The warehouse management system (WMS) plays a critical role in almost any logistics facility, overseeing everything from inventory control, slotting, and putaway to picking, packing, and shipping—all the while, providing DC managers with valuable operating data.
But as volumes ramp up and throughput speeds accelerate, some users are asking if a smarter, or “semi-autonomous,” WMS could take on a more active role and make certain decisions by itself—for example, automatically releasing orders at a specific time, reassigning workers to different parts of the DC as needed, or rerouting pickers to alternate storage locations in the case of a stockout.
But that’s not all developers are being asked to do. They’re also increasingly fielding requests to address the issue of disconnected “islands of automation.” In recent years, the rush to automate DC operations has led to the development of spin-off software tools like warehouse execution systems (WES) and warehouse control systems (WCS), which are designed to manage non-inventory assets such as high-speed conveyors and autonomous mobile robots (AMRs). Although these tools are delivering on their promise, some logistics experts say that process has gone too far and is, in fact, creating islands of automation that fail to work well together.
That’s an easy trap to fall into, according to John Santagate, vice president, robotics at Infios, formerly Körber Supply Chain Software. While he acknowledges that the WMS is still a necessary tool for warehouse operations, he says users sometimes lose sight of the end goal—improving overall supply chain execution, not just basic warehouse activities. The fix, he says, lies in finding ways to link WMS systems to other tech tools—like the transportation management systems that oversee truck loading/unloading or the fleet management systems that direct the activities ofrobots whizzing around the DC—which is typically accomplished via middleware or application programming interfaces (APIs).
Once those connections are in place, the various software tools can begin communicating with each other, creating a unified control system, Santagate continues. The different software applications can then work together semi-autonomously to orchestrate the various logistics-related activities in a busy DC, with humans providing oversight as needed. He adds that the system actually works best if human operators step back from the process and allow those software tools to do what they’re designed to do.
Logistics specialists at systems integrator Dematic take a similar view. For instance, ask Ryan Kirklewski, the company’s director of software project management, about the relative merits of different types of warehousing software, and he’ll tell you that “WMS,” “WCS,” and “WES” are just marketing terms. What customers truly need is holistic optimization to make all of the parts of an operation work better together, he explains. “We need to get away from ‘W-star-S,’ as it’s referred to at Dematic,” and instead focus on synchronization and communication, he adds.“Warehouses should remove the barriers between the pure-play WMS, the AMR and automation vendors’ [systems], and the [technology that controls the] material handling equipment.”
REAL-WORLD BENEFITS
For an example of a company that has reaped big benefits from integrating its WMS with other systems, you need look no further than PepsiCo.
Last year, the global food and beverage giant opened an automated warehouse in Środa Śląska, Poland—its first automated warehouse in that country. The facility, which was designed and outfitted by warehouse automation specialist Mecalux, features an automated storage and retrieval system (AS/RS) for pallets, electric monorail and conveyor systems for pallets, and the supplier’s Easy WMS warehouse management system. The warehouse supports operations at the adjacent plant, receiving pallets loaded with ready-to-ship bags of potato chips and other snacks, and then filling and shipping orders for customers in the European markets, primarily Germany. All told, it handles some 3,500 pallets a day.
What’s notable about this operation is that the process unfolds without human intervention. Through a tight integration with PepsiCo’s SAP enterprise resource planning (ERP) system, the WMS software monitors inventory status in real time and coordinates the flow of goods from production to shipping, enabling facility operations to be carried out automatically. In a case study posted on its website, Mecalux described the direct, two-day communication between the WMS and ERP systems as the key “to synchronizing the machines installed in PepsiCo’s plant and organizing inbound and outbound orders.
“The production process is fully integrated with the automated warehouse,” Maciej Pietrusa, warehouse manager at the Środa Śląska plant, noted in the case study. “This means each bag of potato chips is automatically transferred from production to picking, palletizing, and loading onto the truck.”
TESTING THE AI WATERS
In their quest to develop ever-smarter warehouse management systems, software developers are focusing on more than just software linkages, however. They’re also incorporating the latest tech tools—including AI (artificial intelligence), machine learning (ML), and predictive analytics—into their products.
As a result, there are systems on the market today that can play an active role in problem resolution. Rather than merely flagging problems—like a bottleneck at a packing station—as they arise, they offer decision support with respect to possible solutions as well. “We’ve gone from the WMS saying, ‘Something’s wrong,’ to the system saying, ‘Here’s how you can fix it.’ And the next stage will be the software saying, ‘Here’s what we did to correct the issue,’” Kirklewski says.
These AI-enabled features will be enthusiastically embraced by at least one segment of the market: operators of third-party warehouses, according to a recent white paper from global enterprise software developer Infor.
“In 2025, third-party logistics companies using advanced WMS platforms will rely heavily on AI, machine learning, and generative AI to improve operations and decision-making,” Infor said in the report, Top 5 Warehouse Management System Trends for Third-Party Logistics Companies to Watch in 2025. The company further predicted that users will increasingly rely on AI-enabled WMS to optimize pick locations so that fast-moving items are readily accessible, create volume forecasts to help facilities anticipate labor and space needs, and dynamically assign tasks based on real-time demand and the availability of resources.
As user interest in these enhanced capabilities grows, developers will only up their efforts to develop smarter, more connected products, ultimately helping turn the DC from a cost center into a value driver, Kirklewski of Dematic says. But the benefits don’t end there: A WMS that’s capable of making data-driven decisions can also make life easier for human workers in the office and on the floor—making a traditional tool of the trade an even more valuable player in the world of warehouse operations.
