Pre-Calculation of the Implementation of a Warehouse Management System, for a Specific Company

Abstract

Companies constantly seek solutions for complex technical and economic tasks and this is especially difficult for small and medium-sized enterprises. For this, we provide an example in the barcode processing area. By looking at several versions at one company, we will show how much it costs to introduce a barcode-based warehouse management system. Our specific task was to pre-calculate the expansion of the existing ERP (Enterprise Resource Planning) system with a barcode warehouse management system. To this end, we have looked at good practices in recent years, as part of various field surveys, with several companies, across Hungary. The cost of building a barcode warehouse management system is HUF 25837559. It can be implemented on its own or with support. The barcode warehouse management system can be extended to all employees, but a version that is only extended to office employees, can also be analyzed. Accordingly, four cases were examined. In one of these cases, we set-up the theory, that in the structure of the barcode system, we extend the project management module in the expansion of the ERP system only among office employees, and thus, the investment pays off in 5 years, from existing resources. The NPV is HUF 13220000, the IRR is 43.24%, the profitability index is 1.71, DPB is 2.92 years. The logic of the calculations can be used in many other areas.