Bridging the Gap: Modernising legacy warehouse IT systems with AI and software solutions

Growth in UK ecommerce shows no signs of slowing down. ONS statistics for March 2024 show that a quarter of retail sales of textile, clothing and footwear were online, closely followed by consumer electronics. With online shopping the norm for the majority of UK consumers, the ability to provide fast, accurate fulfilment and delivery is more relevant than ever in the battle for market share.

However, many businesses face the challenge of outdated warehouse IT systems—from PLC code for automated equipment to warehouse inventory tracking and warehouse management systems (WMS). The dilemma is further complicated by a skills shortage in maintaining older warehouse software systems and the financial hurdles and business disruption associated with completely replacing them.

The legacy challenge

Legacy IT systems in warehouses present a number of challenges in keeping pace with the rapid change generated by the growth of online shopping:

Integration difficulties – older systems were often built as standalone entities for specific functions, lack of integration capability can lead to inefficiencies and data silos.
Scalability- many legacy systems were not built to scale efficiently hindering growth and agility.
Security vulnerabilities – older systems are often more vulnerable to security breaches requiring additional work to support the latest security protocols.
User interface – older user interfaces are much less intuitive than their modern counterparts often requiring additional training, even with this they cause lower productivity and higher error rates.
Compliance issues – compliance and regulatory standards are continuously evolving, particularly in relation to privacy and data protection. Ensuring legacy systems stay complaint is another layer of essential but often costly work.

Artificial intelligence (AI) and advanced software

Implementing middleware software solutions that act as a bridge between legacy and new warehouse software are an effective way of streamlining warehouse operations and enhancing efficiency and throughput. They come without the disruption and potentially high expense of implementing a new system and can support phased modernisation.

The impact of AI in this space is starting to be felt. AI supported platforms can be seamlessly integrated with existing legacy IT systems to enhance functionality and extend their operational life without the need for full replacement.

Inventory Optimization: Legacy warehouse IT systems often struggle with accurately predicting demand and maintaining optimal inventory levels whereas AI’s ability to analyze historical data, current trends, and external factors means it can facilitate dynamically adjusted inventory levels.
Order Fulfilment Efficiency: Traditional systems may lack the flexibility to adapt quickly to changing order priorities or unexpected events. AI can optimize operations including picking routes, stock allocation and order prioritisation, all in real-time, ensuring faster and more accurate order fulfilment.
Resource Allocation: AI has a valuable role to play by intelligently allocating labour, equipment, and space based on factors such as demand fluctuations, seasonal trends, and workforce availability.
Predictive Maintenance: Maintenance scheduling in legacy systems is often based on fixed intervals or reactive repairs, resulting in costly downtime and equipment failures whereas the problem-solving ability of AI can be used to analyse equipment sensor data and predict maintenance needs, schedule preventive repairs, and optimise equipment uptime.

For those facing the challenges of legacy warehouse IT systems, the integration of AI and modern warehouse software offers a practical and cost-effective solution in breathing new life into aging infrastructure and equipping it to meet today’s ecommerce demands. It’s also becoming much more of an everyday reality. Breathe Technologies are well established on our AI journey, and in our experience, it has much to contribute in unlocking the ability of warehouse operations to excel. Find out more about how our Orquestr8 software platform can connect your physical and digital systems.