What do we mean by “customizing” a WMS?
When we talk about WMS customization, the term “specific developments” often comes up.
Customizing a WMS means asking two questions.
First, does the standard version of the software already meet your needs and allow you to achieve the expected productivity gains?
Second, if the answer to the first question is no, should you develop a custom program—i.e., a specific development—for a business activity that the standard version doesn’t cover?
Before we go any further, here are some points to help shape your thinking:
- A mature WMS is already highly configurable. Opting for a standard version will also be easier when it comes to Third-Party Application Maintenance (TPAM).
- It might be worthwhile to go down the specific development route if it acts as a differentiator for your value proposition. A specific development isn’t necessarily a negative thing if it adds momentum to your business.
To get WMS customization right, you’ll need to follow certain rules. Read on to learn more.
Customizing your WMS: When is it really the right option?
Customizing a WMS isn’t a bad idea in itself. But having too many specific developments won’t do your warehouse management operations—or other aspects of your business—any favors in the short or long term.
Specific developments are only a good idea if they offer tangible benefits to your logistics activities.
If a particular business functionality is a genuine differentiator that will give you an edge over your competitors, then it’s worth giving it serious consideration.
Another reason a specific development might be justified is for automating a critical task. For instance, automatic validation can save you valuable time every day.
Be careful, however, not to fall into the common trap of conflating short-term convenience with long-term gain. A task that takes you 30 minutes to complete per week might seem substantial. But if that same task only accounts for 3% of your overall logistics flows, you’re probably better off saving the money for something else.
Below is a list of real-life use cases, based on our experience across multiple customer projects, where there’s a strong argument in favor of customization:
- Automating a critical quality control process for your sector or industry (pharmaceuticals, food)
- Streamlining complex logistics operations that are unique to your supply chain (cross-docking, specific just-in-time operations)
- Incorporating highly specific hybrid stock management processes (combined physical store, e-commerce, and pick-up point flows)
- Complying with legal requirements for a given sector or market (customs, enhanced traceability)
To what extent can standard WMS software really meet your needs?
Puzzlingly, standard WMS systems tend to be underestimated.
Why “puzzlingly”? Because a best-of-breed WMS—i.e., a dedicated warehouse management system developed by a specialist vendor—can take you a long way.
And sometimes, a very long way.
These kinds of systems, developed and enhanced over the course of many years, are inherently flexible, with standard versions covering the majority of your business needs.
It’s easy to pinpoint the value these systems bring, because they avoid the often cumbersome work involved in specific developments.
A WMS of this kind can easily be scaled over time, offering you complete control over your total cost of ownership (TCO) and, importantly, eliminating the hidden costs associated with complex maintenance due to excessive customization.
Many businesses request customizations for features already included in the standard version of the software—because they either underestimate these features or haven’t properly used them. This is especially true following updates, when users aren’t aware of the newly available features and capabilities.
In the same vein, when companies switch to a more modern warehouse management system, they typically have a richer range of features at their fingertips as standard, allowing them to reconsider their specific developments (on this point, remember to review the vendor’s product roadmap).
Standard versions are therefore perfectly suited to granular stock management, combined e-commerce and physical store flows, dynamic warehouse location management, and even fully synchronous real-time data visibility—an innovative feature offered by the latest WMS systems.
As such, systems like these will cover most of your needs straight out of the box, meaning you won’t have to reinvent the wheel.
Deciding whether customization is right for fou
As mentioned earlier, when deciding whether to stick with the standard version or go down the customization route, there are trade-offs to consider. And here, it’s all a question of mindset.
Should you adapt your logistics processes to your WMS or, conversely, should you adapt your WMS to your processes?
The answer is never obvious, and you might even need to examine your flows on a case-by-case basis.
One recommended option is to hold internal decision-making workshops to review specific developments.
During these sessions, ask the following key questions:
- Does the initial reason behind this specific development still apply today?
- What impact does it have on your business activity (15% of a minor flow or 5% of a major flow)?
- What’s wrong with the workaround solution?
- Is there an alternative solution—via middleware or the ERP system—or should you simply revert to the standard version of the WMS software?
Asking these questions will give you an accurate picture of the real ROI of a customization before you make any decisions.
Let’s return to the Manitou project mentioned earlier—a compelling, real-life example backed by figures.
Manitou wanted to deploy a robust core model, with the Infor ERP system and Hardis WMS, at its sites worldwide, while limiting customizations to what was strictly legally necessary.
The firm organized a workshop of the kind described above to review each specific development request.
The team examined 45 specific developments in total (excluding printing and interfaces). Of these, 60% were abandoned. In 26.4% of cases, the feature was brought back under the standard model. Only 23.6% of the specific developments were retained.
Customization: Getting it right
At Hardis Supply Chain, we’ve handled enough WMS projects to know that a successful specific development has to follow a particular set of rules.
If you want to make sure a development delivers real value without unnecessarily burdening the WMS, keep these 3 best practices in mind:
- Consider reuse: the core model approach is always a good starting point, even if the software is only being used at one site. A specific development may be active at some sites and inactive at others. The aim of this approach is to limit future costs (more reliable TPAM), better understand the specific development, and directly improve ROI. Always think long term whenever possible.
- Maintain flexibility: there’s nothing worse than an inflexible specific development. But these developments can also be dynamic and scalable over time. They should be configurable and easy to adapt as your warehouses and flows evolve across sites.
- Be clear about the nature and purpose of the specific development: is it technical (integrating new technology or specific equipment) or functional (addressing a precise business need)? Determining exactly what the development is—and what it’s for—will give you a clearer picture of its impact during decision-making.
Questions you may have about customizing a WMS
Do we really need to customize everything? Is it worth it for 3% of our flows? What will the impact be in terms of maintenance, updates, and integration with our ERP system? Are we going to create more problems than we solve? Every business asks these questions at some point during a WMS project—and they’re right to do so. Here are some clear answers to help guide your thinking.
What are the risks of over-customizing a WMS?
If a warehouse management system is overburdened with specific developments, both the user organization and the vendor will need to keep their knowledge and skills up to date. You also run the risk of turning a system that should be agile into something inflexible—and of depriving yourself of new configuration options. To maintain stability, customizations have to be non-intrusive, because the ultimate aim is to keep your logistics operations resilient, available, and robust.
What’s the right level of customization for your logistics operations?
When it comes to optimization, thinking big picture is always better than thinking local. That’s why it’s important to take a step back. Optimizing an upstream process only to worsen an existing bottleneck further down the line won’t do much good. By reviewing all your flows and their respective impacts, you’ll get a clearer idea of whether your investment is worth it.
Can customizing a WMS affect future software updates?
Absolutely—if your vendor doesn’t have control over its WMS upgrade process. For new features to be added reliably and securely, the vendor needs to be able to handle both standard and customized non-regression testing. The more you customize, the trickier non-regression testing becomes.
What are the hidden costs of customizing a WMS?
Specific developments carry internal costs long after deployment—from non-regression testing (which not all vendors include in their TPAM service) to documentation, training, acceptance testing, and more. Businesses rarely consider these costs at the outset.
How can you successfully integrate customized WMS software with your existing systems?
The best approach is to start by laying the right technical foundations—with your ERP system, middleware, and relevant business applications. When successfully integrated, a best-of-breed WMS optimizes logistics flows, communicates with other data systems to ensure everything runs smoothly, and ultimately executes the necessary logistics operations without disrupting other systems in your organization’s IT ecosystem.