Executive Briefings

Warehouse Logistics: Growth in Warehouse Solutions Will Range from Steady to Robust

Analyst Insight: Continued globalization and increasing leverage of third-party services for manufacturing, distribution and returns keeps the warehouse and logistics sector strong. Though the growth of warehouse space slowed due to poor sales of consumer and commercial goods in the U.S. over the last year, technology sales continue to thrive though growth for some was not robust in the last year.

Warehouse technology has been a growing market for the last decade. And yet there are many operations around the world with little to no technology and solutions to support warehouse-directed picking, voice, inventory management, labor management, EDI, bar-coding and RFID. This is great news for this marketplace, since that means more sales potential in years to come.

Rather than being discouraged, provider firms need to think globally.

There are new areas in the expansion of logistics optimization applications and the leverage of warehouse inventory approaches within the retail environment. And there is potential  in connecting warehouse applications to the customer/demand pull-with warehouse logistics as the cornerstone.

Most organizations and vendors think of efficiency as the big driver of value in the warehouse. Although that will continue to  justify process and technology programs, the reality is that the warehouse is a source of huge risk. Shrinkage, illegal usage of facilities, and schemes to counterfeit and pirate brands happen in warehouses across the globe.  Solutions to reduce risk will continue, therefore, to grow.

End users who buy supply chain solutions need to think about their business opportunities and less about the ups and downs of the technology market. The solutions keep getting better and the skill to implement increases, so the challenges associated with implementation have declined.

The Outlook

After a down 2009, we see renewed growth in this sector in 2010, not only in WMS software applications but in all add-ons. Voice and RF, and bar-coding equipment will rise with about 4-percent growth expected. Warehouse logistics continues to be a thriving area for global firms.  The large 3PLs will continue their growth, presence, and influence in all sectors of this market for years to come with continued innovation in green strategies, innovation in services and leverage of technology.

Warehouse technology has been a growing market for the last decade. And yet there are many operations around the world with little to no technology and solutions to support warehouse-directed picking, voice, inventory management, labor management, EDI, bar-coding and RFID. This is great news for this marketplace, since that means more sales potential in years to come.

Rather than being discouraged, provider firms need to think globally.

There are new areas in the expansion of logistics optimization applications and the leverage of warehouse inventory approaches within the retail environment. And there is potential  in connecting warehouse applications to the customer/demand pull-with warehouse logistics as the cornerstone.

Most organizations and vendors think of efficiency as the big driver of value in the warehouse. Although that will continue to  justify process and technology programs, the reality is that the warehouse is a source of huge risk. Shrinkage, illegal usage of facilities, and schemes to counterfeit and pirate brands happen in warehouses across the globe.  Solutions to reduce risk will continue, therefore, to grow.

End users who buy supply chain solutions need to think about their business opportunities and less about the ups and downs of the technology market. The solutions keep getting better and the skill to implement increases, so the challenges associated with implementation have declined.

The Outlook

After a down 2009, we see renewed growth in this sector in 2010, not only in WMS software applications but in all add-ons. Voice and RF, and bar-coding equipment will rise with about 4-percent growth expected. Warehouse logistics continues to be a thriving area for global firms.  The large 3PLs will continue their growth, presence, and influence in all sectors of this market for years to come with continued innovation in green strategies, innovation in services and leverage of technology.