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.
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.