By Thomas R. Cutler
Hosted SaaS (software as a service) solutions may have represented fear and apprehension about the security of data a few years back; now these solutions are considered critical because they offer the needed technology without the large upfront expense, ongoing maintenance fee commitments, and allow for a pay-as-your-go approach. The range of SaaS products and services run the gamut from enterprise mobility to warehouse management systems.
Using SaaS can reduce the up-front expense of software purchases, through less costly, on-demand pricing from hosting service providers. SaaS lets software vendors control and limit use, prohibits copies and distribution, and facilitates the control of all derivative versions of their software. SaaS centralized control often allows the vendor or supplier to establish an ongoing revenue stream with multiple businesses and users without pre loading software in each device in an organization. The SaaS software vendor may host the application on its own web server, download the application to the consumer device and disable it after use or after the on demand contract expires. The on-demand function may be handled internally to share licenses within a firm or by a third-party application service provider (ASP) sharing licenses between firms. This sharing of end user licenses and on demand use reduces investment in server hardware or the shift of server use to SaaS suppliers of applications file services.
According to Wikipedia, Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment where an application is licensed for use as a service provided to customers on demand. On demand licensing and use alleviates the customer's burden of equipping a device with every application. It also reduces traditional End User License Agreement (EULA) software maintenance, ongoing operation patches, and patch support complexity in an organization. On demand licensing enables software to become a variable expense, rather than a fixed cost at the time of purchase. It also enables licensing only the amount of software needed versus traditional licenses per device. SaaS solutions allow the buyer to share licenses across their organization and between organizations, to reduce the cost of acquiring EULAs for every device in their firm.
Warehouse Management Systems as SaaS
BaxTek Solutions, based in Snellville, GA, is a leading systems integrator that specializes in SaaS solutions. Wayne Baxter, president of the firm noted, “The better cash flow appeal of expensing a system rather than the capital purchase is a major benefit for any size customer. Given the current economic climate, presenting SaaS as a WMS (warehouse management system) option makes even more sense. This model is more affordable and can often fit into discretionary budgets and free up customer resources for more hardware, more services, or related supply chain applications. The idea of delivering software over the internet on a subscription fee basis is going to continue to gain market acceptance.”
BaxTek has found that SmartTurn often is most effective as an easy-to-use, quick-to-deploy inventory and warehouse management system that increases visibility and control of all inventory processes. Baxter suggested that because of the SaaS model, “Customers benefit from increased accuracy, improved service levels and reduced cost of operations. This SaaS product is the first true on-demand warehouse management systems to provide enterprise-class functionality for small-to-medium enterprises.”
The areas of WMS that are most impacted with this type of SaaS solution includes purchasing, receiving and put-away, inventory control, order fulfillment, shipping, integration, and mobile computing.
SaaS Enterprise Mobility Solutions
Baxtek Solutions also has found another winning SaaS solution in 2GO Software. This technology provides mobile software solutions for employees that require access to their company data while in the field. Applications are designed to be simple and easy to use yet still increase productivity while reducing the consumption of paper. Areas of focus include field force automation of work-orders, field sales automation and order management, proof of and direct store delivery, and field surveys.
Baxter suggested that, “We see client that want to manage customer orders from start to finish without paper and that Orders2GO allows the business to create customer orders, pick and pack them in the warehouse, then deliver and capture the customers’ signature all from a mobile device or smart phone. The ability to view the status of work orders in real time and integrate with existing dispatch systems to reduce paper work orders is vital. Many clients use 2GO Software’s online portal for work order creation and dispatching to your field technicians.”
Ultimately companies are consuming fewer resources with electronic receipts and the costs are significantly less then purchasing paper all in a pay-as-you-go SaaS model.
The scope and applications for SaaS solutions will only continue to grow. Wide demand for low up front implementation costs have made this model vital in an economy where the need for cost effective continued process improvement grows rapid.