Logistics technology: ARC says 2009 was a tough year for WMS sector
Latest NewsBehind KION Group’s acquisition of Dematic UniCarriers Americas executives partner with Roosevelt University Brexit impact yet to be measured by U.S. logistics managers Rail carload and intermodal volumes fall for the week ending June 18, reports AAR BTS reports U.S.-NAFTA trade falls 3.2 percent in April More News
Latest ResourceOptimizing Global Transportation: How NVOCCs Can Use Technology to Operate More Profitably Thursday, July 7, 2016 | 2PM ET
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 AuthorJeff Berman 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!
WMS Update: What do we need to run a WMS? Supply Chain Software Convergence: Synchronization Realized View More From this Issue