WMS MARKET REPORT COMPACT 2020 - warehouse logistics

© Fraunhofer · slide 1

Trends and Developments of the Market for Warehouse Management Systems

WMS MARKET REPORT COMPACT 2020FRAUNHOFER INSTITUTE FOR MATERIAL FLOW AND LOGISTICS // TEAM WAREHOUSE LOGISTICS


Introduction

»The announced paradigm shift driven by the integration of artificial intelligence and the associated diversity of data also influences the world of softwarein intralogistics. Providers of Warehouse Management Systems (WMS) are challenged to continuously integrate and implement new approaches andtechnologies such as audio-visual support for order picking suitable for industry. Not infrequently, there is a shift in the functional and technologicaldevelopment focus of the WMS providers as well as the customer-specific requirements in the Logistics IT market.

The »Team warehouse logistics« of the Fraunhofer Institute for Material Flow and Logistics IML has been operating one of the world's leading informationplatforms for the comparison of Warehouse Management Systems since more than 20 years. As a continuous market study it analyses the trends anddevelopments regarding the WMS Market, Standard WMS and WMS Projects.

With the participation of almost all relevant WMS providers, warehouse-logistics.com offers comprehensive information about the current status of generalmarket and industry trends.

The present WMS MARKET REPORT COMPACT 2020 summarises the essential findings for you.«

Kira SchmeltzpfenningHead of »Team warehouse logistics«

Linda Maria Wings»Team warehouse logistics«Coordination of Studies & Publications

Björn KrämerHead of »Team warehouse logistics«


Methodology

To collect the data, selected aspects from the WMS questionnaire are evaluated, which are queried during validation processes and stored in the »WMSDatabase«. The questionnaire comprises a total of nearly 3,700 aspects. It is adapted annually to the current trends and developments. After a successfulvalidation, the information is released anonymously for evaluation and analysis. By linking different questions, correlations between company and marketstructures are highlighted.

In addition, all »WMS Reference Projects« listed on the warehouse-logistics.com platform are validated andevaluated. By comparing the statements of WMS providers and WMS users, a representative overview of prevailingtrends and developments is created.

The WMS MARKET REPORT was first published in 2007. Since then, the successful publication has been an integralpart of the »Team warehouse logistics« service portfolio. The WMS MARKET REPORT COMPACT 2020 showsessential trends as well as possible development potentials of the WMS market. It contains numerous analyses andevaluations of the functionalities of Warehouse Management Systems and WMS project planning. In order tobundle the findings of the analyses in a descriptive way, the study deals with partial aspects of WMS Market,Standard WMS and WMS Project.

For the warehouse-logistics.com platform, around 90 systems are validated annually by the »Team warehouselogistics«. The main findings about the development of the market and the systems are made available to thepublic in a two-year cycle with the WMS MARKET REPORT as a comprehensive market study.

In addition, the market report addresses trends and developments from current key research areas. The contents andresults are based on research findings. All aspects are presented graphically and underlined with text.


Table of Content

▪ Definition

▪ Plane Model of System

Landscape

▪ Functional Scope

▪ Popular Functionalities

▪ Development Focus

▪ Budget

▪ Software

▪ Licensing Models

▪ Strenghts of WMS

▪ Provider Types

▪ Marketpresence & Expertise

▪ Employees

▪ Success Factors

▪ Turnover

▪ Market Volume

▪ Partnerships

▪ Internationalisation

▪ Logistics IT Market

▪ Growth Factors

▪ Trends

THE WMS MARKET

▪ Project Distribution

▪ Level of Automation

▪ Installations

▪ Time Frame & Costs

▪ Storage Technologies

▪ Technologies

▪ Sector Focus

▪ Chances & Challenges

▪ Selection Criteria

▪ Excursion: SAP EWM

Implementation Partners

▪ Fraunhofer-Gesellschaft

▪ Fraunhofer IML

▪ Short Introduction:

warehouse-logistics.com

▪ »Team warehouse

logistics«

▪ Database

▪ Imprint

THE WMS PROJECTTHE STANDARD WMS APPENDIX


THE WMS MARKET

Provider Types · Market Presence & Expertise · Employees · Success Factors · Turnover · Market Volume · Partnerships · Internationalisation · Logistics IT Market · Growth Factors · Trends


THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX

47%

32%

21%

Provider TypesDifferentiation based on the Product Portfolio of the WMS Providers

The core competence of a »pure« WMS provider is software for the warehouse –possibly with focus on dedicated industry sectors. This provider type might offer supplementary warehouse-related software (e. g. Forklift Control Systems, Pick-by-Voice solutions).

The integrator often acts as a general contractor and supplementary offers material handling equipment (»one-stop shop«). In general, the WMS is highly integrated into the material flow control system.

A WMS of a suite provider is mostly part of a broader software suite (e. g.

ERP / SCM system) and generally features a higher level of integration

in intercompany or multi-site modules and functions of the business suite.

© Fraunhofer IMLwarehouse-logistics.com

The given data is based on the statements of the WMS providers.

47% of the WMS providers describe them-selves as suite providers. The assignment to aprovider type offers information about thefunctional orientation of the provider.Depending on the scope and framework ofthe project, the respective strengths of theprovider types can lead to project success.



Development of Provider TypesDevelopment of the Distribution of Provider Types from 2010 to 2020

46%

30%

24%

2010


»Pure« WMS providers IntegratorsSuite providers

2016

37%

43%

20%


2020


47%

32%

21%

Over the last 10 years, there has been a steady increase in the number of suite providers who are expanding their product portfolio horizontally andvertically. According to the experience of the »Team warehouse logistics«, the share of adjacent software systems of the WMS providers, such asTransport Management Systems, Forklift Guidance Systems, Resource Planning Systems, BI tools or Pick-by-Systems is increasing. These systems offerWMS customers specific functionalities in the various areas and supplement the classic warehouse software in a modular and demand-orientedmanner.


The data for 2010 and 2016 is taken from the WMS Market Report Compact 2018.



More than three quarters of WMS providers have been offering Warehouse Management Systems for more than 20 years. Almost a third have been present on the market since the beginning of the possibilities for digital warehouse management. Although the trend of digitalisation in logistics has been intensively discussed especially in the last 5 years, just a few new WMS providers have entered the market. Thus, most WMS providers have a very great amount of experience in the field of logistics software. This is underlined by the long term market presence as well as by the fact that the employees in the WMS sector are usually employed for a long time.

Expertise of WMS Providers


Market Presence of WMS Providers

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Employment Period of Employees in the WMS Sector

5%

18%

47%

30%

0%

10%

20%

30%

40%

50%

60%

≤10 years 11-20 years 21-30 years >30 years

0%

9%

49%

36%

6%

0% 20% 40% 60%

0-2 years

3-5 years

6-9 years

10-15 years

>15 years



Employee Development in the WMS Sector

Estimation of the WMS Providers regarding the Annual Development of their Headcount in the WMS Sector



Increase moderately (3% to 7%)

Decrease rapidly (>7%)

Increase rapidly (>7%)

Decrease moderately (3% to 7%) Stable (+/- 3%)

Actual Development of the Average Number of Employees from 2013 to 2019

8%Employee Growth

per Year© Fraunhofer IML warehouse-logistics.com


The data for 2018 is taken from the WMS Market Report Compact 2018.

