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PathGuide Technologies ● 22745 29 th Drive SE, Suite #150, Bothell, WA 98021 ● www.pathguide.com ● clientservices@pathguide.com To gain a better understanding of how and why distributors select a WMS, and what they prioritize in a system, I interviewed nearly a dozen distributors from different industries and regions. Their firsthand experiences and factors involved in choosing and implementing our software provide valuable insights that can help those without a WMS make more informed decisions for their warehouse management needs. Have you ever wondered what drives distributors to invest in a new warehouse system (WMS)? Is it the promise of improved efficiency and customer satisfaction through automation? Or perhaps the seamless integration with existing enterprise resource planning (ERP) systems? Is it the ability to manage inventory better, improve speed and reduce errors and costs? Whatever the reason, it's shocking that, depending on which study you look at, between 15-30% (or more) of distributors still don't use a WMS to manage warehouse operations. For those holding out, change seems inevitable. The latest study from Grand View Research shows the global WMS market growing at a compound annual growth rate (CAGR) of 19.5% from 2024 through the end of the decade. To get a clearer picture of how and why distributors choose a WMS and what they look for in a system, I spoke with nearly a dozen distributors from various sectors and across diverse geographic locations. Their real-world experiences and considerations when selecting and implementing a system offer valuable insights to help those without a WMS make more informed decisions for their warehouse management needs. Improved Efficiency and Productivity This is the most obvious question. Many smaller WMS providers now support major ERP systems, so you're no longer locked into the WMS provided by your ERP vendor. One of the most crucial factors driving WMS adoption among distributors is the promise of improved efficiency. Not surprisingly, my conversations illustrated that distributors expect a new WMS to streamline their warehouse operations. One respondent noted, "It all came down to efficiency. You cannot efficiently manage a warehouse on paper. Having real-time insight into productivity, lines per full-time employee in a day or month, error rates, and physical inventory variances are all critical." This sentiment is echoed by others seeking to optimize their workforce and achieve higher productivity levels. They often consider performance metrics to measure the return on investment (ROI) in a WMS (more on that in a bit). Enhanced Speed and Accuracy The speed and accuracy of warehouse operations greatly impact distribution efficiency. It's essential to get products moving quickly and accurately so that distributors can meet their customers' needs on time.

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