Warehouse Management Systems (WMS) 2002

An inventarisation of the vendors, develop-ments and trends in the Dutch WMS market

NR

6655

3.05

02

Warehouse Management Systems (WMS) 2002

An inventarisation of the vendors, developments and trends in the Dutch WMS market

Cap Gemini Ernst & YoungB2B Supply Chain service lineCompetence center Package Selection

Doc: rapport wms-tms april 2002.doc

Warehouse Management Systems (WMS) 2002

An inventarisation of the vendors, developments and trends in the Dutch WMSmarket

Utrecht, May 2002

ir. R.J.G.M. Lenders MTDdrs. ing. L.F.A. van Zundert CPIM

Cap Gemini Ernst & YoungB2B Supply Chain service lineCompetence center Package Selection

Cap Gemini Ernst & Young Nederland B.V.

Contents

1 Introduction 3

2 Profile of the WMS market space 42.1 Inventarisation 42.2 CGE&Y’s opinion 5

3 The differences per industry 73.1 Inventarisation 73.2 CGE&Y’s opinion 8

4 Who are the dominant players on the Dutch WMS market? 94.1 Inventarisation 94.2 CGE&Y opinion 10

5 The most important developments in the last 3 years 125.1 Inventarisation 12

6 The most important trends for the coming 3 years 146.1 Inventarisation 146.2 CGE&Y opinion 15

7 Differentiators of WMS vendors 197.1 Inventarisation 19

8 Fit between WMS vendors and logistics service provider industry 218.1 Inventarisation 21

9 Cap Gemini Ernst & Young – Your partner in WMS/TMS 249.1 Introduction 249.2 CGE&Y – The premier partner in supply chain package selection 24

10 Participating WMS vendors 26

3

1 Introduction

This report contains an inventarisation of the leading Warehouse Management System(WMS) vendors in the Netherlands. It discusses the developments that have occurredin the last three years and analyses the trends for the coming three years. It alsoanalyses WMS penetration in different industries and discusses the differentiators inthe market.

This report is part of a series of reports published in 2002 around different categoriesof standard supply chain software packages. Reports have been published or areplanned around the following software categories:

1. Warehouse Management Systems (WMS)2. Inventory Optimisation software3. Product Data Management (PDM) / Product Lifecycle Management (PLM)4. Manufacturing Execution Systems (MES) / Scada software5. B2B / eProcurement software6. Advanced Planning Systems (APS)7. Supply Chain Event Management (SCEM) / Visibility software

For this inventarisation CGE&Y prepared a short questionnaire which was distributedto all WMS vendors in the Dutch marketplace. More than 20 WMS vendors partici-pated in the inventarisation. The results from the inventarisation were consolidatedand analyzed by professionals from CGE&Y. Also CGE&Y WMS professionals haveprovided their input, analysis and market views for this report.

Many thanks to the WMS vendors who have participated in this inventarisation.

4

2 Profile of the WMS market space

2.1 Inventarisation

The Dutch Warehouse Management Systems (WMS) market is primarily dominated by localWMS vendors. Only a few global WMS vendors play a significant role on the Dutch market-place: MARC Global Services, DCS Transport & Logistics Solutions, Industri-MatematikInternational (IMI), EXE Technologies, Manhattan Associates and Robocom.

In the table below the WMS vendors are ranked according to the number of employees in theirDutch organization.

Number of employeesVendor Name Package Name NL EUR WWMARC Global Services MARC-CS 130 150 350Fujitsu – ICL MLS 96 137 137Interchain Chainware 90 140 140DCS Transport & Logistics Solutions DCSi.Logistics 60 250Heyde Heyde 48 48 48Van Boxtel Software VBS-WMS 45 45 45Incore Automatisering Locus 35 50 50CAL Consult CALWMS400

CALwms31 65 65

Real Solutions WICS 25 25 25Industri-Matematik International (IMI) IMI Warehouse 25 700EXE Technologies Exceed Fulfill 20 100 500Inther Logistics Engineering Inther LC 15 15 15Manhattan Associates PkMS 10 100 825Robocom RIMS 8 40 120Covil Universal ULM 6Astrosoft WICS 4 4 4“Broader than WMS” vendorsOracle Oracle 1000 20000 43000AXI AXI 100 300 300Van Looy Group LFS400 3 110 120

Table 1: number of employees per WMS vendor

Oracle, AXI and Van Looy Group have far more activities and products than WMS only so theiremployee numbers are much higher than would be justified by their position on the Dutch WMSmarket.

Strong local WMS vendors are Fujitsu-ICL, Interchain, Heyde (formerly called ETA), Van BoxtelSoftware, Incore, CAL Consult and Real Solutions.

5

If we look at the number of WMS implementations that have been completed in the Netherlandsand in Europe then a different view arises. The low-end and middle-end WMS market is domi-nated by local WMS vendors, the high-end WMS market is divided between the local and theglobal WMS vendors.

