Cloud-Based Warehouse Management Solutions (WMS).

Warehousing has evolved significantly in recent years. As businesses face growing pressure to improve inventory accuracy, speed up fulfilment, and gain better operational visibility, warehouse technology has become more important than ever. One major shift has been the move from traditional on-premise warehouse management systems (WMS), hosted on internal servers, to cloud-based warehouse management solutions delivered through a Software-as-a-Service (SaaS) model. By hosting applications in secure data centres, cloud-based WMS platforms provide businesses with greater flexibility, scalability, and easier access to warehouse operations across locations.

Advancements in technology in the 21^st century has changed the way we live. Warehouse operations have also been disrupted in a big way by today’s technological advancement. Major innovations in technology that had a big impact on warehouse operations and have changed the face of warehousing. Some of these include, software that can manage warehouse operations, RF scanning technology and RFIDs, automatic conveyor systems, robotics, the development and improvement of voice recognition and the internet of things (IoT). Today some big warehouses are fully automated, and no human intervention required. With this pace of innovation, the day is not far off when 100% warehouse automation will be in the reach for smaller warehouses as well.

Pros and Cons of Cloud-Based WMS

There are a few pros and cons of using cloud-based software. Some of the pros of using a cloud-based WMS solution include:

Pros of Cloud-Based WMS

1. Accessibility: One of the core advantages of cloud-based WMS by design is the ease of access. Being hosted in the cloud (data centre) makes it easy for users, management and external partners to access the software. It also makes it comparatively easier for business to roll out the WMS to a new warehouse anywhere on the globe. Generally, cloud-based solutions only need a web browser to operate. This means they can be used on any operating system like Windows, Mac or Linux.
2. Scalable: As cloud solutions use a subscription model, businesses can choose to subscribe to only the modules and functions they intend to. The cost of licencing is generally based on the modules and features that the business is using. This makes it easier for business and start-ups to start with fewer modules and features with a minimum start-up cost. Later as their operations grow, they can easily subscribe to more features and start using advanced features.
3. Initial investment: Subscription billing significantly reduces initial investment for businesses. They do not need to buy upfront software licences and servers to host the software when they implement a cloud-based WMS solution. Hence this reduces the overall implementation cost. However, businesses still need to invest in consultant engagement and user training.
4. Cyber Security: Generally, a cloud-based solution is hosted in a data centre. These data centres are managed by Global leaders like Amazon (AWS), Google, Microsoft. Applications and data hosted on these platforms are better secured than an on-premise alternative. Data centre companies continually invest a portion of their recurring revenue into cybersecurity and hence keep the application and data well protected from the latest security threats.
5. No Hardware Maintenance: Companies hosting their servers in-house, must spend a significant portion of their annual IT budget on the maintenance and security of their infrastructure.  Using application hosted in the cloud, enable businesses to avoid having big internal IT team to maintain in house servers and network infrastructure.
6. Rapid implementation: Agile software implementation approach allow businesses to rapidly implement and use WMS solutions. The subscription model of WMS solutions allows businesses to start using only essential required modules and features of a WMS Application. As the business grows, they can subscribe to more modules and features and start using them.

Cons of Cloud-Based WMS

Every evolving technology come with few shortcomings as well. Cloud-Based WMS solutions do have few points to be considered and discussed by businesses before implementing them. Some of those points to consider are as follows:

1. Required Internet: One and foremost requirements to use any cloud-based solution is to have a good internet connection. Applications hosted in the cloud generally optimised data transfer between client and servers hosted in the cloud. Still, there is a large volume of data transfer takes place between the client and the cloud servers. It is essential to have a good internet connection. Slow Internet connection makes the application slow and sometimes unusable. That being said that, there is good progress in terms of internet coverage around the world in recent times. Most Australian businesses would now have access to the National Broadband Network (NBN) and now we are looking forward to 5G technology with the promise of a faster and more reliable internet connection. This will make cloud-based WMS Solutions attractive for more warehouses.
2. Subscription Required – the subscription model for cloud-based WMS software allows businesses to save on the initial implementation cost. However, in the long run, the subscription cost can end up being more expensive.
3. Limited Business Specific Customisations: The most significant of all limitations for using a cloud-based solution is the limitation on customisation. Every warehouse has unique requirements. Cloud-based WMS solutions provide lots of configuration that enables a consultant to configure solution as per the business need. However, it limits a consultant, where they can change the core application logic to achieve what the business requires.

Nevertheless, the shortcomings of cloud-based emerging technology will be overcome as the technology matures. In the last few years, we have seen enormous improvement in cloud technology. Internet coverage and bandwidth are getting better and better. The cost of hosting an application on a data centre has been reduced significantly and is estimated to become more economical in the coming years.

In any case, the business warehousing requirements should be scoped out in detail before considering on-premises or cloud WMS Solution. Selecting the right, efficient and cost-effective solution is often a competitive advantage for the business.