Warehouse
Management System (WMS) is a software suite; an integral part of
Supply Chain Management (SCM) that delivers the ability to map any
warehouse structure (irrespective of the size) according to the
specific requirements of the SCM process. It optimizes the
management, storage and distribution of products or raw materials. It
also helps to increase speed and efficiency in the internal movement
of goods.
The
established (old) businesses have systems that are ten-plus years old
and are too expensive to configure, maintain, upgrade and have
outdated functionality. Currently, as existing solutions have matured
and more replacements are expected in the near future, which is
expected to drive the market demand for WMS systems. These solutions
are evolutionary, with built-in enhanced functionalities and better
integration with other supply chain management systems, to ensure
quick modes of delivery. One of the key factors contributing to this
market growth is increased adoption of warehouse management systems
by small and medium-sized businesses. But, the main challenge faced
by these businesses is the high cost associated with the deployment
of WMS solutions.
However,
integration of software-as-a-service (SaaS) model in WMS has resulted
in reducing the ownership cost. It provides WMS as a service by a
third party, hosted via cloud-based computing, which these companies
can outsource. This gives more flexibility to companies to focus on
their core business. It not only brings efficiency in the overall
supply chain inventory levels but reduces the allowances for holding
executions and recalls at all warehouse sites, thereby contributing
to the market demand.
Demand
for WMS is high in transportation and logistics industry, with many
providers offering transportation management systems (TMS) as part of
integrated WMS solutions. Huge demand from pharmaceutical and
biotech, retail, food and beverages industry is seen during the
forecast period due to the advanced customization capabilities of
warehouse management systems with hand-held Radio frequency (RF)
devices. Such integrations ensure high mobility among workers and
increases productivity by providing high levels of accuracy in
picking goods through navigational assistance for movement within the
warehouse. In addition, many WMS vendors are now offering labor
management systems (LMS).
Integration
of warehouse management systems with LMS can offer a significant
return on investment with reduced labor costs, minimum dependency on
temporary labor hired during peak periods, and other interface
applications such as attendance of the employees. Semiconductor,
automobile, and electronics industries too has high demand for WMS
owing to growing trend of manufacturing units being set-up or
outsourced in the emerging countries to lower the production cost.
However, benefits of plant relocation or outsourcing can only be
realized when there is accuracy in the delivery of right component at
the required place without any delays in delivery. This is ensured
with WMS, wherein such rich levels of WMS integration helps companies
with agility and responsiveness in their businesses, with the changes
in market dynamics.
Asia-Pacific
regions, such as China, India, Thailand and Mexico, among others,
will be the most emergent markets for warehouse management systems
due to a shift of manufacturing units to these countries for their
cost-effective production advantages. Major MNC’s have their base
units and warehouses in North America, Europe and Japan and with
consistently rising demand for delivery of important components to
and from other warehouses, market for WMS will see tremendous demand
in these regions.
Some
of the key vendors providing WMS solutions are SAP AG, HighJump
Software Inc., Manhattan Associates Inc., Oracle Corp and RedPrairie
Corp. Other prominent vendors include AGI Worldwide Inc., Reply
S.p.A., Softeon Inc, Asgard Software Inc., Automation Associates
Inc., Advanced Systems Consultants Inc., BFC Software Inc., Cadre
Technologies Inc., HAL Systems Corp., Deposco Inc., Infor Inc., and
Logitity Inc., among others.
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