Number of implementationsPackage Name NL EUR WWChainware 190 225 225Heyde 140 150 150MLS 64 93 93Exceed Fulfill 49 450 1300VBS-WMS 40 40 40Locus 40 60 60MARC-CS 30 50 250WICS 30 BeneluxDCSi.Logistics 22 75 130Inther LC 22 25 25CALWMS400 13 14 14IMI Warehouse 13 400PkMS 10 70 1100RIMS 6 26 140LFS400 2 135 145CALwms 1 46 46“Broader than WMS” packagesOracle 300 3500 10000AXI customized solution 20 60 64

Table 2: number of implementations per WMS software package

The largest player in the Dutch WMS-market (in number of implementations) is Dutch-basedInterchain with their Chainware solution. Interchain is closely followed by Heyde. Both Inter-chain and Heyde are focused on the middle-end of the WMS market space. Number three isFujitsi-ICL with their MLS solution, which is more focused on the high-end market. The globalvendors EXE (Exceed Fulfill) and MARC Global Services (MARC-CS) have a surprisingly highnumber of implementations in the Dutch market.

2.2 CGE&Y’s opinion

With respect to the WMS market space we expect the following future developments to occur:• The rise of one or two European WMS vendors focused on the low-end / middle-end

market. Until now there are no WMS vendors focused on the low-end / middle-endWMS-market which have achieved a European footprint. We expect the WMS-market tofollow the trends in the ERP-market where low-end / middle-end players like Navision,Scala and Exact have emerged with a European footprint.

6

• Further consolidation in the high-end WMS vendor space. Currently we think that thereis a mismatch between the number of WMS vendors focused on the high-end WMS seg-ment and the potential market size of this segment. Specifically looking to the DutchWMS market space we expect some of the global WMS vendors to retreat from the Dutchmarket given the dominant position of the few local WMS vendors that focus on the high-end WMS segment.

7

3 The differences per industry

3.1 Inventarisation

In the table below the total number of implementations per industry are mentioned for the WMSvendors that participated in this inventarisation. The dominant industry for WMS packages isclearly logistics service providers which focus on public warehousing. The second most impor-tant industry for WMS packages is logistics service providers which focus on distribution.

Table 3: total number of WMS implementations per industry

On the other hand, logistics service providers which focus on airfreight, seafreight, express postor bulktransport are clearly the less important industries for WMS vendors.

Surprisingly the wholesale industry, which is very large in the Netherlands, is not making verymuch use of WMS packages. Also there are very little WMS packages installed at industrialshippers.

As you can see in the table below most WMS vendors target more than one industry. There aresome exceptions however:

• CAL Consult which only seems to target distribution and public warehousing companieswith their CALwms and CALWMS400 solutions;

• Incore Automatisering which only seems to target the wholesale and retail industries withtheir Locus solution.

TOTAL NUMBER OF WMS IMPLEMENTATIONS PER INDUSTRY Netherlands EuropeWholesale 31 60Retail 59 93Industrial shippers 22 45Logistics service providers: bulktransport 13 21Logistics service providers: distribution 93 165Logistics service providers: public warehousing 265 348Logistics service providers: international groupage 30 62Logistics service providers: airfreight 11 34Logistics service providers: seafreight 18 35Logistics service providers: express 5 24

8

Table 4: number of implementations per WMS software package per industry

3.2 CGE&Y’s opinion

With respect to the specific industries we expect the following future developments to occur:• The large ERP vendors will pose limited threat to the traditional WMS vendors. Re-

cently most large ERP vendors (f.e. Oracle, SAP, JD Edwards) have introduced special-ized WMS modules within their suite. Their focus market will be the wholesale industryand the industrial shippers since a lot of these companies have already installed their ERPsuite. On the other hand, the ERP vendors still have trouble in penetrating the logisticsservice provider and the retail industry with their broad ERP suites. This would lead us toconclude that potential competition from the large ERP vendors for the traditional WMSvendors will be very limited.

• The ERP vendors will be in a favourable position of winning the WMS-market forwholesalers and industrial shippers. As we can see in the table above the traditionalWMS vendors have not been able to achieve many WMS implementations in the whole-sale and industrial shippers industry. Since these industries are among the highest users ofERP systems the ERP vendors will have little problems in selling their WMS modules tocompanies in these industries.

Application name

NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EUR NL EURMLS 11 22 26 38 0 0 0 0 37 56 30 49 0 0 0 0 0 0 0 0CALwms 0 0 0 0 0 0 0 0 1 35 0 11 0 0 0 0 0 0 0 0WICS 0 0 0 0 0 0 2 2 5 5 27 27 2 2 0 0 0 0 0 0AXI 4 5 7 1 5 7 0 2 0 1 0 2 0 0 1 3 1 3 0 0Chainware 2 0 1 2 10 11 4 7 40 46 190 200 16 20 5 7 8 13 4 6LFS400 2 15 0 15 0 20 0 2 0 3 0 15 0 15 0 4 0 2 0 15DCSi.Logistics 0 0 0 0 1 1 3 3 4 7 8 30 10 15 5 20 9 17 1 3MARC-CS 2 3 5 7 6 6 4 4 6 12 10 14 2 10 0 0 0 0 0 0Locus 10 15 20 30 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0Inther LC 0 0 11 14 0 0 0 0 5 5 6 6 0 0 0 0 0 0 0 0VBS-WMS 2 2 3 3 0 0 10 10 0 0 25 25 0 0 0 0 1 1 0 0CALWMS400 0 0 0 0 0 0 0 0 0 0 13 14 0 0 0 0 0 0 0 0IMI Warehouse 4 0 5 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0PkMS 2 2 0 0 4 2 0 0 0 0Exceed Fulfill 0 2 2 178 5 90 3 10 5 15 27 145 3 5 0 0 0 0 1 5RIMS 2 8 0 2 3 12 0 2 1 1 0 1 0 0 0 0 0 0 0 0TOTAL 41 72 82 290 31 147 26 43 109 186 339 539 33 67 11 34 19 36 7 29

