Smarter automation choices allow warehouse operations to scale and respond to business demand. In the following case study, Andrew Southgate, V.P. of Business Development, EMEA, at Lucas Systems, illustrates the benefit of adopting a more dynamic approach to automation.
Adapting warehouse operations to support business growth and fluctuating demands does not always require replacing or upgrading an entire warehouse management system (WMS) or adding large, capital intensive, equipment-based solutions. Instead, many distribution centre (DC) operators are achieving world-class performance by integrating artificial intelligence (AI)-based process optimisation tools and advanced execution software alongside their existing processes, equipment, and WMS.
This approach is not only faster, but also more cost-effective, flexible and nimble. In short, a more dynamic automation strategy. To illustrate this concept, we focus on alternatives to the replacement of the WMS, one of the core automation investments for many operators.
Enhancing core WMS functions with supplemental solutions
At its core, a WMS manages essential warehouse functions such as inventory control and order management. However, these systems are not always equipped to handle the dynamic requirements of modern warehouses. By adopting modular, best-in-breed execution and optimisation software, businesses can extend the capabilities of their current WMS. This WMS enhancement strategy offers several advantages:
- Reduced risk: operators avoid the potential disruptions associated with a full-scale WMS replacement.
- Accelerated transformation: integrating supplemental solutions speeds up the digital transformation process.
- Improved flexibility: modular tools allow for scalable improvements tailored to evolving business needs.
- Immediate access to technology: companies can quickly implement advanced tools to stay competitive.
This approach is particularly beneficial for businesses aiming to modernise their operations without discarding significant investments in legacy systems.
Real-world application: an apparel retailer’s success story
A notable example of this strategy in action involves a Lucas Systems customer— a leading multi-channel retailer specialising in women’s apparel and lingerie, with over $1.75 billion in annual revenue, established a state-of-the-art fulfilment centre spanning more than 650,000 square feet to bolster its direct-to-consumer operations. This facility was equipped with cutting-edge automation, including conveyors and sorters for both inbound and outbound operations, as well as a newly implemented warehouse management system (WMS).
While their new WMS included voice-picking capabilities, the solution provided by the WMS vendor lacked the advanced functionality needed to meet their complex operational requirements. To bridge this gap, they partnered with Lucas Systems to implement a comprehensive warehouse optimisation solution. This solution offered customisable user workflows, robust assignment management, and real-time reporting tools, seamlessly complementing their existing WMS and driving measurable improvements across their operations. With the Lucas solution in place, picking accuracy was enhanced 8-12% and productivity increased 15-20% throughout the DC, and the time and expense associated with returns handling were slashed.
The benefits of integrated optimisation tools
Lucas Systems’ extensive experience with more than 100 customers and over 400 DCs, underscores the transformative impact of integrated solutions in DCs. These tools empower businesses to achieve significant operational gains by addressing key challenges in a cost-effective and efficient manner. For example, integrated solutions enable standardisation across multiple DCs, allowing companies to implement best practices even when operating with different WMS platforms.
In addition, these tools can extend the lifespan of an aging WMS, providing much-needed functionality and delaying the need for expensive system replacements. They also facilitate seamless transitions when a WMS upgrade becomes unavoidable, acting as a bridge that minimises disruptions and risk. This flexibility ensures that DCs can optimise their operations without incurring the substantial costs and operational risks typically associated with large-scale WMS changes, offering a practical path to sustained efficiency and performance.
Why choose a WMS enhancement strategy?
For many businesses, the decision to supplement rather than replace a WMS is driven by practicality. Replacing a WMS can be a lengthy and expensive process, often requiring significant downtime and training. In contrast, adding advanced optimisation tools provides:
- Cost savings: businesses can preserve their existing WMS investment while gaining new capabilities.
- Faster implementation: modular solutions can be deployed more quickly than a full WMS upgrade.
- Reduced risk: avoiding the complexities of a complete WMS replacement minimises potential disruptions to operations.
By supplementing their existing systems with specialised tools, DC operators can achieve immediate improvements in efficiency, accuracy and productivity—all while maintaining operational continuity.
A path to long-term competitiveness
In an increasingly competitive market, distribution centre operators face the dual challenge of adapting quickly to shifting demands while keeping costs under control. Instead of replacing their warehouse management systems (WMS), many businesses are discovering the advantages of exploring targeted alternatives. By pursuing this approach, companies can accelerate their digital transformation journey, reduce the operational risks that often accompany large-scale system changes, and achieve faster returns on investment through focused, incremental improvements.
The key to success lies in adopting best-in-class solutions that integrate seamlessly with existing systems. These solutions enable businesses to optimise their operations without incurring unnecessary expenses or disruptions. By embracing a scalable and flexible approach, warehouses can maintain the agility required to compete in today’s dynamic supply chain environment. This strategy positions them to tackle emerging challenges while staying ahead in an ever-evolving industry.
