Top 5 warehouse management system trends for third party logistics companies to watch in 2025
By Will Quinn
Reflecting on the challenges of 2024, Third Party Logistics companies have navigated a landscape of economic uncertainties, supply chain disruptions, and rapidly evolving customer expectations.
But looking ahead to 2025, the challenges—and opportunities—are only going to intensify. The warehouse management system (WMS) space is at the forefront of this evolution, serving as a critical tool for Third Party Logistics companies to stay competitive and efficient in an increasingly demanding market.
From technological advancements to shifts in operational strategies, these trends will significantly impact how Third Party Logistics companies manage their warehouses and fulfill their customers' needs. By understanding and preparing for these developments, industry leaders can position their organizations for success in the coming year and beyond.
1) AI-Driven Predictive Analytics and Decision Making
In 2025, Third Party Logistics companies using advanced WMS platforms will rely heavily on AI, Machine Learning, and Generative AI to improve operations and decision-making.
As part of this, we predict that we will see more use of Anomaly Detection Systems in the WMS which will be used to optimise pick locations (i.e. the area where items are picked for orders) and guarantee that these are the right size so that fast-moving items are readily accessible.
Equally, AI will be used to improve product location recommendations in WMS to streamline picking processes, while volume forecasting will help organziations to anticipate labour and space requirements.
Additionally, in 2025, AI will also support a rise in the use of revenue forecasting for Third Party Logistics companies to allow them to make more informed decisions about future growth. Finally, shift startup scripts in the WMS will equip supervisors with the necessary tools to efficiently manage their teams and drive operational excellence.
2. Sustainable Distribution Practices
But it won’t just be emerging technologies that will impact WMS. As the pressure to be more environmentally focused grows, 2025 will see a marked increase in the adoption of sustainable distribution practices amongst organizations to reduce their carbon footprint and implement eco-friendly solutions.
Trends we expect to see more of next year in this area in relation to WMS platforms include advanced cartonisation techniques which will optimize packaging, minimize waste and reduce transportation costs.
We also expect to see increased uptake by those in the sector in efficient space utilization strategies so that they maximise their storage capacity while also minimizing energy consumption. Additionally, organisations are likely to do more in the way of integrating energy management systems allowing for automated adjustments to lighting, HVAC, and other systems, further reducing energy consumption.
3. Advanced Workforce Management and Labour Optimisation
The impact of people will also be clear in 2025, as workforce management will be a critical focus. To mitigate the impact of labour shortages and the increasing complexity of warehouse operations, it will be important to lean on technology to maximise labour allocation, streamline workflows, and enhance workforce productivity.
As a result, WMS platforms will need to embed various solutions including Labour Performance Tracking and Optimisation which will monitor employee productivity in real-time and offer detailed insights into performance across various warehouse tasks.Teams can also benefit from Task Automation and Dynamic Assignment which will automate repetitive tasks and dynamically assigns tasks based on real-time demand and availability of resource.
To recognize where teams have exceeded expectations, we predict to see more in the way of Incentive Programmes and Performance-Based Rewards in WMS platforms which encourage workers to meet or exceed productivity targets thus improving employee engagement.
4. Advanced Robotics and Automation Integration
While robotics and automation have been on the rise in warehouses for years, 2025 will see a significant leap in their sophistication and integration with WMS solutions. Third Party Logistics companies will increasingly turn to robotics to address labor shortages, improve efficiency, and meet growing demands for speed and accuracy.
Emerging trends in robotics and automation to impact the sector will include Cobots, which will work alongside human workers to enhance productivity, Autonomous Mobile Robots which will be used to navigate warehouses more efficiently by using AI to optimise routes and adapt to changing environments and Robotic Process Automation which will be used to automate repetitive tasks, freeing up human workers for more complex activities.
5. Benefits of Multi-Tenant Cloud-Based WMS Solutions
Finally, the shift towards cloud-native WMS solutions will significantly impact Third Party Logistics companies in 2025, offering greater flexibility, scalability, and resilience to operations.
Adopting Multi-Tenant cloud-native WMS solutions will provide Third Party Logistics companies with increased agility, reduced IT overheads, enhanced security, and the ability to rapidly deploy new capabilities to meet changing customer needs, all while lowering the total cost of ownership.
By proactively embracing these trends and continuously innovating, Third Party Logistics companies can not only navigate the challenges of 2025 but also seize the opportunities to differentiate themselves in the market, drive operational excellence, and deliver exceptional value to their customers.
Will Quinn is global director of Strategy Warehouse Management at Infor.
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