In this week’s interview, D4M’s Erick Sanchez lists the 6 things you need to know before implementing a WM system from licensing to the use of scanners to project requirements.
A great talk if you’re just starting your Warehouse Implementation (or upgrading) journey!
Gene: Thus far, we’ve talked a lot in terms of generalities with regard to what software should be used under what situation. So, let’s switch topics a little bit and get to the practical logistics of doing such an upgrade.
Gene: Out of curiosity, let’s just say a client comes to us and wants us to upgrade their Warehouse Management system to Extended Warehouse Management System. What do people need to know when upgrading to an EWM system in practical and/or technical terms?
Eric: First off, they need to be aware of the licenses they need to buy. Whether it is included or they already bought a license, or what have you, you need to be a aware of the necessary licenses.
Eric: Second, the customer needs to know about timing; meaning that the effort that this kind of migration will impact in the operation, in the cost.
Eric: Third, need to know how many people will operate the system because sometimes you have only three people operating or doing all the internal operations in the warehouse. Depending on how many users require the software will change the installation AND operations cost. For example, a small company of three may only need to buy probably only one or two licenses or something like that.
Eric: Fourth thing they need to consider: size of company versus what you will in terms of manufacturing. For example, if a very small customer is asking for an installation, they probably don’t need all the capabilities from the EWM module, like yard management, resource management, etc.
Eric: Number Five: they need to know that if they will use scanners or not. For the uninitiated, a scanner means is an extension of your system that is able to move inside the warehouse without a computer or laptop. Your scanner is an extension of your computer’s capabilities; that means you can do all the same activities that you are doing in the scanner on your computer and vise-versa. So, if you don’t need the scanners, you don’t need to buy them in the same way that if you don’t need to relabel every single palette when you are receiving shipments from the supplier, you probably don’t need to implement Warehouse Management module.
Eric: Lastly, as I mentioned, some customers that want to have a basic control solution from a Warehouse Management System, they are still deciding to implement the normal Warehouse Management Module; even when we know that there is only three years having an SAP support directly from SAP company.
Eric: I’ve had clients in the past say, “I don’t care if my solution is very basic. I just need to be able to put away my pallets inside my warehouse and have a simple report where I can see how all of my storage bins are situated such as which bins are empty, which bins are full, and that’s it!”
Eric: And these companies know full well of the 2028 SAP deadline where the organization will cut all support for their legacy software, because I have trained personnel who will be able to solve any problems in their operations.
Eric: So, in the end, let’s say I want to implement warehouse management, right? If you’re a small company that wants results quickly, you go with WM. But, on the other hand, if you’re a customer that has huge production plants, or even an OEM, those are the organizations that really need the EWM.
Eric: For example, I was implementing a warehouse management module in a plant in South Carolina for an OEM, right? In this case, the manufacturing plant was building the seats for trucks. This final customer was an OEM and they made it mandatory for this manufacturing plant to have a Warehouse Management System. They don’t care which Warehouse Management system could be the WM module inside SIP could be a totally different Warehouse Management system.
Eric: But, since this production plan already had the SAP system implemented, the most common thing is just to implement the Warehouse Management system or to activate the Warehouse Management Module.
Eric: Since it was a mandatory request from the final customer, in this case, an large OEM, if we didn’t implement the WM module, then it would fracture the relationship with an OEM who would take their business elsewhere.
Eric: So again, it depends on what the customer really wants – regardless of potential advantages or disadvantages – in order to solve all their concerns, right?
Eric: But, keep in mind, the larger and more complex the system, the more staff you will need to compensate for that, right? For a robust module inside the system, you need to have warehouse supervisors and warehouse leaders and hire a few great receiving clerks and so on. So, the end client needs to be aware on that.
Eric: Don’t forget, no matter what choice you pick, the EWM module has different tools to help to migrate your data that is as transparent as possible for the operation/system! For example, there is a tool that can convert your current Warehouse Management Information (such as your master data for example) and this tool can convert to the new EWM required master data!
Eric: There is also a tool that can help you to migrate your current stock from the normal WM module to the new EWM module!
Eric: But, for sure, you need to be sure that the people, companies, or consultants that are migrating you to the EWM module are experienced people. Otherwise, the process could be a long and drawn-out nightmare.
For more interviews/success stories, be sure to check out the official D4M International YouTube page!
D4M is a privately owned company specializing in leveraging digital technologies to accelerate manufacturing clients to their transition to Industry 4.0. With long tenure and hundreds or successful projects, we are confident that our approach and experience provides the roadmap to help bring clarity and efficiency to your manufacturing operation.
To find out how we can help with your SAP environment, or to learn more about how we rolled out SAP to 60 locations in 60 months, reach out to us today. Contact form and office numbers listed below.
We look forward to partnering with you soon!
