Warehouse management is a critical component of supply chain management, responsible for storing, organizing, and managing goods and materials within a warehouse environment. From reducing costs and improving efficiency, to enhancing customer satisfaction and fostering innovation, warehouse management plays a vital role in the success of any business.
In this blog post, we’ve compiled statistics that highlight the importance and benefits of warehouse management, both for businesses and for the broader economy.
From reducing costs and improving efficiency, to enhancing customer satisfaction and fostering innovation, these statistics demonstrate the key role that warehouse management plays in shaping our world and advancing our future.
Let’s take a closer look at the facts and figures that showcase the significance of warehouse management:
Key Warehouse Management Statistics 2023 – MY Choice
The global warehouse management system market is expected to grow from $6.1 billion in 2020 to $9.1 billion by 2025, at a CAGR of 8.5%.
E-commerce businesses are driving the growth of the warehouse management system market, with a rise in online shopping and increased demand for faster delivery times.
60% of warehouse management systems now have mobile capabilities, allowing for real-time inventory tracking and monitoring.
The use of automated storage and retrieval systems has increased by 80% in the past five years.
The average order picking time has been reduced by 30% with the implementation of warehouse management systems.
The top benefits of warehouse management systems are improved accuracy (67%), reduced costs (56%), and increased efficiency (48%).
60% of warehouse management systems now integrate with transportation management systems, allowing for better coordination between inbound and outbound shipments.
The use of drones in warehouses has increased by 70% in the past three years, with many companies using them for inventory management and delivery purposes.
More than 75% of warehouses now use some form of automation, such as robotic pickers and automated storage and retrieval systems.
The adoption of cloud-based warehouse management systems has increased by 50% in the past two years, with many companies finding it easier and more cost-effective to manage their operations.
Warehouse Management Stats
Warehouse Management Usage Statistics
Metric
Value
Increase in productivity with integrated order processing
25%
Gain in space usage with integrated order processing
20%
Improvement in stock use efficiency with integrated order processing
CAGR of the global supply chain management market (2020-2027)
11.2%
Predicted market share of transportation management systems worldwide
$4.8 billion
Percentage of companies using machine learning for SCM initiatives
19%
Percentage of organizations without tech systems for monitoring supply chain performance
63%
Leading supply chain market constraints
Containing cost increases (32%), facing global competition (28%), adapting to customer expectations (27%)
Percentage of warehouse operations using technology for automation
85% (according to Logistics Management survey)
Warehouse Management Software Statistics
Metric
Value
Percentage of leaders using optimization software
75%
Percentage of followers using optimization software
34%
Percentage of leaders using visualization software
67%
Percentage of followers using visualization software
28%
Percentage of leaders using mobile technologies
75%
Percentage of followers using mobile technologies
30%
Percentage of leaders using RFID tags
65%
Percentage of followers using RFID tags
27%
Average spending for employees for SCM software by 2025
$8.08
Warehouse Management Adoption Statistics
Metric
Value
WMS adoption rate in 2018
Exceeded 90%
Use of paper-based picking systems in 2018
48% (down from 62% in the previous year)
Warehouse Management Latest Statistics
Metric
Value
Number of private warehousing establishments in the US (2018)
18,182
Number of private warehousing establishments in the US (2008)
15,203
Average size of warehouses (2000)
65,000 square feet
Average size of warehouses (2017)
181,370 square feet
Percentage of distribution centers with 6 or more buildings (2016)
28%
Percentage of distribution centers with 6 or more buildings (2017)
22%
Percentage of distribution centers with 6 or more buildings (2018)
27%
Average clear height of distribution centers (2018)
32.7 feet
Average clear height of distribution centers (2016)
31.1 feet
Warehouse capacity utilization among manufacturers
68%
Percentage of manufacturers at 100% capacity
15%
Percentage of manufacturers at 81-99% capacity
19%
Expectation of increased utilization (next 2 years)
53%
Expectation of decreased utilization (next 2 years)
5%
Availability rate
7.1% (lowest since Q4 2000)
National vacancy rate
4.3% (lowest since at least 2002)
Net asking rents (Q3 2018)
$7.21
The global warehouse management market size was valued at $11.6 billion in 2019 and is expected to reach $21.6 billion by 2027.
The growth of e-commerce and the increasing demand for faster and more efficient delivery methods are driving the growth of the warehouse management market.
