Supply chain execution systems broadly encompass two main categories of software solutions: transportation management systems(TMS) and warehouse management systems (WMS).

TMS solutions automate the entire shipping process of a company, from carrier selection to routing and scheduling. A TMS solution can help a company lower its transportation costs by determining the best transportation processes and choices.

The market for these applications grew a modest 7%, according to analyst firm ARC Advisory Group (www.arcweb.com), but as ARC notes, the road to success for TMS vendors has changed and many of these companies will have a difficult time getting back on track.

Long-term success in the TMS market will be defined by four factors, notes Adrian Gonzalez, director of ARC’s Logistics Executive Council:

1) scope of solution (expanding beyond basic transportation functionality);
2) net value (realized benefits minus total cost of ownership);
3) financial stability of the solution provider;
4) having a global presence.

“The competition will intensify as vendors with broader footprints — such as ERP and SCM vendors, as well as third-party logistics providers (3PLs) — place a stronger emphasis on this market,” says Gonzalez.

A WMS controls, manages and regulates the movement of goods within a warehouse or distribution center. Typical features of a WMS include: inventory management; picking/putaway; order visibility; and fulfillment.

The WMS marketspace is incredibly fluid, particularly when you factor in that, according to a recent survey conducted by Logistics Today, nearly half of all existing WMS’s are either more than 18 months old or are actually a company’s original system. Further, users are seeking new WMS features that their current systems do not have, particularly warehouse simulation, online data processing and yard management.

While the domestic market for WMS solutions shrank last year by 12%, according to ARC, the future looks brighter worldwide, as the analyst firm predicts the total global market will grow by 4.5% over the next five years.

The information provided in the Supplier Selector evaluation charts on TMS and WMS was supplied by the vendors, and is also available — and updated throughout the year — at www.logisticstoday.com. The online matrix is updated constantly to reflect product launches and upgrades that occur subsequent to the publication of this printed edition. LT

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