Companies want a flexible WMS from a problem-solving vendor

During Webinar Wednesday on 18 September, the five participating vendors of Warehouse Management Systems (WMS) agreed on one thing: the differences between their systems are small. Each WMS has all the functionality that is indispensable in a contemporary warehouse. Equally important is the ability of WMS vendors to adapt the system to the changing needs of warehouses. And the ability to translate new trends such as artificial intelligence and digital twins into concrete applications.

By Marcel te Lindert

Perhaps one WMS was twice as good as another 20 years ago, but those days are gone. ‘The systems from these five vendors can all do great things. That’s why today it’s about more than just software. Companies want a WMS vendor who understands how the business operation works and helps optimize it. They want a partner that takes a problem-solving approach, spots trends and applies them to their business situation,’ says Henk-Jan van Donkelaar, Managing Director Benelux at Consafe Logistics.

Especially in these rapidly changing times, that role of the WMS supplier is crucial. After all, complexity is greater than ever, observes Steve Timberlake, Director of Enterprise Management at Körber. ‘The modern supply chain is an intricate collection of nodes such as warehouses. Companies are looking for resilience and certainty, including by optimizing their networks and moving stock closer to the market. In addition, each node has its own challenges regarding sustainability, digitalization, the labour market and customer expectations.’

Change management

Generix sees sustainability in particular as a major challenge. ‘That is about more than reducing CO₂ emissions, the amount of space required, handling and paper consumption. Sustainability is also about making optimal use of resources, safeguarding quality and preventing mistakes. Moreover, every error in the warehouse is a margin killer. Sustainability requires healthy operational management,’ states Generix Benelux General Manager Wim van Loo.

Matt Kennedy, WMS Solution Engineer at Oracle, sees many companies looking for a new WMS, and not just because of the challenges already mentioned. ‘Also because their current system is at the end of its lifespan. Or because they want to make the move to the cloud.’ But just a new WMS is not enough, argues Rüdiger Strauch, Head of Sales at PSI Logistics. The way of working will also have to change. ‘The biggest challenge is change management. We can talk about functionality and technology for a very long time, but a successful implementation stands or falls with the people, who have to be ready for the change and endorse the goals.’

Digital twin

The biggest change in recent years has taken place not inside, but outside the warehouse. For a long time, companies saw the warehouse mainly as a cost factor. Now, it is a factor that is crucial to meeting the sky-high expectations of end customers. ‘The warehouse is increasingly seen as the place where companies can generate customer value. That is why we see investments in warehousing increasing,’ states Van Donkelaar. ‘In flexible automation, for example. Particularly due to the tight labour market, we see a clear shift from manual to automated warehouses.’

Another development is the deployment of a digital twin: a digital copy of the warehouse that allows companies to simulate and analyse scenarios. ‘Before you implement a change in the warehouse, you can use a digital twin to investigate the impact on operations,’ says Van Donkelaar, who sees European legislation around sustainability as another relevant development. ‘In the context of the CSRD, companies must be able to submit carbon emissions data. Our WMS provides all relevant data for this. We also use data from the WMS to optimize box sizes. That helps us to use less packaging material.’

Deployment of people

Van Loo explains that a WMS is also valuable in view of the tight labour market. ‘Then it’s about resource management. This is not only about the optimal deployment of forklifts and robots, but also of people: which operator can best be deployed at which location at which time? In addition, the use of modern, intuitive devices is necessary. Then you see that sometimes a 15-minute video is enough to prepare flex workers to start order picking.’

To solve problems at lightning speed, warehouses need real-time dashboards that allow them to monitor all processes. Dashboards that allow users to quickly click through to the cause of an operational problem. ‘Perhaps with a little help from artificial intelligence,’ says Van Loo. ‘For a logistics provider like ID Logistics, visualizing data was important to solve problems as quickly as possible and optimize processes.’

Artificial intelligence

Like all WMS vendors, Oracle is exploring the possibilities of using artificial intelligence (AI). This has resulted in the introduction of a new chatbot. ‘This chatbot builds on previous AI applications such as our order fulfilment dashboard. Based on sales data, this dashboard predicts which orders need to be shipped and when. Warehouses can use this information to take measures and deploy extra people, for example. The new chatbot allows users to ask questions about this. Which orders are at risk? Do I need to adjust my priorities? AI changes the interaction between the WMS and users,’ Kennedy states.

PSI Logistics deploys AI in several ways, including when using digital twins. This technology helps to analyse the outcomes of different scenarios and filter out the best ones. The company also deploys AI for optimizing order pick lists and batches, resulting in order pickers covering up to 30% less distance and operating up to 20% more efficiently.

Self-configuration

Lastly, Körber stresses the importance of a flexible WMS, which is easy to adapt to changing circumstances. ‘Many companies operate in different markets and different regions with ever-changing requirements. By focusing on processes rather than functionalities when developing our WMS, we’ve made it possible for our customers to configure the system themselves and adapt it to regional requirements,’ says Timberlake.

With many WMSs, you can only adjust the configuration by activating or deactivating functionalities. Timberlake: ‘With our system, users can create their own screens and dashboards, as well as set up completely new processes. That makes it possible to adjust the operation quickly, for example as the result of a new customer or an acquisition.’