Content thumbnail 3PL Guide to Calculating ROI for Warehouse Management System Software
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Introduction Choosing the right technology for your warehouse is critical to thriving in today’s supply chain. Even if you have chosen to implement a warehouse management system (WMS), you may still be wondering how long it will take to pay for itself or what your return on investment will be. WMS software charted as the most implemented technology by third-party logistics (3PL) warehouses at 87%, an unsurprisingly high metric given the operational efficiencies the software creates. However, technology implementation and integration for new software ranked as the fourth largest obstacle for 3PLs this year at 41%. For many, the central challenge of technology adoption is the perceived cost; but many times, this ignores the return on investment (ROI) from implementing new technologies. Typically, implementing a new WMS will quickly recoup those costs and drive profits. In many cases, organizations experience ROI of greater than 300% in the first year. In fact, many warehouses are reluctant to implement a WMS because of the perceived cost, including the time required from key personnel. However, without building a business case and projecting potential savings, warehouses will miss out on increased profitability and efficiency. This guide will enable you to quantify how much time and money your 3PL warehouse can save each month by utilizing WMS software. More importantly, with this information you will learn how implementing a WMS will provide a significant return on your investment, improve customer service, and increase profitability. extensiv.com | 833.983.6748 3

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