Self-funding automation projects move front
and center
Modern Materials Handling July 1, 2004
Mid-market companies
are turning to IT solutions like warehouse and transportation
management for the first time in years, according to Thom
Alcazar, CEO, Alcazar Ltd. (800-621-3050, http://www.alcazarltd.com/).
"Fear
is the driver today," said Alcazar, a consultant who
specializes in integrated warehouse management system (WMS)
and transportation management system (TMS) implementations.
"They're not able to acquire new customers without supply
chain technology, and they're facing competitors who have
already made the investment and are going after their
customers."
Alcazar said that the best automated
projects are based on creating self-funding systems that have
a specific return on investment (ROI) attached to them up
front, and are managed to achieve that ROI.
"The real
value for a company is in integrating WMS, TMS, manufacturing
systems like MRP, and ERP systems to eliminate function
overlap," Alcazar said. "We feel so strongly that we can
create a solution with a self-funding ROI that we are willing
to guarantee and finance the solution out of the savings the
project creates."