At LogiMAT 2024, Logistics Reply won the BEST PRODUCT award for its intelligent WMS assistant LEApedia. The bi-directional AI application enables efficient and fast data searches in the warehouse management system.
The software provider has been using artificial intelligence (AI) in its cloud-native WMS product suite LEA ReplyTM since 2015. We spoke to Associate Partner Alexander Edelmann about the benefits of AI in logistics and the question of how the industry will develop in the future.
Mr Edelmann, AI is currently the hot topic in intralogistics. Why is it gaining such momentum?
The market for AI in logistics is growing rapidly. Almost every company is now experimenting with artificial intelligence - whether as a provider or as a user of warehouse management systems. The current AI hype in logistics was fuelled by last year’s chat GPT boom. While the digital processing of the supply chain in the WMS has already led to shorter lead times and improved process visibility, the potential is far from exhausted. Intelligent AI applications come into play precisely where conventional WMS concepts reach their limits.
What do you think the warehouse of the future will look like?
I see AI as a growth driver for the entire logistics industry. Its use opens up completely new optimisation potential for the industry, as it allows many logistics tasks to be carried out much more efficiently and with fewer resources. In addition to making the WMS more economical, the use of AI makes the supply chain more resilient: AI makes appropriate predictions based on the analysed data streams in the event of order fluctuations ensuring greater planning reliability. At the same time, AI increases efficiency in the warehouse and can thus counteract the effects of the labour shortage by recognising implicit data dependencies and making more precise decisions with fewer personnel. At present, some logistics companies are still reluctant to embrace AI because of the expertise required and the complexity of the subject. That is why we make sure that our AI applications are easy to use and designed to be user-friendly. Our intelligent AI assistant LEApedia, for example, enables users with a wide range of skills to ask questions in natural language. The system finds the right answers in the available data pool much faster than a lengthy manual search.
What are the benefits of using AI for WMS?
The demands on an efficient supply chain are constantly increasing. This means that the warehouse management systems in use are also under scrutiny. The main benefit of using AI in logistics is the structural increase in efficiency: AI is able to extract, sort and analyse data patterns from the existing data pool. By combining and analysing different data streams, correlations between the individual data can be better understood and evaluated. This intelligent collection and analysis of data saves a lot of time, reduces the likelihood of errors and makes the supply chain much more transparent for everyone involved. There are also specific advantages depending on the application. For example, operational warehouse processes can be controlled in a structured way thanks to the AI-supported real-time overview of stock levels, as can yard management through the tracking of yard activities. These are just a few examples of how such AI applications can make the day-to-day work of logistics employees much easier.
How flexible are AI-supported WMS applications compared to conventional solutions?
AI applications in the WMS are significantly more flexible than traditional warehouse management software solutions. With a cloud-native WMS foundation, AI modules can be integrated on demand and scaled across multiple warehouse locations worldwide - without slowing or disrupting day-to-day operations. This is made possible by the modular structure of our LEA ReplyTM business suite. The WMS is based on microservices and REST APIs, i.e. interfaces with maximum flexibility. Both ensure that the modules can be easily duplicated and updated independently of each other. Updates can also be made without disrupting ongoing operations. This means that the individual AI modules are much more flexible and scalable in use than conventional WMS, which have to be installed one at a time at each site. In addition, the AI applications are tailored to specific customer requirements and software environments, making them suitable for all user groups.
Mr Edelmann, thank you very much for this interesting interview.