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Analyzing ROI: Comparing WMS Consultant Costs to Potential Savings of Optimal WMS Selection

Comparing WMS Consultant Costs to Potential Savings of Optimal WMS Selection

When it comes to Warehouse Management System (WMS) selection, the decision made today can reverberate for a decade or more. Given the long-term impact, it’s crucial to approach the selection process with due diligence and precision. This is where hiring a WMS consultant can offer invaluable benefits, not only in terms of cost savings but also in ensuring the selection of the most suitable WMS solution.

At MODEX 2024, a panel of experts from the Brecham Group , Bricz, enVista and Made4net, identified three key ways the cost of hiring a WMS consultant can lead to saving big dollars.

  1. Cost Avoidance through Negotiation: One significant way in which the cost of hiring a WMS consultant can lead to cost savings lies in the negotiation process. As Chris Dahm Director at Brecham Group explains, vendors often offer better pricing when a consultant is involved in the selection process. This can translate into substantial cost savings for the company, as consultants leverage their expertise and industry knowledge to secure favorable terms and pricing. By facilitating negotiations, consultants help companies avoid overpaying for WMS solutions, ensuring that they receive the best value for their investment.
  1. Risk Reduction and Peace of Mind: Tyler Linderman, Vice President, Strategy & Growth at Bricz, underscores the importance of taking the time to do it right the first time when selecting a WMS. Hiring a consultant enables companies to conduct thorough due diligence, explore all options, and make informed decisions. This not only reduces the risk of project failure but also provides peace of mind to the leadership team. Consultants, with their depth of experience and industry insights, guide companies through the selection process, ensuring that all factors are considered and evaluated meticulously. By de-risking the project upfront, companies can avoid costly mistakes and setbacks down the line, paving the way for a smoother and more successful implementation.
  1. Completeness and Confidence in Decision-Making: Another crucial aspect where the cost of hiring a WMS consultant pays off is in the completeness of the selection process. Amit Kirpalani, Vice President, Supply Chain Solutions at enVista, emphasizes the importance of having a complete Request for Proposal (RFP) to ensure that companies have the right solution tailored to their needs. Consultants play a pivotal role in crafting comprehensive RFPs, addressing all functional requirements and potential customization needs. This detailed approach not only helps companies avoid costly customizations and extensions in the future but also instills confidence in the decision-making process. With a thorough understanding of the market and vendor landscape, consultants guide companies in selecting the most suitable WMS solution, ensuring that it aligns with their long-term goals and objectives.

All panelists agree that while the cost of hiring a WMS consultant may seem like an additional expense upfront, the potential cost savings and benefits that result from selecting the most suitable WMS far outweigh this initial investment. Consultants bring expertise, negotiation skills, and risk mitigation strategies to the table, enabling companies to make informed decisions and navigate the selection process with confidence. By leveraging the insights and guidance of experienced consultants, companies can optimize their supply chain operations, drive efficiency, and position themselves for long-term success in an increasingly competitive market landscape. You can access the full panel discussion recorded live at MODEX 2024, here.