Key Takeaways: 2024 Magic Quadrant for Warehouse Management Systems

The editors astatine Solutions Review person highlighted the updates successful the 2024 variation of Gartner’s Magic Quadrant for Warehouse Management Systems and summarized the findings.

Analyst location Gartner Inc. precocious released the 2024 mentation of its Magic Quadrant for Warehouse Management Systems. According to Gartner, a warehouse absorption strategy (WMS) is “a bundle exertion that helps negociate and intelligently execute the operations of a warehouse, organisation halfway (DC) oregon fulfillment halfway (FC).” These solutions tin assistance businesses show warehouse activity, way inventory, set processes, benignant products, and execute much close visibility into their warehouse operations.

Gartner besides summarizes immoderate of the modular capabilities WMS should offer, which see functionalities for receiving, cross-docking, banal locating, inventory management, replenishment, prime inspection, bid allocation, determination management, picking, question planning, staging, motortruck loading, rhythm counting, shipping, automated worldly handling instrumentality (MHE) interfaces, and more.

In this updated Magic Quadrant, Gartner identifies 20 of the astir important Warehouse Management System providers successful the marketplace. The researchers down the report—Simon Tunstall, Dwight Klappich, Rishabh Narang, and Federica Stufano—evaluated the strengths and weaknesses of each supplier listed and ranked them connected the signature “Magic Quadrant” graph, which illustrates each vendor’s quality to execute its vision. The diagram includes 4 quadrants: leaders, challengers, niche players, and visionaries.

Below is simply a breakdown of each class and the companies associated with it. Solutions Review’s rundown of past year’s Magic Quadrant for Warehouse Management Systems is disposable here.

Leaders

Manhattan Associates erstwhile again leads this year’s Magic Quadrant report. It is the second-largest specialized proviso concatenation suite provider, arsenic evaluated by Gartner, and offers an extended portfolio of proviso concatenation absorption (SCM) solutions for logistics, omnichannel commerce, proviso concatenation planning, and supplier enablement tools. Its strengths successful the marketplace see its strategy for increasing its offerings, its innovative R&D team, the caller enhancements it introduced to assorted capabilities, and its microservices multitenant unreality architecture.

Blue Yonder, which operates independently nether the Panasonic Connect umbrella, is the adjacent Leader listed successful Gartner’s report. According to Gartner, Blue Yonder offers the largest proviso concatenation absorption suite, with a 2023 bundle gross of $1.1 cardinal and $223 cardinal successful WMS bundle revenue. The institution is 1 of the astir mature and adaptable vendors successful the WMS market. It offers a robust suite of capabilities, including workforce management, traceability, show management, an extended spouse network, robotics functionalities, and more.

Körber’s proviso concatenation bundle concern is portion of its larger planetary exertion group. It focuses connected a “buy and build” strategy, integrating aggregate providers to enactment planetary customers nether its brand. The institution uses a cloud-first exemplary for caller concern but plans to follow a multitenant microservices architecture implicit the adjacent respective years. Its strengths see notable lawsuit maturation compared to different vendors successful the market, the extensibility of its offerings, warehousing expertise, and its user-based pricing model.

According to Gartner’s research, Oracle has the second-largest marketplace stock successful the SCE bundle market, arsenic its 2023 bundle gross reached $693 million, with different $280 cardinal attributed to its WMS software. While Oracle’s solution suite includes respective WMS products, Gartner’s study focused exclusively connected Oracle Fusion Cloud Warehouse Management, a go-forward WMS integrated with Oracle’s different cloud-based SCM solutions. Other strengths see its accordant SCM unreality strategies, continued clasp of a “next-generation” idiosyncratic experience, enactment for a platform-as-a-service (PaaS) layer, leveraging of different Oracle technologies, and beingness successful fulfillment-intensive industries.

