Introduction
Warehouses have existed for thousands of years although the term warehouse didn’t exist until the 1300’s. Ancient civilizations like the Egyptians, Greeks, and Romans had rudimentary forms of inventory management. They often used written records, tally sticks, and simple ledger systems to keep track of their stockpiles of goods, such as food, building materials, and military supplies.
During the Middle Ages, medieval merchants and guilds began to develop more structured methods for inventory management. They used ledgers and simple accounting techniques to record transactions and monitor inventory levels. The use of double-entry bookkeeping, which emerged in the late Middle Ages, also played a significant role in improving record-keeping and inventory control.
The Industrial Revolution, which began in the late 18th century and continued into the 19th century, brought significant advancements in manufacturing and distribution. This period saw the emergence of factories and mass production, which increased the complexity of inventory management. Businesses began using simple paperwork, such as inventory cards and ledgers, to track the movement of goods within their facilities.
It wasn’t until the end of the 19th century when that any form of automated system for inventory management was even conceived. At the end of the 1880s, Herman Hollerith, an American inventor, developed an electromechanical punch card tabulator. The punch card allowed people to record many types of data, including inventory, by creating very small holes in pieces of cardboard. This invention was leveraged by later inventors to develop the very first ordering system. Customers in a store could fill out a punch card; the system would then read the punch card, send the information to the storeroom and someone from the storeroom would then bring the item to the customer.
The problems solved by warehouse management systems have always existed but it took the technological advancements of the 20th century before `real solutions could be found. It might surprise you to know that even the invention of the barcode needed to wait for technology to advance before its benefits could be realised.
The evolution of Warehouse Management Systems mirrors the advancements in technology throughout the 20th and 21st century. From its simple beginnings to complex, integrated systems, The Warehouse Management System (WMS) has been pivotal in global logistics and supply chain efficiencies.
In this article we look at the key milestones in the history of the WMS.
1940’s / 1950’s – The advent of the computer
IBM has a big part to play in the enablement of the technology that lead to the creation of the modern WMS.
In 1943 IBM developed the first completely electronic computing machine, the Vacuum Tube Multiplier. This led to the 1944 Automatic Sequence Controlled Calculator, or the “Mark I,” which IBM developed along with Harvard. This was the first device that we would recognize as a modern computer. It filled a small room, at 50 feet long and eight feet tall, and performed electromechanical calculations automatically. The U.S. Navy used the Mark I to calculate gun trajectories on its ships.
Over the course of the 1950s and 1960s, IBM invented many of the core technologies that allowed computers to become staples of the business world. It developed the working vacuum tube computer, which became the basis for all computers until the invention of the microchip. IBM also invented the hard drive, creating the first computer that stored data on spinning platters and retrieved that data with a magnetic arm. It also developed FORTRAN, the precursor to most modern computer coding languages. In this era, IBM’s dominance of the computer market was almost complete, with the company making 60% to 70% of all business computers worldwide.
The modern WMS would be nothing without the invention of the barcode. The concept was conceived by Norman Joseph Woodland, who was inspired to create a system to speed up the supermarket checkout process. Woodland, drawing from his knowledge of Morse code from his days as a Boy Scout, sketched the first barcode in the sand on Miami Beach. Along with his university classmate Bernard Silver, Woodland developed the idea and filed a patent for the technology in 1949, which was granted in 1952. The initial design was a bullseye pattern of concentric circles, chosen because it could be scanned accurately from any angle. However, the technology to read and process the information efficiently in stores and warehouses did not exist at that time and the bullseye barcode was never widely adopted.
1960’s – Evolution
In the 1960s, retailers saw the potential of barcode technology, leading to various competing systems. However, it wasn’t until the 1970s that IBM invented the Universal Product Code (UPC) barcode, now widely adopted.
In 1967, IBM introduced the Integrated Business Information System (IBIS), the first computerized warehouse management system. IBIS was a major advancement in inventory control technology. Developed to meet the rising demand for efficient warehouse management, it aimed to simplify inventory control and enhance goods management in large warehouses and distribution centers. IBIS marked a pivotal moment in inventory management, showcasing the potential of computerized systems to streamline operations and pave the way for advanced Warehouse Management Systems (WMS) in the following decades.
1970’s – The birth of the UPC and the modern WMS.
In 1970, the National Association of Food Chains (NAFC) initiated a project to create a standardized retail product barcode system. George Laurer, an IBM employee, innovatively designed the familiar rectangular Universal Product Code (UPC) barcode. Laurer’s design met the criteria of being compact, legible, and easily scannable, enabling the encoding of product data through a simplified graphical representation. This breakthrough eliminated the need for workers to memorize product attributes or reference sheets, as all relevant information was now stored within the barcode.
In 1973, the Uniform Code Council, now GS1 US, was established to oversee UPC system implementation in the United States. On June 26, 1974, in a Troy, Ohio supermarket, the first UPC barcode was scanned during a checkout, featuring a packet of chewing gum. The success and broad adoption of UPC barcodes across various industries, including manufacturing and logistics p layed a significant role in shaping the evolution of Warehouse Management Systems (WMS).
