2019 WMS software project report
01 PLANNING
Timeframe for selecting WMS
The amount of time taken to select a WMS increases as the company size grows. The increase in selection time is marginal between companies with 0-49 employees and companies with 50-249 employees but significantly increases when compared against companies with more than 250 employees.
Percentage of employees using WMS
Companies with less employees typically have a higher percentage of employees actively using their WMS system.
Percentage of employees using WMS by industry
Ecommerce and 3PL industries have the highest percentage of employees using their WMS system. Interestingly, both retail and wholesale industries fall slightly behind despite having common requirements for robust inventory management and distribution features available in WMS.
Percentage of companies using WMS
The majority of companies selecting a WMS were choosing a system for the first time.
02 REQUIREMENTS
Reason for implementing WMS
The leading reason for implementing WMS across businesses of all sizes is to increase efficiency, similarly, companies also looked to gain greater functionality by implementing a new system. It's promising to see a percentage of companies looking for a WMS solution to support growth.
Reasons for implementing WMS by company size
Hosting preferences by company size
An increasing number of businesses did not have a preference for an on-premise or cloud based solution; this could indicate the hosting method of the WMS has little importance when it comes to selecting. However, a very small percentage requested an on-premise solution suggesting a decline in popularity of this hosting method.
03 BUDGETS
All budget data was gathered from projects as a projected total cost of ownership for the new system over five years. Budget data is presented as a budget per user to enable comparison between companies of different sizes.
Budget per user ($)
The average budget for WMS software across businesses of all sizes is $10,000 per user over a five year period. Companies who are implementing WMS have similar reasons for implementing as well as similar industry needs, therefore, it is reasonable to expect that their budgetary expectations would be on a similar level.
04 APPENDICES
Appendix B: Notes on methodology
Data gathering
Data was gathered directly from users of the Software Path website or partner websites. All data was gathered from active software selection projects between February 2018 - January 2019 unless
otherwise specified in the methodology. The total sample size used for analysis was 164 although subsets of this may have been used where data coverage was lower. Budget data was gathered from active software selection projects as a projected five-year spend on the software. This data was then
transformed to “budget per user” based on software user numbers gathered in the same sample. Budget data was gathered between February 2015 - January 2019.
Multivalued fields
Some projects used for analysis displayed multiple values in a single field. Where appropriate these multivalued fields were included in analysis for each value (i.e. one project may be recorded in analysis of multiple values). This choice was made to best represent the true demographics and characteristics of each project. These fields include:
• Reason for project
• Industry
• Platform preference (where “either” was given as a choice)
Analysis of multivalued fields in this way may give a percentage or numeric total greater than the sample size or 100% respectively.
Averages
Averages have been used to present analysis on a number of samples, including project timeframe and budget per user. Analysis of project timeframe data uses the mean to present averages due to the data being gathered in a structured range between 0-12 months. Analysis of budget per user data uses the median to present averages due to the data not being gathered in a structured range leaving the mean susceptible to skew from extreme variables.
Contact for Report
For more information on this report including reuse of the data or methodology queries, please contact info@softwarepath.com.
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