2%14%

48%

36%

3%

20%

39%

38%

2018 2020



Ø Number of employees at >50 WMS employees per company

Ø Number of employees at ≤50 WMS employees per company

Development of the Average Number of Employees from 2013 to 2019 in the WMS Sector per Company

Employee Development in the WMS Sector

t shows the average number of WMS employees at the WMS providers. A distinction was made between large companies with more than 50employees and smaller companies with less than 50 employees in the WMS sector. The distribution of the companies in these two categories is roughlythe same over the years. The development over the years 2013 to 2019 shows that the number of WMS employees at large companies increasedsignificantly, whereas the number of WMS employees at smaller companies was constant over the course of the years.

28% < 25 employees

25% 25-49 employees

18% 50-100 employees

29% > 100 employees

Distribution of the Number of Employees in the WMS Sector per Company

© Fraunhofer IML warehouse-logistics.com

23 23 25 27

225257

326354

0

100

200

300

400

2013 2015 2017 2019


The data for 2013-2017 is taken from the WMS Market Report Compact 2018.

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Employee Structures in the WMS Sector

Distribution of Employees by Type of Activity Difficulties in Recruiting Skilled Workers

1. (Industry) experience of the applicants

2. Qualification level of applicants

3. Professional aptitude of the applicants

4. Competition between providers

5. Different salary expectations© Fraunhofer IML warehouse-logistics.com



Developers

Consultants

48%Support

employees14%

38%

A successful Logistics IT project requires both process and logistics expertise as well as solid IT know-how from WMS provider. It is crucial that thecustomer's process-related requirements are implemented through goal-oriented IT support. The vast majority of the systems available on the WMSmarket are individual standard software with a standard share of more than 80% and influence the fields of activity of the employees. 38% of theemployees are consultants and, as logistics and process experts in WMS projects, are increasingly responsible for customer-specific parameterisationand configuration of the system. Almost half of the employees are developers and focus mainly on the further development of the standard.



Success Factors of WMS Providers


According to the WMS providers themselves, their own logistics andprocess know-how as well as existing reference projects are the mostimportant factors for a successful market positioning.

Top 5 Success Factors of the WMS Providers

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59%

38%

32%

21%

20%

Experience in logistics and processes

Extensive references in logistics

Realisation of customised solutions

Realisation of standardised solutions

Technology leadership

0% 10% 20% 30% 40% 50% 60%

Implementation methods

Regional availability

Low implementation costs

Low implementation times

Storage technology offered

Customer support offered

Flexibility

Company acts as a general contractor

Global availability

Business software offered

Experienced staff

Technology leadership

Standardised solutions

Customised solutions

Extensive references in logistics

Experience in logistics and processes



Development of Turnover in the WMS Sector

Estimation of the Annual Turnover Development for the Years 2020-2024


Stable (+/- 3%)



Decrease moderately (3% to 7%)

1%

10%

Average Annual Turnover Increase from 2015 to 2020

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5%

12%

58%

24% The results in the Market Report Compact 2016show that almost 90% of WMS providers forecast amoderate to rapid increase in turnover by 2020. Theactual growth rate of 10% confirms this estimation.It can be observed that due to extensions ofcustomer requirements and the range of functionsof the systems, the scope of the project and thusalso the turnover increases. For the next four years,82% of the WMS providers expect a further increasein turnover development. 6% expect a decline.




Share of Turnover by Type of WMS ProviderDivision of the Total Annual Turnover 2019 in the WMS Sector


57%

8%

35%

»Pure« WMS providers

IntegratorsSuite providers


Suite providers are often characterised by abroad product portfolio, which leads to highturnover when a large order is placed. Theaverage turnover of a suite provider in theWMS sector in 2019 amounts to almost 18.94million euros. Due to the complementarydistribution of warehouse technology andmaterial flow control systems, an integratorgenerates an average of 27.13 million eurosin the WMS Sector. The »pure« WMSproviders are specialised in WMS implemen-tation and achieved an average turnover inthe WMS sector of approximately 3.94million euros per provider.



Cumulative Share of Turnover per Provider Type


Sales Shares in the Market Segments of the Respective Provider Types

Among suite providers, a third of companies already generate 80% of thetotal turnover in this category. It can be deduced that the market isdominated by several large companies, which is additionally confirmed bythe steep incline up to approx. 16% of the cumulative number ofproviders. Among the »pure« WMS providers the turnover shares are moreevenly distributed. Here, not quite half of the providers account for 80%of turnover. The cumulative turnover shares of the integrators show thatthe section between 15% and 54% is almost linear. This curve indicates alarge share of medium-sized companies in the market for the integrators.

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

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Cumulative number of suite providers

Suit

e p

rovi

ders

»Pu

re«

WM

S p

rovi

ders

Inte

gra

tors

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0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

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Cumulative number of integrators

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

Cu

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vesh

are

of

turn

ove

r

Cumulative number of »pure« WMS providers



Development of Market Volume and Competitive Pressure


Expected Annual Development of the WMS Market Volume in the Upcoming 4 Years

Expected Development of the Competitive Pressure in the past 3 Years

5%

22%

55%

18%

50%

2%

48%



Increased

Constant

Decreased

Stable (+/- 3%)



Increase rapidly (more than 7%)

Only 2% of WMS providers perceive that competitive pressure in the industry is decreasing, although the majority of WMS providers expect the marketvolume to grow slightly to strongly. This clearly demonstrates that the new market volume will also be highly competitive.



Reduction in costs

Increase in profit

Reduction in risks

New areas of business

Expansion of resources

Concentration on thecore business

Synergy effectsOpening of new markets

Increase in flexibility

Systems

Access tonew customers

Partner's know-how

Rounding out the portfolio

Partnerships of WMS Providers


To complete their portfolio, 80% of WMS providers maintaintechnology and development partnerships. In most cases, thefocus is on supplementing these partnerships with warehousetechnology, IT hosting or hardware for intralogistics such asmobile data acquisition devices.

Benefits for the Providers through Partnerships Partnerships of the Providers in the WMS Sector


70%

60%

50%

40%

30%

20%

10%

0%

80%Technology and development partnerships

79%Sales partnerships

68%Implementation partnerships




Internationalisation


Strategies with regard to Marketing and Internationalisation

Reasons for Expansion and Future Establishment of Foreign Branches

31%

46%

23%

1. Strategic expansion

2. Growth market

3. Proximity to customers for service and support

4. Direct request by a customer

5. Existing customers are located in that country© Fraunhofer IMLwarehouse-logistics.com


Primarily marketing at the national level

Active marketing at the global level

Targeted marketing in several selected countries

More than two thirds of WMS providers rely on worldwide marketing of their software. Growth markets and strategically selected countries areaddressed in particular. The international orientation of WMS customers is often setting the pace. Experience has shown that a local service andsupport structure is decisive for many customers when choosing their WMS provider.



49% of the WMS providers expand their

intralogistics competence by offering

at least one

Pick-by-Solution.

Modularity in the Logistics IT MarketAdditional Offer of Logistics IT by the WMS Providers

The given data is based on the statements of the WMS providers and a market research.

35% of WMS providers sell at

least one Transport Management System (TMS) as a supplement. Of these systems, 79% can be used independently.

Numerous WMS present on the market have a well-founded

repertoire of Forklift Guidance System (FGS) functionalities.

