In this episode of The New Warehouse Podcast, Kevin speaks with Wanda Riddick Johnson, Supply Chain Technology Fellow at Deloitte. She talks about the state of WMS today, the challenges in selecting the right system, and how Deloitte is helping businesses make smarter, more strategic decisions in warehouse optimization.

With a deep background in supply chain innovation, Johnson shares insights on adopting cloud-based WMS, the impact of automation, and how AI-driven analytics are transforming fulfillment strategies. She also highlights how Deloitte’s Smart Factory and Smart Warehouse Experience give businesses a firsthand look at the future of warehouse technology.

A Smart Warehouse Starts With a Cloud-Based WMS

For many years, warehouses managed their operations using on-premise systems. However, cloud-based WMS solutions have emerged as a game changer, allowing businesses to scale, upgrade, and optimize their operations more efficiently.

“I started with WMS more than 20 years ago. I can use the word AS/400, and now people talk about iService,” says Johnson, referencing the shift from legacy systems to modern cloud-based platforms.

One key advantage of cloud-based WMS is seamless system updates and better integration with automation tools, which are critical for warehouses adapting to rapid industry shifts. AI-driven insights and machine learning capabilities also play a role in warehouse optimization today.

“Using all that data to actually make better decisions in your warehouse—not only with your workforce but also how you actually ship your orders and manage audit processes—has been one of the biggest changes,” Johnson explains.

How to Select the Right WMS for Your Business

With an increasing number of WMS providers in the market, selecting the right system can be overwhelming. Johnson emphasizes the importance of a structured assessment process to ensure businesses align their needs with the right technology.

“Before you really start that journey of selecting your WMS, we want to come in and do an assessment,” she advises. Evaluating existing processes, understanding automation requirements, and identifying future business goals are crucial steps in making an informed decision.

Deloitte’s vendor selection framework helps businesses narrow down their options by assessing WMS solutions based on:

• Business fit – Matching system capabilities with current and future operational needs.
• Scalability – Ensuring long-term adaptability without constant system overhauls.
• Integration compatibility – Seamlessly connecting WMS with ERP, automation, and analytics tools.
• Risk mitigation – Avoiding excessive modifications that could hinder future upgrades.

Johnson stresses the importance of seeing WMS solutions in real-world applications: “Talk to other customers who have implemented the system. Walk through their distribution centers. Understand the full end-to-end process.”

Building the Smart Warehouse: Why Businesses Are Rethinking WMS

The pandemic accelerated e-commerce adoption and pushed companies to rethink their fulfillment strategies. Many businesses realized their existing WMS couldn’t support omnichannel demands, leading to a surge in system upgrades.

“One major thing that came out of the pandemic is that more people are going online. How do I actually build my WMS to ship to stores and also satisfy e-commerce orders from the same facility?” Johnson explains.

This shift means more warehouses are seeking flexible, multi-brand fulfillment solutions that can adapt to:

• Omnichannel order fulfillment (ship-to-store, direct-to-consumer, third-party retail distribution)
• Increased automation to combat labor shortages.
• Real-time data insights for improved decision-making

Johnson also highlights Deloitte’s Smart Warehouse Experience and Smart Factory. With locations in Wichita and Montreal, companies can explore cutting-edge warehouse technologies like AutoStore, Packsize, and automated unloading solutions in action. Unlike traditional innovation centers that simply showcase technology, this is a fully operational facility, producing and shipping STEM kits to students.

“We bring customers or potential clients to walk through and it’s the innovation center where they can actually see from end to end—from the manufacturing side to fulfillment,” says Johnson.

By experiencing AI-driven inventory management, robotics, and warehouse automation firsthand, businesses gain a clearer vision of how these solutions fit into their operation to boost efficiency and future-proof supply chains.

Key Takeaways

• Cloud-based WMS solutions offer better flexibility, automation integration, and real-time analytics.
• A structured selection process ensures businesses choose the right WMS for their needs without costly mistakes.
• Omnichannel fulfillment strategies are crucial for retailers adapting to post-pandemic consumer behavior.