Wholesale RetailIndustrial shippers

Bulk transport Seafreight ExpressDistribution

Public ware-housing

Interna-tional groupage Airfreight

9

4 Who are the dominant players on the Dutch WMS market?

4.1 Inventarisation

We have asked the WMS vendors for their top 3 competitors. We also asked them which consul-tancies they mostly encountered during package selections and implementations in the WMSmarket space.

Top WMS competitors

MARC Global Services is considered by far the most important competitor for other WMSvendors. Also LIS, Interchain, Manhattan Associates and EXE are considered important com-petitors. Newcomer Qurius (WMS product based on the Navision ERP system) has quicklyachieved a strong competitive position in the Dutch WMS market space.

WMS vendors Number of times mentioned as a competitorMARC Global Services 9LIS 4Interchain 4Manhattan Associates 4EXE 4Navision / Qurius 3Fujitsu-ICL 3DCS 2Van Boxtel Software 1Plus Integration 1Inther 1Ciel 1Incore 1

Table 5: top competitors in the Dutch WMS market space as ranked by fellow WMS vendors

Consultancies involved in WMS package selection projectsThere is a very limited group of consultancies that is involved in WMS package selection projectsaccording to the WMS vendors. Local Dutch consultancies Berenschot and IPL seem to be highlyinvolved in WMS package selection projects. The first large consultancy involved in WMSpackage selection projects is Cap Gemini Ernst & Young.

Consultancies involved in WMS package selection projectsNumber of times mentionedBerenschot 9IPL 8Cap Gemini Ernst & Young 3IG&H Management Consultants 2

10

KPMG 2Groenewout 1CMG 1PWC 1IBM 1Mazars Paardekooper Hoffman 1

Table 6: consultancies involved in WMS package selection projects as ranked by WMS vendors

Our own opinion is that there are approximately 15 – 20 consultants in the Netherlands which arefrequently involved in WMS package selection projects for clients.

Consultancies involved in WMS package implementation projectsThe group of consultancies that is involved in WMS package implementation projects is evenmore limited. A large part of the WMS vendors have even indicated that they don’t know anyconsultancies that are involved in WMS implementations. This is not surprising given that theWMS industry in the Benelux has only recently started to establish implementation partnershipswith the larger consultancies.

Consultancies involved in WMS package implementation projects Number of times mentionedCap Gemini Ernst & Young 3PWC 2Berenschot 1IPL 1Arthur Andersen 1Ordina 1Plus Integration 1IBM 1CMG 1

Table 7: consultancies involved in WMS package implementation projects as ranked by WMS vendors

Cap Gemini Ernst & Young and PWC seem to enjoy the larger market share in the WMS imple-mentation market space.

4.2 CGE&Y opinion

With respect to the Dutch WMS services market we expect the following future developments tooccur:

• The large management consultancies will obtain a more important role in WMS pack-age selection and implementation projects. As the Dutch WMS market is growing andbecoming more and more professional the larger management consultancies will focus onthis market. This is also likely to happen because of the increasing importance and aware-ness of the supply chain execution function within companies.

• The larger WMS vendors will build implementation partnerships for the Dutch marketwith the larger consultancies. In other countries (especially the US and UK) a lot of the

11

WMS vendors have build implementation partnerships with the larger management con-sultancies. We expect this trend also to occur in the Dutch WMS market space.

12

5 The most important developments in the last 3 years

5.1 Inventarisation

The different WMS vendors differ highly in their rating of the most important developmentsduring the last three years. The most important developments have been:

• Value Added Logistics; logistics service providers have increasingly taken over simpleassembly and packaging activities from their customers. WMS software packages neededto support these simple production activities.

• Tracking & tracing; this topic has become increasingly important the last few years. MostWMS packages already had good functionality for tracking & tracing within the ware-house but the new concept of supply chain visibility demanded that WMS packagesneeded tracking & tracing functionality that worked across warehouses and also incorpo-rated in-transit flows.

• Multi-depot; the high-end WMS packages are increasingly used in multi-site implemen-tations where large corporations implement one central WMS system across multiplewarehouses.

• Web-enabled; this trend has occurred in almost all software categories. Every modernWMS system can be approached through a Web interface.

• Real-time RFID; Radio Frequency IDentification (RFID) is increasingly used withinwarehouses to reduce the amount of administrative work and to improve the quality of thewarehouse activities. Through real-time RFID systems the scanned information is com-municated directly with the WMS-system which dramatically improves the update fre-quency (real-time) of information within the WMS-system.

