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.

Latest News

State of Logistics 2016: Pursue mutual benefit
FedEx set to roll out flight from Liege, Belgium to Memphis
Peek Inside Trinchero’s New Automated Warehouse
Other Voices: Don’t walk into the “Industry 4.0” tech trap
Is the era of high inventories behind us?
More News

Latest Resource

The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
All Resources
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 View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...