SAP is simply a planetary bundle “mega vendor” with $33 cardinal successful full yearly revenue, of which $25.9 cardinal comes from software. For this report, Gartner focuses connected the SAP Extended Warehouse Management (SAP EWM) solution, which integrates with different SAP solutions and components, including proscription management, planetary commercialized compliance, tract logistics, prime management, works maintenance, and more. Additional strengths see its important planetary presence, ample lawsuit base, and ecosystem of implementation and consulting partners.

Infor, owned by Koch Industries, closes retired the LEader class with a WMS portfolio equipped with respective SCM applications. Infor is different “mega vendor” with a projected planetary gross of $3.4 cardinal and $200 cardinal successful WMS bundle revenue. It earns its spot arsenic a Leader acknowledgment to the fiscal stableness Koch provides, an in-depth 10-year roadmap for its merchandise suite, an extensibility approach, worldwide accessibility, a planetary spouse network, innovative capabilities, and integration with different Infor applications.

Challengers

Ehrhardt Partner Group (EPG) is backmost arsenic a Challenger successful this year’s Magic Quadrant. The institution provides a portfolio of WMS and logistics solutions, aggregate SCE applications, a autochthonal WCS, and consulting, cloud, and hosting services. It earns somewhat much than $100 cardinal annually from its WMS licenses and services revenue, astir two-thirds of its wide revenue. EPG’s strengths arsenic a WMS supplier stem from its thirty-five years of acquisition successful the marketplace, the stableness its presumption arsenic a privately owned institution provides, its expertise with analyzable warehouse settings, and its competitory pricing tiers

Tecsys is simply a warehouse absorption solution supplier that besides offers companion SCE capabilities. Its WMS bundle and work gross is astir $120 cardinal and has a three-year CAGR for gross of thirty-four percent. The institution is well-regarded for its vertical manufacture expertise, wide suite of SCM capabilities, robust extensibility via the Itopia platform, low-code exertion level (LCAP) capabilities, and ongoing partnerships with specialized low-code integration technologies and MHE providers.

Microsoft is different mega vendor successful the WMS market. Gartner estimates that astir $1 cardinal of its planetary gross comes from its proviso concatenation applications, including the Microsoft Dynamics 365 Finance and Supply Chain Management suite. With that suite, Microsoft provides companies with WMS and SCM capabilities for planning, procurement, and bid management. Strengths see its compatibility with the different capabilities disposable successful the Dynamics 365 ERP, competitory pricing for organizations already successful the Dynamics 365 ecosystem, its extended exertion ecosystem, and its adoption of generative AI capabilities.

SSI SCHAEFER is the last Challenger listed successful this year’s Magic Quadrant. Its WMS, WAMAS WMS, is disposable independently of worldly handling systems and designed for manual warehouse operations. The institution differentiates itself successful the marketplace with an extended European footprint, a sizeable WMS-centric workforce, the assortment of deployment models it offers, its ongoing concern successful merchandise portfolio enhancements, and the stableness it has from its presumption arsenic a family-owned enactment with astir ninety years of warehouse absorption experience.

Niche Players

Synergy Logistics is simply a smaller bundle institution focusing exclusively connected WMS products and related solutions. Its solution, SnapFulfil, is chiefly utilized successful Level 2 and 3 warehouse operations and offers accelerated deployments, SaaS options, and a dedicated unreality solution. According to Gartner, its strengths see its flexible regularisation engine, expanding spouse ecosystem, scalable seasonal pricing strategy, grooming offerings, favorable work and catastrophe betterment service-level agreements (SLAs), and precocious no-code adaptability levels that alteration the company’s faster implementations.

Made4net is simply a WMS and SCE-related solution vendor with an estimated $30 cardinal yearly WMS revenue. While Mad4net was acquired by Ingka Investments, the concern limb of Ingka Group, successful 2023, the institution continues to run arsenic an autarkic subsidiary. Its SCExpert suite provides WMS, labor, transportation, delivery, and gait absorption capabilities. Other strengths see its planetary go-to-market strategy, cost-effective implementation methodology, and an automation strategy tailored to the lawsuit base.

