Russian WMS market

№	Company name	Status	Total revenue from the implementation of WMS projects for 2023, million rubles. Including VAT	Total revenue from the implementation of WMS projects for 2022, million rubles. Including VAT	Dynamics 2023/2022,%	Forecast dynamics 2024/2023,%	What WMS systems is developed/implemented by the company	Number of employees engaged in development, implementation and support of WMS systems	The largest WMS projects in Russia in 2023
1	Axelot	vendor, integrator	903.1	658	37.3	32.9	AXELOT WMS X5, AXELOT WOS X5	180	Schneider Electric, 3Loggik, Eleron, Lancet, Aqualife (Chernogolovka)
2	KORUS Consulting Group	integrator	616	493	24.9	local	KONCRIT, 1C:WMS, Manhattan WMS (in CIS countries)	ECO-Culture, Rusagro, Ormatek, Vostokcement, Zolla
3	IT Scan * *	vendor	438.3	266.4	64.5	41.7	Expert Logistic	34	Rosseti, AtomMashComplex, Besh Archa, Agro Invest, TOROS
4	Novardis	Integrator	420	539	-22.1	n/a	n/a	SberLogistics LLC, MHC EUROCHEM JSC
5	LogistiX	vendor, integrator	383.4	287.9	33.2	n/a	LEAD WMS, LEAD WCS	120	Fix Price, RULOG, Electric Solutions LLC, AutoContinent, Packaging Systems JSC, GTEK, NOYTECH Supply Chain Solutions
6	Solvo	vendor, integrator	324	295	9.8	3.4	Solvo.WMS	80	Novabev Group, Norebo, SIBAGRO JSC, Viola LLC
7	EME	vendor, integrator	257	231	11.3	30	EME.WMS	100	Gazpromneft-Supply, ROLF, Russian Cold, Saint-Gobain, Fanagoria
8	SITEK Logistics	Vendor	241,1	128,4	87,8	n/a	1C:WMS Logistics. Warehouse Management	111	Vostok Service Group of Companies, BSS LLC, OMK JSC, Compass LLC, MILKOM JSC, UNITED CONFECTIONERS LLC
9	Progress	Vendor	169	137	23.4	14.8	n/a	n/a	n/a
10	Consid	Vendor	164	96	70.8	-2.4	Consid.WMS	20	Selgros, GXO (5 RC), H&N (ex-Danone 9 RC), ETM, TS Victory (TC Summer)
11	Ant Technologies	Integrator	161.2	101.1	59.5	15	Logistics Vision Suite, ant LVision	17	Metro Cash & Carrie, Kerama-Marazzi, HOFF, Polyplastic, Megapack
12	Toplog	Vendor, Integrator	152.4	143.7	6.1	5	TopLog WMS, TopLog YMS	35	Chizhik, Arosa, Rusagro, Riat, Greenfields Logistics
13	InStock Technologies	Vendor	101	65	55.4	117.8	InStock WMS	48	Etreko-Service, Revitech, Leader, Greenworks, most major projects with NDA
14	Yarus WMS	vendor	50	60	-16.7	20	YARUS WMS	50	TD TsVK (supermarket chain Yatotka and Admiral), Semishagov (TK progress), Petshop ( In-Retail), ARTEX, KEAZ
15	SimbirSoft	Integrator	44.1	62.3	-29.2	N/A	N/A	N/A	N/A
16	SoftBalance	Integrator	37	26	42.3	37.8	1C:WMS Logistics. Warehouse Management	15	WÜRT-RUS JSC, Würt North-West JSC, GINGER, ForaDa, Monitoring Devices
17	GTLogistics	vendor, integrator	30.2	n/a	n/a	90	WMS GTStock	NIKO LLC, NAG LLC, Pechnoy Expert LLC, Dobroga LLC
18	ALPE Consulting	Integrator	11.2	10.9	2.9	240.3	SAP EWM/WMS/ 1C:WMS Logistics. Warehouse Management	3	Nikora, Kordiant, FSOFT
	Sum		4 503
2024

<sup>* Data obtained on the basis of company questionnaires
* * Taking into account the revenue of the foreign Jurassic persons</sup>

Capacity and Market Dynamics

According to SOLVO experts, the capacity of the Russian Warehouse Management System (WMS) market in 2023 amounted to about 6 billion rubles, and in 2024 this figure promises to grow by 10%.

General Director of Toplog Konstantin Gladkov said that the market volume in monetary terms can be estimated at about 5 billion rubles. According to the expert, in general, 2023 has become a landmark year for the Russian WMS market. The market has revived. The economy and business successfully overcame the challenges of 2022 and adapted to the changes. Supply chains have been rebuilt, there is active domestic and investment demand. A year has convinced business that it is necessary to invest in automation, and this must be done on the basis of domestic software. New projects are multiplying, Russian vendors are strengthening their positions.

Russian software has not previously yielded to foreign decisions in maturity and functionality, losing rather in marketing, the expert noted. - The growth would be even more rapid if it were not restrained by the personnel deficit in warehouses and among IT specialists.

The expert believes that the WMS market is developing in accordance with the general trends in the Russian IT industry, due to the dynamics of the economy and active demand. The growth rate remains high and is at least 20-25%. According to Toplog specialists, the largest contribution is made by projects related to import substitution (at least 30% in the total mass of requests). The drivers for implementing WMS systems have only intensified. The queue of companies that have reached the understanding that automation is an urgent need has noticeably lengthened, including due to SMB.

According to LogistiX, the base market capacity in 2023 amounted to about 5-6 billion rubles, however, taking into account complex projects, this figure can reach 10-12 billion rubles.

According to Dmitry Blinov, Managing Director of LogistiX, it is quite difficult to assess the capacity of the Russian market for WMS systems, since it is highly fragmented. The cost of projects can vary significantly depending on the segment: corporate and government customers are ready to invest significantly more than small and medium-sized businesses. In addition, many projects are complex in nature: they are not limited only to the implementation of WMS, but also include YMS, TMS, MES, WCS and other solutions (to achieve a higher level of automation, taking into account the prospects for business development for 3-5 years in advance), which increases the total cost.

It is worth noting that both domestic and Western players are still represented on the market. Over the past few years, there has been a moderate increase in demand for WMS solutions, which is associated with an increase in interest in automating warehouse processes from local manufacturers and retail chains, the expert said.

According to Dmitry Blinov, in 2024 the volume of the Russian WMS market increased by no more than 20%. At the same time, until 2028, it can demonstrate moderate growth - by about 8-12% per year, which is lower than the global average, but higher than in other segments of the Russian IT market. This is influenced by factors such as technological development (AI, warehouse robotization, IoT), sanctions restrictions (reducing dependence on import solutions), as well as the development of internal logistics and the expansion of production capacities.

When assessing the future, it is necessary to take into account risk factors that slightly restrain the dynamics: economic instability, limited access to foreign technologies. And if the global market continues to actively develop (and now it is showing significant growth due to IoT, AI, ML and increasing demand for effective supply chain management), then Russian, most likely, will increase more smoothly, but steadily - with an emphasis on adapting solutions to the specifics of the domestic market.

The expert called the main drivers of the Russian market the localization of business, problems with personnel (automation and robotization are becoming key factors in ensuring the viability of companies in the face of severe staff shortages), import substitution of software, as well as growing interest from e-commerce.

The departure of foreign companies freed up up to 40% of the market for domestic developers, another 20% are obsolete systems on which it makes no sense to spend resources. According to Dmitry Rybakov, CEO of Consid, this causes a high potential for growth. At the same time, in 2024, there was no noticeable increase in the number of implementations.

EME experts calculated that the growth of the WMS system market in 2023 was about 30%, and in 2024 the development trend will not change.

Artem Dolgikh, director of business development at AXELOT, believes that the market is developing, growing, and the pace of this growth is seriously different from what it was in 2022: the compressed spring of pent-up demand has "straightened," import substitution projects have really started.

According to our estimate, growth in 2023 for the entire market ranged from 30 to 40 percent, the expert said. - We see that in 2024 the market adds about 20-25%.

