Subscribe to our free, weekly email newsletter!


WMS market shows strong growth in 2011, says ARC

By Jeff Berman, Group News Editor
August 09, 2012

The Warehouse Management System (WMS) market saw significant growth in 2011, increasing by ten percent, according to data from Dedham, Mass.-based ARC Advisory Services.

Reasons for the growth in the WMS market were widespread, according to ARC officials.

In its report, entitled “Warehouse Management Systems Worldwide Outlook,” ARC noted that WMS revenues for add-on functionality like labor management systems and warehouse analytics have been growing at impressive rates. They explained that many WMS suppliers are offering a wide-range of available WMS add-ons and other suppliers are developing add-on functionality to extend their current WMS offerings. What’s more, with more suppliers offering add-on services will provide new opportunities for cross-selling into their respective installed base and also offer customers the option to purchase add-ons from their incumbent WMS suppliers.

The firm said it is forecasting “above average growth rates” for the add-ons as more suppliers extend product lines to include additional add-on options.

“We estimate the 2011 WMS market at nearly $1.3 billion,” said ARC Enterprise Software Analyst and principal author of the report Clint Reiser in an interview. “Suppliers noted high levels of growth in both the Latin America and Asia markets. For sales of add-on functionality, analytics, labor management, and optimization functionality remains robust. For end user industries, discrete manufacturing experienced strong growth last year, but I believe this is in large part due to a delayed rebound from the recent global recession.”

ARC said emerging markets are growing faster than developed ones and is reflected in WMS sales. And ARC said they will continue to experience higher growth rates due to current low market penetration and high economic growth in those regions.

Going forward, Reiser said ARC expects strong growth in food and beverage due to traceability requirements and retail due to adaptation to ecommerce fulfillment requirement.

“I don’t expect growth to remain as strong as we experienced last year, because I believe that growth was enhanced by the post-recession rebound,” said Reiser.

The report added that e-commerce expansion and multichannel retail are increasing demand for WMS services and technology, which support piece pick, pack, labeling, and other process changes driven by the high labor requirements of e-commerce fulfillment.

And these e-commerce increases, said ARC, offer additional opportunities for WMS suppliers to assist retailers and direct-to-consumer manufacturers with distribution efficiencies.

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

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

While many market conditions are working against shippers, the most recent edition of the Shippers Condition Index (SCI) from freight transportation consultancy FTR shows that things may be improving, albeit slowly.

Newsroom Notes takes a look at some of the biggest stories and themes in logistics for 2014.

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

Article Topics

News · WMS · ARC Advisory Group · 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