63% of the WMS offer extensive, integrated FGS functionalities or

can be extended by an FGS module. The potential for

further development of self-sufficient systems is great.

The systematic analysis of data in the warehouse is provided by 46% of WMS providers with the

functionalities of a BI Tool. Almost one third of the BI tools

can also be connected as a stand-alone system.

Despite the increasing level of automation in the warehouse, the

correct assignment of employees is still a major success factor. 36% of the

providers have already developed a

system or module for Resource Planning (RPS) in intralogistics.

38% of WMS providers

offer a Material Flow Controller (MFC)

which is integrated in the WMS. 66% of these

systems can also be used as a stand-alone system.

Observations of the »Team warehouse logistics« showan increase in the supply of specialised software inlogistics. The result of a market research indicates anincreasing horizontal and vertical integration offunctionalities since many WMS providers offeradditional software systems or modules to comple-ment the WMS.




Top 5 Growth Factors for the WMS Market


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1. Mechanisation and automation in

companies

2. Increasing demand for information

transparency

3. E-Commerce / M-Commerce

(Ubiquitous Service Consumption )

4. Providing information on the economy

efficiency of a WMS

5. Individualisation and personalisation

of products

50%

50%

38%

38%

32%



Development Trends in the WMS MarketConsideration of the Upcoming 4 Years


19%

19%16%

Flexibility in the ordering and receiving process

Industry 4.0 / Logistics 4.0 / Internet of Things

Artificial IntelligenceIncreasing implementation of

End-to-End customer process solutions

Postponement / Mass Customisation

Conscious End-Customer

19%25% 24%

24% 11%

9% 3%



THE STANDARD WMS THE WMS PROJECT APPENDIXTHE WMS MARKET

© Fraunhofer IML / warehouse-logistics.com© Fraunhofer IML / warehouse-logistics.com

Conclusion »The WMS Market«

Provider types Expertise

Growth factors

EmployeesWithin the last 10 years, the share of suite providers in the WMS market has continuously increased.

In 2020, almost half of the providers will describe themselves as suite providers and expand their product portfolio to include supplementary Logistics IT systems.

Since several years, the number of employees in the WMS sector has been increasing, especially in larger companies. The number of employees is spread over three areas of activity.

Almost half of the employees are developers, supplemented by consultants and supporting employees. Consultants provide process-related and logistical knowledge, but also experience in project management.

Mechanisation and automation continues to be seen as one of the driving growth factors in the WMS sector.

The influence of the increasing demand for information transparency has increased significantly since 2018 and is therefore one of the pioneering trends of the coming years.

More than half of the WMS providers describe well-founded logistics & process know-how as a success factor in the sector.

The WMS providers use their longstanding expertise to develop supplementary Logistics IT systems, which extend the functionalities of the WMS as modules or stand-alone systems.


THE STANDARD WMS

Definition · Plane Model of System Landscape · Functional Scope · Popular Functionalities · Development Focus · Budget · Software · Licensing Models · Strenghts of WMS


THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX

Definition and DemarcationWarehouse Management System (WMS)

Warehouse management is the general term for the management, control and optimisation of storage and distribution systems. In addition to the elementary functions of a warehouse management system, which include quantity and storage location management as well as conveyor control and disposition, the scope of services of a warehouse sanagement system includes

◼ methods and means for controlling system statuses and

◼ a selection of operating and optimisation strategies.

The task of a WMS is to manage and optimise intra-company storage systems.

Systems.

Definition according to VDI guideline 3601 - Warehouse Management Systems (2015).



Plane Model of System Landscape

Integrated Material

Flow Control System (MFCS)

Management, Planning, Disposition (Company)

Process Control, Control, Optimisation(Warehouse)

Identification, Handling, Transport (Warehouse)

As part of the corporate systemlandscape, the WMS communicateswith adjacent systems via interfaces(cf. plane model according to VDIGuideline 3601).

The management level includesamong others finance andaccounting, human resources, masterdata and inventory management.

The process level deals with thewarehouse structure, the internaltransport management and thesupport of the processes fromincoming goods to outgoing goods.Master data and inventorymanagement is limited to theintralogistics area.

The control level deals with dataacquisition and transfer as well as theexecution of material movements.

Tasks per System LevelSystem Level

Sensors / Actuators

Programmable Logic

Controllers (PLC)

Material Flow Control

System (MFCS)

Enterprise Resource Planning (ERP)

Adjacent Systems(e. g. TMS, Customs)

Warehouse Management System (WMS)

Subsystems (e. g. Pick-by-Voice,

Pick-by-Light)

IT Hierarchy and Systems

Management Level

Process

Level

Control

Level

Mapping according to VDI Guideline 3601 – Warehouse Management Systems (2015).



multi-warehouse handl. capability

customs

serial numbers

slotting & warehouse reorganisation

forklift guidance system

value added services

vendor managed inventory

scrapping

returns

package optimisation

production supply and removal

resource planning/labour mgmt.

best before dates

hazardous substances

handling units management

kit building

consignment

empties and load carriers

(multiple) client capability

hazardous material

cross-docking

dock & yard management

double/multiple-depth storage

batches

weight control

CORE FUNCTIONS

ERP

MFCSPLC

incoming goods outgoing goods

advanced shipping note

receipt

deconsolidation

storage

order management

order picking

consolidation

packaging

dispatch

quality inspection

delivery feedback

warehouse-internal processes

relocation

replenishment

rebooking

stock-taking

control centre

AD

DIT

ION

AL

FUN

CTI

ON

S

AD

DIT

ION

AL

FUN

CTIO

NS

master data management

transport management

inventory management

warehouse structure

Mapping according to VDI Guideline 3601 – Warehouse Management Systems (2015).

Functional Scope of a WMSCore and Additional Functions

VDI Guideline 3601 - Warehouse Management Systems



The given data is based on the statements of the WMS providers. The data has been determined using the »WMS Online Selection«, which is based on the validated values of 2019.

Core Functions of a WMSAverage Degree of Functional Performance of the Listed Systems

INCOMING GOODS OUTGOING GOODS MANAGEMENT

WAREHOUSE-INTERNAL PROCESSES

82%Receipt

81%Advanced

shipping note completion / feedback on

stock

71%Storage

59%Quality

inspection

45%Deconsolidation

81%Dispatch

72%Packaging

68%Order picking

64%Order

management

51%Delivery

feedback

54%Consolidation

80%Warehouse

structure

75%Inventorymanage-

ment

68%Transport

management

65%Master data

management

61%Control centre

63%Stock-taking

79%Relocation /

replenishment / rebooking

© Fraunhofer IML / warehouse-logistics.com

80%Advanced

shipping

note



Additional Functions of a WMSAverage Degree of Functional Performance of the Listed Systems

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0% 10% 20% 30% 40% 50% 60% 70% 80%

Vendor Managed Inventory

Customs

Hazardous substances / dangerous goods

Dock- / Yardmanagement

Resource Planning / Labour Management

Material flow control system

Production supply and disposal

Package optimisation

Value Added Services (incl. billing)

Scrapping

Empties and loading equipment

Forklift guidance system

Slotting and Warehouse reorganisation

Consignment

Double / multiple depth storage

Returns

Weight control

Multi-storage capability

Best before dates

Cross-Docking

Serial numbers

Multi-client capability

Batches

Handling-Units-Management

The core functions are indispensablefor the operation of the WMS and arepart of the minimum installation scopeof each system. These are supple-mented by additional functionsdepending on the individual projectrequirements. The concrete functiona-lities of the core and additionalfunctions can be defined in differentdetail for each WMS. Some additionalfunctions are popular requirementsand have therefore already beendeveloped widely by the WMSproviders.If more explicit expertise or function-nalities are required, it is advisable toconsider specialised Logistics IT systemsas a supplement to the WMS, whichare connected via an interface withinthe IT system landscape.