According to him, many factors that are not directly related to the industry influence the change in the market, but in the future there is a possibility of maintaining a pace of about 25% per year, while the growth rate of the Russian market will be higher than the world one.

Alexey Statenin, head of the QA department of the IT company SimbirSoft, shared his observation: the trends and trends of past years had a positive impact on the development of WMS. In 2024, the Russian market has continued the growth of warehouse logistics business process automation systems.

Konstantin Gladkov noted that after peak values ​ ​ in 2023-2024, as well as the growth of the next 2-3 years, a gradual stabilization of demand is expected amid a slowdown in the economy. The expert cited an assessment by the Institute of Statistical Research and Knowledge Economics of the Higher School of Economics: an average increase of 15-17% until 2030.

Dmitry Rybakov recalled that from 2022 the market is developing not organically, but based on economic and political shifts. The influence was exerted by rapidly developing e-com sales channels, a huge shortage of labor, coupled with an increase in its cost. When implementing WMS, companies are focused on improving efficiency as much as possible.

Therefore, until 2028, the dynamics is unlikely to exceed the existing indicators and the number of projects for the implementation of WMS will reach its constant growth, the expert summed up.

Technological solutions in Russia lag behind the best world practices, on the other hand, the specifics of the economic situation lead to the emergence of unique Russian developments that surpass foreign ones in terms of capabilities, said Vladimir Lykov, commercial director of EME.

In general, after an explosive jump in 2022-2024, we assume the stabilization of subsequent growth rates at the level of 13-15% per year, the expert predicts. - The number of projects will be stable, while their cost will increase.

EME also suggests that the technological complexity of automation and robotization projects will only grow in the future.

The volume of the market, which was expected, turned out to be overestimated, and the growth dynamics will decline, - Vladimir Lykov shared his vision.

Yarus WMS estimates the dynamics until 2028 pessimistically. According to Andrei Ermolin, many companies have left the market, and new ones from China are in no hurry to seriously invest in infrastructure in Russia.

Demand dynamics, supply structure, competition

More and more large customers appear on the market, who previously preferred the products of Western companies. And with their arrival, demand becomes more demanding on the basic functionality of solutions and the design capabilities of integrators for product maintenance.

Toplog specialists observe the dynamics of requests in all areas and the total need for operational accounting technologies. Konstantin Gladkov said that there is high interest from such areas as warehouses in production, 3PL, food, retail. Cost optimization is "at full growth," full control and high performance are required, and WMS systems play a key role - from balance management to logistics coordination.

The exception so far remains, perhaps, the rolled metal market, where complex accounting requirements and the specifics of work often make the introduction of WMS less relevant, the expert noted.

According to him, competition in the WMS market in Russia remains quite stable. The main players hold strong positions and the supply structure has barely changed over the past year. And although new companies are beginning to declare themselves, they do not yet have a significant impact on the overall appearance of the market, which has entered the phase of strengthening its position: not only the quality of the base product, but also customer support, scalability and adaptability becomes important.

With the departure of foreign competitors, the market was occupied by Russian companies. New players appear, the quality of WMS is growing, innovations are being introduced - competition is becoming higher and more intense, - commented Ilya Rubinchik, Deputy General Director of SOLVO for Automation of WMS.

Anna Korchminskaya, Managing Partner, Member of the Board of Directors of KORUS Consulting Group of Companies, noted that in general, competition in the market for WMS solutions and projects (from the point of view of vendors, integrators and IT consulting) has intensified for several reasons.

Firstly, there are more vendors on the market: new logistics platforms based on modern technologies appear, and the development of 1C-based solutions continues. Secondly, IT integrators compete in terms of knowledge, experience, industry expertise: the client expects from the IT partner not only the implementation of WMS, but also expertise in business processes, an individual approach, as well as experience in mechanization, complex integration, in mechanisms for implementing non-typical processes and understanding robotization - that is, a wide outlook at the junction of processes and systems, - said the expert.

In addition, according to her, large companies increase their own competencies, analyze the internal costs of development and integration, comparing them with market proposals, and prioritize which solutions should be purchased and which should be developed by themselves.

Artem Dolgikh believes that the warehouse automation market has long been highly competitive, and at the end of 2023, competition has intensified. Many new players have entered the market who do not yet have enough experience, which often leads to the appearance of client negativity both in the early stages of projects and after the transfer of WMS to industrial operation. Offers from players vary in a variety of criteria, ranging from technology stack and design methodologies to the ability to automate not only warehouse logistics, but also other areas of the supply chain.

Customer requirements and expectations continue to grow, projects are becoming larger, more interesting and more complicated, the demand for automation does not weaken, said Vladimir Lykov. The expert predicts increased competition in 2025.

EME specialists record many requests for switching from one WMS to another, due to business needs and system competitiveness. Along with the traditional demand for automation among trading companies, logistics operators, food industry companies, there is growing interest from warehouses in production, supply warehouses, warehouses of material and technical values. They are characterized by work with a wide range, a large range of nomenclature, complex document flow between all information systems, combined with the need to quickly respond to production needs.

For such warehouses, it is important to get away from the requirements for operators, surveyors, accountants, the expert noted.

According to him, new products appear on the market, companies are former foreign vendors with opaque work schemes, as well as new companies with products based on well-known accounting systems. At the same time, a pool of leaders with professional solutions, an ecosystem of products (WMS, TMS, MES, YMS), many years of experience and reputation are preserved.

Andrey Yermolin, project manager at Yarus WMS, stated the fact of increased competition. According to him, there are many newcomers on the market who, strictly speaking, are not WMS. At the same time, large players have already mainly acquired WMS systems, replacing foreign systems and switching to better software remain in demand.

Demand is falling, there are fewer large-scale projects. At the same time, competition in terms of supply has grown greatly over the past 10 years, completely newcomers have appeared, and the former Western systems stand with one foot here, the specialist complained.

Alexey Statenin believes that the departure of foreign vendors and the continuation of the import substitution course have opened up opportunities for WMS solutions to enter the market for lesser-known Russian vendors. This situation has increased competition between the players. However, a clear leader among domestic WMS suppliers has not yet formed.

According to the specialist, increased competition will accelerate the development of automation and integration with production processes. The changing economic environment, the complexity of implementation, the internal processes of companies and the limited budget influence the choice of suppliers and stimulate the growth of demand for little-known systems that can offer not only more favorable conditions, but also development and adaptation for a specific project, taking into account business requirements and their criticality.

The dynamics of demand in 2024 can be called growing, Dmitry Rybakov believes. System customers are already consciously approaching the choice of WMS, since on other people's mistakes 2022-2023. clearly see the results of failed implementation projects (the expert noted a decrease in the average quality of which separately). And these are the "fruits" of the rash choice of the warehouse system and/or its supplier.

Companies that previously ran on Western WMS systems or used self-written solutions on Western platforms, and are very well aware of what the world's best practices and load resistance are, divide WMS systems into two camps: "WMS" and "WMS on 1C." And already on the basis of their experience they make their choice, - the expert shared his observation.

Dmitry Blinov confirmed that competition in the market remains high and tends to grow. According to him, the seemingly low threshold for entering the market attracts both small companies developing simplified solutions and large in-house teams engaged in global customization. However, often such solutions remain superficial or incremental, without an integrated functional scope and architectural approach.

At the same time, over the past few years, competition among fully functional solutions, on the contrary, has decreased. This is due to such key trends: product labeling, e-commerce development, robotization, simulation modeling and the introduction of digital twins. Customers expect from contractors not only readiness to participate in projects, but also reference cases, which significantly narrows the range of possible bidders.

And if you add to this such additional services as SLA support, work with competence centers and help in installing and maintaining operating systems and DBMSs from an independent stack, then their number will be less than the number of fingers on one hand. We know well all our colleagues in the market, with whom we usually meet in such tenders, - said the expert.

According to Dmitry Blinov, traditionally, customer companies strive for flexible, easily customizable and customizable solutions that can be integrated into any IT infrastructure. However, over the past few years, demand has shifted towards integrated projects from one supplier. This is especially noticeable among large companies with a developed network of warehouses. They are increasingly coming to the need to move to a unified process base and centralized change management. This is due to the obsolescence of the technologies used, high costs of support and development, as well as the accumulation of technical debt.

