Global warehouse management systems (WMS) market is anticipated to grow rapidly over the forecast period. WMS assists in reducing the lead time, by increasing the delivery speed of the products to the end-use consumers, and reduction in the distribution costs. Factors such as changing supply chain models and rapid growth for a certain product are the instant causes for increase in the demand for WMS systems. Global need to cut down on added costs due to faulty forecasting models is expected to benefit the overall WNS systems market.
Warehouse Management System is a software application aimed at supporting warehouse or distribution center. It facilitates optimization of the storage and management of the items and products in a warehouse. It is a fundamental part of supply chain management. Warehousing of raw materials and inbound and outbound logisticsfrom the suppliers to the manufacturing site and then of the finished goods to other locations or to end-customers are managed by using WMS solutions. WMS improves inventory accuracy and thereby reduces inventory costs. This benefits in the proper scheduling of work flow and utilization of space for various products.To enhance the product-related planning, WMS should be implemented with the ERP software.
Recognized businesses have systems which are old and expensive to maintain, upgrade, configure and have outdated functionality. Hence, as the existing systems have matured,more substitutes are anticipated to penetrate in the near future. This is estimated to drive the demand for the WMS system globally. These solutions are evolutionary with in-built improved functionalities and improved integration with the other supply chain management systems to guarantee quick delivery modes. The small and medium-sized industry businesses have adopted increased number of warehouse management systems.
However, the major challenge faced by the companies is the high deployment cost incurred. This obstructs the companies to adopt a WMS. Lack of awareness of the benefits and operational effectiveness of the technologically advanced systems may have negative impact on the overall market. Uncertaintyabout the deployment of these systems because of the high initial investment needed may hamper the overall demand.
But, for reducing the ownership cost, software-as-a-service (SaaS) has been included in the warehouse system. WMS is provided as a service by a third party which can be outsourced by these companies. It is hosted via cloud-based computing. It provides flexibility to the companies for focusing on their core businesses. Along with the inventory levels of the whole supply chain becoming more efficient, the budgets for holding executions and recalls at all warehouse sites are reduced which thereby contributes to the market demand.
Since numerous providers offer transportation management system (TMS) for their WMS solutions, the demand for WMS is projected to increase in the logistics and transportation industry. As the customization abilities of the warehouse management systems has progressed, it is anticipated to witness an enormous demand from end-use industries such as retail, biotech & pharmaceuticals, and food &beverages industry. This increases the flexibility among the workers and also increases productivity by increasing the accuracy levels in picking goods with the help of navigational assistance. Additionally, several WMS vendors started providing labor management systems (LMS).
Growing economies of the AsiaPacific region such as India, Malaysia, Indonesia China and Thailand are anticipated to witness the highest demand for the global Warehouse Management System Market. These countries are projected to become the most emergent markets over the forecast period, owing to the surge in growth in major end-use industries.
Europe and North America are also expected to witness significant growth over the next seven years. These regions are the hubs for warehouses and base units of the majority of the WMS systems across various industry leaders.
The foremost vendors providing solutions for the WMS include HighJump Software Inc., Oracle Corp., SAP AG, RedPrairie Corp., and Manhattan Associates Inc. Other key vendors include Reply S.p.A., Asgard Software Inc., Advanced Systems Consultants Inc., Cadre Technologies Inc., Deposco Inc., Logitity Inc., AGI Wolrdwide Inc., Softeon Inc., Automation Associates Inc., BFC Software Inc., HAL Systems Corp. and Infor Inc.
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