Global Warehouse Management System Market - 2021-2028

Global Warehouse Management System Market - 2021-2028

Market Overview

The Global Warehouse Management System Market is Expected to reach at a CAGR of 14.34% during the forecast period (2021-2028).

A warehouse management system (WMS) is a solution that provides visibility into a company's complete inventory and oversees supply chain fulfillment processes from beginning to end. Inventory management, task management, order selection and packaging, inventory management, and shipping procedures are all included. Further, the warehouse management system improves overall productivity by allowing goods to reach customers faster.

Market Dynamics

The e-commerce business is experiencing increased growth due to the COVID-19 pandemic, which is expected to drive the market. However, the risk associated with a successful implementation is restraining the warehouse management system.

The e-commerce business is experiencing increased growth due to the COVID-19 pandemic, which is expected to drive the market

Consumers have turned to internet purchasing due to the implementation of social distancing, lockdowns and other measures in reaction to the Cocid-19 pandemic. It has increased business-to-consumer (B2C) sales and increased B2B e-commerce. Online medications, household products and food sales have all seen an upsurge in B2C sales. The e-commerce business has seen great short-term growth as a result of this.

The growing number of internet platforms is influencing consumer purchasing behavior. Companies in the fast-paced e-commerce industry must speed up their order fulfillment and shipping procedures to maintain a competitive advantage. The rising use of real-time warehouse management system software systems for effective order processing, picking, packaging, shipping tracking and route planning has come from a dramatic shift in consumer purchasing behavior.

In March 2021, Flowspace, a U.S.-based on-demand warehousing and fulfillment software provider, received a US$ 31 million investment from venture capital firms to capitalize on the rise in e-commerce, which means more demand for flexible goods storage space retailers and manufacturers. The entire investment came to US$ 46 million as the firm aims to expand its network of warehouses and fulfillment facilities, especially to help e-commerce brands scale.

The risk associated with a successful implementation is restraining the warehouse management system

In a warehouse management system, many processes are integrated into a system. Thus, an error in one place entails errors in others. In this way, a human error can cause the whole system to be inaccurate. In addition, there is a high risk of potentially unsuccessful implementation. Therefore, it is important to make a detailed analysis of one need, choose a competent software house, consult the project with employees regarding how the application should look and commit time to train the staff to use the application properly.

COVID-19 Impact Analysis

Consumer behavior has quickly shifted toward internet channels due to the COVID-19 pandemic. Food and beverages, basics and pharmaceuticals supplied in new contactless formats have all seen an increase in online demand. It has accelerated the rise of the e-commerce, third-party logistics and fast-moving consumer goods industries. The internet market for numerous products has also boosted the demand for warehousing.

Several global corporations are opening new warehouses in several nations to meet the rising demand. As a result, warehouse management systems are in more order in e-commerce and 3PL businesses. As they continue to open additional warehouses globally, e-commerce behemoths like Amazon, Alibaba and eBay increase their demand for WMS.

Segment Analysis

The global warehouse management system market is segmented into inventory management, NDR management, and others based on type.

When it comes to increasing the effectiveness of the warehouse management system, inventory management is one of the most important factors to consider. Seasonal inventory, i.e., items that see increased demand during the holiday season, will need to be separated from the rest and classified into different categories by e-commerce fulfillment and logistics platforms.

Platforms can also employ SKUs (Stock Keeping Units) to make finding the offered things easier. SKUs are essential for good inventory planning and management because they track products. In addition, they boost operational efficiency by minimizing the number of time employees spend identifying and picking products. Fast-moving SKUs can also be easily accessed through logistics and fulfillment platforms, allowing faster order picking and packing.

Geographical Analysis

The global warehouse management system market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.

According to U.S. Census Bureau report, warehouse and storage revenue is expected to grow at 2.1 % each year from 2018 to 2023. The income earned in 2019 was US$ 36.6 million, up from US$ 35.6 million in 2018. The market in U.S. is showing signs of future expansion, with a significant increase in manufacturing, retail and pharmaceutical units. In addition, according to IMF estimation, it is anticipated that transportation and warehousing will contribute US$ 22.24 million to GDP, with the government sector, wholesale commerce, manufacturing, and other sectors contributing significantly.

Moreover, third-party warehousing and distribution companies have a big potential opportunity because of outsourcing and e-commerce rise. As a result, players increase their facilities through mergers, acquisitions, and expansions. For instance, in February 2020, Maersk stated that it would increase its warehousing and distribution capacity in North America by purchasing a performance team, a U.S. firm, for US$ 545 million. Many retailers aim to grow online retail sales; thus, the company concentrates on improving its e-commerce fulfillment capabilities.

Competitive Landscape

The global warehouse management system market is highly competitive with the presence of local and global companies. Major companies contributing to the market's growth include Manhattan Associates, Blue Yonder (JDA Software), HighJump (Körber), Oracle, SAP, IBM, Infor, PSI, Tecsys, BluJay Solutions and Epicor Software, among others. To strengthen their offers in the market, warehouse management system players have used various organic and inorganic growth strategies, such as contracts and alliances, new product development, acquisitions and expansions.

Manhattan Associates

Overview: Manhattan Associates is a U.S.-based global solutions provider for supply chain organizations to create enduring market advantages by leveraging their supply chains. The company is headquartered in California, U.S.

Product Portfolio: Manhattan's warehouse management software is a highly mobile and flexible WMS that organizes the industry's first Warehouse Execution System (WES) within a Warehouse Management System using advanced AI, machine learning technology, and proprietary algorithms.

Key Development:

In May 2020, Manhattan Associates launched the Manhattan Active Warehouse Management solution, the world's first cloud-native enterprise-class warehouse management system (WMS) that combines all distribution aspects and never needs to be upgraded.

Why Purchase the Report?

Visualize the composition of the warehouse management system's market segmentation composition by type, offering, deployment, tier type, industry, and region, highlighting the key commercial assets and players.

Identify commercial opportunities in the warehouse management system market by analyzing trends and co-development deals.

Excel data sheet with thousands of warehouse management system market-level 4/5 segmentation data points.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global warehouse management system market report would provide access to an approx. 77 market data tables, 75 figures, and 180 pages.

Target Audience

Logistic and Supply Chain Companies

E-Commerce Businesses

IT Companies

Investment Research Firms