Growth in Warehouse Solutions Will Range
from Steady to Robust
Continued globalization and increasing leverage of third-party services for manufacturing, dis-
tribution and returns keeps the warehouse and logistics sector strong. Though the growth of
warehouse space slowed due to poor sales of consumer and commercial goods in the U.S. over
the last year, technology sales continue to thrive though growth for some was not robust in
the last year.
—Ann Grackin, chief executive officer, ChainLink Research
arehouse technology has been a growing
market for the last decade. And yet there
are many operations around the world
with little to no technology and solutions to support ware-
usage of facilities, and schemes to counterfeit and pirate
brands happen in warehouses across the globe. Solutions to
reduce risk will continue, therefore, to grow.
End users who buy supply chain solutions need to think
house-directed picking, voice, inventory management, labor about their business opportunities and less about the ups and
management, EDI, bar-coding and RFID. This is great news for downs of the technology market. The solutions keep getting
this marketplace, since that means more sales potential in better and the skill to implement increases, so the challenges
years to come.
associated with implementation have declined.
Rather than being discouraged, provider firms need to think
There are new areas in the expansion of logistics optimization After a down 2009, we see renewed growth in this sector in
applications and the leverage of warehouse inventory 2010, not only in WMS software applications but in all add-approaches within the retail environment. And there is potential ons. Voice and RF, and bar-coding equipment will rise with
in connecting warehouse applications to the customer/demand about 4-percent growth expected. Warehouse logistics con-pull—with warehouse logistics as the cornerstone.
tinues to be a thriving area for global firms. The large 3PLs
Most organizations and vendors think of efficiency as the will continue their growth, presence, and influence in all
big driver of value in the warehouse. Although that will con- sectors of this market for years to come with continued inno-tinue to justify process and technology programs, the reality is vation in green strategies, innovation in services and lever-that the warehouse is a source of huge risk. Shrinkage, illegal age of technology.