The Asia-Pacific region is expected to see the highest growth in the warehouse management market due to the increasing demand for warehousing and logistics services in countries like China and India.
The warehousing and storage industry employed 1.1 million people in the US in 2020.
The average cost of warehousing per square foot in the US is $5 to $7, but this can vary depending on the location and size of the warehouse.
The average cost of goods sold for a warehouse is approximately 20% of the total revenue.
The average lifespan of a warehouse is 30 years.
The average warehouse uses 10% of its space for office and administrative purposes, while the remaining 90% is used for storage and handling.
Industry Professionals
Professionals
Percentage
Industry
70%
Data & Analytics
6.6%
Customer Service
4%
Adding New Talent
4%
eCommerce
2.6%
Direct-to-Consumer Sales
2.6%
Changes in Industry Processes by Executives
Sector
Percentage
Logistics, Transportation, & Supply Chain
65%
Top Business Priorities of Supply Chain Professionals
Priority
Percentage
Quick Response to Customer Mandates
30%
Disruption of Global Retailers
Impact
Percentage
Little Disruption
32%
Heavy Disruption
12%
Challenges for Retailers in Adapting Supply Chain for E-Commerce
Challenge
Percentage
Adapting Supply Chain for E-Commerce
64%
Finding Alternative Sourcing Options
28%
Shortages & Out-of-Stock
28%
Visibility Over Supply Chains
Visibility
Percentage
Total Visibility
69%
Proactive Supply Chain Network
22%
Limited Visibility
62%
Visibility on Production
15%
Full Visibility
6%
Extended Supply Chain Visibility
17%
KPIs for Supply Chain Monitoring
KPI
Percentage
Daily Performance
40%
Cost Reduction
35%
Production Service Rate
29%
Inventory Turn
28%
Production Time
27%
Lead Time
27%
Return Rate
25%
ROA
22%
Supply Chain Disruptions & Their Impacts
Impact
Percentage
Financial Loss
62%
Logistics Loss
54%
Reputation Loss
54%
Causes of Supply Chain Disruptions
Cause
Percentage (in US)
Mergers & Acquisitions
66%
Extreme Weather
41%
Factory Fire
37%
Business Sales
33%
Unplanned IT Outages
68%
Adverse Weather
62%
Loss of Talent
51%
Cyber Attacks
50%
Fire
44%
Analysis of Supply Chain Disruptions
Analysis
Percentage
Analyzed
70%
Not Analyzed
30%
Supply Chain Disruptions & War Room Situations
Year
Disruptors
War Room Situations
2020
52%
69%
2019
39%
39%
Transportation & Logistics Industry & GDP
Industry
GDP
Transportation & Logistics
12%
Benefits of Warehouse Management
Improved Inventory Management: Warehouse management systems help to improve inventory accuracy and control, reducing the risk of stock shortages and overstocking.
Increased Efficiency: Warehouse management systems help to streamline processes and automate manual tasks, leading to increased efficiency and productivity.
Enhanced Customer Service: Warehouse management systems help to improve order fulfillment times, leading to enhanced customer satisfaction and loyalty.
Better Decision-Making: Warehouse management systems provide real-time data and insights that can be used to make informed decisions about inventory levels, demand forecasting, and resource allocation.
Cost Savings: Warehouse management systems can help to reduce operational costs by reducing waste and improving efficiency.
Trends in Warehouse Management
Increased Adoption of Automation: Automation technologies like robotics, drones, and autonomous vehicles are becoming increasingly popular in warehouses, leading to increased efficiency and reduced costs.
Increased Focus on Sustainability: Warehouses are becoming increasingly focused on reducing their environmental impact, including reducing energy consumption, reducing waste, and using more sustainable materials.
The Rise of the Internet of Things (IoT): IoT devices are becoming increasingly common in warehouses, helping to improve tracking, monitoring, and automation.
The Growth of Cloud-Based Solutions: Cloud-based warehouse management systems are becoming more popular, as they offer increased scalability, flexibility, and security compared to traditional on-premise solutions.
Warehouse Management Adoption and Market Analysis
Small and medium-sized enterprises (SMEs) are the largest adopters of warehouse management systems, accounting for 60% of total market share.
The retail and consumer goods industries are the largest users of warehouse management systems, accounting for 35% of total market share.
The healthcare and pharmaceutical industries are also significant adopters of warehouse management systems, accounting for 20% of total market share.
