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Trends and Developments of the Market for Warehouse Management Systems
WMS MARKET REPORT COMPACT 2020FRAUNHOFER INSTITUTE FOR MATERIAL FLOW AND LOGISTICS // TEAM WAREHOUSE LOGISTICS
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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«
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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.
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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
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THE WMS MARKET
Provider Types · Market Presence & Expertise · Employees · Success Factors · Turnover · Market Volume · Partnerships · Internationalisation · Logistics IT Market · Growth Factors · Trends
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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.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Development of Provider TypesDevelopment of the Distribution of Provider Types from 2010 to 2020
46%
30%
24%
2010
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»Pure« WMS providers IntegratorsSuite providers
2016
37%
43%
20%
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2020
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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 given data is based on the statements of the WMS providers.
The data for 2010 and 2016 is taken from the WMS Market Report Compact 2018.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
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
The given data is based on the statements of the 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
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Employee Development in the WMS Sector
Estimation of the WMS Providers regarding the Annual Development of their Headcount in the WMS Sector
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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 given data is based on the statements of the WMS providers.
The data for 2018 is taken from the WMS Market Report Compact 2018.
2%14%
48%
36%
3%
20%
39%
38%
2018 2020
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
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
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23 23 25 27
225257
326354
0
100
200
300
400
2013 2015 2017 2019
The given data is based on the statements of the WMS providers.
The data for 2013-2017 is taken from the WMS Market Report Compact 2018.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
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
The given data is based on the statements of the WMS providers.
© 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.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Success Factors of WMS Providers
The given data is based on the statements of the 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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© Fraunhofer IML warehouse-logistics.com
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
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Development of Turnover in the WMS Sector
Estimation of the Annual Turnover Development for the Years 2020-2024
Decrease rapidly (>7%)
Stable (+/- 3%)
Increase rapidly (>7%)
Increase moderately (3% to 7%)
Decrease moderately (3% to 7%)
1%
10%
Average Annual Turnover Increase from 2015 to 2020
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© Fraunhofer IML warehouse-logistics.com
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.
The given data is based on the statements of the WMS providers.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Share of Turnover by Type of WMS ProviderDivision of the Total Annual Turnover 2019 in the WMS Sector
The given data is based on the statements of the WMS providers.
57%
8%
35%
»Pure« WMS providers
IntegratorsSuite providers
© Fraunhofer IMLwarehouse-logistics.com
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.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Cumulative Share of Turnover per Provider Type
The given data is based on the statements of the WMS providers.
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%
Cu
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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%
Cu
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Cumulative number of integrators
0%
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Cu
mu
lati
vesh
are
of
turn
ove
r
Cumulative number of »pure« WMS providers
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Development of Market Volume and Competitive Pressure
The given data is based on the statements of the WMS providers.
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%
© Fraunhofer IMLwarehouse-logistics.com
© Fraunhofer IML warehouse-logistics.com
Increased
Constant
Decreased
Stable (+/- 3%)
Decrease moderately (3% to 7%)
Increase moderately (3% to 7%)
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.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
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
The given data is based on the statements of the 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
© Fraunhofer IMLwarehouse-logistics.com
70%
60%
50%
40%
30%
20%
10%
0%
80%Technology and development partnerships
79%Sales partnerships
68%Implementation partnerships
© Fraunhofer IML warehouse-logistics.com
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Internationalisation
The given data is based on the statements of the WMS providers.
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
© Fraunhofer IML warehouse-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.
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
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.
© Fraunhofer IML warehouse-logistics.com
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Top 5 Growth Factors for the WMS Market
The given data is based on the statements of the WMS providers.
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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%
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THE WMS MARKET THE STANDARD WMS THE WMS PROJECT APPENDIX
Development Trends in the WMS MarketConsideration of the Upcoming 4 Years
The given data is based on the statements of the WMS providers.
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%
© Fraunhofer IMLwarehouse-logistics.com
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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.
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THE STANDARD WMS
Definition · Plane Model of System Landscape · Functional Scope · Popular Functionalities · Development Focus · Budget · Software · Licensing Models · Strenghts of WMS
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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).
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THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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).
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THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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
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THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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
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THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 29
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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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© Fraunhofer · slide 30
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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
© Fraunhofer IML / warehouse-logistics.com
1 The given data is based on the information of 311 WMS users of the »WMS Online Selection«.
© Fraunhofer · slide 31
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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«.
© Fraunhofer · slide 32
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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«.
© Fraunhofer · slide 33
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
+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
© Fraunhofer IML / warehouse-logistics.com
The given data is based on the statements of the WMS providers.
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.
© Fraunhofer · slide 34
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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.
© Fraunhofer IML / warehouse-logistics.com
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The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 35
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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
© Fraunhofer IML / warehouse-logistics.com
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.
© Fraunhofer IML / warehouse-logistics.com
© Fraunhofer · slide 36
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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
© Fraunhofer IML warehouse-logistics.com
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.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 37
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
Development BudgetAnnual Effort for Further Development of the WMS
The data for 2014 and 2018 is taken from the WMS Market Report Compact 2018.
The given data is based on the statements of the WMS providers.
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
© Fraunhofer IMLwarehouse-logistics.com
© Fraunhofer IMLwarehouse-logistics.com
© Fraunhofer IMLwarehouse-logistics.com
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%.