The expert cited the Fix Price case as an example, where LogistiX specialists developed and implemented a single reference solution in 11 warehouses in one year. It brought together best practices and enabled centralized monitoring, control and management of change.

In addition, import substitution of software for managing robotic warehouses (WCS) and replacement of controllers (PLC) becomes relevant. Due to the high complexity of such projects, only a limited number of suppliers are able to offer appropriate services.

Impact of the economic situation

Crisis phenomena in the Russian economy have a dual impact on the WMS market. On the one hand, automation is a key tool to reduce costs. On the other hand, turbulence in the economy slows down project activities. The demand for automation exceeds the capabilities of performers, which leads to an increase in the timing and cost of projects. The business suffers from rising prices, VAT, operating costs, rental costs, personnel shortages and "salary races." The key rate shuts down access to fast money, forcing businesses to freeze even important projects.

We see an opportunity in the launch of targeted state programs that can support the introduction of domestic IT solutions in logistics, - said Konstantin Gladkov.

The main thing today is the rate CENTRAL BANK holding back investment, - commented Vladimir Lykov. - This leads to a slowdown in the speed of implementation of projects.

Economic instability forces many companies to postpone investments in automation, - confirmed Dmitry Blinov.

In 2024, the main obstacles to implementation are the high cost of money and inflation. Companies are actively studying the market, but often do not decide on a deal, - said Ilya Rubinchik.

Dmitry Rybakov believes that due to the situation with the key rate and inflation, it will be expensive and risky to build and develop for other people's money. Therefore, their own funds and internal capabilities of companies will come to the fore, and they follow from steps aimed at optimization: save, win, speed up, simplify, etc.

The economic situation has a negative impact on the market, it is more important that there is no long planning horizon, no investment, says Andrey Ermolin.

Artem Dolgikh noted the unconditional impact on the market of the size of the key rate, the inflation factor, difficulties with the purchase of specialized equipment. According to the expert, these significant uncertainties can affect the willingness to invest large funds in warehouse automation, which can compensate for positive effects, economic benefits, and overall productivity growth.

We are seeing cooling inside the SMB segment and a decrease in interest in projects with serious investments in infrastructure and equipment, "he said.

Old and new trends

Up to a certain point in the market (especially in a large corporate segment), there was confidence among some customers that Western software has more extensive functionality, complexity and contains the best subject practices. This confidence was the reason that import solutions were massively implemented in the corporate segment. But now many domestic developers are ready to offer a full-fledged replacement for foreign products, which is not inferior in functionality and volume to the tasks being solved.

Today, interest in the functionality of full or partial cross-docking is again increasing. Companies that have not previously used it and have not even thought about it are beginning to actively develop processes of different levels of complexity for WMS to apply cross-docking in their warehouses. The processes of suppliers of goods are also complicated and become more transparent and structured for cross-docking warehouses.

In the warehouse logistics market, the shortage of space forces company owners to save money on storage by automating processes. In the context of dramatic changes in traffic flows in 2022-2023, a change in logistics channels was observed. In 2024, the business realized that it could not survive without moving forward, and resumed many previously postponed projects.

The WMS market is influenced by the trend on. Marketplaces The trend towards technological sovereignty forced business to move to domestic On-Premise solutions due to the increasing hacker attacks and loss of significant volumes. personal data

As Viktor Uspensky, head of logistics automation at SoftBalance, said, the market is most characterized by the desire of customers to change the foreign WMS system to its Russian counterpart, especially if WMS is located on a remote server abroad. Very often, the corporate information system (CIS) is also replaced along the way, as a result, the customer completely switches to Russian solutions. The approach to accompanying software products is changing - there is a rejection of foreign support in favor of Russian specialists.

Konstantin Gladkov noted the fact that the movement of goods is accelerating. The time for order fulfillment has decreased, and the requirements for their accuracy and consolidation have increased. In addition, the labor intensity of order processing and the number of cargo processing rules have increased. retail There are already hundreds of such rules in high-intensity warehouses and distribution, which requires flexibility and speed of adaptation from WMS.

According to the expert, earlier the market relied on time-tested requests: total operational accounting, reducing the cost of handling a unit of cargo, performing KPIs, the concept of sufficient performance. However, the economic situation has increased the impact of other factors. The speed of implementation and the flexibility of the system become important requests. The customer today wants to get a working WMS faster, while maintaining the possibility of its development and new integrations, including, in the future, robots.

As for the trends of 2024, Dmitry Rybakov noted a rethinking of the role of KPIs: companies are beginning to understand that KPIs are not "punishment metrics" and/or "incentive metrics" that need to be used head-on, but indicators for drawing conclusions, adjusting processes and testing the changes made.

The expert gave a textbook example: storekeepers with more experience and a higher formal or informal status in the internal hierarchy of the organization always take on better tasks, easier acceptance operations, more paid selection operations, etc. This gives them the opportunity to receive multiple more cash payments compared to the average salary in the warehouse. Archetypal "hardworking" old-timers make a negative contribution not only to the objectivity of the motivation scheme, but also to the huge turnover of personnel, to the constancy of rejection of newcomers.

The problem of optimizing transport problems, loading is relevant. Not an optimally formed shipping unit leads to fines and return of the goods back to the warehouse, and this is an additional cost. "Carrying the air" is unprofitable.

As factors affecting the WMS market, Andrei Ermolin pointed to an increase in the share of marketplaces, the emergence of darkstores and small fulfillment centers.

Marketplaces are beginning to rule the ball, and this must be taken into account in all segments: from 100 to 100 thousand meters, ² the expert noted.

The increase in the share of new logistics schemes made SVH warehouses (customs warehouses) for importers in demand. Their automation in the face of tougher regulation ("Honest Sign," new customs rules) is now in great demand, Vladimir Lykov believes.

Anna Korchminskaya called platforming in a broad sense one of the key trends related to logistics (and, more broadly, cargo transportation), which have an impact on the WMS market today.

On the part of the state - integration with the IT systems of the regulator, on the part of companies - the presence of a single integrated solution, - the expert explained.

Also, according to her, a key trend in terms of consulting services, system integration and service is an integrated approach. Today, it is important for businesses to receive turnkey solutions from companies that take full responsibility for a project that can include equipment delivery, system configuration, and integration with their existing IT infrastructure.

As Dmitry Blinov said, in 2024, the trend of personnel shortages, wage growth remained, the high key rate and inflation had a strong impact, but the demand for WMS remained high.

State influence, import substitution

The urgent need for domestic WMS itself arose in 2022, when it was necessary to timely perform import substitution in all areas of software. With such a sharp increase in demand, the reaction of the developers was adequate. Domestic WMS could not fully cover the needs of customers in a number of functions available in foreign products. Russian software has rapidly undergone large-scale changes and improvements.

The market always takes into account the need to comply with the requirements of regulatory authorities. The state has a direct and significant impact on the market, both through economic policy and through targeted support of the government and the Ministry of Digital Development to IT companies and business, actively supports local developments, Konstantin Gladkov testifies. The expert noted the impact of the legislation: in 2024, the Honest Sign system already covers 23 categories of goods, which creates additional requirements for labeling and reporting.

State initiatives traditionally warm up demand for Russian developments. So, for example, the reason for replacing WMS is often the development of marking and the Honest Sign system - foreign solutions that are no longer supported simply cannot work with this, - said Ilya Rubinchik.

According to the expert, the spread of mandatory labeling of goods had a significant impact on the development of machine vision technologies.

Artem Dolgikh noted that the state is working in completely different directions: it issues grants, determines development vectors, communicates with the industry through different centers of competence. Regulators continue to expand the list of product groups for which participation in the system of mandatory labeling of goods becomes mandatory. This interaction automatically increases the requirements for the quality and level of detail of product accounting in the warehouse, the direct consequence of which is the need for a new level of business digitalization. According to the expert's observations, in 2024, the efforts and initiatives of various ministries and departments aimed at popularizing domestic software and automation became especially noticeable.

