Technology, consolidation color warehouse management
Today’s warehouses need to meet supply chain expectations for efficiency, flexibility and value-added services, and this requires warehouse managers to seek continual improvement.
Materials handling technology including Web-enabled warehousing controls, radio frequency identification devices, reverse logistics software, voice-directed picking and pick-to-light technology continues to advance and is essential to the running of modern warehouses.
Technological breakthroughs speed up
Advances in warehouse management systems (WMS) help manufacturers and distributors strategically plan inventory layout for optimal productivity and minimized handling costs. Software packages help management track warehouse processes, including receiving, putaway, picking, shipping and returns.
High-end WMSs also enable the real-time data transfer between systems and warehouse personnel. And some integrate with suppliers’, manufacturers’, distributors’ and consumers’ enterprise resource planning systems enabling everyone along the supply chain to track inventory levels and order progress.
Virtualization betters analysis
One of the biggest trends to hit warehouse IT in years is the virtualization of data centers. This advance could spell the end of specialized hardware-based data warehouse applications.
According to Bloor, an IT research firm, the virtualization of analytic databases will improve data center agility and economics by making it possible to install and ready a database for loading within hours, instead of waiting weeks to procure and set up a new data warehouse system. Ultimately, this will enable manufacturers and distributors to benefit from analysis faster and save IT money.
For example, one new database system runs as a virtual machine in private enterprise compute clouds. It relies on sharing computing resources rather than having local servers or personal devices to handle applications. And it operates on commodity hardware already present in the data center (rather than on costly specialized hardware), drawing on the high-performance computing power normally used in military and research facilities.
Market expands, vendors consolidate
In addition to technological advances, consolidation and market growth are other major trends in the WMS industry. According to the manufacturing research firm ARC Advisory Group, the WMS market had only a minor contraction in 2008 despite the global recession, but experienced major industry consolidation. In a June 2009 report, Warehouse Management Systems Worldwide Outlook, ARC analysts said that top-tier vendors saw strong growth last year, as they continued to acquire small and midsize WMS businesses.
Key to competitiveness
In sum, warehouse management technology is advancing at a rapid pace that should help your business become more efficient. And while WMS industry consolidation may reduce your choices of vendors and ability to price-shop, staying on top of the new technology will be pivotal to your ability to compete.
Kevan Agee, CDIA, CISA, MCSE
Principal of Information Technology Consulting
