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What's Wrong With Warehousing Technology Today? Is AI The Solution?

Feb 03, 2025 - forbes.com
The article discusses the challenges and opportunities in warehouse management systems (WMS) and the broader supply chain, emphasizing the need for data openness and collaboration across vendors. Many current systems are siloed, hindering the adoption of new technologies and data sharing. To address this, companies should utilize data warehouses and lakes, and adopt a flexible data structure to support decision-making and streamline operations. Upgrading legacy WMS should be strategically timed for ROI, and companies should incorporate AI to optimize operations, starting with ensuring data quality and mapping data processes.

The article also explores different types of AI—narrow, generative, predictive, and causal—and their roles in enhancing supply chain efficiency. While narrow AI is already impacting planning and operations, generative AI aids in information interaction, and predictive and causal AI help anticipate operational needs. The future of warehouses lies in modular systems and a strong data strategy, moving away from monolithic software to unlock the full potential of the supply chain.

Key takeaways:

  • Data openness and collaboration across vendors are crucial for effective supply chain management and overcoming data silos.
  • Upgrading warehouse management systems should be strategic, focusing on ROI and incorporating AI to optimize operations.
  • Narrow AI, predictive AI, and causal AI have significant potential to enhance decision-making and operational efficiency in supply chains.
  • Organizations must adopt a modular approach to system design, moving away from monolithic software to improve data sharing and supply chain innovation.
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