Any regulators that establish additional requirements for cargo handling become a natural incentive for the automation and development of the WMS solutions market, "said Dmitry Blinov.

According to the expert, a striking example is the system of mandatory labeling "Honest Sign," aimed at protecting consumer rights and combating the circulation of low-quality products, and in the coming years the labeling will cover almost the entire range of consumer goods.

Vladimir Lykov pointed to the strengthening of state regulation and the digitalization of accounting through the labeling of an increasing number of goods. This creates new requirements for integration with departmental systems. Production and warehouse processes are changed. Now labeling is not just about scanning stamps, but also about changing the quality of data that requires the conversion of production lines. The number of industries requiring mandatory labeling has increased. In 2025-2026, even more goods will fall under the labeling. In addition, there is not a quick, but a stable transition of state-owned companies to Russian solutions.

There is an increase in demand from large state corporations for automation and modernization of logistics, confirmed Andrei Ermolin.

We observe the most noticeable influence of the state on the logistics market in creating competition for personnel, - said Dmitry Rybakov.

According to the expert, competition forces logistics to look for ways to solve problems through effective approaches, and this is rather a plus. He also noted that since 2022, the labeling of many categories of goods introduced by the state has an impact on the market.

Konstantin Gladkov believes that the acceleration of the import substitution process, the complete transition to domestic software in conjunction with Open Source solutions remains the main long-term trend, the likelihood of changes in the near future is minimal. Most of the foreign WMS solutions that dominated the Russian market were presented in the On-Premiere format. Companies using such systems are rapidly switching to their Russian counterparts, since the lack of support creates serious financial and operational risks. Today, as a year ago, the share of import substitution requests is at least 30-40%.

Import substitution leads to historical shifts in warehouse automation systems and in the IT sector as a whole, Dmitry Rybakov believes. This is primarily due to the change in software development standards. This is mainly about the transition to Linux OS and PostgreSQL in the shortest possible time. Now companies are seriously investing in this area. Such a transition will mean a completely new path for the development of IT projects in Russia.

Nevertheless, many companies continue to use foreign software without technical support and further development, have taken a wait-and-see attitude and look at market trends.

The vast majority of customers, according to the expert, use only On-Anticipate solutions, but sometimes they place the infrastructure in a data center with the ability to remotely access equipment.

At the profile exhibition Cemat, where we were presented, we did not see full-fledged cloud solutions, while our system has been working in this format for several years, - Andrey Ermolin shared his observation.

The rejection of foreign solutions has intensified both in On-Premise and among cloud products, said Artem Dolgikh.

Our clients such as Rulog, ITSM, NOVABEV, Unilever, Health & Nutrition were not only one of the first to successfully migrate to an independent technology stack, but are already completing replication projects, the expert shared.

Personnel deficit

Viktor Uspensky noted the difficulty in recruiting warehouse personnel. It is increasingly difficult to close a vacancy for a warehouse position, even offering good wages. Increasingly, future employees choose warehouses that are closer to home, have normal working conditions and an understandable motivation system. Employees have become more "mobile" in terms of changing jobs, few people have been working for years in one place. Information about working conditions in a particular warehouse is available on the Internet, discussed in the smoking room and is not a secret. Therefore, the issue of training new warehouse employees is becoming more acute for the employer, which can take from one week to several months without a WMS system.

In 2024, warehouse logistics, like many other areas of the economy, fully felt the impact of personnel shortages: staff shortages and the high cost of hiring and training employees delay time and resources, - said Ilya Rubinchik.

According to the expert, this new and main trend promises to remain a satellite of the industry for a long time: it is strengthened by migration policy and the active development of marketplaces, where qualified personnel flow. At the same time, more advanced automation solutions with AI, like Solvo.WMS, speed up the recruitment and onboarding process, making it easier to adapt new employees who are not highly qualified.

I note an increase in staff shortages, especially in warehouses. The situation is close to critical, it is almost impossible to find personnel while maintaining the profitability of operations, - said Vladimir Lykov.

Konstantin Gladkov pointed out the strongest personnel deficit over the past 20 years. Manufacturers and retailers, according to the expert, have almost no other options for solving the problem, except to invest in automation systems. Another marker of the situation is tightly attached to this trend: there are more storekeepers.

The labor market in today's realities has become a very significant and restraining factor for the development of many industries, Dmitry Rybakov recalled. A severe shortage of personnel is observed throughout the vertical of positions, and affects the discussion of issues of reducing the required amount of labor in the warehouse through automation, mechanization and robotization.

However, it is worth noting that in Russia it has not yet come to effective large-scale projects for the introduction of robotization in practice. And for the most part, everyone is still engaged only in informational marketing noise on the topic of robots, "he said.

However, the discussion is underway, and this, according to the expert, is already good in itself.

Meanwhile, not everything is smooth with the transition to Linux OS and PostgreSQL - the process also rests on the lack of qualified personnel. These personnel should be primarily on the side of system customers, Dmitry Rybakov is sure. For example, it is quite possible to find an experienced Windows and MSSQL administrator on the market, but an experienced Linux and PostgreSQL administrator - even in large cities - is a difficult task. Such specialists are just beginning to appear and they need considerable time to get the necessary experience and develop practice.

Artem Dolgikh also noted a shortage of personnel. According to him, firstly, we are talking about a shortage of numbers, which is associated with an increase in production, a demographic hole from the 90s and the presence of competition for linear and medium-sized personnel in related industries. There is also a lack of quality: business processes are becoming more complicated everywhere, new optimization models are emerging, information technologies are increasingly penetrating the industry, which seriously increase the requirements for employees.

According to Anna Korchminskaya, the personnel deficit factor also affects competition between companies.

Despite the optimization of the staff of a number of IT sector players, the struggle for highly qualified specialists remains relevant, the expert noted.

What services are in demand

At the moment, the market is dominated by the demand for the main audit service, the implementation of WMS/YMS, support and training, said Konstantin Gladkov. According to the expert, there is an increase in the share of requests for consulting services in the market as an integral part of the implementation of WMS: audit and optimization of logistics, analysis of material flows, recommendations for eliminating bottlenecks before implementing the system. Automation of KPIs and motivation systems, charging of employee actions - all this becomes a mandatory part of the request. Particular attention is paid to personnel training, which is now perceived as a direction important for the further development of automation processes. More companies remain on post-project support. The main growth of this part of the market is still ahead.

The WMS system is just a tool, and the warehouse technology always remains the basis, the expert said. - Implementation efficiency directly depends on the quality of cargo processing processes.

At the same time, the key goals of the WMS mass customer remain unchanged: a productive and reliable solution, high-quality implementation, an efficient warehouse (as a source of competitive business advantages and a central link in the supply chain). The main priorities of customers are import independence, replacement of a person in the field of decision-making and cost savings.

It is worth noting that, despite the global trend, we do not observe a shift towards the SaaS model in the Russian segment of WMS, "said Konstantin Gladkov.

According to Alexander Usov, a steady trend has begun to take shape for the development of digital platforms that help organize interaction in adjacent parts of the supply chain.

The development of mobile technologies plus digital platforms for the exchange of messages and information has led to the fact that today we can organize the interaction of warehouse and transport in real time, the expert noted.

Handling time interval management systems are a new word for the market, he said. With the help of modern mobile platforms, they allow you to digitize the interaction between warehouse and transport, increase the efficiency of work in both links.

Modern mobile communications tools allow you to book convenient windows of arrival at the warehouse, register, receive invitations to enter from the warehouse and an indication of the designated dock. Means for determining geolocation make it possible to control the location of the vehicle. Both the warehouse and the transport agent receive a single information window with reliable data on the location of the machine and the performance of warehouse operations, an objective plan-factual analysis.

In connection with robotization, the question arises of rebuilding the logic of the warehouse, changing the functions of personnel, improving internal systems in terms of information exchange, said Dmitry Rybakov.

The advanced products of the class are developing in the direction of cross-platform solutions (support for many operating systems), the transition to alternative DBMS (PostgreSQL), the use of a service-oriented architecture, integration with robotic, pipeline, production systems. Promising methods for optimizing decision-making, complicating algorithms that reduce the cost of delivering goods to the end consumer and increase the speed and quality of operations.

