The Reasons for Canadian 3PL Providers to Modernize Their WMS Without Replacing It Entirely

Research predicts that the future of third-party logistics (3PL) is with new technological advances: automation, AI, and data-driven decision-making. However, how does one reach that future when using outdated 3PL WMS systems? The official site for the Government of Canada has whole guides on why legacy software is a problem in the country, after all.

So, we have a clear problem—relying on old tech, which is a very dangerous game to play, and two ways forward: a full-on replacement or an upgrade for existing solutions. Today’s article will showcase the virtues of the second option, a less invasive, disruptive, and costly choice. We will discuss 3PL modernization and help you make a decision that pushes your business forward.

Why Many Canadian 3PL Providers Avoid Full WMS Replacement

Let’s start with a quick answer to what is 3PL WMS? Any warehouse management system used by a 3PL company fits the bill, though this guide will focus primarily on off-the-shelf versions. The question of modernization vs replacement is less pressing for custom solutions as they avoid a lot of the debate-causing issues, though they are included as well.

Opting for modernized 3PL instead of a complete reboot is an astute choice for many reasons, so let’s talk about them. First and foremost, a full replacement of essential software like a warehouse management system will lead to weeks or months of downtime and going fully manual in the operations.

In addition to that, a new solution means training employees anew and having to reconnect your integrations, which are essential in logistics. This includes eCommerce widgets, courier apps, and ERP systems. These factors are exacerbated by the fact that a lot of software locks you into working with a vendor, and even custom solutions do it to a degree through highly customized setups.

In fact, customization in 3PL WMS software is another reason to abstain from switching. New software won’t be tailored to your needs and you may struggle to rebuild all the unique operation logic points that were previously set up.

In short, a full replacement is the kind of change that can result in more losses and downsides than benefits. It can still be the right call in certain circumstances, but most companies would do better with a modernization strategy. Why? We’ll explain.

Why Modernization Makes More Sense Than Replacement

We’ve outlined the problems that replacing a 3PL WMS can bring. Yet, modernization isn’t only about not facing those. It also has its own unique advantages, such as:

• Affordable cost
• Zero downtime
• Retaining familiar workflow
• Strong system upgrade
• Ability to scale further
• No disruption to integrations and compliance

The first two points are tightly interwoven, as the real expenses in modernization or software replacement come from how long your regular operations get disrupted. After all, supply chain disruptions are a significant issue for major corporations. Therefore, modernizing, which is usually done in phases and doesn’t cause any stoppage in logistics, is a very lucrative choice.

Similarly, your team won’t have to relearn the new ecosystem or change their workflow, preserving your sophisticated warehouse and transportation management systems. What does change is the speed of processing and the insight you get into your system’s performance.

An upgrade will typically include new analytical features and transparency protocols. You can even add AI for demand forecasting to ensure that you’re always keeping up with the market. This functionality will help you grow and enter new markets, as well as take on more clients, including much bigger corporations.

Lastly, your system is, hopefully, already compliant with all relevant data regulations and fully secure for private use. Modernization will preserve this carefully crafted quality while enhancing the typical security features.

Benefits of Modernizing Instead of Replacing

With all the above points in mind, let’s do a direct comparison. We’ll take a mid-sized transportation and logistics company with a legacy system and a set of trained staff. For them, the cost of modernizing would be about 40 to 60% below that of fully rebuilding their software. Research also indicates that at least 32% of companies experienced lower expenses post-modernization, which also takes just about 3 to 6 months compared to a year spent on replacing software.

Staying with the same system allows the company to preserve its standard workflow with reduced lead times and no need for extra onboarding. Meanwhile, a new piece of software will take months of training, though it does also have the potential to add value.

Both modernizing and replacement allow you to add AI features. Still, it’s easier to do it in phases during your upgrade, especially as adding it to a familiar system takes less effort. As a result, you have refined access to analytics with AI-based visualization and processing. This allows your business to keep growing and meeting rising demands of clients.

Why Canadian 3PLs Should Choose Integrio

Getting a modernized WMS can help a logistics company offer a wider range of fulfillment services and acquire new clients with this scaled-up quality. To ensure you get all the benefits of modernization, recruit Integrio Systems to do the job.

We’ve spent over 20 years delivering custom solutions and development work in the Canadian market, handling cloud migrations, code refactoring, and AI and API integrations. Integrio Systems is always ready to help businesses enter new markets with our expertise in:

• Workflow optimisation
• Best data security practices
• Enabling interoperability

To start your migration project, we can schedule an in-person meeting, offer a visit to your facilities to assess the optimal approach, and introduce you to the team at our Vancouver office. As a result, you will know exactly what we can do for you and plan your business upgrade.

Conclusion

This ends our guide to WMS modernization and the overview of what makes it preferable to outright system replacement. As you can see, there’s nuance in this discussion and both options have their merits depending on the size of your company, use case, and budget. That said, in most scenarios we recommend modernizing your solutions to keep operations stable.

Companies that are outsourcing logistics expect everything to be smooth, with zero downtime, and set up in a familiar way. As a result, it’s easier and more practical to stick with existing software and simply do tune-ups when necessary. That way, you can retain partnerships, stay in a familiar ecosystem, and avoid any errors associated with changing software.

As we’ve pointed out above, you can always request an in-depth consultation from Integrio Systems to help determine whether you should modernize or switch systems. Using our 25 years of experience, we can assess exactly how to help your business grow. So let’s get in touch and see what the future holds for you.

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