Custom bar-code software overtaking off-the shelf programs
By Staff -- Logistics Management, 11/1/2003
Until recently, most off-the-shelf bar-code labeling software, either packaged with hardware or sold separately, has been sufficient to meet the needs of a majority of users. In 2002, off-the-shelf programs accounted for 80 percent of total revenues in that market segment. But as supply chains have become more complex, more users are finding that they require customized solutions.
A recent study by Venture Development Corp., a technology-market research and consulting firm in Natick, Mass., found that almost half of the respondents indicated that some degree of customization was required to meet their specific bar-code labeling requirements.
The reasons for customization varied. Some respondents cited the desire for smooth integration with enterprise resource planning (ERP) or warehouse management systems (WMS) without sacrificing any of the bar-code software's functionality. Others noted the mandate to keep up with changing compliance standards for labeling. Improving performance of both the software and the overall bar-code systems also were mentioned as reasons to customize. In all, 45 percent of respondents noted that they had to customize their software to some extent, and more than 15 percent said they had to totally customize their systems to fit their specific needs.
VDC's analysts forecast that use of the off-the-shelf bar-code labeling software will decline between now and 2007. Last year, such offerings accounted for 37.3 percent of global bar-code software shipments, compared with software bundled with hardware (8.8 percent), third-party custom-developed software (3.0 percent), and software developed in-house (9.8 percent). VDC sees that share dropping by 2007 to 8.9 percent. Third-party custom-developed and in-house software will dominate the field with 16.0 percent and 17.9 percent market shares, respectively.
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