Subscribe to our free, weekly email newsletter!


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

image

According to Steve Banker, Service Director for Supply Chain Management at the ARC Advisory Group, and the principal author of ARC’s “Warehouse Management Systems Worldwide Outlook Study”, “The market has lost five years of market growth.  The global 2005 WMS market was bigger than the market in 2009.”

By Jeff Berman, Group News Editor
July 06, 2010

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 LM 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 headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Article Topics

News · WMS · Warehouse Management · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA