Dealing with outdated warehouse management software

Published on: April 19, 2016 / Update from: April 24, 2021 - Author: Konrad Wolfenstein

Exchange or “business as usual”?

Modern storage systems now have a technical lifespan of ten or more years, during which they can be adapted to current developments. But what about the control software? It's hard to imagine that a company can operate successfully on the market with ten-year-old software. Logisticians are therefore faced with the question of whether and when there is a need for action, even though the hardware will continue to function efficiently for a few more years.

Outdated warehouse management software that only inadequately meets the requirements for process efficiency and no longer fits into the modern network world: definitely a scenario that affects many companies. Nevertheless, the risk of switching the system to a modern software solution is often avoided. This is not surprising, as implementing new warehouse management software can be a headache for many logisticians given their large inventories with thousands of different items. Even after the changeover, all items must of course still be recorded by the system and - at least just as important - be able to be found for provision or inventory.

Warehouse management software: old vs. new

There are a number of understandable reasons why IT managers shy away from the task of replacing their old logistics systems with new warehouse management software. These include unclear technical requirements, fear of downtime, lack of technical or human resources or simply the time and cost of a new implementation. That's why many companies continue to use their outdated software to control the provisioning systems, even though it no longer fits into the new network world. This creates isolated island solutions that make it difficult to efficiently manage the organization, control and administration of overarching processes. If the integration of a new SAP module or the exchange with the WMS causes problems, efficient use is hardly possible. Many logisticians have recognized this and are therefore rethinking their logistical processes.

But implementing new warehouse management software requires extremely careful preparation, especially when there are large inventories. In addition to clarifying time capacities and investment costs, the intralogistics structures and processes as well as the warehouse layout and structural conditions must be taken into account. Last but not least, it must be ensured that the new control system harmonizes optimally with the existing storage system. For this reason, it makes sense to implement the new software in close coordination with the respective manufacturer of the storage equipment. Ultimately, in addition to their own logistics and IT expertise, they also bring in their extensive experience in comparable projects in other companies.

Step 1: Which software for which requirements?

At the beginning, a process analysis is carried out by the specialists on site in order to get to know the circumstances and to determine needs and requirements on the customer side. The findings are then incorporated into a test system for the manufacturer's warehouse management software. For example, Kardex Remstar, a producer of dynamic storage and retrieval systems, offers customers of its devices the opportunity to test them with Power Pick Global, the current control system from Kardex Remstar.

After initial training and instruction, warehouse employees and those responsible for intralogistics then use the test system to map their daily working environment - ideally in a practical manner and daily over a certain period of time. Afterwards, a workshop takes up the experiences gained. The requirements specification with any customer-specific adjustments is derived from the results, which forms the basis for the commercial offer. Depending on the project size and available resources, the project duration will be determined after completion.

Two systems or one?

The next step depends on the outcome of the shared decision-making. Depending on the structures, processes and IT system landscape, Kardex Remstar offers its customers different software solutions. For example, with outdated warehouse management software and a new SAP, the question arises: Should the company implement the new software in such a way that it works subordinately with an SAP solution that is already used in the company? In this constellation, an interface transfers all warehouse-relevant orders from SAP to the control system (and receives them back for confirmation and inventory comparison). The warehouse employees therefore have to operate two systems in parallel, but can use all the advantages of the new warehouse management software (LVS).

Another possibility would be for the LVS to integrate seamlessly into SAP. With this SAP-oriented solution, warehouse employees only work via the SAP interface. Of course, it is also possible to connect the LVS to other ERP software systems, for example from Microsoft Dynamics or Oracle .

No matter which solution a customer ultimately chooses, the relief of having successfully tackled the delicate issue outweighs the problem. Because the results are clear: more efficient processes and a better material flow in the warehouse clearly show that the effort pays off relatively quickly. Depending on the number of items, throughput and capital tied up in the warehouse, the return on investment (ROI) of a maximum of one year is calculated for the renewal of the warehouse management software.