The Evolution of warehouse management systems (WMS), from manual to automated

From clipboards to cloud computing, warehouse management has undergone an amazing transformation. What began as a manual system of paper logs and physical labor has evolved into an intelligent ecosystem where AI-driven solutions and automated processes orchestrate the movement of goods with unprecedented precision. Today’s warehouse management systems (WMS) have finally shed their technological hesitancy, embracing innovations that are redefining the speed and efficiency of storage and distribution operations. This evolution reflects not just technological progress, but a fundamental shift in how logistics professionals approach the age-old challenge of getting products from shelf to customer.

Let’s take a look at the history of WMS technology, with a view to the transition from manual to automated warehouse systems. We’ll give some examples of the earliest warehouse management tech and both the strengths and inefficiencies that came with it, and then show you how automated systems overcome those inefficiencies to optimize your order fulfillment processes. Then we’ll examine the role that AI plays in the most cutting-edge warehouse management systems, and show you how Logiwa implements the latest technology to make your warehouse a well-oiled machine.

 

Early warehouse management practices

The earliest warehouse management systems were carried out almost entirely by hand. Warehouse managers had to keep extensive logs of their inventory, and employees strained to pick and pack components from large pallets of products. These processes often led to a high degree of order inaccuracy, longer order fulfillment times, and limitations in the number of orders merchants could fill. 

The earliest warehouse management innovations attempted to address these inefficiencies, largely by mechanical means. For example, the first conveyor belt was invented in 1901 as a way to move packages quickly across the warehouse floor, but largely paper-based tracking systems remained inefficient and inaccurate. There was still much work to be done.

Emergence of computerized systems

In the ’70s and ’80s, the recordkeeping processes of warehouse management systems began to go digital. The universal product code (UPC) was launched in April of 1973 and enabled barcoding and scanning, which made inventory control processes far more efficient. The first scan wasn’t until over a year later—from a pack of Wrigley’s Juicy Fruit gum.

Enterprise resource planning (ERP) software marked the next generation of manufacturing resource planning (MRP II) systems, and encompassed a company’s entire business processes — including their warehouse management operations. 

While these advancements enabled greater accuracy in companies’ recordkeeping, warehouse managers still carried out most of their inventory management processes by hand. Computing power was still insufficient to enable order fulfillment to go digital—though further innovations were still to come.

Development of Automated Storage and Retrieval Systems (AS/RS)

Warehouses are vast spaces containing massive quantities of inventory, so accessing the right products quickly and easily can be a challenge. Automated storage and retrieval systems (AS/RS) employ some form of machinery to place and pull inventory across your facility automatically, reducing the amount of human labor involved in your warehouse operations. 

These systems gained prevalence in warehouse management, given that they enabled:

• Faster fulfillment: AS/RS technology lets warehouse employees pick, pack, retrieve, store, assemble, and ship their inventory faster than they ever could if they completed their workflows by hand. The results are greater productivity and more orders reaching consumers’ hands
• Higher order accuracy: Human workers can make mistakes when they complete their warehousing processes. AS/RS solutions remove the human element, improving the accuracy of warehouse management operations.
• Less manual labor: Accessing inventory in large pallets stacked high across the warehouse floor requires significant effort from human labor, and can even result in accidents or injuries. AS/RS machinery performs some of the most strenuous warehousing tasks for employees, reducing the amount of manual labor needed to do the job—which also reduces your overhead.

The earliest AS/RS tools were invented in Germany and consisted of cranes mounted to tracks on the ceiling in order to move across the warehouse. They helped workers access inventory faster and safer than ever—and some are still in use today.

Advancements in Warehouse Management Systems (WMS)

As computing power continued to evolve in the ’90s and 2000s, the sophistication of WMS technology evolved with it. New software offered greater functionalities such as pick path optimization, warehouse layout optimization, and automatic order fulfillment. WMS tools also enabled the automation of warehousing processes such as inventory retrieval, storage, picking, packing, and dispatch, and featured user-friendly interfaces that integrated into the rest of a company’s order fulfillment environment, delivering greater operability. 

