Figuring out Return On Investment (ROI) is a major consideration when warehouse operators look for new technology or software. Investing money on any new business venture can be risky, regardless of the size of the company. This is even more important as we enter a time of economic uncertainty, with rising inflation and decreasing consumer confidence.

ROI is a performance measure to calculate how much financial return you will get relative to the costs you have to outlay. While ROI can be calculated by things like greater sales or profit margins, for warehouses it can also include less obvious financial benefits like reduced costs, less warehouse downtime or errors, and more potential to adapt effectively to business changes.

Given the boom of the ecommerce market during the pandemic, along with turbulent supply chains, warehouse operators looked at ways to adapt and optimize. Now with climbing economic uncertainty on the horizon, many operators may reconsider their plans to update warehouse technology infrastructure in favor of more frugal measures. However, effective warehouse management systems (WMS) can actually help to deliver greater performance and cut costs at the same time, all while allowing operators to adapt to changes in the market easier and future proofing operations.