Benchmarking Supply and DemandTop 5 of the most Requested K.O. Criteria from the »WMS Online Selection«

Batch management

Multi-storage capability

Best before date management

Serial number management

Multi-client capability

The overview shows the knock-out criteria most frequently selected by WMS users in the »WMS Online Selection« and compares this information withthe functional degrees of fulfilment of the listed WMS. The demand regarding batch management can be met by a high average degree of fulfilmentof the WMS, whereas there is potential for development in the area of best before date management.

Necessary Criteria as Specified by WMS Users1 Ø Degrees of Fulfilment of the Criteria by the WMS²

77%

75%

65%

68%

71%

36%

32%

32%

30%

27%

2 The data has been determined using the »WMS Online Selection«, which is based on the validated values of 2019.

1 The given data is based on the information of 311 WMS users of the »WMS Online Selection«.

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2 The data has been determined using the »WMS Online Selection«, which is based on the validated values of 2019.

Benchmarking Supply and DemandTop Values when Using the »WMS Online Selection«

Support of a Multi-client Capability

Mapping of a Best-before Date Management

Fulfilment byValidated Systems2

Selection throughWMS Users1

98%

100% 32%

27%

32% of WMS users have selected the best-before date management service offered by allvalidated WMS when specifying the knock-out criteria in the »WMS Online Selection«. Basicfunctionalities of the best-before date management are offered by 100% of the WMS. On theother hand, the detailing of the functional support shows a great variance among the systems.The average degree of fulfilment across all systems is 68%. Due to the strong industry-specificreference of the best-before date management. This requires profound knowledge andexperience of the WMS providers in the respective sector.

Support for multi-client capability is also often defined by WMS users as an essentialfunctionality and is provided by 98% of validated WMS. This requires that the data sets foreach client can be maintained completely independently and is a requested functionality oflogistics service providers. The comprehensive support of multi-client functionalities enablesflexible addressing of different industry requirements in a warehouse.

Top Value

Top Value


1 The given data is based on the information of 311 WMS users of the »WMS Online Selection«.



Benchmarking Supply and DemandDevelopment of Selected K.O. Criteria from the »WMS Online Selection«

0%

5%

10%

15%

20%

25%

30%

35%

40%

2014 2015 2016 2017 2018 2019

Multi-storage capability Multi-client capability

The WMS providers used the knock-out criteria of the »WMS Online Selection« and selected the indicated categories as necessary.

With the »WMS Online Selection«WMS users have the possibility tocompare listed WMS on the basis offunctional and non-functional require-ments. If there are fixed specificationsfor the project plan, the selection ofknock-out criteria is target-oriented.Multi-storage capability and multi-client capability are criteria whoseselection frequency as mandatorycriteria has been constantly high overthe last six years. In 2017, even 38% ofWMS users declared the functionalityof multi-storage capability as necessary.The frequency did not decreased below25% over the years. The demand formulti-client functionality is similarlyconsistently high.

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The given data is based on the information of 311 WMS users of the »WMS Online Selection«.



Benchmarking Supply and DemandDevelopment of Selected K.O. Criteria from the »WMS Online Selection«

With the selection frequency of furtherselected knock-out criteria, it is appa-rent that the necessary requirement forthe functionalities of a Forklift ControlSystem has increased by 7% from 2014to 2019. According to the projectexperience of the »Team warehouselogistics«, an increased emphasis onoptimising resources in the warehousecan be observed. The selectionfrequency of a hazardous materialsmanagement is also remarkable due toits increase. While in 2014 only 8% ofthe WMS users specified themanagement of hazardous substancesas a target, the value increased to 24%in 2019. Experience from thevalidations confirms that WMSproviders have been able to expandthe standard repertoire of their WMSbased on customer-specific require-ments.

Forklift Guidance System Management of hazardous substances

0%

5%

10%

15%

20%

25%

30%

35%

40%

2014 2015 2016 2017 2018 2019

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The WMS providers used the knock-out criteria of the »WMS Online Selection« and selected the indicated categories as necessary.

The given data is based on the information of 311 WMS users of the »WMS Online Selection«.



+8%Resource planning / labour management

-3% Control centre functionality

+7%Slotting and warehousereorganisation

Functional Development FocusProject Already Started or Concretely Planned for the Upcoming 4 Years

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0% 10% 20% 30%

Best before datesBatches

Handling units management(Multiple) client capability

Kit buildingMulti-warehouse handling capability

Double / multiple-depth storageScrapping

Serial numbersWeight control

ConsignmentReturns

CustomsVendor managed inventory

Production supply and removalForklift guidance system

Cross-dockingHazardous substances

Empties and load carriersHazardous material

Package optimisationValue added services

Dock and yard managementSlotting and warehouse reorganisation

Control centre functionalityResource planning / labour management

Percentage Change of the Top 3 Development Priorities since 2018



Within the last two years, personnel resource planning as wellas slotting and warehouse reorganisation have become morerelevant. More than a third of WMS providers are alreadyimplementing developments in the area of resource planningor plan to pursue this topic in the next four years. Despite aslight decrease, 23% of WMS providers continue to focus onthe functional development of their control centre.



0% 10% 20% 30% 40% 50%

Collaborative platforms

Distributed ledger technologies

Gamification

Emulation

3D visualisation

Pick-by-vision

Audio picking principles

Integration platforms for data

Digital security

Scalable IT infrastructures

Simulation-based decision support

Web-based user interface

Intelligent Image Processing

Mobile platforms

Deep Learning, Machine Learning

Predictive analytics

+15% Predictive Analytics

+9% Deep Learning, Machine Learning

-1% Mobile platforms

Technological Development FocusProject Already Started or Concretely Planned for the Upcoming 4 Years

Percentage Change of the Top 3 Development Priorities since 2018

In the WMS industry, the importance of predictive analytics aswell as deep learning and machine learning as part of artificialintelligence is growing rapidly. 38% of WMS providers arealready developing applications or plan to start projects in thisarea in the mid-term. Mobile platforms continue to be thefocus of WMS providers and form, for example, an importantbasis for the application of technological support.


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Artificial Intelligence (AI) in WMSChallenges and Possible Applications

Selected Applications of AI in WMS Top 3 Challenges Using AI in WMS

Content information according to the Management Summary of the WORLD CAFÉ 2019 (2019) and research results.

