AI in Your Warehouse

Over the past month or two as I’ve been talking with distributors the question comes up of “What are other distributors doing with AI?” For clients I share a list of possibilities, some are purpose-built applications from technology companies in the industry, some are applications that clients are building, and yes, some are ideas that can be built to support the business. But not having warehouse experience, I turn to warehouse experts.

One of the strategies I encourage companies to do is to talk to established technology providers within the industry.

A company that is taking a different approach is Infor. Many know Infor as an ERP company and therefore think “they only sell / service to Infor users.” Surprisingly this in incorrect.

Infor has a number of services that are platform agnostic, including many of their AI solutions and their WMS tools. They have worked with Eclipse, P21, SAP, Oracle, and other software companies.

Will Quinn, Infor’s Global Director, Strategy Infor Warehouse Management (WMS), and “The Distribution Guy”, shared some ideas on how Infor can assist distributors bring AI into their warehouse(s).

The Real Impact of AI in Modern Logistics

Let’s cut through the hype and talk about what’s really happening with artificial intelligence in the business world. The numbers tell an interesting story; the AI market is on a meteoric rise. According to recent reports, the global AI market was valued at over $136 billion in 2023 and is projected to grow at an impressive compound annual growth rate (CAGR) of 37.3 percent between 2023 and 2030. But what matters isn’t the market size, it’s how companies are using this technology to drive value and a competitive advantage, especially in transportation and logistics.

One of the most compelling reasons for the rapid growth of AI adoption is its ability to tackle real-world business challenges. In logistics, companies embrace AI to streamline warehouse operations, optimize supply chains, and enhance customer satisfaction. This is particularly relevant for the electrical supplies distribution industry, where timely delivery and inventory management are critical.

What’s Happening in AI Right Now

Two main players are helping shape the AI landscape: Machine Learning (ML) and Generative AI (GenAI). While ML has been around for a while, getting better at handling complex data, GenAI burst onto the scene recently, bringing new ways to process language and interpret information.

For folks in logistics, this couldn’t have come at a better time. Between supply chain headaches, worker shortages, and customers wanting everything yesterday, the industry needs smart tools that work. The good news? These tools are here, and they’re making a real difference.

Real Examples That Show AI’s Worth

Want to see where AI shines? Look at warehouse storage problems. In the past, warehouse and inventory managers decided where to put products, which relied on gut feelings and spreadsheets. Now, ML spots patterns humans might miss, flagging when fast-moving items are stuck in awkward spots. This means less time wasted on restocking and fewer headaches for warehouse managers.

In the electrical supplies distribution industry, this could mean ensuring that high-demand items like circuit breakers and wiring are always easily accessible, reducing the time workers spend searching for these products.

Here’s another win: ML now determines which products should sit next to each other on warehouse shelves. Think about items customers often buy together, like electrical outlets and faceplates. When these products are stored close to each other, workers spend less time walking around the warehouse. It’s a simple change that adds up to major time savings.

Seeing Into the Future (Sort Of)

One of the coolest things AI does is help predict what’s coming. Warehouse managers used to struggle with guessing how many workers they’d need or how much space they’d use. ML now crunches the numbers and makes surprisingly accurate predictions, helping warehouses prepare for busy periods without guesswork.

For third-party logistics companies (3PLs) in the electrical supplies sector, this predictive power extends to money matters. Instead of rough estimates, they’re using ML to forecast revenue with greater accuracy. This means better planning and smarter growth decisions based on real data, not just hunches.

The New Kid on the Block: GenAI

While ML keeps getting better at spotting patterns, GenAI is changing how we understand complex information. Take warehouse performance reports. Instead of drowning in data, managers now get clear explanations of what’s working and what isn’t, thanks to GenAI turning numbers into plain English.

Another game-changer is the GenAI shift starter tool. Think of it as a smart briefing that tells supervisors everything they need to know at the start of their shift; from how many orders need filling to which equipment is down for maintenance. It’s like having a well-informed assistant who never misses a detail.

Getting Started Without Getting Stuck

For companies wondering where to begin with AI, there’s a clear first step: move your data to the cloud. Specifically, look for what’s called a multi-tenant cloud setup. Think of it as putting all your information in one organized place (data lake) instead of scattered across disparate systems. This isn’t just about tidying up; it’s about making sure your data is ready for AI to work with it.

Infor is leading the incorporation of these new technologies in their multi-tenant cloud software solutions, helping you stay ahead of your competition. The key is starting with AI tools that solve real problems you’re facing right now. The examples we’ve talked about aren’t pie-in-the-sky ideas, they’re tools being used today to make warehouses run better, predict business trends more accurately, and help workers do their jobs more efficiently.

What This Means for Your Business

The logistics industry is changing fast, and AI is a big part of that change. But this isn’t about replacing humans or completely overhauling how you work. It’s about adding smart tools that make everyone’s job a little easier and more productive.

Companies that start exploring these technologies now, beginning with organizing their data in the cloud, will be better prepared for whatever comes next. The companies seeing the best results aren’t necessarily the ones with the biggest budgets; they’re the ones thoughtfully applying AI to solve specific problems in their operations.

The Bottom Line About Logistics

AI in logistics isn’t just hype anymore. It’s a practical set of tools making a real difference in how companies operate. The question isn’t whether to use AI but rather deciding which problems you want to tackle first.

Take Away

Every department within your company has the opportunity to benefit from AI. Should it? That’s a different question based upon the insights you’re seeking, prioritization of initiatives, and resources. Growth businesses of tomorrow will benefit from AI to some degree.

Some suggestions:

• Given the importance of warehouse operations to every distribution business, and to manufacturers, your company should be exploring AI applications in the warehouse. Take to your current ERP provider and see if they have dedicated AI-driven initiatives for WMS. Talk to Infor (and remember, they are platform agnostic so they will not try to convert you to their ERP platform (being honest, Will probably has his own revenue goals, not tied to ERP!)
• Other areas for AI that should be a “short-putt” relate to sales, analysis, customer service, market research and marketing.
• One company that can help in the sales process, and is purpose built for the lighting industry, is Parspec.io (and its applicable to reps / agents.)

The AI journey is going to be long and iterative. It requires idea generation and exploration … a willingness, and ability, to ask “what if.”

It’s a journey. Don’t forget to take the AI in Electrical survey we’re sponsoring with Flow RMS and we’ll share info on AI in the eCommerce space, which can expand your eCommerce capabilities in a coming issue.