How Will E-commerce, Warehouse Expansion, and Technological Advancements Shape Global WMS Market Growth?

The global warehousing management system market is on the rise, driven by various factors. Distribution channel automation, expansion of e-commerce and Omni-channel, cost reduction in distribution, and the shift towards cloud-based systems are key drivers. But what fuels this growth? Uncover the driving forces behind the thriving Warehousing Management System (WMS) market. Read more to explore the factors shaping its success and seize the opportunities it offers.

1. The impact of COVID on the warehouse is going to have a long and lasting effect with increased demand on product deliveries, stores were running to 3PL companies for solutions

COVID-19 Impact on Global WMS Market

• The market is highly impacted due to disruptions in the supply chain and production was affected by the trend of lean manufacturing strategy leaving many manufacturers with inventory shortages due to restrictions on goods' movement.
• Lockdowns, social distancing impacted the demand for warehouse management systems from new potential customers as they suffered losses during the pandemic and refrained from new technological investments. However, he market was forecasted to grow at a growth rate of 15.3% in the post-COVID-19 period.
• As warehouses cope with adjusting inventory counts, making space for work in process (WIP), speeding order delivery, implementing social distancing and decentralization, companies will turn to automated storage and retrieval systems to help reclaim floor space and improve the efficiencies of their workforce.

Factors that boosted WMS Market During COVID-19

Rising e-commerce

Emerging multichannel distribution channels

Globalization of supply Chain networks

Increased use of Warehouse Automation

High adoption of cloud WMS

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2. Presently, Distribution channels automation, expansion of e-commerce and Omni-channel, mitigation of distribution costs, and transitioning towards cloud-based systems are the major market drivers

Growth Drivers of Warehouse Management System Market

Distribution Channels Automation

Companies worldwide are focusing on ramping up levels of automation in order to reduce costs, increase the efficiency and throughput from an existing distribution channel, and mitigate labor problems and other issues. Adoption of tools such as force automation, analytical software, forecasting applications is increasing continually, which is boosting integration between automated & manual rocesses

Expansion of E-commerce and Omni-channel Fulfillment

The demand for warehousing has increased in recent years due to the rising trend of online purchasing due to convenience, cost, variety of choices, and lead time. This shift in consumers’ buying behavior has resulted in increased use of real-time warehouse management systems software solutions for efficient order picking, packaging, processing, shipment tracking, and route planning

Mitigation Of Distribution Costs

WMS manages the inventory by tracking location and movement of goods. Labor costs are the largest expense in distribution center. Labor costs account for almost 50% of the total operating costs. Integrating the labor management with the company’s warehouse management system can reduce the costs by almost 30% by identifying areas of inefficiencies. This helps reduce inventory loss and waste.

Transitioning Towards Cloud-based Systems

Cloud computing has been growing is now one of the fastest growing technologies. The cloud systems lower the cost of IT maintenance, increases information accessibility and provides quicker deployment times for various solutions making room for better accessibility. Additionally, cloud technology are simple and easy to deploy and installation which is driving the WMS market.

Source: Industry Articles, Company Websites, Interviews with Global WMS Industry Experts and Ken Research Analysis

4. Further, Supplier and buyer trends along with technological trends and regulatory trends are boosting the Global WMS market to establish well with new adoption of new technologies

Supplier Trends

• With large number of manufacturing process involving automation, the software solutions are developed with long-lasting compatibility with the adopted technologies.
• Customized solutions focused on a particular vertical or function are provided by established as well as niche companies.

Buyer Trends

• Manufacturers are seeking custom solutions for warehouse management and supply chain operations.
• System integration is of importance for customers in this market considering the possible complexity encountered during the adoption of new technology.
• The buyers are looking for solutions to automate a majority of the processes.

Technological Trends

• Cloud storage has revolutionized the industry.
• Drones and robots are implemented to conduct tasks that require a large number of man hours and helps improve efficiency.
• Integration of AI and machine learning technology in the warehouse management solution enables businesses take data driven decisions.

Regulatory Trends

• Introduction of GST in India has enabled companies to build centralized and consolidated warehouses with companies deciding on warehouse location based on factors such as consumption centers, manufacturing locations, optimization of goods movement, and inventory control strategy etc.
• The evolution of China as a manufacturing hub due to government initiatives to incentivize production in the country has laid the ground work for adoption of various technologies in warehouse operations.

Source: Industry Articles, Company Websites, Interviews with Global WMS Industry Experts and Ken Research Analysis

5. Technological trends like Automation, IoT, AI, Could computing, AR & VR, and Blockchain are to continue shaping future of WMS, transforming organizations that embrace these technologies

• Automation is transforming the warehousing industry by eliminating labor-intensive duties that involve repetitive physical work and manual data entry and analysis. Automated systems such as autonomous robots, conveyor belts and drones are being used to increase the speed and accuracy of warehouse operations

• Automation is transforming the warehousing industry by eliminating labor-intensive duties that involve repetitive physical work and manual data entry and analysis. Automated systems such as autonomous robots, conveyor belts and drones are being used to increase the speed and accuracy of warehouse operations

• Internet of Things is being used in WMS to connect devices, equipment and people. IoT sensors can track and monitor inventory levels, product movement and equipment performance, which can help improve operational efficiency and reduce costs.

• Augmented Reality and Virtual Reality technologies are being used to improve training and safety in warehouses. AR and VR systems can stimulate real-life scenarios and provide workers with immersive training experiences that help reduce accidents and improve overall safety.

• Artificial Intelligence technology is being used in WMS to optimize inventory management, demand forecasting and resource allocation. AI algorithms helps in analyzing the data from various sources providing information that can help warehouse mangers make better decisions.

• Block Chain technology is being explored as a means of improving supply chain technology and traceability. Block chain based systems can provide a secure and tamper-proof record product movement and ownership, which can help prevent fraud and counterfeiting.

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