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In response to pressures brought on by the omnichannel revolution, more and more retail distribution leaders are questioning whether their legacy warehousing software can keep up with the times. To help manage today’s bustling retail fulfillment operations, most DCs rely on warehouse management systems (WMS) to track inventory, manage order picking, and oversee tasks like shipping and replenishment. Like a reliable family car, the typical WMS may not be flashy, but it helps make sure the goods get from point A to point B. However, the retail industry is changing fast, and the repercussions are being felt all the way back to the distribution center. For one thing, the advent of omnichannel commerce has changed the game where many DC operations are concerned. Facilities that were set up to handle store replenishment are increasingly being tasked with processing high volumes of direct-to-consumer orders. It doesn’t help that online giants like Amazon.com Inc., Target Corp., and Walmart Inc. keep raising the service bar, conditioning consumers to expect same-day order processing and up-to-the-minute order-status information. A specialized WMS can help meet those rising demands, but the decision to launch a major software overhaul isn’t one to be taken lightly. So how can DC managers tell when it’s time to petition their boss for a brand-new WMS or at least to upgrade their trusty old software? As is so often the case, there’s no universal answer. The timing will depend on each operation’s individual circumstances. A SHIFT IN THE MIX In the past, some customers have dealt with the issue of competing fulfillment demands by running two WMS systems in the same building, says Chris Shaw, director of product marketing and analyst relations at software developer Manhattan Associates. One system would handle wholesale orders and store replenishment, while the other managed direct-to-consumer […]
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