Mecalux, a part of the Mecalux group, has an yearly gross of astir $1.58 billion, with $32 cardinal coming from its WMS revenue. It predominantly works with SMBs and has astir 1,100 mid-market customers successful manual and automated environments. The institution stands retired for its dedication to robotics growth, geographic beingness successful assorted territories, comparatively debased TCO (software-plus service) compared with different vendors, integration acquisition with different MESs, and adaptable simulation and modeling tools.

Mantis is simply a WMS suite supplier with clients that scope from SMBs with single-site deployments to larger multi-national organizations with multi-site, multi-country implementations. Gartner spotlights its strengths stemming from its section presence, spouse network, and increasing lawsuit basal successful EMEA, arsenic good arsenic its caller acquisition by ecovium, which helped Mantis grow its ecosystem. Other strengths see its inventory slotting vision, newer Microsoft Azure unreality hosting, and scalable seasonal subscription offerings.

Generix Group provides a portfolio of SCM solutions, including 2 WMS offerings alongside proscription management, gait management, logistics bid management, replenishment management, and physics information interchange (EDI). After receiving investments successful R&D from a 2022 restructure, the institution released respective caller features for assets readying and forecasting and updated predictive and prescriptive analytics. Other strengths see its model-driven architecture, back-office capabilities, and pricing model, which doesn’t restrict users to a subscription model.

Deposco is 1 of the 2 caller entrants successful the 2024 Magic Quadrant. It’s a supplier of cloud-based SaaS platforms with a absorption connected SCM. Its bundle is built natively connected the cloud, uses unreality infrastructure from AWS, and provides companies with distributed bid absorption (DOM), request planning, and proviso readying capabilities. Its strengths arsenic a WMS vendor see its SCE convergence strategy, a pre-built room of 150+ connectors for applications successful the e-commerce market, accelerated onboarding process, mature information strategy, and enactment for scalability.

Dematic is the different newcomer to this year’s Magic Quadrant. The institution is portion of KION Group, a shaper of materials handling equipment, and functions arsenic a material handling instrumentality (MHE) and bundle provider. Its WMS focuses connected larger businesses with automated and manual warehouses crossed North America and Europe. It provides its clients with extended manufacture expertise, a compelling roadmap for its product, and an evolving suite of capabilities that see WMS, WCS, WES, robotics support, and AI.

Vinculum is the last Niche Player successful this year’s report. The institution is simply a unreality and SaaS-based solution supplier focusing connected e-commerce and omnichannel retail, backstory fulfillment, and retail-centric 3PL markets. Vinculum earns precocious marks for its important lawsuit radical successful emerging markets, its integration framework, easy-to-understand pricing model, comparatively speedy implementations, accelerated scalability, and its accordant instauration of caller capabilities, including enhancements to its D2C, B2B, and pre-built integrations.

Visionaries

Reply offers a postulation of IT services to planetary companies, chiefly focusing connected consulting, integer services, SI, and cybersecurity offerings. It besides provides warehouse absorption applications and services, which garner astir $41 cardinal successful gross annually. Strengths see its extended consulting capabilities, AI-driven innovations, an extended postulation of exertion partnerships that assistance it supply clients with nonstop deliverables, and proven technical and commercialized composability, which it achieves by utilizing lone the required microservices successful its applications.

Softeon is the last vendor successful Gartner’s 2024 Magic Quadrant for Warehouse Management Systems. It’s a small, SCE-centric solution supplier with 25 years of manufacture acquisition and an yearly WMS gross of astir $50 million. The institution is 1 of the fewer WMS providers that connection fixed-priced implementations, which it supports with further implementations and methodologies. Other strengths see its autochthonal integration into assorted technologies, scalability, unreality hosting offerings, and its adoption of emerging functionalities, similar predictive analytics and ChatGPT-enabled integrations.