In the same year, Vincent Occhipinti, a pioneer in enterprise and factory automation software, founded Logisticon and aimed to develop wireless terminals for Fork Lift trucks to facilitate operator communication. By 1975, Logisticon had created the first recognizable real-time computer-based WMS, which was implemented for J.C. Penney, ushering in the modern era of warehouse management.
1980’s – The computerisation revolution
The 1980s were a pivotal decade for the adoption and development of WMS technology. The 1980s marked the transition from manual, paper-based warehouse management to computerized systems which were often centralized and the continued rollout and adoption of barcode technology had a profound impact on warehouse operations.
WMS software also began to include features for optimizing picking and packing processes. Systems were designed to suggest efficient picking routes, batch orders for more efficient picking, and generate packing lists and shipping labels. Some WMS solutions also started to incorporate basic demand forecasting capabilities, allowing warehouses to better anticipate inventory needs and replenishment requirements.
In the 1980s WMS systems often used batch processing methods to manage warehouse tasks. Warehouse managers could schedule batch processes to handle tasks like order picking, replenishment, and cycle counting during off-peak hours.
It was a transformative period in warehouse operations and set the stage for further technological advancements in the field.
1990s – Demand driven innovation
The 1990s marked a period of significant advancements driven by the growing need for efficient warehouse operations and computing innovations. Graphical user interfaces (GUIs) revolutionized WMS software, simplifying interaction for warehouse personnel through point-and-click interfaces, reducing the learning curve.
Real-time data capture technology, including barcode scanning through RF devices, gained widespread adoption in WMS solutions, allowing warehouses to track inventory movements and transactions in real-time, significantly enhancing accuracy and visibility. Concurrently, RFID technology garnered substantial attention.
Automation in warehousing progressed with the integration of conveyor systems, sorters, and automated storage and retrieval systems (AS/RS) into WMS solutions, diminishing the reliance on manual labor for material handling and order picking.
WMS systems extended their support to multi-location and multi-site warehouse management, empowering companies with multiple facilities to optimize product allocation across various locations. Labor management features were also introduced, aiding in workforce productivity optimization, performance tracking, task allocation, and labor cost management.
Furthermore, integration with other enterprise systems like Enterprise Resource Planning (ERP) and Transportation Management Systems (TMS) became standard in WMS solutions. Customizability and scalability were prioritized in WMS software, allowing businesses to tailor their systems to evolving requirements as their operations expanded. Reporting and analytics capabilities enabled businesses to generate detailed reports on warehouse performance, inventory turnover, and key metrics, facilitating better decision-making.
These 1990s developments laid the foundation for more sophisticated and integrated WMS solutions in the ensuing decades, advancing efficiency and streamlining supply chain management.
2000s – The Internet era
he 2000s marked a pivotal decade characterized by significant advancements fueled by ongoing progress in computing, connectivity, and automation. One notable trend was the emergence of web-based and cloud-based WMS solutions, offering increased accessibility, scalability, and flexibility. These solutions allowed companies to access their WMS through web browsers, reducing the reliance on on-premises infrastructure and maintenance. Additionally, a heightened emphasis on security and compliance was evident in WMS technology, with features added to ensure data security, track changes, and adhere to industry-specific regulations, such as those governing pharmaceutical or food safety standards.
RFID technology momentum as a complement to barcode systems, enabling more automated and hands-free inventory tracking and asset management within warehouses. Voice-directed picking and tasking systems also became more prevalent, empowering warehouse workers to receive instructions and interact with the WMS through voice commands and feedback, thereby enhancing accuracy and productivity.
The proliferation of mobile devices, including smartphones and tablets, led to the development of mobile WMS applications that began replacing traditional RF devices. Meanwhile, analytics and reporting capabilities continued to expand, focusing on warehouse performance, demand forecasting, labor management, and supply chain optimization.
Warehouse automation continued its evolution, with the integration of automated guided vehicles (AGVs), robotic systems, and conveyor systems into WMS solutions. This adaptation was prompted by the rise of e-commerce and multi-channel retailing, necessitating WMS solutions capable of managing the complexities of fulfilling orders across various channels, including brick-and-mortar stores, online sales, and third-party marketplaces.
WMS systems also expanded to support global supply chains, offering multi-language and multi-currency capabilities. Companies with international operations could efficiently manage inventory across different regions and time zones using a single WMS platform. Moreover, certain WMS solutions began incorporating features to support sustainability and green initiatives, helping companies reduce waste, energy consumption, and carbon emissions in their warehouse operations.
These 2000s developments reflected the growing intricacies and competitiveness of supply chains, underscoring the need for more advanced, integrated, and adaptable WMS solutions to meet the evolving demands of the market.
2010’s – A New Decade of Innovation
The 2010s brought further advancements in Warehouse Management System (WMS) technology, driven by the growing importance of e-commerce, the Internet of Things (IoT), and the need for greater efficiency and visibility in supply chain operations.
Cloud-based and SaaS WMS solutions continued to gain popularity offering lower upfront costs, easier scalability, and enhanced accessibility. Mobile technology also played a pivotal role, with the proliferation of smartphones and tablets. Warehouse workers could use mobile apps and devices for various tasks, including receiving, picking, packing, and inventory management, improving overall productivity and accuracy.
