The market has many supply chain technology vendors who each claim to offer the best service and packages. However, how do you know which one would be finest and tailored for you and your business? How do you also make certain that it’s not all just a ploy to waste your money? Today we look at the answers to these questions along with what mistakes to avoid when selecting systems and new technologies to implement in your organization.
Software may be difficult to modify and own in-house
Modifications at one stage were easy to implement and manage but that has changed with many vendors keeping their applications closed sources. That means usage, distribution and modification of the software is restricted. For software providers to improve upgradability of systems and preservation of consumers, they have cleared off of invasively modifying code and have now moved to a model that includes standardized “hooks” and “events”. Keep in mind that the quantity and placement of these said hooks/events differ by vendor and application, making it difficult to tell whether or not they will be suitable for customization until a full analysis takes place. Quantifying the total cost of ownership (TCO) of a suggested system modification is something that’s not easy as modifications make it a challenge to predict increased costs of testing, supporting and upgrading.
Description on a time and material basis is problematic
The total cost of ownership, in addition to predictable license and subscription fees, is drawn up from the service costs that are associated with implementing, supporting and upgrading the system. After that you get services such as designing, configuring and testing the software that are often based on a time-and-material (billable) basis. Services in relation to fixing software defects on the other hand are handled on a non-billable basis as part of the maintenance and support agreement. Vendors may let you know that the same people will be responsible for both billable and non-billable efforts extended and this unclear description could lead to additional overhead trying to make certain that you are not being billed for effort that should have been non-billable as your contractual agreement has stated.
Differences in multi-sites rollouts may lead to delays
When selecting supply chain technology, scalability is another pitfall to look out for. Differences in building layout, operational processes and Material Handling Equipment otherwise known as MHE, can lead to dissimilar design and configuration. The consequences of such differences are additional work, unnecessary delays and additional costs. TechTarget explains that when researching, selecting or implementing new supply chain technology, stakeholders need to make certain that the technology is compatible with the systems across multiple sites and point out possible delays and risks before deciding on anything.
Software talking point may obscure speed of use constraints
Although software vendors aim at meeting the needs of warehouses, the complexity of this day and age’s supply chain technologies may prove to be yet another challenge. Software talking points like ease of implementation and ease of access through web-based interfaces may seem to be what a facility needs. Nevertheless, the nature of web-based applications may cause slower processing capabilities as opposed to older technologies. Therefore individuals involved in IT decision making should not avoid older technologies as they may work key functions faster than newer, more visually appealing systems.
Now that you know what mistakes to avoid when selecting supply chain technologies, find out the FIVE Tips To Keep Your Supply Chain Cyber Secure!