Developments during last 3 years Number of times mentionedGENERAL DEVELOPMENTS WITHIN WMS MARKETCompleteness in WMS offerings / depth in functionality 2Consolidation of WMS vendor market space 1Trend from customized to standard configured WMS packages 1Integration of WMS and TMS solutions 1Globalisation of WMS market 1Segment focus of WMS vendors 1WMS FUNCTIONALITY WITHIN WAREHOUSEValue Added Logistics 4Tracking & tracing 3Increasing responsibility WMS in the planning of employees andresources / resource planning

2

Cost reduction / reduction of non-value added activities 2Integrated workflow functionality 2Activity Based Costing 1

13

WMS FUNCTIONALITY OUTSIDE WAREHOUSEMulti depot / multi warehouse visibility 3Virtual warehousing 2Integration of ERP and WMS 2Different goodflows between DC's, Merge-in-Transit, Direct Ship enConsolidated Ship

1

Supply chain integration 1Java language 1TECHNICAL DEVELOPMENTSWeb-enabled 6(Realtime) RF / scanning 4Integration with boardcomputers 1Windows based version 1

Table 8: developments in WMS market during the last 3 years as mentioned by WMS vendors

14

6 The most important trends for the coming 3 years

6.1 Inventarisation

The different WMS vendors differ even more highly in their rating of the most important devel-opments for the coming three years. The most important developments as mentioned by theWMS vendors are:

• WMS software will become more intelligent; most WMS vendors believe that their soft-ware will be increasingly used to plan warehouse employees and resources. This willmean that change management during WMS implementations will become increasinglyimportant since the flexibility for warehouse employees will be reduced. They will be re-quired to follow the instructions from the WMS software.

• Collaborative execution; many WMS vendors believe that WMS packages will increas-ingly become an integral part of the supply chain execution processes of their customers(and the value chain their part of). This will mean that WMS packages will need to be in-tegrated with other systems at the customers site. This immediately explains the trend forcollaboration / integration functionality.

• Increasing overlap between ERP and WMS systems; many WMS vendors believe thatWMS packages increasingly will contain fulfillment functionalities like purchasing, sales,invoicing and collection functionalities. This could be their reaction to the continuing ef-forts of ERP vendors to penetrate the WMS market.

• Full supply chain execution functionality; other WMS vendors believe that they shouldfocus on supply chain execution. They believe that customers are looking for WMS ven-dors that function as a one-stop-shop for supply chain execution functionality. These ven-dors are incorporating functionalities in the areas of TMS (Transport Management), ITL(International Trade Logistics), Yard, Optimized Loading, Slotting tools, Alerts, Reportwriters, Manifesting, Compliance and HAZMAT packages.

• Application Service Providing (ASP); the ASP-model means that the application andsystem is run at a third party location, that the customer does not pay one-time softwarelicense, hardware and implementation fees but that the customer pays a recurring fee tothe ASP third party.

• Enhanced Browser Technology; most applications can now be approached from browser-like interfaces and often these interfaces are also used to connect external parties (custom-ers, vendors or transporters) to the WMS system.

Most important trends coming 3 years Number of times mentionedGENERAL DEVELOPMENTS WITHIN WMS MARKETSegment focus (decrease functional overkill for specific industrieslike logistics service providers)

2

Shake out within WMS vendor market space 1

15

Project approach based on ROI / process improvement 1Trend to multi-local WMS market (WMS software will be availablein more and more countries, but will be implemented by local parties)

1

Internationalisation 1Light WMS versions for middle-market 1WMS FUNCTIONALITY WITHIN WAREHOUSEWMS will more and more be used for planning employees andresources (software will become more intelligent)

4

Forecasting resources 1Mechanisation of processes 1Cost reduction 1Customs / Douane Entrepot 1WMS FUNCTIONALITY OUTSIDE WAREHOUSECollaborative execution / APS 4Fulfillment (purchasing, sales, invoicing, collection) 4One-stop-shopping for supply chain execution (embedding ofcomponents like TMS, ITL, Yard, Optimized Loading, Slotting tools,Alerts, Report writers, Manifesting, Compliance and HAZMATpackages)

3

Virtual warehousing 2Integration between ERP and WMS 1Vendor Managed Inventory 1Advanced Shipping Notices (ASN) 1Improving pipeline visibility 1Backorder management / return logistics 1Increasing multi-modal SCM 1TECHNICAL DEVELOPMENTSApplication Service Providing (ASP) 3Collaboration / integration 3Enhanced browser technology 3Boardcomputer integration 1Multi platform enabling 1Introduction of Palm and Windows CE mobile devices in warehouse 1Increasing use of RFID 1

Table 9: future developments in WMS market as mentioned by WMS vendors

6.2 CGE&Y opinion

With respect to the future developments in the WMS market we expect the following main futuredevelopments to occur:

• Increasing intelligence and complexity of WMS software; WMS software becomes in-creasingly used to drive cost reduction in the warehouse. A better planning of warehouseemployees and resources is the main driver for these cost reductions. We therefore expectWMS vendors to incorporate more and more planning intelligence in their software. Thishowever will also increase the complexity of the WMS software which will increase im-plementation complexities and time. In the figure below our WMS functional complexitypyramid is depicted. This pyramid describes the move from transaction support to deci-

16

sion support to automation support. We expect the functionality of WMS packages to de-velop accordingly.