Data availability and quality

Limited experience and expertise in the field of AI

User acceptance e. g. with regard to data security

Strategieebene

Application level

Control level

Process level

Administration level

Image processing e. g. automated identification of

damages

Automateddisposition

Predictivemaintenance

Predictive analytics

e. g. for demand forecasting along the supply chain

Autonomous

control and demand

recognition of transport

systems

Route optimisation as well as optimum warehouse reorganisation and storage strategies


Machine learning as a sub-area of artificial intelligence enables systems to recognise patterns and rules on the basis of existing data sets and to usethese in problem solving or decision making. The integration of prediction models or intelligent image processing are possible applications in WMS. Inorder to ensure that algorithms are able to adapt the analysis models autonomously and continuously to the changing conditions, there must be anavailability of high-quality data but also expertise in the field of AI. 24% of WMS providers see the use of artificial intelligence as a development trendin the WMS market in the next four years.




20%

80%

Pick-by-Vision

Pick-by-Vision Solutions and Structures offered by WMS Providers

50% Integrated in WMS

42% Stand-alone module

8% Both structures possible


Audiovisual processes such as Pick-by-Vision are supported by 44% of the Warehouse Management

Systems examined as a way of

providing information in

order picking.

18% of WMS providers will increasingly focus on the technological development of Pick-by-Vision in the

next 4 years.© Fraunhofer IML warehouse-logistics.comDo not offerOffer

Pick-by-Vision supports the employee during picking by a software-supported extension of the real world. Relevant information on picking orders isdisplayed in the employee's field of vision via data glasses. Already 20% of the WMS providers offer a Pick-by-Vision software solution, which is eitherintegrated in their own WMS or can be connected to any WMS as an stand-alone module. 44% of the WMS providers support the use of Pick-by-Visionsolutions in order picking. Research projects of the Fraunhofer IML show that criteria regarding cognitive and physical ergonomics should be takeninto account in the further development of hardware and software in order to achieve the highest possible acceptance among employees and increaseproductivity.




Development BudgetAnnual Effort for Further Development of the WMS



29%

29%

18%

24%

5%

26%

25%12%

32%

3%

35%

28%

7%

27%

16-20%<5% 5-10% 11-15% >20%

2014 2018 2020




The percentage figures define the annual effort of WMS providers to develop their systems in relation to their WMS turnover. After investment efforts varied more in previous years, in 2020 all WMS providers invest at least 5% of their turnover in the further development of their WMS. For about one quarter of WMS providers, the share is above 20%.



Standardised SoftwareAssessments of the Degree of Standardisation of WMS Providers

0%

28%

72%

Individual standard WMS

Share of customisation and coverage above standard is roughly balanced (~50/50)

Standard software

S m all part of client specific

customisation , basically coverage by

software standard (~ 20/80)

Individual software

Large proportion of customisation, low coverage above standard (~ 80/20)


All WMS providers define their systems eitheras standard software or as individual standardWMS. Due to the expansion of the range offunctions in recent years, standard softwaresystems now have a large repertoire offunctionalities, which reduces the proportionof customer-specific adaptations. In addition,parameterisation enables the flexibleadaptation of customer requirements. The useof standard software minimises risk and costfor both parties. The WMS users benefit, forexample, from guaranteed support and long-term development.




Development of Standard Software

3%

31%

66%

1%

22%

77%

28%

72%

Individual software Individual standard WMS Standard software

0%

2014 2018 2020




The percentage of WMS providers who describe their system as individual software has been steadily decreasing since 2014. There is a trend towardsstandard software, although the proportion of customer-specific adaptations varies. Project-specific programming can be anticipated by theparameterisation and further development of standard functionalities by WMS providers.





Licensing Models of WMS Providers


23%

30%

48%

63%

70%

83%

0% 20% 40% 60% 80%

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Licensing per site, location, plant or factory

Licensing according to active concurrent users

Use of a company or company group license

Licensing per server installation

Licensing according to performance parameters

Licensing according to the number of named users

Concurrent User:

This license model specifies the maximum number of users allowed to access the WMS at the same time.

Named User:

This license model specifies the number of users who are allowed to access the WMS with a registered, named access.

Performance Parameters :

In this license model, licensing is based on performance parameters, such as the number of order items.

Explanation for License Models



The Strongest Aspects of WMS


1Wide range of functions in the standard version

2User friendliness / ergonomics

3Cross-sector WMS functionality

4Integration of automation technology

5Simple connection to higher and lower-level software


Top 5 Strengths of their own WMS from the Perspective of WMS Providers



Conclusion »The Standard WMS«


Scope of functions Development focus

Success factors

SoftwareIn the area of technological development priorities, the use of artificial intelligence in the WMS has moved into focus. Its added value depends largely on data availability and data quality.

As two years ago, the other functional development focuses are distributed among the expansion of the functionalities of personnel resource planning and the control centre.

In 2020, none of the WMS providers define their WMS as individual software, which confirms the declining trend of recent years.

Parameterisation enables resource-efficient and flexible adaptation of customer requirements. The offer of standard software thus reduces the risk for all project partners.

From the perspective of WMS providers, the large range of functions in the standard is not only a recognisable trend, but also a decisive factor for success. The cross-sector WMS functionalities help to ensure the success of projects.

The characteristics of the core and additional functions vary for each WMS. Customer-specific adaptations and further developments increase the functional scope of the WMS and the functionalities of the standard software are developed in parallel.


THE WMS PROJECT

Project Distribution · Level of Automation · Installations · Time Frame & Costs · Storage Technologies · Technologies · Sector Focus · Chances & Challenges · Selection Criteria · Excursion: SAP EWM Implementation Partners


THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX

Number and Distribution of WMS Projects


Percentage Distribution of WMS Projects to WMS Provider Types in 2019

Ø Number of Projects per Provider in 2019


4423

9

18

10% © Fraunhofer IML warehouse-logistics.com

1.840WMS projects in 2019

realised by 65 WMS providers


10%

18%

72%

The absolute number of WMS projects has decreased by 9% compared to2017 with the same number of providers. The suite providers account for 72%of the commissioned projects. Taking into account the increase in turnover, itcan be assumed that the project volume of the individual WMS projects hasincreased.


Suite providers

Integrators



The given data is based on the values of »WMS Reference Projects«.

Customer Structure of WMS ProviderDistribution of Customer Projects according to the Project Type

RETROFITThe existing WMS is modernised,

with the connections and interfaces being adapted to the

system.

2%

FIRST INTRODUCTIONFor the first time a WMS is

implemented at an existing location.

NEW PROJECTIn a greenfield project, both the building and the warehouse technology are constructed for

the first time and the WMS is implemented.

REPLACEMENTSAt an existing site, the existing

WMS is deactivated and the new WMS is implemented.

ENLARGEMENTWhen extending an existing

WMS, for example, additional storage areas or functionalities are connected to the existing

system structure.11% 40%

13%

34%

In 2019, WMS provider concentrated on a first-time WMS implementation at a logistics site for 40% of WMS projects. Only 2% of the implementedprojects focused on the modernisation of an existing system.




Level of Automation

42%

49%

9%

Distribution of Customer Projects according to the Level of Automation

In the manual warehouse, shelving and pallet racks as well as floor block storage are traditionally used.

The goods are stored and retrieved with the help of employee-operated industrial trucks such as

forklift trucks. Order picking is carried out according to the person-to-goods principle.

The majority of WMS projects involve

semi automated warehouses. Semi automated warehouses consist of a combination of individual automated sections (e. g. miniload) and manual storage areas (e. g. pallet rack warehouse).

