Managing warehouse operations across multiple branches in the HVAC distribution industry presents unique challenges. Fortunately, a warehouse management system (WMS) can streamline processes across branch locations by providing real-time visibility into inventory levels, optimizing storage space, and facilitating efficient order picking, packing and shipping processes. 

However, deploying a WMS can feel like a roller coaster ride with its fair share of ups and downs. 

Two significant HVAC suppliers, Mingledorff’s and Hercules Industries, have successfully completed this ride without throwing their hands in the air. The lessons they learned may help other distributors facing similar challenges. With an aggressive plan in place, Hercules ramped up 20 locations in two years, while Mingledorff’s had its WMS up and running in 35 locations in only nine months. 

Here are five tips from their experience to ensure a smooth WMS rollout across dozens of branch locations in multiple states. 

1 Define Project Objectives and Timelines

Before embarking on a WMS rollout (even at a single location), HVAC distributors should conduct a thorough assessment of current operations. Analyze each branch’s specific requirements, workflow challenges and pain points. This evaluation will provide a clear understanding of how the WMS can improve efficiency and align with business goals. 

Start by creating a detailed project plan that outlines specific objectives, timelines, resource allocation and budgetary considerations. Evaluate each and establish a realistic implementation schedule that factors in sufficient time for training employees on the new system.

This first step was especially important for Mingledorff’s as each location also functions as a retail storefront. It needed to identify a solution that would integrate seamlessly with its Infor SX.e enterprise resource planning (ERP) system. Hercules needed to account for similar challenges when implementing a WMS system across branches. 

As Hercules chief financial officer Dan Luzietti notes, “We changed the programming in our ERP to complement our workflow, rather than take the program and modify our workflow to best complement it.” This level of detailed planning was critical when it came to evaluating various WMS alternatives. 

2 Engage Key Stakeholders Early

HVAC distributors must involve key stakeholders at all levels to get buy-in to better ensure a successful implementation. One strategy is to establish a cross-functional project team consisting of warehouse managers, shift supervisors and frontline workers. This team can provide valuable insights, identify pain points and champion the implementation process. 

Additionally, it is important to address potential resistance to change by promoting a transparent communication channel, actively listening to employee concerns and providing sufficient training and support throughout the transition.

Sean Wallace, head of the Business Systems Group at Mingledorff’s, speaking to New Equipment Digest, noted that it would be most successful to roll out multiple branches at once by “handing off responsibility to the operations manager in each district.” Wallace discovered that the distributor’s aggressive rollout “couldn’t have been achieved without everyone’s buy-in from the top down.” 

Similarly, Hercules found employees stepped up to become champions in their warehouses. “This helped from a credibility standpoint because it was a warehouse lead implementing the system, rather than someone in IT or finance telling everyone they need to do this,” Luzietti shares.

3 Provide Comprehensive Training and Support

Comprehensive training and ongoing support are essential for successful WMS adoption. HVAC distributors should conduct thorough training programs to ensure employees have the knowledge and skills to effectively use the new system in daily operations. Consider hands-on practice sessions allowing employees to ask questions and become familiar with using the software. 

Additionally, establishing a dedicated support channel, such as a help desk or designated contact person, helps employees with timely assistance and addresses any challenges during the implementation phase and beyond.

Naturally, change can be scary, and Mingledorff’s found that training was needed to encourage warehouse employees to not fall back into old habits. 

At Hercules, a warehouse “champion” was appointed for each location to help every branch get the most out of its WMS. The company hosts an annual training event for each of these warehouse champions. Throughout the year, they use a popular workspace collaboration tool to keep in touch, ask questions and share advice when not meeting in person. 

4 Monitor and Evaluate Performance Metrics

One way to ensure that each branch location gets the most out of its WMS is by regularly tracking and analyzing performance metrics. These key performance indicators may vary from one HVAC distributor to the next, but common metrics to monitor include inventory accuracy, order fulfillment rates, warehouse capacity use and labor productivity. 

Leverage real-time data provided by the WMS to identify areas for improvement, address bottlenecks and optimize each location’s operations. This data-driven approach across branches enables informed decision-making and continuous improvement.

For instance, Hercules tapped into the advanced inventory metrics of its WMS to track and supplement the company’s replenishment strategy. This gives the distributor valuable insights to adjust inventory levels for every product at each location, allowing it to set minimum and maximum product amounts. 

What is the biggest benefit of this in Luzietti’s eyes? “Having a platform providing unique levers for all warehouses based on different SKUs, capacity constraints and sales volumes at each location,” he notes.

5 Calculate Return on Investment

Measuring the return on investment (ROI) of a WMS implementation is crucial for HVAC distributors to evaluate the impact on their businesses. Key metrics might include savings from reduced inventory carrying costs, labor productivity improvements, decreased order errors and enhanced customer satisfaction. 

By comparing preimplementation and postimplementation performance measurements, HVAC distributors can quantify the tangible benefits of the WMS and make informed decisions to further optimize their warehouse operations.

Mingledorff’s Wallace is quick to observe the ROI for its warehouse management solution: “Having a WMS has helped us improve accuracy on the receiving end while giving us quantifiable data that help pinpoint errors instantly. I’m excited that our team now has more time to spend improving customer service and safety.” 

On the efficiency front, Wallace concludes that his company can drastically reduce the number of seasonal employees hired, providing cost savings and instant ROI to Mingledorff’s bottom line.

Implementing a WMS across multiple branches is a significant undertaking for HVAC distributors, but it doesn’t have to feel like a roller coaster ride where you throw your hands in the air in frustration. By considering the experiences of companies such as Mingledorff’s and Hercules, companies can gain valuable insights into managing a successful WMS rollout across branches. 

Thorough planning and assessment at the start of the process, effective stakeholder engagement, comprehensive training and support, monitoring performance metrics and calculating ROI will help HVAC distributors optimize warehouse operations, enhance customer service and drive overall business success. 

As president and CEO at PathGuide Technologies, Eric Allais drives strategic objectives that provide sustainable long-term growth and ensure profitability. With more than 30 years of experience in marketing, product management and sector analysis in the automated data collection industry, his expertise in supply chain and business management lays a solid foundation for the success of PathGuide and its clients.