1. The impact of COVID on the warehouse is going to have a long and lasting effects with increased demand on product deliveries, stores were running to 3PL companies for solutions
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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. The 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, the market was forecasted to grow at a growth rate of 15.3% in the post-COVID-19 period. Furthermore, 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.
2. Distribution channels automation, expansion of e-commerce and Omni-channel, mitigation of distribution costs and transitioning towards cloud-based system are the major market drivers
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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 labour problems and other issues. 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. Further, cloud computing has been 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.
3. Technological trends like Automation, IoT, AI, Could computing, AR & VR and Block chain are to continue shaping future of WMS, transforming organizations that embrace these technologies
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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. Moreover, 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. Furthermore, Block Chain technology is being explored as a means of improving supply chain technology and traceability.
4. Key challenges witnessed by the Global WMS market are expensive technologies, data security, integration with existing systems, compliance with local laws, scalability and flexibility
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Integration with existing systems can be a complex process as different systems may use different data formats, protocols and communication standards. This could lead to delays and impact overall system performance. Moreover, compliance with local regulations such as labor laws, safety regulations can be a significant challenge as regulations can differ between countries and regions, requiring warehouses to adapt their practices and procedures to comply with local laws. Further, WMS can be an expensive technology, especially during implementation and customization. WMS pricing model is split into a subscription model and a license model. The license model has a high cost up front and showcases a higher maintenance cost compared to the subscription model.
