Leadership in Global Supply Chain and Logistics Consulting
Warehouse Management Systems (WMS) first appeared on the market in the 1980’s at about the same time that the concept of real time data collection was made commercially affordable through the combination of bar code scanning and radio frequency technologies. At first, the companies that supplied this technology were primarily project-focused and each new customer required a significant customized software development effort.
By the end of the 1990’s, it appeared that the WMS market was poised for significant growth as hundreds of success stories emerged. By the mid-1990’s, the WMS market had evolved at a frenzied pace that few could have predicted with the U.S. market place reportedly achieving 1ドル Billion in sales revenue by the end of the decade. Over 100 companies were competing for the WMS market and most of these firms had developed packaged software solutions rather than deploying extensive customization for each project.
At the turn of the century, the WMS market took a major setback along with the entire software technology market. Quite simply, companies were burned out from excessive information technology spending resulting from the Y2K crisis. The result was a period of unprecedented market consolidation as cash-starved companies sold out and exited the market. During this period, the WMS market leaders took advantage of market instability by growing through acquisition. When the dust had settled, roughly 25 WMS companies had survived the drought and were poised to compete for the next wave of WMS market growth.
Today the market has emerged to the point where the traditional warehouse management system has become an important point solution within an enterprise-wide suite of supply chain planning and execution applications. Over the years, some WMS market leaders have expanded the scope of their product offering to include a diverse range of supply chain applications such as: demand planning; distributed order management; yard management; inbound and outbound transportation optimization; labor management; supply chain visibility; event management; and slotting; amongst others. These applications have enabled the traditional WMS supplier to move beyond “the four walls of the warehouse” and into the global supply chain arena. The market has embraced these enterprise supply chain execution solutions as a key enabler to gaining more control over supply chain business activities.
The WMS market may be less confusing today than it was ten years ago, but the basic challenges of selecting and implementing the right application for your business remain the same. New technologies such as service oriented architecture (SOA) and Software as a Service (SaaS) have emerged to improve the flexibility of these applications. A promising new generation of WMS solutions is now emerging as a result. As importantly, the radio frequency handheld unit is no longer the only tool available for data collection within the distribution center. Voice recognition technology, pick to light, and other technologies have been developed and exciting levels of quality and productivity are being achieved that were previously unimaginable.
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MWPVL International Inc. is a full-service global Supply Chain, Logistics and Distribution Consulting firm. Our consulting services include Supply Chain Network Strategy, 3PL Outsourcing Strategy, Distribution Center Design, Material Handling Systems, Supply Chain Technology Advisory Services (WMS, TMS, LMS, YMS, OMS, DMS, Purchasing, Slotting ), Transportation Management, Distribution Operations Assessments, Warehouse Operations Consulting and much more.