A fully automated warehouse is characterised by the use of automated storage and conveyor technology. Typical storage systems are automatic small parts ware-houses (ASPW) and automatic high-bay ware-houses. Here, the goods are transported to the employee by means of automated con-veyor technology. Picking is carried out according to the goods-to-person principle.


The diagram shows a current cross-section ofthe completed WMS projects at the customer'ssite with regard to the level of automation inthe warehouse. Through the combination ofautomated and manual processes, thecompanies benefit both from an increase inproductivity as well as from a flexible design ofthe processes, e. g. in the area of order picking.Almost half of the WMS customers takeadvantage of this added value by operating apartially automated warehouse. Full auto-mation is only efficient with highly standar-dised processes and is implemented in only afew customer projects.

The given data is based on the values of »WMS Reference Projects«.




Extent of WMS Installations

Number of Users in the Largest Installations of WMS Providers in 2015, 2017 and 2019

0%

5%

10%

15%

20%

25%

30%

≤50 51-100 101-200 201-300 301-400 401-500 >500

Number of parallel working users


2015 2017 2019

In the context of a WMS imple-mentation, about a quarter of WMSproviders have experience in installingsystems with more than 500 users. Overthe past five years, the proportion ofcompanies with a maximum of 50 usersof their largest installation has de-clined. It is becoming apparent that aparallel system application of severalusers in the warehouse is anincreasingly necessary functionality ofthe WMS. Meeting this demandrequires high scalability andperformance as well as a sufficientsystem response time. When choosinga suitable WMS and WMS provider, theconditions of the application caseshould be compared with theexperience and performance values.

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Time Frame for WMS ProjectsAverage Duration of WMS Implementation and Usage

Ø Duration of a WMS Implementation for Manual and Automated Warehouses for New Customers

Ø Duration of Use of a WMS according to the WMS Providers

2016 2018 2020Automated warehouses Manual warehouses

Compared to 2018, the project duration for WMS implementation in automated warehouses has been reduced, so that about half of the WMSproviders calculate a period of 9 to 12 months in automated warehouses and 3 to 6 months in manual warehouses. These estimates can be explainedby the trend of the increasing share of standard software in the WMS market, as the overall required time is minimised by the reduced number ofcustomer-specific adaptations. In both cases, the project partners enter into a long-term partnership with the implementation. 82% of the WMSproviders state that the average duration of use of their WMS is more than 10 years.

0% 10% 20% 30% 40% 50% 60%

< 3 months

3-6 months

6-9 months

9-12 months

12-15 months

15-18 months

> 18 months

0% 10% 20% 30% 40% 50% 60% 70%

<5 years

5-9 years

10-14 years

≥15 years

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Costs of a WMS Implementation

Expected Annual Price Level Developments over the next 4 years

2%

12%

46%

37%

3%

Ø Project Volume with regard to the Level of Automation in the Warehouse according to the WMS Providers


0% 5% 10% 15% 20% 25% 30% 35%

≤ 25.000 €

25.001 - 50.000 €

50.001 - 100.000 €

100.001 - 150.000 €

150.001 - 200.000 €

200.001 - 300.000 €

300.001 - 500.000 €

500.001 - 750.000 €

750.001 - 1.000.000 €

> 1.000.000 €

According to the WMS providers, the average project volume foran automated warehouse in 30% of the projects amounts from300,000 euros to 500,000 euros.The costs for a manual warehouse vary greatly and depend on theindividual process complexity. A stable to slightly increasing pricelevel is expected in the future.

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Automated warehouses Manual warehouses

Stable (+/- 3%)







Connection of Storage Technologies by WMS ProvidersStorage Technologies to which the WMS has Already Been Linked in Projects

>40%<30%

▪ Manual small parts warehouse▪ Manual high-bay racking▪ Bulk warehouse▪ Flow storage

▪ Automatic high-bay warehouse with storage and retrieval machine

▪ Tray warehouse▪ Automatic small parts warehouse with

storage and retrieval machine▪ Paternoster warehouse /

vertical rotary rack▪ Manual mobile rack warehouse▪ Sorter▪ Channel / satellite warehouse

▪ Manual cantilever storage system▪ Automatic small parts warehouse with

shuttle system▪ Storage system for long materials▪ Automatic hanging garments storage▪ Mobile rack warehouse▪ Storage system with a gallery level▪ Carousel storage system, horizontal

carousel

▪ Silo, Tank▪ Automatic high-bay warehouse with

shuttle system ▪ Push storage system

▪ AutoStore▪ Automatic cantilever storage system▪ Automatic container storage system▪ Automatic stacking cradle system▪ Automatic Parking systems

>70%>90% >50%


The classification of warehouse technology bythe frequency of connection shows that thelargest project experience of WMS providers isin the area of manual warehouse technology.Automatic small parts warehouses with storageand retrieval machines (84%) as well asautomatic high-bay warehouses with sto-rageand retrieval machines (85%) have also alreadybeen integrated by most of the WMS providers.If a connection of shuttles in the high-baywarehouse (49%) as well as in the automatedsmall parts warehouse (64%) is planned,however, the experience of the WMS providersshould be explicitly taken into account. Thiscan be demonstrated by reference projects.




35%

82%

56%

86%

62%

88%

64%

84%

30%

40%

50%

60%

70%

80%

90%

Automatic small-parts warehousewith shuttle system

Automatic small-parts warehousewith storage and retrieval machine

Development of Storage Technology Connection of Automatic Small Parts Warehouses by WMS Providers

Development in the Field of Automatic Small Parts Storage

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2012 2016 2018 2020

The percentage of WMS providers who have already connected automated small parts warehouses with shuttle systems has increased from 35% to64% since 2012. In contrast, the share of project experience with the connection of automatic small parts warehouses with storage and retrievalmachines among the currently listed WMS providers has recorded a slight decrease for the first time. Automation using storage and retrieval machineshas always been and still is a common method in the warehouse. Users benefit from the simple scalability and improved space utilisation and flexibilitywhen using shuttle systems.

The data for 2012, 2016 and 2018 is taken from the WMS Market Report Compact 2018.




WMS as Cloud Solution

43%

Share of WMS Providers who also Offer their WMS as a Cloud Solution

Offered Architectures of the Cloud Solution


✔X

59% Single-tenant cloud architecture only

6% Multi-tenant cloud architecture only

35% Both architectures


57%

An increasing number of cloud solutions are offered, with a focus on using a single-tenant cloud architectureThe experiences of the "Team warehouselogistics" show that this characteristic is based on the acceptance of the customer, since an exclusive access right to the database is generated. Withmulti-tenant cloud architectures, on the other hand, several customers work with one system infrastructure. This is maintained and developed centrallyby the WMS provider, whereby the additional functionalities and costs are distributed among the users, which can be advantageous for similarrequirements of different cloud users.




The given data is based on the statements of the WMS providers and on the values from »WMS Reference Projects«.

Server Operating Systems

Mac OS X Server

IBM System i (formerAS/400)

Solaris / SunOS(Oracle)

HP-UX

AIX (IBM)

Unix

Linux

Windows Server 2012

Windows Server 2019

Windows Server 2016100%

75%

50%

25%

0%

Compatibility of the WMS with Server Operating Systems according to the WMS Providers

Top 3 Server Operating Systems used according to WMS Customers

41% Windows Server 2012

27% Linux

12% IBM System i (former AS/400)

According to WMS providers, the majority of systems are compatiblewith Windows Servers from 2012 to 2019, including the most widelyused server operating system, Windows Server 2016.41% of the WMS customers rely on Windows Server 2012, and about athird of WMS customers use the Linux operating system as analternative. Only a few have the IBM System i in use.



