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WMS in the Foodservice Distribution Center

The importance of going through a rigorous process when selecting a WMS for your distribution center
by

LIDD

on 24 October 2013

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Transcript of WMS in the Foodservice Distribution Center

(514) 933-8777
contact@lidd.ca
@LIDDsci
www.lidd.ca
Warehouse Management Systems
in a Foodservice DC
How to select and implement a winning system
John Doe Foodservice
The CEO
Wakes up, makes coffee and sits for five minutes to read the paper
Two questions come to the CEO's mind:
The headline story hits close to home:
The CEO makes a decision
"We need to become market leaders in traceability"
Get project members from IT, finance, purchasing and operations
Launch a task force
Field-to-fork traceability
Lot Tracking
Define real needs
Identify solutions and costs
Surgical, Rapid Recalls
Current systems does not support traceability
Team reports findings
Team recommends a new WMS
Shopping for a new WMS
Clearly Define Needs
Identify Potential Solutions
Create & Issue Request for Proposal
Shortlist Solutions for On-Site Demo
Due Diligence
Identify Potential Solutions
5 - 10 potential bidders
Food experience
Create & Issue RFP
Clearly define needs
Create a “Desired State” document
Short-List for On-Site Demos
Evaluate using Standardized Scoring Model
Understand Pricing Sensitivity
Weigh Results vs. Soft Issues
On-Site Demos
Each vendor should be given at least 6 hours
Provide a demonstration script to vendors
Product rotation
Catch weight
Cold chain
Traceability
Lot control
Foodservice track record
Integration with your ERP system
WMS module within your ERP
Tier 1 WMS suppliers
Primary qualifiers
Desired State Document

Functional Questionnaire

Vendor Profile

Fixed Format Pricing
Score according to demonstration script
Soft issues matter: trust, confidence, interest
Limit vendor introductions to 15 minutes
Understand Pricing
Licenses
Implementation
Support & Maintenance
Upgrades
Due Diligence
Visit site references
Follow up on outstanding issues
Visit vendor offices
Implementation
pitfalls

Most DCs Don’t Fully Leverage Their WMS
Under-resourced
Integration & system modifications
Not fully understanding functionality
Successful Implementations
Set Go-Live Dates that are Realistic and Aggressive
Measure Progress Ruthlessly
Prepare to Compromise
Invest Time to Ensure Quality Data
Identify Super-Users up-front
Eliminate poor responses

Keep top 3 or 4 potential solutions
Map out processes that require WMS support
Re-engineer processes as necessary
Capital is precious.
Make better decisions.
What goes
WRONG
if the
selection process
ISN'T
rigorous?
The Outcome
Permanent functional disabilities
Always in the next upgrade...
The Costs
Implementation
Service fees explode
Unsuccessful partnership with vendor
Ongoing operating penalties
Folks in the neighboring state got sick from eating dirty salad
"Do we know if we shipped that salad?"
"If we did, what would we do?"
Hardware
ONE-TIME
ONGOING
Basic set-up & configuration
Presented by Charles Fallon
principal at LIDD
Full transcript