According to the expert, services for modeling processes and flows are becoming very popular. There is a demand for systems for automatic testing of warehouse processes, which allow you to quickly, efficiently and at low costs solve certain tasks. The design approach changes from classic format to flexible with Agile elements. More 24x7 support is being passed on to integrators as there is a lack of qualified infrastructure and software maintenance staff.

Alexander Usov also mentioned the transition to Agile-oriented approaches. According to him, this became possible thanks to the modern technological basis and the level of development of the proposed solutions. Agile gives a quick start to the customer's work in the system, improving the settings in small steps and a quick assessment by the customer of the result of modifications. The previous design approach provided for a long period of preparation of the terms of reference, configuration and commissioning of the system. The expert cited as an example the temporary slot management system for handling operations in the ant Time Slot Management warehouse.

The overall result is that by the end of the eighth week, users are already working in industrial operation mode with completed system settings that meet their needs, he said.

From promising areas, the expert called multiplatform. Today, it is very important on which DBMS or operating system the program runs, and what risks this carries for the customer.

As Viktor Uspensky said, more and more companies and warehouses are appearing that serve sellers on the Marketplaces, offering the entire range of services for the processing, storage and delivery of goods.

Separately, it is worth highlighting the expansion of the list of goods participating in the Honest Sign system, and the need for their initial labeling in China, which leads to the development of interfaces in WMS in Chinese for the convenience of labeling and control over the activities of partners, the specialist shared.

Among the new services, Andrei Ermolin noted a trend for small warehouses and pantries for suppliers of marketplaces. Also, according to him, there is a trend towards a request for a deeper examination in terms of audit logs, process optimization, work with inventory.

Tatyana Kanaeva, head of the business automation department of the IT company SimbirSoft, said that in 2024, software developers began to actively promote services for the development and maintenance of their WMS, and warehouses had a new need to hire personnel - WMS warehouse operators, administrators, etc. - to work with the implemented software. In addition to robotization, WMS systems can also be actively used in conjunction with TMS systems, which allow organizing the methodology for managing cargo deliveries. In the future, WMS developers will provide a comprehensive product assembled from several WMS, TMS and RMS software products.

{{quote 'The future lies with the fifth generation WMS systems, warehouse management based on business processes, based on AI. Implementation in a short time, no-code settings, scaling, integration with any RMS, ERP and production systems, - Vladimir Lykov predicts. }}

According to the results of 2023-2024, Artem Dolgikh claims, not only appeared, but reverse engineering services and the use of software according to the SaaS model also became in demand.

AXELOT takes part in several projects to transfer robotic platforms to the control of our software solutions, "the expert said.

Also, he said, certain difficulties with the development of its own IT infrastructure are pushing customers to use WMS from the cloud. More and more companies associate SLAs for support services with their own business results, so the necessary level of service can only be provided by integrators who allocate the service to an independent business unit.

Logistics consulting services are becoming more comprehensive. This observation was shared by Dmitry Blinov. According to the expert, one of the key trends in this area is a decrease in dependence on the expertise of a particular person. Today, customers are increasingly appreciating the system approach, which is complemented by the introduction of modern optimization tools and simulation technologies. This minimizes the risks associated with subjective decisions, providing more sustainable and predictable results.

The share of services in terms of IT services (deployment of failover clusters, support for private and public cloud technologies) also increased. SLA 24/7 service with guaranteed system availability time is beginning to become standard.

TAdviser statistics

Over a twenty-year period, TAdviser collects information about IT projects in various industries. During this time, a huge amount of data has been accumulated on the implementations of various solutions. In relation to WMS systems, the publication has accumulated a base of more than 2 thousand projects. Based on it, several ratings were prepared in the context of integrators and vendors of WMS systems, as well as the warehouse management solutions themselves.

Among integrators, Axelot remains the undisputed leader in the number of WMS system implementations. TAdviser is aware of 426 projects implemented by this company. In addition to EME, IT Scan also entered the top three. Axelot is also a leader among vendors.

In terms of specific systems, most projects (for the entire TAdviser observation period) were implemented on the basis of the Axelot WMS X5 product. The top three also include solutions "1C:WMS Logistics. Warehouse Management "and EME.WMS.

Most often, WMS systems are implemented in the field of trade, logistics and distribution, and the food industry. The total share of these three industries, according to TAdviser, is over 65% of all projects implemented.

2023: Warehouse Management Systems Market in Russia in 2022 and 2023

In 2023, the Russian warehouse management systems (WMS) market continues to undergo noticeable changes, reflecting important economic and technological trends. The concept of import substitution becomes an integral part of companies' strategies, which affects the choice of solutions in the field of WMS. With the departure of foreign vendors, the opportunity opens up for the development of domestic software , which, in turn, contributes to increasing the competitiveness of the Russian market. Having gone through a difficult 2022, enterprises continue to study and analyze the past and upcoming changes in the market.

WMS System Market Growth in 2022 by 25%

Speaking about the development of the market last year, experts interviewed by TAdviser mention import substitution as the main reason for the changes and growth.

In 2022, several key factors influenced the development of the market. One of the main drivers of growth was, of course, import substitution, but mergers and acquisitions (M&A) transactions also had a significant impact. These strategic steps allowed companies to strengthen their position in the market, combine resources and expertise. In addition, the rise in the cost of labor in warehouses was also an important factor associated, in particular, with a decrease in the number of migrants who previously made up a significant share of the labor force in the logistics sector. The decrease in this category of workers has led to increased competition in the labor market and, as a result, to an increase in the cost of labor, "says Anna Korchminskaya, Deputy General Director, Director of the Logistics Department of KORUS Consulting Group of Companies.

According to TAdviser, the Warehouse Management System (Warehouse Management System) market in WMS 2022 increased by 25% and reached 3.1 billion. rubles The opinions of experts surveyed by TAdviser were divided, but in general they are inclined to believe that in monetary terms the volume of this market may be about 3-4 billion rubles with dynamics from 20 to 40%.

The two most significant events of 2022 in the WMS market are, firstly, the departure of most foreign vendors, the second is a massive transition to Russian solutions, which significantly increased the market capacity for Russian companies and provided them with serious development potential for many years, - added Dmitry Blinov, founder and managing director of LogistiX Group of Companies.

Despite the fact that 2022 became a difficult year for the WMS market, it was able to adapt and maintain quality at the same level. Not the last role in this was played by the actions of the Government and the Ministry of Digital Development: according to Artem Dolgikh, Director of Business Development at AXELOT, it was their consistent support for the entire IT industry that had the key impact on the results, when IT companies were given the opportunity to continue doing what they best know how to do.

