DC Velocity - January 2012

like order and document accuracy and on-time shipment are higher priorities than productivity.

Gartner also anticipates accelerat-
ing demand worldwide for WMS
delivered through a software-as-a-
service (SaaS) model, in which the
buyer “rents” online use of the appli-
cation. We believe that demand will
increase now that the core function-
ality of SaaS warehouse manage-
ment systems is approaching parity
with on-premise WMS. In addition,
since enterprise resource planning
(ERP) vendors now offer credible
WMS, they will benefit from global
market growth, particularly in warehouse
environments that are not very complex
or sophisticated.

Dependable.

Actually, the dog ran away. But the operations manager was free to go door-to-door with the knowledge that his Printronix printing system was always up to the job. Our family of line matrix, thermal and RFID printers and related products set a

If only all things, like the family dog, were nearly as dependable.

Printers shown: T5000r Thermal Bar Code Printer P7000 Cartridge Line Matrix Printer

CHANGES IN TMS MARKET

Transportation management systems will also continue to witness growth beyond 2013. Historically, the prime justification for purchasing a TMS has been cost reduction. As the freight market shifts from favoring the shipper to favoring the carrier, however, the justification for a TMS will rest on how it can help shippers to secure capacity, handle capacity constraints, collaborate with carriers, and manage rate volatility. The paradigm must evolve from simply reducing costs to managing cost volatility in an era of scarce capacity.

Changing conditions in the marketplace will also alter what features users will be looking for in a TMS. For example, costs will be harder to handle in the near future as fuel costs remain volatile, carriers raise rates, and hours-of-service rule changes increase detention penalties. These factors will put more emphasis on rating engines, performance management, more sophisticated route-planning tools, and the ability to manage complex models like rail or intermodal freight.

TMS is also one of the strongest supply chain management markets for SaaS. Demand is already robust, and it shows signs of increasing. The need to support a carrier network and the model’s total cost of ownership make SaaS an attractive option, although demand for on-premise versions remains strong as well. To date, demand has been largely concentrated in North America, but we are now seeing increased interest and growth potential across the globe.

The business challenges facing supply chain organizations require innovative solutions, and that’s creating a fertile environment for investment in SCM software. Accordingly, we expect the adoption of supply chain technology to accelerate over the next few years, resulting in a projected return to double-digit growth. ;