Which logistics trends should WMS and TMS systems support?

E-commerce

One of the most notable developments is, of course, the rise of e-commerce, which has led to increased demand for same-day delivery and real-time tracking. Consumers have become accustomed to speed and transparency, pushing companies to further optimize and adapt their processes. This requires seamless integration of technologies, such as the Internet of Things (IoT), enabling real-time monitoring and an enhanced customer experience.

Sustainability in logistics

Alongside speed and efficiency, sustainability has become a key pillar within the sector. Both customers and government agencies are setting increasingly strict standards for the sustainability of logistics operations. CO₂ reduction, circular logistics, and the use of alternative fuels, such as electricity and hydrogen, play a crucial role in reducing the ecological footprint. Innovative solutions like electric trucks and hydrogen vehicles are gradually becoming mainstream, while the necessary charging infrastructure is rapidly developing.

Predictive logistics software

Flexibility in the supply chain is another critical requirement, especially following global disruptions, such as the pandemic, and geopolitical tensions. Customers demand resilient supply chains that can respond quickly to unexpected changes. This requires not only more robust logistics structures but also advanced data analysis and predictive technologies to identify and address fluctuations early on. With these technologies, companies can not only operate more efficiently but also mitigate operational risks.

Robotics and automation in logistics

Despite increasing digitalization and technological solutions, the sector continues to grapple with high operational costs, a shortage of qualified personnel, and pressure on existing road networks. Rising fuel prices and labor costs make it challenging to keep costs down without compromising service quality. The use of robotics and automation in warehouses is seen as a solution to the labor shortage, increasing efficiency.

IoT and blockchain applications

Finally, blockchain and IoT offer new opportunities for end-to-end traceability within the supply chain, without a central director in the ecosystem who can balance the competitive position of players. By implementing these technologies, logistics companies can enhance their transparency and reliability, strengthening customer trust. With these prospects in mind, warehouse management systems (WMS) and transportation management systems (TMS) can play a key role in seizing these opportunities and addressing the associated challenges.

Challenges and future of WMS and TMS systems

WMS and TMS systems are the beating heart of many logistics operations, but they need to evolve to respond to the market developments mentioned above. Current systems face several shortcomings that hinder companies from achieving their operational goals. For example, many WMS and TMS systems have limited integration capabilities and often operate in isolation from other business systems. This lack of connectivity leads to inefficiencies, inconsistent data, and delays, resulting in lower service quality and higher costs.

Seamless WMS and TMS integration

A primary requirement for WMS and TMS systems is seamless support for advanced integration capabilities, such as APIs and cloud platforms. This enables smooth data exchange between supply chain partners, essential for smooth collaboration within the supply chain. Companies want to inform their customers in real-time, but transporters and suppliers also want to respond in real-time to changing circumstances, which contributes to transparency and responsiveness.

AI in logistics

This brings us to the next aspect. In addition to better integration, improvements are also needed in predictive and advisory analytics. Many current systems lack the analytical capabilities to make accurate forecasts of demand and inventory levels. By integrating artificial intelligence (AI, such as LLMs and Machine Learning) into WMS and TMS systems, companies can base operational decisions on predictive analytics and resulting advice. Organizations that take on this challenge can better anticipate demand changes, optimize transportation based on a complex set of conditions, and manage inventory shortages or surpluses. Moreover, advisory analytics enable decision-making aimed specifically at preventing disruptions.

Communicating with robots

Automation and robotics are becoming increasingly important, especially in warehouses. WMS and TMS systems must therefore provide full support for these technologies. Modern WMS software, for example, should be able to communicate with robots and automated storage systems to streamline warehouse activities and minimize manual labor. This step is crucial in addressing the labor shortage while also increasing productivity.

CO₂ emissions

In terms of sustainability and compliance, improvements are also needed. Increasing pressure from regulations and customer expectations calls for integrated tools within WMS and TMS systems that can measure and monitor the environmental impact. By equipping these systems with CO₂ tracking, companies can map their emissions and work towards sustainability. This not only meets regulatory requirements but also strengthens customer relationships through transparency about sustainability performance across the entire chain.

Flexibility

Another requirement for future-proof systems is flexibility/scalability. To meet rapidly changing market demands and seasonal peaks, it is essential that systems are based on cloud architecture and microservices. This approach allows functionalities to be easily expanded and systems to be scaled without significant changes.

Finally, blockchain has garnered attention for ensuring transparency within the supply chain. By linking WMS and TMS systems to blockchain, companies can achieve end-to-end traceability and monitor product quality. However, industry conditions, rather than technology itself, often pose a barrier. Despite the promise of traceability, transparency, and cost savings, a lack of cooperation between competitors and complexity due to a lack of standardization ultimately proves unfeasible, with prohibitively high implementation costs. A global trial by Maersk, for example, was halted in 2023. Successful initiatives are primarily seen in well-defined niche markets, such as pharmaceuticals, with DHL seeing sufficient opportunities in the SME (Small and Medium Enterprise) market.

Mission impossible?

The logistics sector faces paradoxical challenges. Technology is changing at an accelerating pace, while the interdependence of interests in the sector is drastically increasing. Information exchange is becoming more detailed, as are data volumes. As the sector demands more flexibility, we see increasingly complex conditions that act as a brake on those changes – a flexibility paradox. To overcome this contradiction, ever-larger investments are necessary. Smaller players can barely shoulder this burden. This also applies to suppliers of WMS and TMS systems.

Fortunately, there are also developments that tackle this flexibility paradox, such as sector-wide data standardization. Various supply chain partners in the logistics sector, including the Ministry of Infrastructure and Water Management, Topsector Logistics, and Transport and Logistics Netherlands, signed a declaration of intent for a primary standard dataset on November 7, 2024. This is a step in the right direction, both for WMS and TMS builders and for the logistics sector as a whole.