Largest WMS Providers

Revenue of participants in the Russian market of WMS systems in 2021-2022 *

№	Company	Status	Total revenue from the implementation of WMS projects for 2022, million rubles. Including VAT	Total revenue from the implementation of WMS projects for 2021, million rubles. Including VAT	Dynamics 2022/2021,%	Key WMS solution that the company is implementing	Number of employees engaged in the development, implementation and support of WMS systems as of 2023	The largest WMS projects in Russia
1	Accelerot-L	Vendor, Integrator	658	[[Axelot WMS X5	26.8	AXELOT]] WMS X5, AXELOT WMS E5, AXELOT WOS X5	250	HYPERGLOBUS, MOSENERGO, Technonikol, Agroproduction, AZ URAL
2	Novardis Consulting	Integrator	539	147	266.7	SAP EWM	Sberlogistika LLC, NMZHK JSC, SUEK JSC, Hyperglobus LLC
3	KORUS Consulting	integrator	493	490	0.6	n/a	100	Vostokcement, Galamart, Ormatek, ECO Culture
4	LogistiX	vendor, integrator	287.9	[[LogistiX LEAD WMS	23.5	LEAD]] WMS, LEAD WCS	102	Fix Price, Baltika Brewing Company, EFKO Group of Companies, Kerher in Russia, Zdravservice
5	EME	vendor, integrator	231	228	1.3	EME.WMS	70	DV NEVADA LLC, RUSVINIL LLC, ST. SOURCE PLANT LLC, ID LOGISTICS RUS LLC, Meffert Production (Meffert), Abrau-Durso, April (pharmacy chain)
6	TopLog1	Vendor, Integrator	131.8	92.9	41.9 [[TopLog WMS	TopLog]] WMS	Business Lines, Russian Post, Rusagro, Technolight, Soyuzsnab, Optician, Discover Invest
7	SITEK Logistics	integrator	128.4	53.6	139.8 1C:WMS		80	Vostok Service, Komos Milkom, 100 furnaces, X-COM, Zhivika pharmacy chain (Compaspharm URAL)
8	SPC	Vendor	126	122	3.3	Visary WMS	n/a
9	Ant Technologies2	Integrator	84.2	[[WMS Logistics Vision Suite	-26.2	WMS Logistics Vision]] Suite	n/a
10	BIA Technologies	Integrator	N/A	N/A	N/A	N/A	Business Lines
11	Yarus WMS2	vendor	26.6	20.6	29.3	Yarus WMS	n/a	n/a
12	SoftBalance	Integrator	18	12	50	1C: Enterprise 8.WMS Logistics. Warehouse Management	5	Teplo3000 LLC, Fort Trading House
13	GTLogistics	vendor, integrator	15.3	6.9	122.2	GTStock	20	NAG, Stella, Dobroga, Ideal Garden, Uvelka
14	ALPE Consulting	Integrator	11	4	149.5	SAP EWM/WMS/ 1C:WMS Logistics. Warehouse Management	Utkonos, Continental, Pharmstandant - Russia, Imzo, Grandpharm - Uzbekistan
	Sum		2779

TAdviser 2022

^{* - Data collected based on company questionnaires unless otherwise specified
1 - Data for 2022 - based on open financial statements. Excluding VAT
2 - Revenues from open accounting for 2021-2022. Excluding VAT}

WMS Market Situation in 2023

2022 trends remain on the market in 2023. The number of requests to change foreign WMS not only did not decrease, but also continues to grow. GTLogistics expert, CEO of the company Ivan Denisov, noted that logistics companies assessed the results of last year, and many of those who did not see a significant increase in the volume of the business realized that it was necessary to develop and seriously thought about the implementation of WMS.

We see that in the first and second quarters of 2023, quite a lot of warehouse system implementations were planned, the costs of this were included in the budgets. Geopolitical factors may affect the market, but if there are no significant changes, this year will be good for Russian vendors in terms of further business growth, he added.

According to Vladimir Lykov, Commercial Director of EME, in 2023, two counter trends can be noted in the WMS market.

{{quote 'Firstly, there is a rapid growth in the warehouse logistics market. According to analysts, for the six months of 2023, the volume of lease and sale transactions concluded in the Moscow region reached a record six-month value and amounted to 1,389 thousand square meters. m. The result already exceeds the final value of 2022 by 2.7% and is a record semi-annual indicator of demand in history. The market is growing not only in Russia, but also in the CIS countries. The geopolitical situation dictates expansion into new territories and the restructuring of supply chains. Inevitably, the need for high-quality automation software is growing. Automation has long been a prerequisite for the successful functioning and development of the business.

Secondly, large Russian companies (for example, in the segment of marketplaces and network retail) are becoming the largest independent warehouse operators in the Russian Federation and the CIS. They initially invested in the development of their own WMS systems without turning to partners, and in several years the systems have achieved a high level of flexibility, fault tolerance and performance. Already, they are monetizing their developments by offering WMS services for their sellers.

In 2023, we focus on large and medium-sized business customers and also expect an increase in the volume of projects performed. We note that projects have become larger, more difficult. Customer demands and expectations are growing.}}

Experts also note that the market still has not established a balance of supply and demand. The Russian IT industry is developing extremely actively, and more and more customers are asking for process automation, and the number of requests exceeds the capabilities of all available Russian integrators. This creates fertile ground both for the development of new automation enterprises and for the IT field as a whole.

Most experts agree that the growth of the WMS market in 2023 will remain at the level of 20-30%. In this case, according to TAdviser, by the end of the year, the market volume may reach 3.7-4 billion rubles.

The 2023 market assumes growth, and those companies that have made efforts to form a scalable structure are actively using this period. We invest considerable funds in the methodology, which allowed us to grow on this foundation by more than 50%, - said Dmitry Blinov, Managing Director of LogistiX Group of Companies.

See also:
 

• "Robots Work In, Not Man": Technology Trends in WMS
• "Import substitution is just a path that everyone needs to overcome." Difficulties and prospects of migration to Russian WMS

TAdviser statistics on implemented projects

For 18 years, TAdviser has been collecting information about IT projects in various industries. During this time, a huge amount of data on implementations of various solutions has been collected. With regard to WMS systems, the publication has accumulated a base of about 1970 projects. Based on it, several ratings were prepared in the context of integrators and vendors of WMS systems, as well as the warehouse management solutions themselves.

Among integrators, Axelot remains the undisputed leader in the number of WMS system implementations. TAdviser is aware of 368 projects implemented by this company. The top three also include EME and Solvo.

Axelot is also a leader among vendors. Until 2018, Axelot, together with 1C, was engaged in the development of the product "1C:WMS Logistics. Warehouse Management. " At the end of 2018, this decision was transferred to Sitek. Axelot focused on the development of the next generation product - Axelot WMS X5.

In terms of specific systems, most projects (for the entire TAdviser observation period) were implemented on the basis of the 1C:WMS Logistics product . Warehouse Management. " The top three also include Axelot WMS X5 and EME.WMS solutions.

Most often, WMS systems are implemented in the field of trade, logistics and distribution, and the food industry. The total share of these three industries, according to TAdviser, is over 66% of all projects implemented.

Go to the TAdviser overview home page "Warehouse Management Systems (WMS)" > > >

2022

How the warehouse management systems market is changing and what its future prospects are

2022 for the WMS market passes under the import substitution flag. The departure of foreign players from the Russian market opened a wide field for the activities of Russian vendors. However, as you know, the medal has two sides. And on the second - the problems of companies that have been using foreign WMS systems for a long time. A significant part of the developers of foreign WMS and ERP announced the departure or suspension of activities in the Russian Federation. At the same time, companies that used cloud foreign solutions faced a complete shutdown of activities, and for them the transition to Russian software became a matter of survival.

As for the on-premium decisions of foreign vendors who announced their departure from Russia, the situation here is not entirely unambiguous. Some experts believe that soon consumers of such systems will still have to migrate to domestic developments, the other part believes otherwise, explaining this by the fact that industrial foreign systems work stably and do not require serious changes and support.

It is important to note that for those companies that work stably and have an internal center of expertise and/or a reliable partner, everything remained at the proper level, as in KORUS with Manhattan. Many clients who chose Western software many years ago are still working successfully on it now, since the system does not require significant changes or any special support, because these are industrial, stable, high-performance solutions, - notes Anna Korchminskaya, Deputy General Director, Director of the Logistics Department of KORUS Consulting Group of Companies.

Another opinion is shared by Vladimir Lykov, EME's Customer Relations Director. According to him, local developers still support the work of such systems, but the transition to a local product is only a matter of time and funding. The remaining foreign systems in Russia also require an assessment of potential risks, he said.

Ivan Denisov, CEO of GTLogistics, agrees with him. In his opinion, the risks of companies where Western WMS operate are associated with the inability to refine systems for new business needs. At the same time, he adds that there are still many companies on the market that do not use professional WMS solutions at all.

Therefore, it is important not only to replace the Western solution with the domestic one, but also to choose the right system when it comes to implementing "from scratch." Companies considering foreign warehouse systems should be aware of the high risks posed by their implementation, - notes Ivan Denisov.

In this situation, the market will be divided into two camps, according to KORUS Consulting. The first will be companies that have all processes functioning stably and do not have clear needs for changes. Such players will continue to work on existing solutions, taking if possible resources from the market to create internal competence centers. The second group is companies that, in the new conditions, are forced to start the process of migration to Russian solutions. Triggers for major changes can be:

• Shortage of resources serving western software;
• Impossibility of actions with a Western software license (purchase, transfer to another legal entity, etc.);
• Change in the management staff of expats who are accustomed to working with Western software for Russian managers;
• "Disconnection" of international companies with Russian subsidiaries and a strong need for local departments to look for IT solutions;
• Compliance of international companies in the direction of Russian subsidiaries in terms of compliance with internal standards and the availability of vendor support.

