Best-of-breed strategy: the right approach?

To adapt to changing consumption habits and market volatility, companies are turning to digitalisation. However, they often face the challenge of selecting the most suitable solution from the extensive variety available. The ideal system is the one that satisfies your particular business needs, i.e., a best-of-breed.

What does best-of-breed mean?

In the tech community, best-of-breed (BoB) refers to the strategy organisations follow when selecting niche software that will enable them to reach their targets. It consists of implementing a program that optimises specific processes such as traceability control.

For instance, a warehouse management system (WMS) is a best-of-breed solution. Why? It specialises in fulfilling needs relating to inventory control and supply chain processes. With this solution, you have a software program strategically designed to streamline the complexities of your logistics facility. A WMS oversees all operations, from stock monitoring and order processing to returns management.

The opposite of best-of-breed are all-in-one solutions, software tools that encompass various functionalities within a single suite. In this case, all applications are implemented by a single vendor and have been engineered to operate jointly.

An ERP system is considered an all-in-one solution. This software centralises several functions and processes into a single platform. Through specialised modules, ERP systems can organise a company’s core areas (e.g., purchasing, production, finance and customer relations). However, they need to be configured to effectively adapt to the particular characteristics of your business.

A warehouse management system (WMS) is a best-of-breed software program: it optimises operations in logistics centres

Best-of-breed advantages

Many enterprises rely on the best-of-breed approach to capitalise on several benefits:

Specialisation. Best-of-breed software simplifies day-to-day tasks by offering specific functions. This allows you to dedicate more attention to other responsibilities. These systems concentrate on refining a certain process. They can serve as tools to facilitate and enhance operations, such as overseeing delivery routes with a transport management system (TMS).
Customisation. Best-of-breed programs adapt to your business’s needs and are compatible with its internal work processes. As a result, you can operate in line with your own methods instead of conforming to a standard system. This software can be customised more easily to address precise needs and achieve set targets.
Performance. Best-of-breed solutions are designed to outclass in a particular area. With customised project management software, you can define and assign tasks, set deadlines and establish timelines. This will ensure your business stays on the right track.
Integration. Best-of-breed software is configured for integration into your existing IT systems. Many businesses opt for a WMS because — in addition to raising productivity in processes such as picking — it can integrate with an ERP system to maintain stricter control over the goods across the supply chain.
Return on investment. Best-of-breed simplifies your daily operations, letting you devote more resources to complex processes such as raw material procurement or final product delivery. These solutions enable you to increase your productivity and perform well, leading to a rapid return on investment.

The best-of-breed approach offers a host of key advantages. With a more niche software program, you’ll have a system that adapts to your firm’s characteristics.

IXOS cealco equipped its warehouse in Spain with Easy WMS, Mecalux’s best-of-breed software

Example of best-of-breed: the case of IXOS cealco

A best-of-breed solution like the Mecalux Group’s Easy WMS warehouse management system offers more specificity than ERP software. This advanced program is prepared to boost productivity in logistics facilities.

For example, in Spain, the purchasing network IXOS cealco equipped its warehouse with Easy WMS to provide its customers with better service. The company had been using the Sage X3 ERP system to supervise its supply chain processes. As its logistics operations grew more complex, the business set out to modernise and fine-tune them. IXOS cealco began managing a larger number of very diverse SKUs. It also started preparing more and more orders for its physical shops and partners.

The firm decided to digitalise its warehouse in Granollers (near Barcelona) with the Mecalux Group’s best-of-breed software to ramp up its operational productivity. “We wanted to implement a warehouse management system with certain guarantees and market recognition,” says Manuel Hervás, Logistics Manager at IXOS cealco. “Our priority was for the WMS to integrate seamlessly with our ERP and to adapt to changes in the company.” Easy WMS communicates continuously and bidirectionally with the Sage X3 ERP system, transferring information to keep inventory data updated.

Thanks to Easy WMS, IXOS cealco has optimised its logistics processes in two respects. On the one hand, it now has stricter control over its inventory, avoiding stockouts. On the other hand, the software provides operators with instructions on how to perform their tasks, designing the shortest pick paths and thus minimising travel. “The software has been tailored to our working methods and the particular features of our facility,” says Hervás.

Niche software for a competitive edge

Best-of-breed adapts to specific application areas such as warehouses. Businesses count on individual solutions that target specific tasks to improve efficiency and stand out from competitors.

Our company has invested years of expertise and dedication in crafting Easy WMS. This specialised logistics software scales up efficiency in warehouse operations for firms across all industrial sectors.

Thinking about digitalising your supply chain? Be sure to contact Mecalux.