It was developed to optimize operations in a DC that ran on people and pallets. But the venerable warehouse management system (WMS) will have to evolve if it’s to stay relevant in today’s hyperconnected, robotic facilities, experts say.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
For decades, warehouse management system (WMS) software has had a clear-cut role to play in the DC. Once your fulfillment operation got big enough, this was the software you needed to maintain visibility over your inventory, maximize the flow of goods from dock door to pallet to rack and back again, and direct the flow of activity inside the building.
But recent developments have muddied the picture, creating something of an identity crisis for the traditional WMS. That’s partly due to the arrival of software like warehouse execution systems (WES) and warehouse control systems (WCS), both of which can provide operating instructions to automated equipment. And it’s partly due to the rise of automation—particularly the self-directed, autonomous robots and vehicles that operate independently of a WMS.
Depending on who you talk to in the logistics tech community, the line that divides the WMS from other DC software hasbegun to blur—or even disappeared entirely. That rapid evolution has created a confusing space for businesses seeking the best way to use their WMS products in 2023, says Jordan Mitchell, senior director, product management at the Atlanta-based systems integrator Fortna.
ROBOTS SEIZE THE SPOTLIGHT
As noted, much of that change has been driven by the arrival of large fleets of robots in facilities that are looking to rev up their e-commerce and omnichannel fulfillment operations. A case in point is the autonomous mobile robot (AMR), which is becoming an increasingly common sight in DCs. As its name suggests, an AMR is designed to be, well, autonomous, meaning it can carry out its mission without step-by-step guidance from a warehouse management system. And that’s true whether the AMR connects directly to a conveyor or automated storage and retrieval system (AS/RS), operates as a collaborative robot (“cobot”) that works in conjunction with humans, or simply whisks items—totes, cartons, or pallets—around the warehouse floor.
The advent of AMRs and their more-static robot cousins has even sparked the development of a new breed of warehouse software, called the “multiagent orchestration platform.” Some large DCs use this app, which acts as an extra layer between the WMS and the automated equipment, to help manage the complex interplay between human associates, automated storage and retrieval systems, goods-to-person robots, articulated picking arms, and other devices.
What all this suggests is that in order to remain relevant, the traditional WMS will have to expand its social circle—meaning it will need to be able to handle real-time data inputs from humans, robots, and a growing array of internet of things (IoT) sensors, Mitchell says. If it simply stays in its lane, companies will have less of a reason to invest in a top-of-the-line WMS, he adds. For instance, smaller fulfillment centers with just one or two types of automated equipment might decide they no longer need a complex, “tier one” WMS and instead opt for a basic WMS that they can pair with their AMR control software, Mitchell explains.
Other DCs may skip the WMS entirely, choosing to link their WES directly to the enterprise resource planning (ERP) software that serves as an umbrella over all of a facility’s applications, says Samay Kohli, CEO and co-founder of GreyOrange, a Georgia-based mobile robotics developer that also offers a WES, or “fulfillment orchestration system,” called GreyMatter.
“Either the line between WES and WMS is blurring, or WES is taking over,” says Kohli, who points to robots as the reason for that change. “Robotics is different from the traditional automation path,” he says. “It’s not like a conveyor belt or a shuttle system because it generates real-time data on its progress.”
And GreyOrange is not the only one. Comparable platforms like SVT Robotics’ Softbot and Amazon Web Services' (AWS) RoboRunner can also orchestrate the activities of diverse fleets of robots, while tech developer AutoScheduler offers a software program called AutoScheduler.AI that sits on top of a WMS to optimize its operations. Plus, systems integrators like Körber, Fortna, and Bastian all offer WES toolkits to manage higher-complexity workflows, Fortna’s Mitchell says.
THE STORY ISN’T OVER
But not everyone is ready to write the WMS off just yet. While its “job profile” is under pressure to change, the WMS still has a critical role to play, argues Adam Kline, senior director, product management at Manhattan Associates, an Atlanta-based supply chain software developer. It’s true that the WMS needs to reach out of its sandbox and integrate with other systems in the modern DC, but thanks to cloud-based software design, it can make that evolutionary step without losing its core identity, he says.
Manhattan’s answer to those changing demands is a cloud-based software application that combines warehouse management, labor management, and transportation management in a single cloud-native application called Manhattan Active Supply Chain. Unifying the three applications on a single platform allows each one to operate in cooperation with the others, providing a better “holistic view” over the business landscape than any single software app could, Kline says.
Though the WMS’s future remains an open question, it’s clear that the traditional software is under pressure, squeezed by the ERP control platform above it and the WES and WCS systems on both sides—all of which can do something the WMS can’t: deal with a flood of data bubbling up from the floor below, generated by robotic systems, multi-agent orchestration platforms, and the IoT. While supply chain tech developers have come up with a number of creative solutions to help the WMS step up its game, it’s still anybody’s guess as to which will prevail.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."