Most experts surveyed by TAdviser believe that the market will continue to grow. And it is import substitution that will play one of the key roles here. In addition, do not forget about the new rules for the sale of products, and trends in online sales and digitalization of logistics - all this will have a strong impact.

If you look only at the numbers, then there will be a feeling of "evolution." But the structure of customer demand should change very significantly. Projects will begin in those companies that seem to have decided everything long ago. "Revolutionary" will happen in 2023 - when the budgets, which are agreed in 2022, are earned, - said Artem Dolgikh, director of business development at Axelot-L.

On the other hand, the economic downturn in the country should be taken into account. And this factor can have a rather significant negative effect on the market.

You need to understand that our clients are those for whom the current period is not always only new opportunities. For many, these are difficult times, in which there are few forces and means for any automation. Plus, do not discount the even more intensified competition for qualified employees, - notes Artem Dolgikh.

If it were not for the predicted general economic downturn, we would have predicted market growth at least twice, "adds Dmitry Filatov, Business Development Director at InStock Technologies.

It should also be noted that the survey of market participants was conducted in August 2022. The responses of TAdviser respondents do not take into account those events that occurred in the second half of September. Therefore, the negative effect on the warehouse management systems market may be much more serious. The impossibility of real planning and the lack of a clear understanding of the future can slow down and even freeze some projects.

TAdviser statistics on implemented projects

TAdviser has been collecting data on IT projects in various industries since 2005. During this time, a huge amount of information has been collected on implementations of various classes of systems. In relation to WMS systems, the publication has accumulated a base of over 1900 projects. Based on it, several ratings were prepared in the context of integrators and vendors of WMS systems, as well as the warehouse management solutions themselves.

Axelot is the leader in the number of WMS implementations. TAdviser is aware of 315 projects implemented by this company. The top three also include Solvo and EME.

Axelot is also a leader among vendors. Together with 1C until 2018, Axelot was engaged in the development of the product "1C:WMS Logistics. Warehouse Management. " Further, the company focused on the development of the next generation product - Axelot WMS X5.

In terms of specific systems, most projects (for the entire TAdviser observation period) were implemented on the basis of the 1C:WMS Logistics product . Warehouse Management. " The top five also includes EME.WMS, Solvo.WMS, Axelot WMS X5 and Sevco WMS solutions.

As for the industries, here, against the background of others, three areas are explainably distinguished: trade, logistics and distribution, the food industry. They account for almost 70% of all projects implemented.

2021

Market estimates

In the Russian market of warehouse management systems (Warehouse Management System, WMS) at the end of 2021, positive dynamics are noted. According to TAdviser, it amounted to about 12%, while the total volume of this market reached 2.5 billion rubles.

Experts interviewed by TAdviser note that 2021 was marked by stability and moderate evolutionary growth. After some "failure" in 2020, a year later, market participants recorded the demand postponed due to the pandemic.

The growth rate of Russian online trade during the period of coronavirus restrictions has accelerated significantly. New trends required new accounting and new digital logistics.

In connection with the outbreak of COVID-19, it was possible to observe a complete transformation of business operations and logistics processes by 360 degrees - the processes have become even more dynamic, - notes Salavat Samarov, product manager of Digital Labeling, KomLine: WMS, KomLine Company LLC.

The situation with the pandemic has vividly highlighted the emerging problems in the operation of warehouses with a low degree of automation, adds the Vladimir Lykov company's customer service director. EME

Other growth drivers include the Honest Sign system. The need for digital labeling in industry and distribution has aroused increased interest in WMS systems.

Main players

TAdviser has prepared a rating of the largest suppliers of WMS systems in 2021. It includes vendors and integrators of such solutions. The total revenue of the rating participants amounted to 1.87 billion rubles.

The leaders were Axelot-L (Axelot) and KORUS Consulting. Axelot's revenue from the implementation of WMS projects increased by 4.2% and reached 519.1 million rubles. Revenue growth of KORUS Consulting in the same area amounted to 16.7%, revenue volume - 490 million rubles. The fact that Axelot implements its projects on Russian solutions is interesting here, first of all, it is the company's own line of products - AXELOT WMS. KORUS Consulting is an exclusive partner of one of the world's largest developers of warehouse management systems - Manhattan Associates.

The third line of the rating was taken by LogistiX. It showed an increase of 30%, revenue from WMS projects for 2021 - 233.2 million rubles. More details can be found in the table below.

Revenue of participants in the Russian market of WMS systems in 2020-2021 *

№	Company	Status	Revenue from WMS projects in 2021, million rubles.	Revenue from WMS projects in 2020, million rubles.	Dynamics 2021/2020	Key WMS solution that the company is implementing	Key customers in 2021
1	Axelot	vendor, integrator	519.1	498.1	4.2	Axelot WMS X5	ALROSA (PJSC) AK, Ascona-Vek, Russian Helicopters, HYPERGLOBUS, MOSENERGO
2	KORUS Consulting	Integrator	490	420	16.7	WMS Manhattan	n/a
3	LogistiX	Vendor, Integrator	233.2	179.4	30	LogistiX LEAD WMS	Fix Price, EFCO Group of Companies, Gotek Group of Companies, Khabarovsk Refrigeration Plant, Yamz (Avtodiesel), NIZBEL, EKF, Aleiskzernot Products, S.N.S. FOTAROVOILINOIG.COM.COM, NEW
4	EME	vendor, integrator	228	144	58.3	EME.WMS	Dr. Theiss Naturwaren (Dr. Taiss Naturvarin Rus), Titan Wholesale and Retail Food Enterprise, MMAA Logistics (MMAA Logistics), Astoria Cosmetic, Avangard, Rodnik Production Plant
5	BusinessAutomation	Vendor	122	N/A	N/A	Visary WMS	Fesco, Transproekt, Smena VDC, Artek MDC
6	Ant Technologies1	Integrator	114.1	84.1	35.7	WMS Logistics Vision Suite	n/a
7	TopLog2	vendor, integrator	92.9	61.1	TopLog WMS 51.9		, Russian Post OPTIKOM Group of Companies, Energocomplekt, Rusagro Group of Companies, DL-Logistics Solutions, Brinex Group
8	InStock Technologies	Vendor	47	45	4.4	InStock WMS	Agrotrak, Volzhsky Pipe Plant, Home Market
9	Yarus WMS1	Vendor	20.6	15.1	36.1	Yarus WMS	Smart Family, Chemist, Atex Group
	Sum		1866.9

TAdviser 2022

^{* - Data collected based on company questionnaires unless otherwise specified
1 - Revenues from open accounting for 2020-2021. Excluding VAT
2 - Excluding VAT}

Go to the TAdviser Warehouse Management Systems overview home page > > >

2016

The magazine "Warehouse Complex" claims: the WMS market in Russia in 2016 fell by another 9%, the fall has been observed for the third year in a row. True, this figure is half that of last year, but there is no need to talk about market stabilization yet. However, in 2016 there are also positive trends. Customers began to invest again in the automation of warehouse logistics. Old projects are "defrosting" and many new ones are starting. This is partly due to import substitution processes in the software market. The share of Russian decisions in 2016 amounted to 76%.

2011

According to independent experts, the total volume of the Russian WMS (English Warehouse Management System) market in 2011 amounted to $15 million, more than 35% exceeding the same indicator in 2010 (about $10 million)

2010

Revenues of certain Russian companies from the implementation of WMS (licenses + services) 2009-2010 |iSolutions|Ansoft Company 2009, rubles 2010, rubles Growth 2010 to 2009,% KORUS Consulting 90 000 000 65 000 000 -27,8 |35 000 000(!) 12 124 000 19 142 500 57 (!) For 2009 and 2010 According             to TAdviser, May 2011

2008-2009

In 2008, Andrei Efremov, head (at that time) of the marketing department of the Bukhta group of companies, estimated the capacity of the warehouse management systems market in Russia at $183 million. This figure was calculated based on the following data: in 2008, at least 20% of warehouses already operated under the control of modern systems using bar coding technologies. Taking into account the projects already implemented, the market capacity was $56 million: V=14 (S - 0.2S), where $14 is the approximate cost of automating one square meter of warehouse in Russia; S is the area of storage facilities of class A and B in the country according to the data for 2007 5 million m2; 0.2 - share of WMS implementations (20%).