But two other innovations emerged alongside the advancements made in WMS technology that increased the intelligence and accessibility of warehousing processes:

• The Internet of Things (IoT): A vast interconnection of simple sensors and devices embedded in everyday products, the IoT greatly increased warehouses’ visibility into their inventory and supply chain operations. This gave warehouse managers deeper insights into potential bottlenecks and made data-driven decision making possible — and enabled the use of robotics later on. 
• Software as a Service (SaaS): Rather than maintaining their own software in-house, SaaS models became a common way for companies to offload the upkeep of their WMS environments to experts. This greatly reduced the costs associated with implementing WMS solutions, and allowed companies to focus on driving value elsewhere in their supply chain.

The advanced functionalities of warehouse management software helped facilities run more efficiently and with less human input, while the IoT furnished WMS tools with the data inputs needed to make the right decisions at the right times. Once SaaS made WMS software more accessible, the technology became even more widespread.

Integration of robotics and automation

Just as improvements in WMS solutions allowed warehouses to work smarter, robotics and automation helped them work harder. 

Broadly defined as any unmanned machinery that can perform specific tasks in lieu of or assisted by human workers, robotics can take many forms in a warehouse. Many warehousing tasks can be highly repetitive, time-consuming, and even dangerous, making them perfect for robotics. Their continuous operation improves productivity while reducing the costs incurred from human workers.

A few examples of robotics in warehouses are:

• AS/RS systems
• Autonomous vehicles and drones
• Cooperative robots or “cobots,” which work alongside humans
• Automated guided vehicles (AGVs) or their smaller counterparts, automated guided carts (AGCs)

The improvements they offer in order accuracy, productivity, and fulfillment speed make robotics an essential warehouse automation technology, but they’re challenging to implement without the right WMS solution in place. The surge in warehouse robotics automation is primarily driven by advancements in AI, machine learning, and the integration with WMS software. With a tool like Logiwa IO, warehouses are freed from manual processes.

Emergence of AI-powered solutions

While WMS solutions had already expanded their functionalities, one innovation would take them to a whole new level: artificial intelligence (AI).

As with nearly every other industry, AI has transformed the warehouse management world. The advanced algorithms used to power AI and machine learning (ML) have been incorporated into a wide number of WMS tools, so that the technology can be found at every step of the warehouse floor. 

Some applications of AI-powered warehouse management are:

• ML algorithms enable demand forecasting and predictive analytics, creating a more robust supply chain
• Computer vision (CV) technology enhances pick-and-pack, item recognition, and quality control processes
• Autonomous vehicles can navigate warehouses, adapting to disruptions in their environment
• Robotics combines with AI for more accurate, agile performance, enabling high-efficiency order fulfillment

As a result of AI implementation, warehouses can not only reduce fulfillment times and fill orders more accurately on the micro-level, but they can adapt more efficiently on the macro-level as well. This enables supply chain experts to take a comprehensive approach to their order fulfillment — and next-generation tools like Logiwa’s fulfillment management system (FMS) make it possible.

Future trends in warehouse management

The future of warehouse management involves pivoting away from reactive order fulfillment methods and toward a proactive strategy that can better adapt to disruptions. This involves the use of high-powered FMS systems like Logiwa IO. 

Advanced warehouse software tools such as our flagship FMS solution possess AI-driven decision-making and predictive analytics functionalities, so that companies can better anticipate fluctuations in market demand. The result is greater agility, flexibility, and adaptability across all order fulfillment operations—a necessity in today’s ever-evolving supply chain environment.

Logiwa leads the future of warehouse management systems

The first warehouse management systems relied largely on manual processes that were riddled with errors and inefficiencies. Handwritten records and picking processes that depended solely on manpower quickly weighed order fulfillment processes down and hindered their scalability. 

Automated warehouse systems such as early-stage WMS solutions, AS/RS technology, and robotics helped companies perform their order fulfillment workflows more efficiently, enabling them to keep up with consumer demand. 

Now, AI is helping companies find the most efficient methods to run their warehouses and get products from the shelves to the consumer—and it’s revolutionizing the industry. 

As an industry leader in WMS technology, Logiwa consistently finds new ways to help companies streamline their order fulfillment processes. That means integrating automation into their warehouse management operations at every layer possible, increasing order accuracy, and enhancing shipping speed as a result.

Logiwa IO goes beyond conventional WMS capabilities and helps automate omnichannel order fulfillment workflows, helping you reach a whole new level of efficiency. Request a demo today to see what Logiwa IO can do for you.
 

FAQs on modern warehouse management systems (WMS)