Table 10: Gartner’s WMS functionality complexity pyramid

• Increasing standardization of WMS software; we expect WMS software to evolve intostandardized configurable software. This is driven by the growth of the WMS market, theincreasing rise of implementation partnerships within the WMS sector (which requiresstandardized configurable software) and the increasing professionalism of the WMS ven-dors. Standardized configurable software will also be easier to implement which will de-crease implementation times. We expect that those WMS vendors who will not follow thistrend will lose market share in the long term (and potentially be a losing party in theWMS industry consolidation). In the figure below the move from application-based sys-tems to table-driven systems to event-driven systems is depicted.

Receiving

Load Tracking

Putaway Tracking

Stock Locator

Shipping Tracking

Compliance Labels

IBO Mgmt.

Load Creation Advice

Putaway Suggestion

Stock Location Mgmt.

OBO Management

Wave Planning

Dock/Yard Mgt.

Cartonization (VAP)

Pick Planning

Task Interleaving

FP/Replenishment

Planned X-Dock

Loading Management

Compliance Forms

Auto WavePlanning

Auto WavePlanning

OpportunisticX-DockOpportunisticX-Dock

Supply ChainInterfaces

Supply ChainInterfaces

Physical AutomationSupport

Physical AutomationSupport

ValueAdded

Services

Incr

easi

ng C

ompl

exity

Automation Support

DecisionSupport

TransactionSupport

17

Table 11: Cap Gemini Ernst & Young’s WMS path-to-standardization

• Trend to supply chain execution functionality; we expect the large WMS vendors toevolve into vendors of supply chain execution software. This supply chain executionsoftware will not only consist of WMS functionality but also of functionality for transportmanagement (TMS) and order management (OMS). Also smaller related functionality ar-eas like International Trade Logistics (ITL), Yard Management, Slotting tools, Manifest-ing, Compliance and HAZMAT will be incorporated into tomorrow’s Supply Chain Exe-cution software. See the picture below for the current distinction between Order Manage-ment functionalities, Warehouse Management functionalities and Transport Managementfunctionalities.

Application Based Application Based Table-Driven Table-Driven Event-Driven Event-Driven

• Package Product• Lower cost/risk • Faster Implementation• Configurable through flags/ params• Hard coded, application based core•APIs•Potential UPGRADE

• Package Product• Lower cost/risk • Faster Implementation• Configurable through flags/ params• Hard coded, application based core•APIs•Potential UPGRADE

• N-tiered architecture• Component based• table driven subset• Functionality divorced from application programs• Highly Flexible • Easier SCE integration• Customisable without losing upgrade path

• N-tiered architecture• Component based• table driven subset• Functionality divorced from application programs• Highly Flexible • Easier SCE integration• Customisable without losing upgrade pathImp time 500man/daysImp time 500man/days

Imp time >200 man/daysImp time >200 man/days

Basic Warehouse Functionality

Basic Warehouse Functionality

Operational Excellence/Efficiency

Operational Excellence/Efficiency

Integrated Supply Chain Execution Systems

Integrated Supply Chain Execution Systems

• Highly customised pkg.• High Cost/risk• Long Implementation• Monolithic code• Little Flexibility• NO upgrade path

• Highly customised pkg.• High Cost/risk• Long Implementation• Monolithic code• Little Flexibility• NO upgrade path

Over the next 2/3 years the application development path will lead to WMS’s being able to provide the Logistics Execution System, part of the SCE. In some cases this will be achieved

by niche solutions partnering, but Market leaders will offer a cohesive solution

Target Imp = 60 man/daysTarget Imp = 60 man/days

18

Table 12: Cap Gemini Ernst & Young’s supply chain execution footprint

u Complex Ordersu Discount and

Contract Pricingu Shipment-line

Independenceu Credit Managementu Sales Taxu Purchasingu etc etc etc

Warehouse Management

System

Transportation Management

System

Order Management

Systems

OMS Functionality

Shared Functionality

WMS Functionality

TMS Functionality

Shared Functionality

u Labor Planningu Task Managementu Interleavingu Inventory Controlu Slottingu Receiving u Putaway

Processingu Picking & Packingu Stagingu VAS Processingu Dock Management

u Yard Managementu Lift Capacity

Managementu Load Diagrammingu Shipment

Documentationu Pre-shipment

Servicesu Loading

u Load Planning u Routing and

Schedulingu Asset Managementu Load Bookingu Post-Shipment

Managementu Conveyance Track

and Traceu Ratingu Freight Payment

u Allocationu Work-load Planningu Replenishmentu Returnsu Value-added

Managementu Direct Shipmentsu Substitutions,

Upgrades, Add-ons

Overlap Overlap

Wave Planning, Flow-Through, Cross-docking, Supply Chain Inventory Management and Visibility Wave Planning, Flow-Through, Cross-docking, Supply Chain Inventory Management and Visibility

Warehouse Management

System

Transportation Management

System

Order Management

Systems

OMS Functionality

Shared Functionality

WMS Functionality

TMS Functionality

Shared Functionality

u Labor Planningu Task Managementu Interleavingu Inventory Controlu Slottingu Receiving u Putaway

