9 Facts About the WMS Market

WMS Market Drivers and Challenges

Strong and efficient supply chain networks are the heart of a successful company’s operations. Warehouse management systems (WMS) are the cornerstone of what makes a supply chain network flow smoothly. These systems efficiently manage warehouses resources, from space, to labor, to goods. As businesses shift into the digital age, they will be forced to adapt quickly, in order to stay ahead of the game. Those that don’t will find themselves obsolete.

Customers (both B2B and B2C) expect seamless access to an ever-growing selection of products, and there is no shortage of competition rushing to bring these services to consumers.

What does a WMS do? Warehouse management bridges the gap between your warehouse, sales, and IT; it’s a crucial tool to increase overall visibility across the network. Today, businesses need scalable, integrable options that are capable of future adaptations as modern businesses grow to accommodate the market.

In recent years, WMS solutions have exploded onto the market in droves. Check in on Capterra’s “Warehouse Management System” category and you’ll find over 250 solutions available.

So, what are the key demand drivers for WMS?


Multichannel Distribution Network

Inventory management system, ERP and mobile data collection systems must work in tandem to ensure distribution teams get the updates and notifications regarding stock levels on a prompt basis.

The Opportunities of E-Commerce

The global E-commerce market is expected to reach USD $4 trillion by 2020 nearly double from 2017 at USD 2.3 trillion. The Amazon effect and its disruptive ripples in the US economy aren’t slowing down anytime soon.

Improved Operational Productivity

WMS reduces the delivery lead time and minimizes errors, resulting in greater efficiency - strengthening the supplier‐customer relationships.

Adoption of Cloud WMS Solutions

The on-cloud segment is expected to grow significantly due to notable benefits. These include fast implementation, low upfront cost, reduced requirement for maintaining expensive hardware and quick return on investment.

Globalization of the Supply Chain Network

WMS solutions play a critical role in helping organizations deal with the added logistical burden that comes with globalization.

While the adoption of these WMS softwares is brimming with short- and long-term benefits for the warehouse and overall business, there are a few barriers that deter businesses from getting on board.


What are the major challenges that WMS solutions face?


Costly Deployment

Most small and medium businesses consider WMS to be an expensive solution. Keeping this challenge in mind, companies are launching cost-effective plans, flexible pricing strategies, and more SaaS offerings.

Need for Constant Adaptation

While frequent upgrades provide updated products with better features and security, it also requires regular training (and re-training!) of the users, thereby impacting the overall efficiency.

Lack of Standardization

Lack of standardization practices can result in inefficiencies in warehouse production, acting as a challenge towards the growth of warehouse management systems. Many firms have resisted replacing their legacy systems in order to seek out less expansive solutions to address their needs.

The Dominance of ERP Vendors

Top ERP vendors have made significant inroads by acquiring leading providers, for example: SAP acquired Ariba (for procurement), Oracle bought NetSuite (for Cloud) and RedPrairie JDA merger (for WMS). A lot of shippers prefer to have these providers as they manage end-to-end ERP instead of specialized software companies.

With strong competition in the market and growing demand, one thing is clear: smooth warehouse operations are central to the competitiveness of global business.

To ensure success, companies with a warehouse must strive to work with cutting-edge systems that provide a comprehensive inventory overview, empower you to clearly communicate your operation's needs, and have a good understanding of the movement of product through the warehouse. With the critical importance of training and standardization, find a deployment team of knowledgeable supply chain experts you can trust, that offer a pricing plan you can afford. A system with these capabilities, paired with a strong provider relationship, will allow you to move product as efficiently as possible and elevate your business.


At Seldat Technology Services (STS), we are problem solvers, next-generation thinkers, and efficiency aficionados. Operating at both local and global scales, STS offers comprehensive solutions packages developed by in-house industry experts, tested against real-world scenarios, and designed for the changing supply chain. Learn more about Seldat Technology Services’ WMS360 solution or get in touch with our experts today.

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