Ongoing digitization in almost every industry and the rapid growth of the e-commerce industry have been key drivers of the warehouse management systems market. Furthermore, the quickening transition to cloud-based management systems in the warehouse industry is expected to fuel the demand for advanced and efficient software products and solutions in the foreseeable future. Therefore, we think warehouse management software stocks SAP SE (DE:SAPG) (SAP) and Manhattan Associates (NASDAQ:MANH) could be ideal bets now. Read on.The evolution of industrial automation and rapid expansion of the e-commerce business have prompted most organizations to prioritize the deployment of warehouse automation systems (WMS) to attain high operational efficiency and functional capabilities. Consequently, leading warehouse management system providers are working on providing industry-specific customization in WMS that offers an end-to-end solution, allowing organizations to coordinate their operations and inventory across their networks.
Factors such as the rising demand for effective order management, increased outsourcing of logistics and transportation operations, and the globalization of supply chain networks have spurred the use of WMS. In addition, advancements in cloud-based technologies are expected to boost WMS software adoption. The global warehouse system management market is projected to reach $6.1 billion by 2026, registering a 16.7% CAGR.
Given this backdrop, we believe two fundamentally sound warehouse management stocks, SAP SE (SAP) and Manhattan Associates Inc. (MANH), could be a great addition to one’s portfolio. Both stocks possess solid growth attributes and might witness significant upside in the coming months.