Processingu Picking & Packingu Stagingu VAS Processingu Dock Management

u Yard Managementu Lift Capacity

Managementu Load Diagrammingu Shipment

Documentationu Pre-shipment

Servicesu Loading

u Load Planning u Routing and

Schedulingu Asset Managementu Load Bookingu Post-Shipment

Managementu Conveyance Track

and Traceu Ratingu Freight Payment

u Allocationu Work-load Planningu Replenishmentu Returnsu Value-added

Managementu Direct Shipmentsu Substitutions,

Upgrades, Add-ons

Overlap Overlap

Wave Planning, Flow-Through, Cross-docking, Supply Chain Inventory Management and Visibility Wave Planning, Flow-Through, Cross-docking, Supply Chain Inventory Management and Visibility

Typical functions by Systems - footprint

19

7 Differentiators of WMS vendors

7.1 Inventarisation

We have asked the WMS vendors for their competitive differentiators. The following competitivedifferentiators are shared among multiple WMS vendors:

• Combination of technical skills with supply chain consultancy; apparently there aremany WMS vendors with a very technical background. Some of the vendors see it as theircompetitive advantage that they can also deliver the required supply chain consultancy.

• Flexibility and speed of services; surprisingly some of the vendors differentiate them-selves with their flexibility and speed of services towards customers. One would expectthat this requirement is a prerequisite for long-term survival in the WMS market space.

• Broad WMS functionality; it is not surprising that some of the vendors position them-selves with their broad WMS functionalities.

• Fully integrated WMS/TMS/CMS; some WMS vendors also deliver transport manage-ment (TMS) and container management (CMS) functionality. Since these three modulesare completely integrated they naturally position themselves with this fully integrated so-lution. This corresponds with the trend we mentioned earlier that WMS vendors positionthemselves as vendors of complete Supply Chain Execution functionality.

• Standardized and configurable WMS solution; there are still many WMS vendors in themarket with a highly customized WMS solution. The vendors at the forefront of the WMSstandardization trend are highly differentiating themselves in the market.

• Open and module based structure; this competitive differentiator closely matches thestandardization trend since standardized and configurable WMS solutions mostly have amodule-based structure. This module-based structure also makes it possible for customersto only buy certain modules or to phase the implementation of the different modules.

Most important differentiators Number of times mentionedGENERAL WMS VENDOR ASPECTSCombination of technical skills with supply chain consultancy 3Flexibility and speed of services 3Availability of implementation aids / methods 2Global network, local support 2Industry know-how / experience 2European WMS market leadership 1Availability of implementation partners 1Reliable partner 1Price – functionality ROI 1International euro license expansion 1WMS FUNCTIONALITY WITHIN WAREHOUSEBroad WMS functionality 4

20

Solution for logistics service providers which have differentprocesses for different customers / full multi-modal integration

2

Support for logistics service providers (VAL, ABC, crossdocking,kitting & assembly, multi site / customer, multi-level stock control)

2

Broad RF functionality / realtime RF 2Customs / douane entrepot functionality 2Finite capacity planning 1Graphical view of processes 1Integration of VAL and ABC 1Optimalisation module for internal goods movements 1Preventing unnecessary handling (cross-docking, merge-in-transit) 1Broad VAL functionality 1WMS FUNCTIONALITY OUTSIDE WAREHOUSEFully integrated WMS/TMS/CMS 3Visibility orders and stock (including in-transit) 1Software focused on order (customer, purchasing, transfer, pickorder) 1Proactive order management including alerts and escalation scenarios 1TECHNICAL POSSIBILITIESStandardized and configurable WMS solution 5Open and module based structure 3Modern technology 2Independency of OS and database 2Fully web-enabled with benefits in speed/thin client/multi ware-housing/release management

2

Common data model in WMS and ERP 1Standardized integrations with host systems, RF/pick-to-light/PLC 1Low total cost of ownership (TCO) 1Own delivery of RF hardware 124-hour helpdesk support 1

Table 13: competitive differentiators as mentioned by WMS vendors

21

8 Fit between WMS vendors and logistics service provider industry

8.1 Inventarisation

We specifically researched the applicability of WMS packages for the logistics service providerindustry since this industry is the most important industry for WMS vendors, as we have seen inchapter 3. We ranked them according to nine critical functional requirements that we thoughtwould be most critical for WMS packages in relation to the logistics service provider industry ingeneral. We used the following critical functional requirements:

1. Support for multi-ownership (public warehousing); logistics service providers often of-fer public warehousing services for their customers. This means that goods and materialsfor multiple customers are stored in the same physical warehouses. This requires that theWMS system can register which goods or materials belong to which customers.

2. Availability of a WMS and TMS module which are completely integrated; corporationsincreasingly outsource supply chain activities to logistics service providers. Many logis-tics service providers deliver both warehousing and transport services to their customers.These customers require visibility of their goods regardless of their location in the supplychain (in a warehouse or in-transit). They also require integrated tracking & tracing acrossthe different functions of a logistics service provider. In the past many logistics serviceproviders have deployed different packages for transport management (TMS) and ware-house management (WMS). This best-of-breed solution however has some disadvantagessince the integration of different packages is not always easy. We expect logistics serviceproviders to increasingly look for integrated supply chain execution solutions which con-tain at least fully integrated modules for transport management (TMS) and warehousemanagement (WMS).

3. Support for activity-based invoicing to customers (invoicing is based on actual ware-house and transport activities for that specific customer); logistics service providers per-form warehouse and transport activities for their customers. Invoices are often sent basedon the number and type of warehouse and transport activities performed for that customer.

