The many benefits and few cons of a SaaS warehouse management system

What are the advantages of installing a SaaS warehouse management system?

Freeing of IT burden. A key reason why many warehouse managers select the SaaS warehouse management system model is that their data is secured at a centralized location and monitored by IT experts that look after routine back-ups, upgrades, modifications, installations, security and on going maintenance. This means there is no need to purchase and maintain server hardware, adding additional cost to that already spent on RFID equipment, barcode scanning devices, and other technologies for the warehouse.

Easy to use. SaaS and web-based warehouse management systems are easier to use, which is an advantage as most warehouse operatives lack IT experience. Since the user interface is essentially a web page, the user experience is not dissimilar to a domestic purchase online, so a SaaS or a web-based warehouse management system is familiar territory to most warehouse users.

Remote access. Many warehouse managers value being able to access their warehouse management system when away from the office. SaaS warehouse management system users can access their system from any location with Internet access.

Subscription payments. Smaller businesses benefit from the subscription structure model of the SaaS  warehouse management system. Most on-premise systems command significant, up front capital expenditure. SaaS subscription pricing means that the upfront costs are low and spread out over time, helping SMB’s with cash flow. In other words a SaaS warehouse management system is an operational expense rather than a capital expenditure.

Speedy installation and ROI. On-premise systems can take from six months to a year just to implement, with planning and preparation. Therefore it can take many years for companies to see a return on investment (ROI). SaaS warehouse management system installations are normally up and running in just one to three months, with a ROI kicking in virtually straight away.

What are the rare circumstances when it’s not suitable to install a SaaS warehouse management system?

Unreliable Internet access. With the SaaS warehouse management system model, an internet network failure would not only be detrimental to a company’s supply chain management process but also prevent  access to data. It is fair to say that on-premise systems can also go down through electrical or hardware failures.

Complex customization. Because SaaS warehouse management systems are normally designed to serve multiple warehouses from asingle, centralized code base, traditionally there have been less options for complex customization. However this is changing as SaaS warehouse management system vendors build increasingly more sophisticated and advanced configuration capabilities.

Sensitive data. By definition most warehouses deal with sensitive client information, whether customer or product-related. Understandably, these businesses are often wary of data security. However SaaS warehouse management system providers are very experienced with data protection.

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