Technology: Warehouse upgrades coming
Warehouse operators plan to improve processes and implement new software and solutions in the next two years, according to the Aberdeen Group.
By Staff -- Modern Materials Handling, 10/27/2008
Most warehousing operators anticipate new rollouts or upgrades in the next two years, with activity centering on process improvement and technology implementations, according to the October Aberdeen Group market update.
In the past six months, Aberdeen has been publishing reports that track the temperature and activities around warehousing and the transportation and logistics markets, finding that the overwhelming majority of companies are taking action to improve their transportation and logistics operations over the next 12-24 months (90% of respondents).
Nearly 60% of respondents are looking for new rollouts or upgrades in the coming 12 to 24 months, in the following areas:
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67% improving their warehouse processes
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32% implementing new warehouse management software
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27% upgrading or enhancing their existing software
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22% increasing their use of automated material handling equipment
Thirty percent planned on making physical warehouse changes, with 15% planning to move their location and another 15% planning to enlarge or build a new warehouse.
But while respondents indicated a focus on evaluating, implementing and upgrading a solution, more than 20% thought that technology will not solve their problems, and more than 30% feel the cost of the solutions is too high. As a result, vendors are proving their solution Return on Investment (ROI) throughout key sales cycles. Respondents are focusing on ways to increase collaboration and improve integration internally and externally.
The top three hurdles to adopting available WMS technology included the high upfront costs (37%), difficult and expensive software integration (22%) and a lack of executive level support for the project (20%).
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