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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."