Logistics technology: ARC says 2009 was a tough year for WMS sector

The damage the global recession inflicted in the Warehouse Management Systems (WMS) marketplace in 2009 was severe to say the least, according to an analysis from ARC Advisory Group.

By ·

The damage the global recession inflicted in the Warehouse Management Systems (WMS) marketplace in 2009 was severe to say the least, according to an analysis from ARC Advisory Group.

ARC said that the initial signs of the recession for the WMS market were evident in 2007 and 2008 saw market revenues decline slightly year-over-year. But with implementations taking several months sometimes, ARC explained that backlog projects protected suppliers’ 2008 revenues until the backlog dried up in 2009, which made for a trying year in the WMS sector.

What’s more, these factors lessened the prospects of any meaningful WMS industry consolidation, which many analysts thought was likely in the past.

ARC Service Director for Supply Chain Management Steve Banker told Modern that the with consolidation not occurring maintenance revenue streams protected companies during that time and companies also took steps to downsize and cut salaries to stay solvent.

While WMS had a tough time in 2009, the SaaS (Software-as-a-Service) segment, which is comprised of services packaged as part of a leasing model and are hosted online, continued to grow at a double-digit pace from a small base, according to ARC and Banker.

Banker said this is mainly happening with “small companies that never would have bought WMS in the past because it was too expensive.”

As for the future, ARC said that uncertainty is the prevailing theme. To regain the traction that was lost in the WMS Market in 2009, Banker said avoiding a double-dip recession is the key.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Warehouse Management · WMS · All Topics
Latest Whitepaper
The Cloud Supply Chain Data Network
Understanding the Power of a Shared Online Network to Connect Global Partners and Achieve High Data Quality Levels
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Digital Evolution: Streamlining Logistics and Supply Chain Operations
In this FREE virtual conference we'll define the challenges facing operations and offer solutions designed to create dynamic, automated networks that offer seamless communication, improved collaborative third-party relationships, and the ability to respond to changes at a moment's notice.
Register Today!
EDITORS' PICKS
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....

25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...