Episode 431: Breaking down fulfillment software, warehouse management systems & AI with Logiwa
Logiwa positions itself not as a traditional WMS but as a modern fulfillment software specifically designed for high-volume, direct-to-consumer operations
On today’s episode of The New Warehouse podcast, Kevin welcomes Erhan Musaoglu, the CEO and Founder of Logiwa. Erhan launched Logiwa two decades ago, initially implementing tier-one legacy WMS systems for large B2B companies. However, he noticed a gap in the market when it came to e-commerce companies. Traditional WMS solutions designed decades ago were inefficient for today’s direct-to-consumer models, which require processing thousands of small, individual orders. The inefficiencies of using old systems led him to create Logiwa, a solution that addresses the distinct needs of e-commerce and direct-to-consumer businesses. Be sure to tune into this episode to discover more about how Logiwa is revolutionizing the world of warehousing and what the future holds for AI in this sector.
More than Just a WMS, Logiwa Provides Fulfillment Software
Logiwa distinguishes itself from traditional WMS solutions by being highly adaptable to the requirements of modern e-commerce. As Erhan explains, shipping 10,000 pens in a B2B environment might involve a single forklift and two pallets, but in a direct-to-consumer scenario, it involves thousands of different orders, shipping labels, and a much larger workforce for picking, packing, and shipping. This real-world example illuminates the company’s focus on creating a product tailored to the labor-intensive nature of e-commerce fulfillment.
Erhan stresses the importance of distinguishing between traditional WMS and fulfillment systems. The difference lies in their core objectives: while WMS focuses on storage, fulfillment systems are all about speed. “You don’t want to store anything in the fulfillment center. You just want to ship faster and faster,” Erhan states.
Exploring the Diverse Landscape of Fulfillment Software and Warehouse Management Systems
Erhan describes various types of technology powering WMS solutions, from on-premise legacy systems to cloud-based offerings. This diverse range of options reflects the changing needs and challenges businesses face today.
One Size Fits All: According to Erhan, some providers are transitioning from a one-size-fits-all model to more targeted solutions. This change aligns with a broader industry trend toward specialized solutions that offer quicker time to value.
User Experience: Erhan points out that modern WMS solutions are increasingly user-friendly and intuitive, reflecting a broader shift in how technology is designed and interacted with.
Connectivity: easily integrating with other platforms is becoming more critical than ever, as Erhan notes. This development is part of a more significant trend of increasing interoperability in the industry.
Emerging Focus on Fulfillment: Erhan suggests a growing focus on fulfillment over storage in some corners of the industry, illustrating the array of strategic choices that businesses now have.
Erhan adds, “Eighty-two percent of Logiwa’s customers are shipping in less than 20 hours. And if your old legacy system is causing you to ship slower, you are losing your money.”
The Transformative Impact of AI on Fulfillment Software and Warehouse Operations
Erhan highlights the transformative potential of Artificial Intelligence (AI) in actively optimizing warehouse operations, particularly in outbound flow. AI uses algorithms for complex tasks that the human brain or even mathematical models find challenging—such as order batching, walking path optimization, and employee assignment. These algorithms capture every user activity and motion in the warehouse to establish labor standards, thereby efficiently matching employees to tasks. The real-world application of AI in Logiwa’s systems reflects the future-forward focus of the company, where predictive analytics and real-time adjustments can enhance labor productivity and operational efficiency.
Furthermore, Erhan believes AI will play an increasingly central role in planning and coordinating warehouse operations. The future vision includes a “big AI machine” that runs continuously and can forecast demand, inventory management, and even immediate employee assignments based on their skill set and patterns. He points out that the advancements in AI technology could eventually lead to humanoid robots efficiently picking from bins and packing orders, something not yet fully realized.
- Modern fulfillment software is moving towards high-volume, direct-to-consumer operations, differing significantly from traditional Warehouse Management Systems (WMS) that focus on storage.
- The landscape of WMS and fulfillment software is diverse and evolving, featuring everything from on-premise legacy systems to user-friendly, cloud-based platforms.
- Artificial Intelligence (AI) is poised to revolutionize warehouse operations, specifically optimizing outbound flow. Through sophisticated algorithms and predictive analytics, AI can optimize labor assignments, enhance operational efficiency, and even forecast demand.
EP 431: Breaking Down Fulfillment Software, Warehouse Management Systems & AI with Logiwa