Robots taking over the warehouse is disrupting the WMS industry and bringing innovation
A new report from the Mobile Robot Directory reveals that warehouse automation and robotics are driving WMS software vendors to reinvent their business models.
GEORGIA, US, October 2, 2023 /EINPresswire.com/ — In an era of rapid technological advancement, the warehouse management system (WMS) industry is experiencing a profound transformation driven by the surge in warehouse automation. As robots and automation systems become integral to warehouse operations, traditional WMS vendors are facing unprecedented challenges. The adoption of robots and automation has led to reduced reliance on human labor, disrupted conventional pricing models, and increased demand for specialized software modules. In response, WMS vendors are swiftly adapting with innovative pricing structures, cloud-based solutions, and integration services, including the introduction of cutting-edge Warehouse Execution Systems (WES). This transformation not only brings benefits such as enhanced efficiency, scalability, and cost savings but also paves the way for new entrants to disrupt the traditional landscape. With WMS increasingly integrated with robotics and automation, the industry anticipates continued innovation and potential consolidation in the quest to meet evolving demands.
A new market study by STIQ, published by the Mobile Robot Directory, reveals that the widespread adoption of robotics and automation in warehouses worldwide is driving substantial demand for enhanced and contemporary Warehouse Management Systems (WMS). Based on interviews with more than 30 C-level executives representing prominent warehouse software companies, the report highlights that a majority of businesses integrating robots or automation recognize the imperative to also invest in advanced WMS capabilities to fully maximize the potential of their automated operations.
The widespread adoption of automation and robotics in warehouses is creating significant challenges for traditional WMS vendors. As highlighted in the STIQ report, the penetration of robots has reduced the need for human pickers and warehouse workers, which has disrupted conventional per-user or per-seat pricing models that charge based on the number of users. With fewer employees in automated facilities, vendors can lose a major source of revenue. Additionally, there is growing demand for WMS to offer specialized software modules capable of interacting with and controlling various robots and automation equipment, requiring added R&D investment.
In response to the changing landscape, WMS vendors explored innovative new pricing models unrelated to user counts, as noted by multiple executives in the STIQ study. Many also rushed to develop cloud-based and SaaS solutions to keep pace with customer preferences. Vendors introduced tailored integration services for the growing automated warehouse segment and new products like Warehouse Execution Systems (WES) designed to orchestrate automated equipment. These changes represent a shift away from legacy on-premise software and traditional licensing structures.
The influx of warehouse automation provides benefits and opportunities like increased throughput, enhanced efficiency, scalability to meet ecommerce demand, and significant labor cost reductions per the STIQ research. With more robots handling repetitive tasks, warehouses can achieve higher levels of productivity. Automation also generates valuable data and analytics for companies to continuously optimize operations. These advantages make the business case for automating more compelling.
Executives interviewed expect continued innovation and potential consolidation in the WMS industry as warehouse automation investment persists. The demand for automation is driving more change in WMS as vendors build deeper integration to robotics and automation. STIQ’s report signals opportunities for new entrants to disrupt established players clinging to outdated business models. With warehousing processes in flux, both emerging and incumbent WMS providers must remain agile to thrive in the evolving technological landscape.
The full market report with all the findings and quotes from industry insiders can be downloaded free of charge from the Mobile Robot Directory: https://www.mobile-robots.com/market-research/market-report-wms-software-2023/
About STIQ
STIQ is a boutique research and advisory firm focused on automation, robotics and enterprise software across the warehouse, manufacturing and supply chain sectors. Learn more at www.stiq.ltd
About The Mobile Robot Directory
The Mobile Robot Directory is a free to use online directory of AMR and AGV manufacturers of mobile robots for use in material handling. The website offers industry insights, market reports and advisory services to prospective buyers of factory and warehouse automation solutions. Learn more at www.mobile-robots.com
Emil Hauch Jensen
The Mobile Robot Directory
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