WMS leads the way

There are more supply chain execution solutions available than ever. But it still starts with warehouse management systems (WMS).

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 7/20/2006

As competition heats up, the ability to deliver the right product in the right quantity at the right time has never been more important.

That may explain why warehouse management systems are still the most frequently used supply chain execution solution on the market today.

Fifty-six percent report that they use a warehouse management system. An equal number intends to purchase or upgrade their WMS in the next 12 months. In fact, 44% of WMS buyers plan to spend $100,000 or more on WMS applications. Seventeen percent expect to spend more than $500,000.

Why are these solutions so valuable? Inventory management. That was cited by 71% of respondents as the most important reason for using a WMS, followed by real-time control (60%) and label printing (50%).

And what’s the most important characteristic of a WMS? Forty-five percent say it is the ability to be fully integrated with its enterprise system. That may explain why 34% of respondents said they will buy their WMS solution from an ERP supplier. Only 9% said that price was the most important characteristic for their planned purchase.

What’s more, those planned purchases are well under way. Forty-six percent of respondents said they were currently evaluating vendors, and 28% are currently selecting vendors. Only 12% said they did not know who to buy from.