Choosing the Right Technology

Warehousing and Distribution.  To the layman, this little phrase has a complex “industrial” ring to it but in reality, the concept is simple: store a box, sell the box and then ship the box. 

Couldn’t be easier right?

In today’s economy, that simple process has become a challenging one as small and medium-sized businesses struggle to find the right balance between cost and efficiency.  Do you store your inventory in-house for example, or do you send it offsite?  Is it cheaper to import your products to the East Coast or should you instead look to the West?  How will you handle fluctuations in your sales?  Is there a way to meet your goals without sacrificing profits in employee expense?

Many businesses are turning to technology for answers but the wrong system can do more damage than no system at all.  How can you choose the right technology?

First you need to review your business needs:

• What are the current challenges you are having difficulty overcoming?
• Do you currently have the processes in place to address them operationally?
• Does your current technology have the ability to be part of the solution? If yes, how?
• If not, what are the gaps that need to be covered?
• Are there software solutions out there that have a greater chance of helping resolve your challenges? How do you decide which one is right for you?
• Do you have the right personnel on board to help you to make the migration?
• Would you be better off looking to an outside source for guidance down a path that is new for you but which they have gone down many times before?
• What will the cost of this migration be? Where will the ROI come from?
• How long until you see those returns?

A lot of questions to the uninitiated but obvious and routine thought process to the expert.

Flexibility

A good software program can grow as you grow.  What might be an ancillary service or product right now could later become the core of your business.  Will your software be able to adapt?

Compatibility

Is the software exactly what you need or will it have to be tweaked?  How does the vendor handle customizations to their package?

Guidance

While the vendor might want to please you, the last thing you need right now is a Yes-Man.  Look for vendors that aren’t so blatantly agreeable all the time.  While you don’t want someone to argue with everything you say, you do want a consultant who will tell you like it is.  You’ll be thankful for their honesty down the road.

Cost

Let’s face it: industrial software programs aren’t cheap.  But the cost of your new technology should always fit with your company’s financial picture.  If buying a new software package means putting your company in the red, think again.  It’s just not worth it.