Productivity Gap Increases as Majority of U.S. Warehouses are Supported by a WMS System

The Warehouse Productivity Challenge

According to the Warehousing Education and Research Council (WERC), a minority of companies without WMS software makes up about one-third of U.S. facilities (35%).

The rest of U.S. facilities have invested in WMS software helping them do more with their staff and creating quicker processes to help their companies grow.

Why WMS Adoption Matters

A WMS system seems like the obvious way to get ahead in this industry, yet some have yet to jump aboard the bandwagon. WMS technology has slowly entered the warehouse space for 10 years, but the implementation rate is at a glacial pace. In fact, the survey revealed that some facilities are still using Excel as their prime operating system; others are using Quickbooks, an accounting software. WERC analysts say that respondents are concerned about cost, but one of the overriding reasons is the perception that implementation can take too much time.

The survey also suggested:

• Voice-directed picking has grown the fastest over the last 10 years; Almost a quarter of respondents use the technology compared to just 6% in 2008.
• Usage of conveyors, carousels, and advanced shipping notification has declined since 2008.

The majority of U.S. facilities, however, have seen the true results of investing in software. The benefits are clear: Greater transparency, efficiency, cost savings, analytics, ability to deliver e-commerce fulfillment, and opportunities for growth. Warehouses that are running systems that are disconnected from the digital supply chain are susceptible to falling farther behind their logistics partners — And the competition, which will guarantee customers faster and more efficient service. WMS software might be the solution to your company’s problems.

Does your facility use WMS software? What impact has it had on your company? If you don’t have WMS software yet, do you see your company making the investment soon? 

Contact Argos today to learn more about our WMS software and find out how we can help you. 

Frequently Asked Questions

How long does WMS implementation typically take for warehouses?

WMS implementation timelines vary significantly based on warehouse size, complexity, and system requirements. Small to medium warehouses typically see 3-6 month implementations, while larger facilities may require 6-12 months or more. The perception that implementation takes too long is one of the main barriers preventing adoption, though modern cloud-based WMS solutions often offer faster deployment options.

What percentage of warehouses still use Excel instead of WMS?

According to WERC survey data, approximately 35% of U.S. warehouse facilities still operate without WMS software. Many of these facilities rely on basic tools like Excel spreadsheets or accounting software like QuickBooks for warehouse operations. This represents a significant portion of the industry that hasn’t yet adopted dedicated warehouse management technology.

Why are some warehouse technologies declining in usage since 2008?

Traditional warehouse technologies like conveyors, carousels, and advanced shipping notification systems have seen declining usage as facilities shift toward more flexible, software-driven solutions. These physical automation systems often require significant capital investment and lack the adaptability of modern WMS platforms. Companies are prioritizing technologies like voice-directed picking that offer better ROI and scalability.

What is voice-directed picking and why is it growing?

Voice-directed picking uses speech recognition technology to guide warehouse workers through pick tasks hands-free via headsets. Usage has grown from just 6% in 2008 to nearly 25% today because it increases picking accuracy, improves productivity, and reduces training time. Workers can keep their hands and eyes free while receiving real-time instructions, making it safer and more efficient than paper-based picking methods.

Can small warehouses afford WMS software implementation costs?

Modern WMS solutions offer various pricing models to accommodate different warehouse sizes and budgets. Cloud-based WMS systems typically use subscription pricing starting from hundreds to thousands per month, eliminating large upfront costs. Many small warehouses find that efficiency gains, reduced errors, and labor savings from WMS implementation quickly offset the software costs within the first year of operation.