IoT sensors and devices were increasingly integrated with WMS systems to provide real-time data on the condition and location of inventory. IoT technology enabled better tracking of temperature-sensitive goods, monitoring of equipment health, and enhanced visibility into the supply chain.
Machine learning and predictive analytics capabilities were integrated into WMS platforms, allowing for better demand forecasting, inventory optimization, and predictive maintenance of warehouse equipment. These technologies helped warehouses become more proactive in addressing issues and optimizing operations.
The 2010s also saw a significant rise in the use of robotics and automation in warehouses and distribution centers. Autonomous mobile robots (AMRs), robotic pickers, and other automation technologies became more integrated with WMS solutions to improve order picking and material handling efficiency. WMS systems began to evolve into more comprehensive Warehouse Execution Systems (WES) combining WMS functionality with real-time control over automated material handling equipment, optimizing the flow of goods within the warehouse.
Artificial Intelligence (AI) and Natural Language Processing (NLP): technologies were incorporated into WMS to enhance voice-activated picking, chatbots for customer support, and improved data analysis. These technologies improved communication and decision-making within warehouses.
With the growth of omni-channel retailing, WMS solutions were adapted to handle the complexities of fulfilling orders through various channels, including in-store pickup, e-commerce, and third-party marketplaces.
WMS systems in the 2010s provided greater end-to-end supply chain visibility, allowing companies to track products from manufacturing to delivery to end customers. Real-time tracking and status updates improved customer service and order transparency.
These developments saw WMS systems become increasingly more sophisticated and integral to the success of modern logistics and distribution.
2020’s Embracing Advanced Technologies
The 2020s mark a pivotal era for Warehouse Management Systems (WMS), witnessing the integration of advanced technologies. Augmented reality (AR) is utilized for training and operations, blockchain enhances security and traceability, and advanced robotics power automated storage and retrieval systems (AS/RS), redefining warehouse management. Sustainability is a paramount focus, with WMS contributing to resource optimization and reduced carbon footprints.
In this transformative decade, WMS embraces an array of exciting possibilities as technology shapes the logistics and supply chain landscape. Artificial Intelligence (AI) and Machine Learning (ML) are harnessed to enhance decision-making, optimize operations, and predict demand accurately. AI-driven algorithms optimize inventory placement, route planning, and labor management, while predictive analytics anticipate issues like stockouts and maintenance needs, enabling proactive solutions.
The integration of robotics and automation expands further, with robots, automated systems, and autonomous vehicles increasingly participating in daily operations. Seamless collaboration between humans and robots, orchestrated by WMS, enhances task management.
IoT sensors and devices proliferate, providing real-time insights into inventory, equipment, and environmental conditions, bolstering decision-making, product quality monitoring, and security.
Omni-channel fulfillment remains a pivotal focus, addressing evolving customer expectations for seamless shopping experiences across channels. Eco-friendly practices gain prominence, as WMS optimizes routes, minimizes waste, and reduces energy consumption.
Blockchain technology may find its way into some WMS systems, enhancing transparency and traceability, facilitating product authenticity verification, and mitigating fraud.
Edge computing reduces latency and facilitates real-time decision-making in WMS operations.
Voice technology and Augmented Reality (AR) continue to enhance warehouse operations, aiding workers in hands-free tasks and improving order accuracy.
WMS systems become more configurable and flexible, enabling adaptation to changing market conditions and unique business requirements. Enhanced cybersecurity features safeguard sensitive data.
Globalization necessitates WMS support for multi-language and multi-currency capabilities, catering to companies operating internationally.
The WMS as a Service (WMSaaS) model, akin to SaaS, offers smaller businesses cost-effective and scalable WMS solutions, eliminating extensive infrastructure investments. Elastic scaling ensures efficient resource allocation during peak demand.
The future of WMS in the 2020s revolves around enhanced integration, automation, real-time data utilization, sustainability, and customer-centricity. In an increasingly complex and global supply chain landscape, WMS technology plays a pivotal role in aiding businesses in adapting, streamlining operations, and meeting evolving marketplace demands.
Conclusion
In conclusion, the evolution of Warehouse Management Systems (WMS) has been a remarkable journey through time, reflecting the relentless march of technological progress. From the rudimentary inventory management methods of ancient civilizations to the highly sophisticated and integrated WMS solutions of today, this history showcases how innovation has continually reshaped the field of logistics and supply chain management.
The story of WMS is a testament to human ingenuity, with key milestones such as the invention of the barcode, the development of computerized systems, and the integration of advanced technologies like AI, IoT, and automation. Each decade has brought new challenges and opportunities, driving the adaptation and growth of WMS to meet the evolving demands of businesses and consumers alike. As we progress through the 2020s, the future of WMS holds even more exciting possibilities, with AI-driven decision-making, sustainability initiatives, and advanced technologies like blockchain and AR set to redefine the warehouse management landscape. The journey of WMS is a testament to the enduring pursuit of efficiency and excellence in supply chain operations, and it remains a crucial component in the success of modern logistics.
