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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.