Sector Focus of WMS Providers

20%

31%

49%

0% 20% 40% 60% 80% 100%

Logistics Service Provider

E-Commerce

Retail

Production

Wholesale

Strategic Orientation of WMS Providers Project Experience in Various Industry Sectors


Focus on a few sectors, but with a high degree of specialisation

Independent of industry sectors, but with general functionality

Distribution across some sectors, with a slight specialisation

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Experience has shown that there is a smaller proportion of WMS providers specialising in certain industry requirements. This share can be derived fromhigh market entry barriers for specialised industries. Logistics service providers, for example, often have to serve several clients and ensure that thewarehouse is evenly utilised. Due to the diverse functional requirements, such as detailed documentation for client-specific invoicing and reporting, alower level of project experience can be observed in this area. Other sectors turn out to be less complex and specialised, which means that they can becovered by standard software. Consequently, the project experience among WMS providers is high.




86%89%

85% 85%

83%83%

83%

Goals for the Implementation of a WMSChances for the Customer


Faster reaction times Greater inventory visibility

Lower error rates

Shorter processing times

Greater process transparency

Increase of productivity

Increased readiness to deliver

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Challenges for the Implementation of a WMSReasons for Delays or Terminations of WMS Projects

77%77%

75% 74%

52%52%

48%

Personnel capacity shortages on customer side

Customer's lack of knowledge about their own processes

Expansion of the scope of the project

Problems with other groups

Parallel ERP implementation

Client underestimated the time needed to complete the project

Person in charge of the project changed at the customer's end

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Criteria to Select a WMS Provider Major Aspects from the Suppliers’ and Customers’ Point of View

The given data is based on the statements of the WMS providers and on the values from »WMS Reference Projects«.

WMS provider has references in the industry sector

Implementation time

Implementation costs

Qualification of the WMS employee

Simple parameterisation of the WMS

Functionality1

WMS provider has references in the industry sector2

Usability of the WMS3

Simple parameterization of the WMS4

Easy integration of the WMS into existing processes and IT landscape5

View of the WMS Provider View of the WMS Customer


Top 5 Criteria



Selected Aspects of a WMS Project



Usage duration of a WMS

82% of WMS providers indicate a Ø usage duration of a WMS of more than 10 years.

Implementation challenges

77% of the WMS providers see personnel capacity bottlenecks and the customer’s

process lack of knowledge as the main challenge during WMS implementation.

Distribution of WMS projects

72% of WMS projects have been

executed by suite providers.

Goals for the WMS implementation The main goals of the WMS implementation

are a higher supply capability and a higher process and inventory transparency.

Implementation duration

54% indicate a Ø implementation duration of 9-12 months for automated warehouses. For manual warehouses 49% indicate a Ø implementation period of 3-6 months.

WMS as a cloud solution

57% of WMS providers offer their WMS as a cloud solution.



Excursus: Criteria to Select SAP EWM Implementation Partners

Offeredcloud solutions

Integration with non-SAP

ERP systems

Availabilityof add-ons

Project procedure and project

structure

Level of innovation

Partner status and customer structure

Integration of storage and picking

techniques

Customer service

Global availability


System specific criteria

Company specific criteria

If the decision for an SAP EWM has alreadybeen made, the selection of the appro-priate implementation partner is essential.This excursus offers a supplementarymarket and experience overview of thelisted SAP EWM implementation partners,the details of which have been incur-porated exclusively into the followingevaluations. When choosing the rightimplementation partner, not only thefunctional aspects of the WMS should beconsidered, but also the project experience,the customer service offered and the globalavailability of the partner. Over 80% of theimplementation partners have been presentin the WMS market for more than 20 years.However, they differ significantly in aspectssuch as industry expertise and experience inthe connection of automated warehousetechnology.

Information according to market overview SAP EWM implementation partner (2018).



Product Portfolio of

SAP EWM Implementation Partners

Market Presence of SAP EWM Implementation Partners

Excursus: Market Overview of the SAP EWM Implementation Partners

67%8%

25%

Provider Types of SAP EWM Implementation Partners

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Suite providers

Integrators


42%

58%

Hybrid providersoffer a self-developed

WMS in addition

to SAP productsSAP providers

offer only SAP products


The given data is based on the statements of listed SAP EWM implementation partners.

0%

17%

50%

33%

0% 20% 40% 60%

≤10 years

11-20 years

21-30 years

>30 years



71%

10%

11%

8%

Excursus: Project Experience of SAP EWM Implementation Partners

Global Project Experience of SAP EWM Implementation Partners

Share of Industry-specific Project Experience of

SAP EWM Implementation Partners


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DACH (excluding Germany)

Germany

Europe (excluding DACH)

Worldwide (excluding Europe)

Industry-specific project experience is the foundation for efficient and targeted mapping of customer processes in the WMS. All implementationpartners claim to have expertise in the wholesale and production environment. Whereas only 47% of the SAP EWM implementation partners havealready implemented projects in the logistics service sector. In this sector, for example, a high degree of flexibility in the warehouse structure or multi-client capability are highly demanded. In addition, the project approach may vary due to cultural or legal differences in the regions. The industry-specific and global project experience should therefore be taken into account as criteria in the selection process of the appropriate SAP EWMimplementation partner.

0% 20% 40% 60% 80% 100% 120%

Logistics Service Provider

E-Commerce

Retail

Production

Wholesale




Excursus: Technological Development Focus of SAP EWM Implementation Partners

2

3

4

5

1 Scalable IT infrastructures

Intelligent image processing

Deep Learning & Machine Learning

Mobile platforms

Predictive Analytics

Top 5 Development Focuses of SAP EWM Implementation Partners





Conclusion »The WMS Project«


Projects Benefits

WMS user

By using a WMS, the WMS customer benefits from a faster reaction time in the warehouse and increases his stock and process trans-parency while reducing the error rate at the same time.

The composition of Logistics IT according requirements contributes to an efficient design of logistics processes and supports the achievement of quality, flexibility and cost targets.

The majority of WMS projects are realised by suite providers, which correlates with the provider-specific revenue share.

The implementation period of a WMS varies depending on the degree of automation of the warehouse and can be extended by challenges such as personnel bottlenecks on the customer side or process ignorance.

WMS provider

Each WMS project has its own individual framework conditions and processes, which should be taken into account when selecting the appropriate WMS provider. The dimensioning of the system functionalities and provider services influences both the coverage of the requirement and the project costs.

The excursus to the market of SAP EWM implementation partners also shows that a comparison of providers is informative.

With a WMS implementation, customers and providers begin a long-term and strategic partnership, as the period of the use of a WMS is specified with more than 15 years in one third of the projects.


APPENDIX

Fraunhofer-Gesellschaft · Fraunhofer IML · Short Introduction: warehouse-logistics.com · »Team warehouse logistics« · Database · Imprint


APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT

Fraunhofer-Gesellschaft and Fraunhofer IML

28,000employees

74 institutes and research institutions

2.8 billion research volume

Development investment and defence researchGerman federal and state government base funding

Contracts with industry andpublically financed research projects

Fraunhofer IML, Dortmund

318employees

250post grad students and student assistants

InstituteOther Research Unit

33.1 million turnover, 50% from industry and commerce

Information according to Fraunhofer‘s Annual Report 2019.



