WMS, data collection markets get boost from below

Warehouse management systems (WMS) sold relatively well during the last few years of sluggish enterprise software sales, says Boston-based ARC Advisory Group. Future WMS growth, ARC believes, should get a boost from adoption by small and midsize enterprises—a segment increasingly targeted by vendors.

WMS software helps distributors and manufacturers make the most efficient use of warehouse space and personnel by automating tasks such as picking and put away.

ARC's study of the market released last fall notes that falling WMS prices and simpler solutions are leading to growth in the Tier 3 market (companies with annual revenues of $100 million to $250 million) and WMS adoption among Tier 4 companies with $100 million in revenue. Steve Banker, an ARC analyst, says ARC is forecasting growth of 4.5 percent for the WMS market over the next five years, but estimates Tier 3 growth will be 5.6 percent.

Wireless and automatic data collection (ADC) equipment vendor Intermec is trying to capitalize on the need for low-cost ADC and WMS among these smaller companies with a new offering called EasyADC. The program targets users of the Great Plains ERP system from Microsoft Business Solutions (MBS).

Via resellers, Great Plains users get a package of equipment, software, and services to either extend the Great Plains distribution module with wireless ADC capabilities or install a radio-frequency enabled WMS from an MBS partner such as Radio Beacon. Doug Hall, director of printer marketing at Intermec, says the package includes two wireless access points, a bar-code printer, labels, and two data collection terminals. "This is a wireless data collection solution right of the box, with all the ... consulting support you need to get going very quickly," says Hall.

An early adopter of EasyADC is Christian Art Gifts, a Lombard, Ill.-based distributor of specialty gifts that uses the Great Plains ERP system. In Christian Art Gifts' case, a WMS from Radio Beacon was deployed along with Intermec's wireless ADC gear. According to Intermec, it took only two weeks to deploy the entire solution.

Hall says widespread adoption of wireless technology in places like homes and coffee shops is minimizing the fear factor involved in setting up wireless ADC. Says Hall, "Wireless is more mainstream today, which helps, but there was still a need to bring all the elements together in one package."