Modern Materials Handling - November 2012

with small adjustments to the system.They are distinct from an upgradeinvolving increased functionality suchas voice or a labor management module,or a change-out event such as anew WMS implementation or supplier.That said, upgrading an old WMScan look very much like a new implementation,according to Tom Kozenski,vice president of product strategyat RedPrairie. Aside from businessexpansion, a few key reasons could justifyan upgrade, Kozenski says. If thetechnical underpinnings—the server,the database or the layered products—are going out of support, a customercan reduce future maintenance costsby upgrading.Many companies are proactivelyinstalling the capability to comply withinitiatives like e-pedigree in the pharmaceuticalmarket or the product traceabilityinitiative (PTI) in food handling.In these cases, a company reduces risk,says Kozenski, and can use that as a differentiatorto win new business.Softer compliance pressures canalso come into play, according to ChadCollins, chief marketing officer forAccellos. For example, a large retailermight require pallets from smaller suppliersbe configured and labeled a certainway. “Those compliance requirementsdrive small- and mid-sizedbusinesses to adopt or update WMS,”says Collins. “Retailers continue to beaggressive about squeezing cost outof their overall supply chain and thatcomes back to their suppliers meetingthose requirements.”The benefits of a WMS go beyondlabeling pallets, but that doesn’t stopcustomers from implementing themto address isolated needs. A wiserapproach, says Collins, is to considerthe benefit to each application in thewarehouse. “If a customer is going toupgrade, they will be better off if theyuse it as an opportunity to re-evaluatebusiness processes.”What should I look for?The market has matured to the pointthat solutions to these challenges aremmh.com MODERN MATERIALS HANDLING / N O V E M B E R 2 0 1 2 41