The North American region is the largest market for warehouse management systems, accounting for 40% of total market share.
The Europe region is the second-largest market for warehouse management systems, accounting for 30% of total market share.
The Asia-Pacific region is expected to see the highest growth in the adoption of warehouse management systems, driven by the increasing demand for warehousing and logistics services in countries like China and India.
Demographics of Warehouse Management
The majority of warehouse management professionals are male (70%), with an average age of 40 years.
The majority of warehouse management professionals have a bachelor’s degree or higher (60%) and have been in the industry for over 10 years (55%).
The average salary for a warehouse management professional in the US is $75,000 per year.
Warehouse Management Software
Warehouse management software is used to manage the day-to-day operations of a warehouse, including inventory control, order fulfillment, and shipping.
The most popular warehouse management software systems include SAP, Oracle, Microsoft Dynamics, and Infor.
Warehouse management software can be cloud-based or on-premise, depending on the needs and preferences of the organization.
The average cost of warehouse management software is $50,000 to $100,000 per year, depending on the size and complexity of the warehouse.
Opportunities in Warehouse Management
Increased Demand: With the growth of e-commerce and the global economy, the demand for efficient warehouse management is expected to increase in the coming years.
New Technologies: The increasing adoption of automation, IoT, and cloud-based solutions is creating new opportunities for growth in the warehouse management market.
Global Expansion: The growth of the Asia-Pacific region presents significant opportunities for growth and expansion in the warehouse management market.
Challenges in Warehouse Management
Managing Labor Costs: Warehouse management can be labor-intensive, and managing labor costs can be a challenge for organizations.
Ensuring Inventory Accuracy: Maintaining accurate inventory levels can be a challenge, especially in larger warehouses with high volumes of stock.
Integration with Other Systems: Integrating warehouse management systems with other systems, such as ERP and CRM, can be a challenge for organizations.
Cybersecurity Risks: Warehouse management systems store sensitive data, and ensuring the security of this data is a major challenge for organizations.
1. Reducing Costs and Improving Efficiency
Effective warehouse management can reduce operational costs by up to 30%
Automated warehouse management systems can improve picking accuracy by up to 99.9%
Implementing real-time inventory management can reduce stock discrepancies by up to 50%
2. Enhancing Customer Satisfaction
Faster order processing times through efficient warehouse management can increase customer satisfaction by up to 20%
Improved order accuracy through effective warehouse management can increase customer loyalty by up to 15%
Real-time inventory management can reduce stock-outs and improve product availability, enhancing customer satisfaction
3. Fostering Innovation and Growth
Warehouse management can help businesses to quickly adapt to changing market conditions and customer needs
Improved inventory management through warehouse management can help businesses to better understand consumer demand and trends
Automated warehouse management systems can help businesses to quickly scale their operations to meet changing demand
4. Improving Safety and Compliance
Effective warehouse management can help to reduce accidents and injuries in the workplace
Real-time inventory management can help businesses to maintain compliance with industry regulations and standards
Automated warehouse management systems can help businesses to quickly detect and respond to safety and compliance issues
What is warehouse management?
Warehouse management is the process of managing the day-to-day operations of a warehouse, including inventory control, order fulfillment, and shipping.
What are the benefits of warehouse management?
The benefits of warehouse management include improved inventory management, increased efficiency, enhanced customer service, better decision-making, and cost savings.
What are the trends in warehouse management?
The trends in warehouse management include increased adoption of automation, increased focus on sustainability, the rise of the IoT, and the growth of cloud-based solutions.
Who uses warehouse management systems?
Small and medium-sized enterprises, the retail and consumer goods industries, the healthcare and pharmaceutical industries, and other organizations with warehousing operations use warehouse management systems.
Conclusion
Warehouse management is a critical component of supply chain management, as it helps to ensure the efficient storage, handling, and distribution of goods. With the growth of e-commerce and the global economy, the demand for efficient warehouse management is expected to increase in the coming years.
Warehouse management plays a vital role in the success of any business. From reducing costs and improving efficiency, to enhancing customer satisfaction and fostering innovation, effective warehouse management provides businesses with the tools and insights they need to succeed in today’s rapidly changing economy.
So if you’re looking to improve your warehouse management and take your business to the next level, consider exploring your options and investing in the right tools and technologies. With the right skills and resources, you can help to streamline your operations, reduce costs, and enhance customer satisfaction, while making a real difference in the lives of your customers and employees.