© Fraunhofer · slide 38
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
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)
© Fraunhofer IMLwarehouse-logistics.com
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.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 39
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
Development of Standard Software
3%
31%
66%
1%
22%
77%
28%
72%
Individual software Individual standard WMS Standard software
0%
2014 2018 2020
© Fraunhofer IMLwarehouse-logistics.com
© Fraunhofer IMLwarehouse-logistics.com
© Fraunhofer IMLwarehouse-logistics.com
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.
The data for 2014 and 2018 is taken from the WMS Market Report Compact 2018.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 40
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
Licensing Models of WMS Providers
The given data is based on the statements of the 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
© Fraunhofer · slide 41
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
The Strongest Aspects of WMS
The given data is based on the statements of the WMS providers.
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
© Fraunhofer IML warehouse-logistics.com
Top 5 Strengths of their own WMS from the Perspective of WMS Providers
© Fraunhofer · slide 42
THE STANDARD WMSTHE WMS MARKET THE WMS PROJECT APPENDIX
Conclusion »The Standard WMS«
© Fraunhofer IML / warehouse-logistics.com© Fraunhofer IML / warehouse-logistics.com
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.
© Fraunhofer · slide 43
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
© Fraunhofer · slide 44
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
Number and Distribution of WMS Projects
The given data is based on the statements of the WMS providers.
Percentage Distribution of WMS Projects to WMS Provider Types in 2019
Ø Number of Projects per Provider in 2019
© Fraunhofer IML warehouse-logistics.com
4423
9
18
10% © Fraunhofer IML warehouse-logistics.com
1.840WMS projects in 2019
realised by 65 WMS providers
© Fraunhofer IMLwarehouse-logistics.com
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.
»Pure« WMS providers
Suite providers
Integrators
© Fraunhofer · slide 45
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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.
© Fraunhofer IML warehouse-logistics.com
© Fraunhofer · slide 46
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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.
© Fraunhofer IMLwarehouse-logistics.com
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«.
© Fraunhofer · slide 47
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
The data for 2015 and 2017 is taken from the WMS Market Report Compact 2018.
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
The given data is based on the statements of the WMS providers.
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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© Fraunhofer · slide 48
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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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The data for 2016 and 2018 is taken from the WMS Market Report Compact 2018.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 49
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
The given data is based on the statements of the WMS providers.
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
© Fraunhofer IMLwarehouse-logistics.com
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%)
Decrease moderately (3% to 7%)
Increase moderately (3% to 7%)
Increase rapidly (>7%)
Decrease rapidly (>7%)
© Fraunhofer · slide 50
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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%
© Fraunhofer IML warehouse-logistics.com
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.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 51
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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.
The given data is based on the statements of the WMS providers.
© Fraunhofer · slide 52
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
WMS as Cloud Solution
43%
Share of WMS Providers who also Offer their WMS as a Cloud Solution
Offered Architectures of the Cloud Solution
© Fraunhofer IML warehouse-logistics.com
✔X
59% Single-tenant cloud architecture only
6% Multi-tenant cloud architecture only
35% Both architectures
© Fraunhofer IML warehouse-logistics.com
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.
© Fraunhofer · slide 53
THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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.
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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
© Fraunhofer IMLwarehouse-logistics.com
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.
The given data is based on the statements of the WMS providers.
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
86%89%
85% 85%
83%83%
83%
Goals for the Implementation of a WMSChances for the Customer
The given data is based on the statements of the WMS providers.
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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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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
© Fraunhofer IML / warehouse-logistics.com
Top 5 Criteria
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
Selected Aspects of a WMS Project
© Fraunhofer IML warehouse-logistics.com
The given data is based on the statements of the WMS providers.
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.
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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
© Fraunhofer IMLwarehouse-logistics.com
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).
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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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»Pure« WMS providers
Suite providers
Integrators
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42%
58%
Hybrid providersoffer a self-developed
WMS in addition
to SAP productsSAP providers
offer only SAP products
© Fraunhofer IMLwarehouse-logistics.com
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
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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
The given data is based on the statements of listed SAP EWM implementation partners.
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
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
© Fraunhofer IML warehouse-logistics.com
The given data is based on the statements of listed SAP EWM implementation partners.
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THE WMS PROJECTTHE STANDARD WMSTHE WMS MARKET APPENDIX
Conclusion »The WMS Project«
© Fraunhofer IML / warehouse-logistics.com© Fraunhofer IML / warehouse-logistics.com
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.
© Fraunhofer · slide 64
APPENDIX
Fraunhofer-Gesellschaft · Fraunhofer IML · Short Introduction: warehouse-logistics.com · »Team warehouse logistics« · Database · Imprint
© Fraunhofer · slide 65
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.
© Fraunhofer · slide 66
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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
© Fraunhofer · slide 67
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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]
© Fraunhofer · slide 68
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
Current Participants of the »WMS Database«
Status: 02.12.2020
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APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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
Feel free to contact us: [email protected]
© Fraunhofer · slide 70
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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
Feel free to contact us: [email protected]
© Fraunhofer · slide 71
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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
© Fraunhofer · slide 72
APPENDIXTHE STANDARD WMSTHE WMS MARKET THE WMS PROJECT
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
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
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AutorenGünter Dietze
Norman Grünewald
Mirko Ljucovic
Anike Murrenhoff
Mauro Napierala
Juana Perelló Riera
Tobias von Preetzmann