud-based WMS route is that
the vendor handles software upgrades, Wulfraat continues. “The cloud-based benefits come in on the post
go-live effort where system upgrades are performed by
the vendor instead of by the client,” he says.