In the taxonomy of IDC, told TAdviser in a research company, warehouse management systems belong to the Supply Chain Management segment. The volume of this market in Russia in 2009 amounted to about $70 million, in 2007 and 2008 - about $100 million. The main players, according to IDC: SAP, 1C, Microsoft Dynamics, "Galaxy." Thus, in 2009, the market not only did not exhaust its estimated capacity, but also fell in volume by 30%.

Main players

One of the distinguishing features of the Russian warehouse management systems market is its segmentation. There are several dozen players here, both domestic and foreign, while there are no obvious leaders.

Western systems, which for the most part work in Russia through partners - Manhattan Associates WMOS ("CORUS Consulting"), Infor SCM WM (EXceed WMS), Mantis International (Ant Technologies (ANT Technologies)) and many others - have entrenched mainly the reputation of expensive systems intended for large businesses and specialized players in the logistics and distribution industries.

At the same time, domestic developers such as BUHta, Solvo (Solvo), Folio (Folio), Ansoft, Business Technologies (Global) and others also feel great in the local market, practically without overlapping interests with Western expats. "The competition in the WMS market is high, but there is still room for new players. There is no clear leader yet, in each segment several systems and integrators are fighting for this title at once, "confirmed Ilya Luzhansky, business analyst at Ansoft.

Regarding the maturity of the market, the opinions of the experts surveyed by TAdviser differ. So, according to Evgenia Vykhodtseva, commercial director of ISolutions, if reputation risks are considered on a par with financial risks and the former clearly cause the latter, then such a market has reached high maturity. "In our opinion, the Russian market for WMS systems can be called mature when the circle of large players who can offer companies an integrated approach to the implementation of fully functional WMS systems can be determined," she said.

Igor Sidorenko, commercial director of BUHta, at the same time assesses the state of the Russian market for WMS systems as "quite mature." He also pointed to market segmentation with leaders in each sub-segment and noted that every year domestic developments of warehouse management systems are becoming more and more popular, successfully competing with "promoted" Western brands.

Demand Maintenance Factors

The WMS market in Russia is beginning to develop, gradually recovering from the crisis; companies are defrosting investment projects, including those stopped in 2008-2009 due to insufficient funding.

One of the main potential customers of WMS, of course, remains professional players: logistics providers and distribution companies, as well as warehouse real estate developers. In 2011, the demand for warehouse space grew, according to the management company Fragra.

At the same time, demand growth took place at an even greater pace than the increase in warehouse supply, as a result of which the imbalance between these two values ​ ​ became more noticeable. Today, class A (a priori assuming the presence of WMS) occupies 70% of the entire offer.

According to Fragra, in just the first quarter of this year, 23 thousand square meters. m of warehouse space (of which 20 thousand square meters. m accounted for the share of the warehouse complex "Salaryevo" (developer New Logistic Systems). The market growth amounted to about 5%, and the total volume - 6, 2 million square meters.

The volume of new construction of quality warehouses in the 1st quarter of 2011 exceeded the value for the same period in 2010 by 29%. A number of projects could not be put into operation in 2010 as stated, their opening was postponed to 2011 (among large projects - the Aparinki warehouse complex, the Krekshino technopark and others).

By the end of 2011, several more facilities with a total area of about 400 thousand square meters are expected to be put into operation. Thus, by the end of 2011, about 430 thousand square meters can be built. M of high-quality warehouse space, which is 25% more than last year and almost 2 times less compared to the pre-crisis values ​ ​ of 2008-2009.

Now a segment of 4PL operators is also emerging, which are able to predict the needs of their customers, help determine what exactly needs to be ordered, work together with the retailer. This is a very promising direction, because it involves managing the entire supply chain - from the manufacturer to the final buyer.

Another demand factor is the ripening of trading companies to high-quality warehouse automation. According to Vladimir Novikov, technical director of FIT, more recently, warehouses with full-fledged high-quality logistics were completely absent.

But with the growing size of wholesale and retail companies, their coverage of more and more territories, the need for such warehouses began to manifest itself in an increasingly explicit form. "Previously, as an exception, there were retailers who understood the meaning of warehouses, built them correctly and used modern information systems to manage them. As a rule, these were discount networks. Now the situation has changed and an increasing number of companies are thinking about the use of properly built warehouse logistics, "the expert said.

Prospects

Evgenia Vykhodtseva says that the crisis provoked an increase in sales of low-cost accounting warehouse programs, but at the moment trends are changing. Among the companies of the upper segment of medium and large businesses, powerful fully functional WMS, both domestic and Western suppliers, have become in demand. And this promises income growth for integrators.

"We assess the WMS systems market positively. After the crisis stagnation, there is a noticeable revival - the number of projects is increasing. Judging by the dynamics of our company, the number of implementations has increased 1.5 times, "she said.

Similar forecasts are given by Alexander Edelmann, Director of Logistics at PSI Logistics (PSI). According to him, the main trend will be an increase in demand for middle and hi-end solutions, an increase in the number of projects using conveyor and automatic equipment.

Archive: Market 2007-2008

Until 2007, the warehouse management systems market in Russia developed at a very fast, almost explosive pace: 50-70% annually. This growth was associated with the rapid development of warehouses in Russia and a high degree of dissatisfaction with the demand for warehouses from commercial organizations. The demand for high-quality warehouses for a long time is several times higher than supply, despite the increasing pace of construction of new facilities and restructuring of old ones. The development of the market is also associated with a high demand for responsible storage services and an increase in competition in this market. Even distributors, which have large storage areas due to the specifics of their main business, are increasingly acting as logistics operators. As a result, the demand for warehouse management systems increases significantly.

At the same time, 2008 was a turning point for the WMS market. The growth in the number of implementations slowed down, and in monetary terms the market even contracted. According to a study by the marketing agency WMS Explorer, called the Russian WMS Market, there was no final distribution of market shares, and competition on it increased significantly. The difference between adjacent positions in most cases does not exceed 1%, and the average supply cost has decreased.

Due to the financial crisis, the decline continued. Even those companies that have already budgeted 2009 for warehouse automation money, according to WMS Explorer surveys, are increasingly delaying the implementation of WMS "until better times." As of spring 2009, the Russian WMS market was no more than 6.5 million USD. For comparison, in 2008 this figure was 7.6 million. That is, the fall turned out to be equal to 16%.

Several key trends are pronounced in the market:

• the first wave of the sales cycle has ended, finding a customer is now more difficult than a year ago.
• detection of non-conformities and errors of the first stage. Mistakes are characteristic of a young, emerging market. The customer market has become more demanding, WMS suppliers often have to concentrate on supporting projects that have already been completed to the detriment of new sales.
• Reducing the average cost of implementation under the influence of increasing competition, which is not always justified and can lead to a decrease in the quality of the project as a whole.

As a result, there is frequent dissatisfaction with implementations among customers, as well as the search for alternative options. Studies show that often the system is replaced by the customer a year after the start of operation, which negatively affects both the customer's business and the image of the supplier company.

The most important criteria for choosing a warehouse management system from the point of view of potential customers

Criterion	Degree of significance (percentage of total number of respondents)
Cost of solution	25%
Solution Sales History in Russia	31%
Solution Sales History Abroad	3%
Breadth of functionality	58%
Adaptability	42%
Compliance of the solution with the conditions and business processes	81%
Ease of personnel training	60%

A total of 48 companies potentially interested in warehouse automation were interviewed. Survey participants could choose up to three criteria as the most significant, so the total is more than 100%. The results of the obtained numbers were rounded to the whole. Source: WMS-Explorer, 2008

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