4. Support for cost estimation functionality; when logistics service providers generate acommercial proposal for potential customers they need to estimate the number and type ofwarehouse and transport activities to generate a cost estimation. If the project is sold thenthey also want to continuously compare the cost estimation with the actual costs (based onthe actual number and type of warehouse and transport activities performed). This is werethe concept of Activity Based Costing (ABC) applies.

5. Support for douane entrepot functionality; many logistics service providers also performactivities for countries outside the European Union. To manage these transactions theyoften need douane entrepot functionality.

22

6. Support for fleet management; large logistics service providers have more than 100 vehi-cles operational each day. Since the profitability margin in the logistics service providerindustry is very low and the costs associated with the vehicles represent a large part of thecost base the management of these vehicles (fleet) is important. Fleet management func-tionality provides for example for kilometer, insurance, maintenance and diesel usageregistration.

7. Support for multi-level movable units; since the warehouses of logistics service providersare typically very large and are mostly equipped with barcode or RFID scanning equip-ment these warehouses need specific functionality to manage the flow of goods within thewarehouse. Movable units are for example pallets or containers which contain specificgoods. The WMS-system needs to recognize these movable units as separate entities andneeds to register the contents of these entities (f.e. which number and type of goods arepresent on that specific pallet). Warehouse employees would then be able to move a spe-cific pallet from location A to location B which would trigger the WMS-system to alsomove the contents from that specific pallet from location A to location B). An example ofa multi-level movable unit would be a pallet with multiple cartons where the WMS-system knows the contents of each carton and where a carton could be moved from onepallet to another.

8. Support for multiple time-zones / warehouses / pickup and delivery points; if a logisticsservice provider performs warehouse activities for a multinational customer with ware-houses present around the globe then he would want to implement one central WMS-system for all these warehouses. The WMS-system would then be required to supportmultiple warehouses and multiple time-zones because for example warehouse employeeswould have different working hours dependent on the warehouse (and time-zone) theywould be working in.

9. Support for planned cross-docking where a planning for future cross-docking opera-tions can be generated; most WMS-systems and even ERP-systems support opportunisticcross-docking where upon goods receival the system recognizes that there is an opencustomer order for the received goods. In today’s time-critical warehouse processes how-ever planned cross-docking is supported where the WMS-system can generate a planningfor the cross-docking operations.

In the table below we have matched the different WMS packages against these nine criticalfunctional requirements (Third P = software from a Third Party is used, Next R = available in theNext Release).

WMS package 1 2 3 4 5 6 7 8 9AXI Yes No Yes Yes Yes Yes Yes Yes YesCALwms Yes Yes Yes No Third P Third P Yes Yes YesCALWMS400 Yes Third P Yes No Yes No No No NoDCSi.Logistics Yes Yes Yes Yes Yes Yes Yes Yes YesE-chainware Yes Yes Yes Yes Yes Yes Yes Yes YesExceed Fulfill Yes No Yes No Yes /

Third PNo Yes Yes Yes

Heyde Yes Yes Yes Yes Yes Yes Yes Yes Yes

23

IMI Warehouse Yes No Yes/No No No No Yes Yes YesInther LC Yes No Yes Next R No Yes Yes YesLFS400 Yes Yes Yes Yes Yes No Yes Yes YesLocus Yes No Yes No Yes No No Yes YesMARC-CS Yes No Yes No Yes No Yes Yes YesMLS Yes No Yes No Yes No Yes NoOracle e-Business No Yes Yes No No No No Yes YesPkMS Yes Yes Yes No Third P No Yes Yes YesRIMS Yes Yes Yes No No No No No YesULM Yes Yes Yes Yes Third P Third P Yes Yes YesVBS-WMS Yes Yes Yes Yes Yes Yes Yes Yes YesWICS Yes Yes Yes Yes Yes No Yes Yes Yes

Table 14: WMS vendors ranked against the nine critical functional requirements(according to answers given by WMS vendors)

The Oracle e-Business suite seems to be the only WMS-package not capable of supporting multi-ownership. This would make the Oracle WMS solution not applicable for a large part of thelogistics service provider industry. This would be consistent with our observation in chapter 3that the large ERP vendors will focus on the wholesale and industrial shippers industries withtheir WMS solution.

The conclusion is that there are only four WMS vendors from the table above which support allnine critical functional requirements. These vendors are DCS Transport & Logistics Solutions,Interchain, Heyde and Van Boxtel Software.

24

9 Cap Gemini Ernst & Young – Your partner in WMS/TMS

9.1 Introduction

Cap Gemini Ernst & Young (CGE&Y) is the largest supply chain (management) consultancy firmin the Netherlands, according to a March 2002 research from International Data Corporation(IDC). In the Benelux we have approximately 400 dedicated supply chain consultants of whichsome 150 are focused around our service offering “Logistics and eFulfillment”. This serviceoffering also contains our services around WMS and TMS systems.

9.2 CGE&Y – The premier partner in supply chain package selection

Our package selection consultants all have multi-year experience with package selection projectsin the supply chain arena. They know the supply chain software market and know the maindifferentiators of each vendor. All our package selection consultants use our award-winningERNIE software selection tool. This tool contains, among others, a detailed database on all thevendors present on the Dutch (and European) market within specific software categories. Wehave ranked these vendors against detailed critical functional requirements lists which we havedeveloped based on our worldwide experiences with package selections in these softwarecategories.

