We analyzed 385 interactions with prospective buyers looking for new warehouse management software. Here are our findings.

1. Software Advice BuyerView:
Warehouse Software Report
Insight into today’s software buyer

2. We analyzed 385 interactions with prospective warehouse management system
(WMS) buyers to identify what they want out of a WMS. We found that:
• More than one-third of businesses were using manual methods (e.g., pen and
paper, Excel) as their warehouse management solution.
• More than one-quarter of third-party logistics (3PL) firms wanted a WMS that
offers electronic data interchange (EDI) capabilities.
• Among big businesses, 72 percent wanted barcoding capabilities, and nearly
one-fifth sought radio frequency identification (RFID) tracking capabilities.
Abstract

3. Prospective Buyers’ Current Methods
Over one-third of buyers are currently using manual methods to manage their
warehouses. Seventeen percent are currently using non-WMS software.
2%
14%
15%
17%
17%
35%
Manual methods
Non-WMS software
Commercial WMS software
Custom-built software
Nothing
Multiple softwares

4. Most Want Inventory Tracking and Pick, Pack and Ship Capabilities
Sixty-seven percent of buyers specified inventory tracking and 62 percent
specified pick, pack and ship capabilities.
Inventory tracking
Pick, pack and ship
Barcoding
EDI
Bin and lot management
Warehouse design
Report generation
RFID
Automation
Client portal
0% 10% 20% 30% 40% 50% 60% 70%
Percent of sample

5. Majority of Buyers From Small Businesses
Eighty-three percent of buyers were from small businesses that generate less
than $100 million a year.
3%3%
3%
8%
7%
15%
22%
26%
13%
$0-1 million
$1-5 million
$6-25 million
$26-50 million
$51-100 million
$101-300 million
$301-500 million
$501 million-1 billion
$1 billion+

6. Nearly Half of Buyers Are 3PL Firms
Third-party logistics firms comprised nearly half of buyers.
2%
4%
9%
15%
22%
48%
3PL
Consumer goods
Industrial
Food and restaurant supply
Medical
Governmental agency

7. Over One-Quarter of 3PL Firms Want Electronic Data Interchange
Electronic data interchange and client portal functionality were requested more
frequently by 3PL firms.
EDI
Client Portal
0% 10% 20% 30%
2%
8%
15%
26%
3PL All other segments
Percent of sample

8. RFID and Barcoding More Popular Among Big Businesses
Big businesses more frequently requested barcoding and RFID capabilities than
small businesses.
Percent of sample
Barcoding
RFID
0% 10% 20% 30% 40% 50% 60% 70% 80%
2%
47%
18%
72%
Big businesses Small businesses

9. Majority of Buyers Want Best-of-Breed Solution
Three-fourths of Prospective buyers indicated that they wanted a best-of-breed
warehouse management system.
2%
23%
75%
Best-of-breed
Integrated suite only
Multiple products OK

10. Need to Modernize, Improve Efficiency Top Pain Points
Thirty-eight percent of the buyers specified that they needed a “more modern
system.”
Modernize
Improve efficiency
Company growth
Missing features
New business
0% 10% 20% 30% 40%
Percent of sample

11. Prospective Buyers’ Time Frames for Implementation
Seventy-five percent of prospective buyers want to implement their new WMS
within six months.
5%
1%
19%
23% 31%
21%
<1 Month
1-3 Months
3-6 Months
6-12 Months
>12 Months
Other

12. Read the full report
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13. Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.
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