Legacy systems are typically older technology, which with time can become obsolete. Legacy WMS systems, often burdened with heavy customizations, also pose challenges in maintenance and upgrades. Over time, these systems become less flexible and more resource-intensive. Plus it is harder to find resources who can support these older technologies, as programmers are interested in modern technology.
Upgrading such systems can evolve into an extensive project, requiring a substantial investment. This shift in dynamics is a compelling reason to explore alternative options, considering the advancements made in warehouse management systems over the last decade.
The shift from on-premise to cloud-based WMS solutions is a noteworthy trend. According to Gartner research, migrating to the cloud can result in significant savings, including a 31% reduction in capital and cash expenditures, 26% savings from perpetual cloud subscription costs, 15% staff reduction, and 31% elasticity savings. Modern Materials Handling’s 2022 survey indicates a rising adoption of cloud-based WMS, with 68% of respondents either using or planning to use such solutions, a notable increase from 60% in 2021.
Factors to Consider:
Additional Considerations:
Choosing between upgrading your existing WMS and investing in a new system is a critical business decision. By weighing factors such as cost, functionality, migration ease, security, and scalability, businesses can make an informed choice that aligns with their current needs and future growth plans. Embracing technological advancements, especially the transition to cloud-based solutions, may prove to be a strategic move in enhancing overall warehouse management efficiency.