The global warehouse management system market size is expected to grow from USD 2.8 billion in 2021 to USD 6.1 billion by 2026, at a CAGR of 16.7% from 2021 to 2026.
The recent trends in global logistics such as delivery KPIs, increased flexibility in the supply chain, and cost-cutting are the drivers for 3PL and supply chain industry to adapt to warehouse management systems. The increase of e-commerce and online buying trends of customers is further driving the growth of warehouse management systems market. Favorable trade and government policies and lower taxes on businesses are a few of the factors that are driving foreign investments in developing economies. Hence, emerging countries are one of the key growth opportunities for the WMS market.
Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=41614951
Opportunities: Adoption of digital technologies in supply chain management
The supply chain in today’s time is a series of discrete and isolated phases/stages—ranging from marketing, product development, manufacturing, and distribution stages to end users and after-sales services. With the rise in technological advancements, digitization has spread across all operations of the supply chain. The digitization of the supply chain aids in building a completely integrated ecosystem, which is fully transparent to all the players involved—from suppliers of raw materials, components, and parts to transporters of the supplies and finished goods, and finally to the customers demanding fulfillment. The digitization of the supply chain will have several more advantages like streamlined operations. Digitization reduces time wastage as the processes are automated, the decision-making is robust and improved. The errors are identified and solved easily. In digital systems, the collaboration and exchange of information between the vendors and enterprises are likely to be much more transparent, which will result inmore productivity. The digitization of the supply chain will also reduce lead time and thus increase profitability.
Challenges: Insufficient knowledge of WMS among small-scale industries
Small-scale industries traditionally operate their warehouses with legacy systems. As the annual income of small-scale industries is not very high, investments to set up WMS seem to be an unnecessary expense for these business owners. Similarly, they have a small amount of workforce, among which finding a skilled worker to maintain WMS, may be a tedious and investing task.Owing to the reluctance to replace traditional systems and limited growth plans, business owners in small-scale industries fail to recognize the benefits they can avail of by using WMS. Further, significant investments associated with the deployment of WMS and high upfront costs restrain the adoption of WMS. The deployment of WMS involves extra costs for license purchase, upgrades, and employee training; this factor also limits the adoption of WMS by small-scale industries. The deployment of WMS increases the efficiency of warehouse operations, reduces operational expenses, and enhances labor productivity. However, the lack of awareness about the benefits of WMS among small-scale industries poses a challenge for the players in the WMS market.
No comments:
Post a Comment