Companies that have identified a need for a WMS but do not have the capital to spend on a stand-alone system are turning to alternatives. Software as a service (SaaS) WMS is an internet-based application that is developed, hosted and maintained by a third-party software provider on secure servers. The vendor rents out the system to a number of different clients. Those clients in turn will choose the various modules within the software they require and pay for them as they use them. The advantages are as follows,
- lower cost of entry
- reduced start-up costs
- instant upgrades
- user-driven innovation
- ability to turn on and off as required, eg to run a temporary warehouse operation
Potential disadvantages include the possibility of poor internet links between the companies and potential worries over data security.