Monday, September 28, 2009

Buying a WMS in an M and A environment

With quite a few mergers & acquisitions in the WMS space during the recent months, I was wondering what should be the strategy for companies planning to implement a WMS?
Also, for companies that have already implemented these packages, what should be their strategy with respect to upgrades, support etc.?
Full Article:

Adapted from a response by Jim Willems on 10/03/2008. I believe that if a company completes an accurate selection process (meaning they buy a system according to their needs not their desires) and they structure the contract terms correctly, the consolidation of the WMS industry should be minimal. In my experience most clients are looking for a 5 to 7 year life from their WMS - meaning their system should be up and live prior to their vendor being purchased. Most acquiring firms are not going to immediately change anything, allowing for the client to get even closer to the point of their systems live expectancy. If the new vendor does significantly changes to the culture, pricing, and system the client should be at a point of having their ROI and able to move to a new system if needed.

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