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Logistics Tech Investment Guide

The document discusses whether a team should implement a Warehouse Management System (WMS) and Transportation Management System (TMS) for their supply chain operations. Implementing a WMS would optimize storage space, reduce costs, improve inventory tracking and customer service. A TMS would automate tasks, improve visibility of shipments, and help optimize transportation processes. While WMS manages internal warehouse operations and TMS manages external transportation, implementing both simultaneously could provide a holistic view of operations through integrated reporting. However, the systems are not the same so their reports would not be identical. Adopting both could improve processes and require suppliers and transportation providers to follow new reporting standards. Overall, implementing WMS and

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241 views3 pages

Logistics Tech Investment Guide

The document discusses whether a team should implement a Warehouse Management System (WMS) and Transportation Management System (TMS) for their supply chain operations. Implementing a WMS would optimize storage space, reduce costs, improve inventory tracking and customer service. A TMS would automate tasks, improve visibility of shipments, and help optimize transportation processes. While WMS manages internal warehouse operations and TMS manages external transportation, implementing both simultaneously could provide a holistic view of operations through integrated reporting. However, the systems are not the same so their reports would not be identical. Adopting both could improve processes and require suppliers and transportation providers to follow new reporting standards. Overall, implementing WMS and

Uploaded by

Sam Law
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE 2.1 TO INVEST OR NOT TO INVEST?

THAT IS THE QUESTION

Zayar Zaw Win & Sai Thiha

IES (International Executive School)

Intro to Logistics
1. Should the team take into account any other costs or benefits from implementing the
WMS? If so, what are they?

The advantages of the WMS include:


Optimisation of the storage area,
Reduction of storage costs,
Reduction of fixed assets thanks to the resizing of stocks,
Analysis of consumption in relation to seasonality,
Reduction of preparation errors,
Traceability of flows in real time,
Increase in the service rate.

Other Benefit
Better customer service
Real time inventory
Helps to maintain a proper balanced inventory
Reduce over stock and de creased understock
Improved shipping accuracy
Reduce direct operation cost and increase overall revenue.
Other Cost
Long term costs
User education and training cost
Technical support cost
Cost associated with current, and future customize needs
Upgrades

2. Should the team take into account any other costs or benefits from implementing the
TMS? If so, what are they?
The benefits of TMS include:
Automation of tasks,
Improved traceability of goods and deliveries,
Optimisation of processes and delivery means,
Standardisation and clarification of information for better communication with drivers,
Better management of delivery priorities, multimodal transport, potential load breaks and
export constraints,
A more global vision of the whole activity in order to identify potential dysfunctions and to
remedy them more easily.

Increase service to customers


Potential to pool inbound shipment to reduce costs
Inventory reductions
Cash flow improvements
Improved efficiency on inbound shipments
Improve warehouse efficiency
Higher possibility of return to investment

3. What are the advantages and disadvantages of implementing both technologies


simultaneously?

Advantage
As of WMS is the internal management of the Warehouse.
TMS was mainly external management of the Warehouse.
If both technologies are simultaneously together it will be good to analyze and overview
upon the report.

Disadvantages
WMS and TMS are not the same system thus the two report will not be the same.

4. If both technologies are adopted, what changes, if any, should occur in the relationships
between Pallotta’s firm and his suppliers of components? His transportation providers?

If both technologies are adopted it will change the company’s continuous improved
processes. In reporting, monitor, analyze the strength and week nest of the company. And
improve the transportation time and the supplier of components also can follow-up.

5. What would you recommend the team decide to do? Why?


According to the Supply Chain Management System WMS and TMS was important and easy
to track, analyze ,monitor, report I recommended the team to adopt the system to the
company. It can effect more efficiently and systematically for the company.

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