Cost Benefit Analysis

Cost Benefit Analysis from Proteus Software Limited

By: Proteus Software Limited  19/08/2014
Keywords: warehouse management systems

Proteus has designed a Cost Benefit Analysis as an aid to selecting which is the best and most cost effective method of Warehouse Management System for warehouse operations. PROTEUS® Warehouse Management Systems can be delivered in three options to the end user; Paper Based WMS, RF Scanning and Voice Picking, with each method having its own benefits. It can also operate as a Multi -Mode Solution with all three options present in different areas of the same warehouse. Dependant on the type of warehouse operation; the picking methodology, the frequency of picks, and the size of the operation will govern decisions made for the most suitable system for clients to employ. Utilising the Cost Benefit Analysis Grid, it is a straight forward process to calculate operational costs, in terms of time and money for each system option based on the following criteria: • Number of Warehouse Operatives • Number of Picks • Number of Order Lines The criteria are then cross referenced with the type of task: • Put-away Tasks • Replenishment Tasks • Picking Tasks It is possible to view costs per pick, costs per operative over a 12 month period, and can be a valuable insight to ways to cut operational costs. The analysis is a great indicator to which system is the most cost effective to operate, and whilst you might think that paper based WMS is the cheapest, it may well be more effective to use RF Scanning, although initially the investment will be more due to scanning equipment and network infrastructure, it will often deliver a complete ROI within 18-24 months, even faster in many situations.

Keywords: warehouse management systems

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