Currently the following software categories are supported within our ERNIE package selectiondatabase:

• Enterprise Resource Planning (ERP)• Supply Chain Planning / Advanced Planning Systems (SCP/APS)• Service Management• Maintenance Management / Asset Lifecycle Management (ALM)• Workflow Management (WFM)• Financials• Warehouse Management (WMS)• Transport Management (TMS)

Next to these ERNIE-supported software categories we also have much expertise in packageselections for the following software categories:

• Retail Packages• Supplier Relationship Management (SRM) / eProcurement• Manufacturing Execution Systems (MES) / Scada• Laboratory Information Management Systems (LIMS)

25

• Supply Chain Event Management (SCEM) / Visibility Systems• Product Data Management (PDM) / Product Lifecycle Management (PLM)• B2B Marketplaces software• Customer Relationship Management (CRM)

For information regarding our package selection services and our supply chain managementservices please contact the CGE&Y Benelux B2B Supply Chain service line on +31 (0)30 6898845.

26

10 Participating WMS vendors

Company name Astrosoft Nederland BVAddress Postbus 21Postal code and city 3984 ZG ODIJKContact person Mr. W.L.J. CeelenApplication name WICS (Warehouse Information and Control System)Version number 4.10

Company name AXI B.V.Address Trasmolenlaan 5bPostal code and city 3447 GZ WOERDENContact person Mr. M. SnepvangersApplication name Customized solutionVersion number

Company name CAL Consult B.V.Address Amperestraat 38Postal code and city 6716 BN EDEContact person Mr. R.F.K.BoumanApplication name CALwms – CALtms - CALrouteVersion number 3.3

Company name CAL Consult B.V.Address Maxwellstraat 17Postal code and city 6716 BX EDEContact person Mr. M. PieplenboschApplication name CALWMS400Version number V3R2

Company name Covil Universal B.V.Address Elftweg 2cPostal code and city 4941 VP RAAMSDONKSVEERContact person Mrs. I. de RooApplication name ULMVersion number V5

Company name DCS Transport & Logistics SolutionsAddress Stationsweg 41

27

Postal code and city 3331 LR ZWIJNDRECHTContact person Mr. J. van SchelvenApplication name DCSi.LogisticsVersion number V2R5

Company name EXE Technologies Benelux BVAddress Meerwal 11Postal code and city 3432 ZV NIEUWEGEINContact person Mr. M. BaltussenApplication name Exceed FulfillVersion number V3.6

Company name Fujitsu Services B.V./ ICL - Logistic SystemsAddress Postbus 1726Postal code and city 3600 BS MAARSSENContact person Mr. C. van OoststroomApplication name MLSVersion number 6

Company name Heyde BeneluxAddress Willemskade 19-20Postal code and city 3016 DM ROTTERDAMContact person Mrs. P. van de VoortApplication name TMS-MT - TMS-ND - WMS-DCVersion number Release 4306

Company name Incore Automatisering B.V.Address Haarlemmerweg 317aPostal code and city 1051 LG AMSTERDAMContact person Mr. M. SwatersApplication name LocusVersion number 3.7

Company name Industri-Matematik International (IMI)Address Postbus 967Postal code and city 3708 JE ZEISTContact person Mrs. Y. van GestelApplication name IMI WarehouseVersion number 2.1

Company name Interchain B.V.

28

Address Stationsweg 45Postal code and city 3311 LR ZWIJNDRECHTContact person Mr. H. LuijkApplication name E-ChainwareVersion number 5.7 / 2

Company name Inther Logistics EngineeringAddress Albionstraat 30aPostal code and city 5809 AB LEUNENContact person Mr. P. HermsenApplication name Inther LCVersion number 4.1

Company name Manhattan AssociatesAddress Meentsestraat 81Postal code and city 6987 CL GIESBEEKContact person Mr. H. BeckerApplication name PkMSVersion number 2002R1

Company name MARC Global ServicesAddress Postbus 5657Postal code and city 5657 EA EINDHOVENContact person Mr. H. van WierstApplication name MARC-CSVersion number 8.2.5 (9.0 will be released in April 2002)

Company name Oracle Nederland B.V.Address Postbus 147Postal code and city 3454 ZJ DE MEERNContact person Mrs. C. van StralenApplication name E-Business SuiteVersion number 11i

Company name Real SolutionsAddress Havenstraat 32Postal code and city 4251 BC WERKENDAMContact person Mr. P. van der ZouwenApplication name WICSVersion number 4.10

29

Company name Robocom BeneluxAddress Postbus 40401Postal code and city 3504 AE UTRECHTContact person Mr. J.B. van LeeuwenApplication name RIMSVersion number 4.3 J

Company name Van Boxtel Software B.V.Address Postbus 79Postal code and city 5427 ZH BOEKELContact person Mr. M. FranssenApplication name VBS-WMSVersion number

Company name Van Looy GroupAddress Bruistensingel 166Postal code and city 5232 ‘s HERTOGENBOSCHContact personApplication name LFS400Version number 5