Selection of Current Research Topics and Projects of Fraunhofer IML

KTZInnoLab

Blockchain Institute

Leistungs-zentrum

Logistik und IT

Loadrunner

MIKA

Silicon Economy

Center forTextile Logistics

Dynamic Break

GILA© Fraunhofer IMLwarehouse-logistics.com

Recht-Testbed

Clan Human-Technology Interaction



One of the Leading Logistics PlatformsWMS Selection on warehouse-logistics.com

Validated »WMS Reference Projects« to present project specifications and provider expertise in the project business

Annually updated WMS questionnaire with approx. 3,700 aspects and personal validation of WMS functionality

Multilingual information available, e. g. in German, English, Italian

WMS Reference Projects

Language

Certified according to DIN EN ISO 9001

Complies with VDI guideline 3601

Question-naire

Provider-independent »WMS Database« for the functional comparison of about 90 participating systems since 2000

WMS Database

Feel free to contact us: [email protected]



Current Participants of the »WMS Database«

Status: 02.12.2020

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Fields of Activity of »Team warehouse logistics«

Preparation of market studies, execution of lectures and seminars, expert activities for trade fairs, associations or committees in the field of Logistics IT.

1

Development of new processes, methods and tools as well as studies, future scenarios and roadmaps. Operational pilot projects ensure practical suitability.

2 Research

Execution of various strategy and portfolio consulting projects for WMS providers and support in technical due diligence audits on the WMS market.

3 Strategy Consulting

Personal and system-supported consulting from analysis through tendering up to the introduction of a Logistics IT systems.

4 Logistics IT Consulting

Knowledge Management




WMS Consulting by »Team warehouse logistics«

MehrlagerfähigkeitZoll

Seriennummern

Slotting und Lagerreorganisation

Staplerleitsystem

Value Added Services

Vendor Managed Inventory

Verschrottung

Retouren

Packstückoptimierung

Produktionsversorgung/-entsorgung

Ressourcenplanung / Labour Mgmt.

Mindesthaltbarkeitsdaten

Gefahrstoffe

Handling-Units-Management

Kit-Bildung

Konsignation

Leergut und Ladehilfsmittel

(Mehr-) Mandantenfähigkeit

Gefahrgut

Cross-Docking

Dock-/Yardmanagement

Doppelt-/mehrfachtiefe Lagerung

Chargen

Gewichtskontrolle

KERNFUNKTIONEN

ERP

MFSSPS

Wareneingang Warenausgang

Avisierung

Vereinnahmung

Dekonsolidierung

Einlagerung

Auftragsverwaltung

Kommissionierung

Konsolidierung

Verpackung

Versand

Qualitätsprüfung

Lieferrückmeldung

lagerinterneProzesse

Umlagerung

Nachschub

Umbuchung

Inventur

Leitstand

ZUSA

TZ-

FUN

KT

ION

EN ZUSA

TZ

-FU

NK

TIO

NEN

Stammdatenverwaltung

Transportverwaltung

Bestandsverwaltung

Lagerstruktur

Requirements Specifications Tendering Realisation

1 2 3 4

Warehouse inspection

Analyse current state

Weakness and potential analysis

Target process design

Provider preselection

Bid evaluation and comparison

Contract awardrecommendation

Realisation support

Support with testsand acceptances

Creating require-ments specifications

P R O J E C T A N D Q U A L I T Y M A N A G E M E N T

Bid management




Database

The WMS MARKET REPORT COMPACT is based on the 20 years of expertise

of Fraunhofer IML and its partners in the field of Warehouse Management

Systems. Since 2000, the »WMS Online Selection«, has been one of the

world's leading »WMS Databases« for continuous market evaluation and

trend analysis and has been operated and further developed in terms of

content and technology.

For the »WMS Online Selection« as well as for the »WMS Reference

Projects« the »Team warehouse logistics« developed questionnaires to

capture relevant information

◼ about WMS providers,

◼ about the functional scope of the systems and

◼ to evaluate current and future trends and developments

on the WMS market.

In 2020, the questionnaire behind the »WMS Online Selection« covered

around 3,700 criteria, the questionnaire for the »WMS Reference Projects«

covered around 500 aspects. The data of the completed questionnaires (up

to September 2020) were aggregated and evaluated. The data is presented

cumulated and anonymised and is supported by tables and graphics.

If not explicitly mentioned, the data, graphs and tables refer to the year 2020.

The data were collected from all participating WMS providers and systems

through personal expert interviews (within the annual validation).

According to the »warehouse logistics« advisory committee, the participants

of the »WMS Database« represent approx. 80-90% of the relevant providers in

the markets considered.

Category

Total period of the assessment February 2012 to September 2020

Main period of the assessment February 2020 to September 2020

Total number of involved WMS providers 98 providers

Total number of involved systems (WMS) 119 systems

Number of WMS providers participating in the 2020 assessment

66 providers

Number of systems participating in the 2020 assessment

78 systems

Key Figures of the Study



Imprint

© Copyright 2020

Fraunhofer Institute for Material Flow and Logistics IML

Joseph-von-Fraunhofer-Str. 2-4

44227 Dortmund

http://www.iml.fraunhofer.de

http://www.warehouse-logistics.com

[email protected]

All company and product names are trademarks or registered trademarks of their

respective owners. All rights reserved, including translation into other languages.

Each reproduction and treatment of the work for the purposes of propagation

requires an administrative act of the Fraunhofer IML. All text, images and graphics

are subject to the copyright and may only be used while maintaining the copyright

(© Fraunhofer IML, warehouse logistics.com) .

All information and reference, were compiled by the authors after best knowledge

and certain and examined by them with greatest possible care. Nevertheless any

warranty for the correctness, completeness and accuracy of the information can be

assumed.

Authors and ContributorsLinda Maria Wings

Kira Schmeltzpfenning

Björn Krämer

Alena Meisner

Gregor Düssel

Publisher

Picture credits

Graphics and Design Martin Börsting

Mirjana Nowak

Slide 3: © sitthiphong / Adobe Stock

Slide 13: © Sergey Nivens / Adobe Stock

Slide 20: © Matthew Henry / Unsplash

Slide 24: © Jakub Jirsák / Adobe Stock

Slide 24: © Flamingo Images / Adobe Stock

Slide 24: © Scanrail / Adobe Stock

Slide 24: © Sergey Nivens / Adobe Stock

Slide 36: © Picavi GmbH

Slide 41: © Metamorworks / Adobe Stock

Slide 51: © Uwe / Adobe Stock

Slide 62: © Everythingpossible / Adobe Stock

Slide 66: © LOGISTIK entdecken (#20)

Slide 69: © beatabecla / Depositphotos

AutorenGünter Dietze

Norman Grünewald

Mirko Ljucovic

Anike Murrenhoff

Mauro Napierala

Juana Perelló Riera

Tobias von Preetzmann

http://www.iml.fraunhofer.de/

http://www.warehouse-logistics.com/

mailto:[email protected]

WMS MARKET REPORT COMPACT 2020 - warehouse logistics

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