How to digitize my warehouse processes: In four steps 

Updated on 14. July 2026

Digital logistics refers to the planning, control, and optimization of logistics processes using digital technologies such as software, sensors, automation, artificial intelligence, and data analytics. The goal of digital warehouse management is to increase transparency, efficiency, and flexibility along the entire supply chain. Four steps guide the way to optimizing inventory management using warehouse and logistics software.  

Summary:

  • Many warehouses in manufacturing companies are still operating in the analogue world. The step into digital warehouse management is a major one – the range of solutions is overwhelming, and asking the right questions first is complex.
  • Step 1 – Identify and analyze processes: Where do empty runs, search times, and inventory errors occur? Many warehouses still run on paper: forklift drivers record every goods movement by hand, and a dispatcher collects the slips at the end of the day to enter them manually into the system.
  • Step 2 – Define clear goals: After deciding to digitalize, many companies conclude they need a WMS. What they actually need – a digital twin – often isn’t even on their radar at first.
  • Step 3 – Leverage real-time data: WMS, WES, RTLS, AMR, ERP – the terminology of digital warehouse logistics is complex. What matters most is how well the components work together and how well they fit the company’s existing processes and goals.
  • Step 4 – Integrate without modification: identpro digitizes the warehouse without requiring any structural changes. A laser scanner on each existing forklift truck continuously scans the environment, detects fixed structures such as walls and racks, and calculates the vehicle’s exact position in real time – with no QR codes, cameras, or radio antennas required.
  • The Warehouse Execution System (WES) links the digital twin with intelligent task management for all transport orders – reducing errors, empty runs, and onboarding time.
  • The solution integrates seamlessly with existing systems such as SAP EWM – without system disruptions or operational downtime.
  • AI in the warehouse is the logical next step: whoever starts with a digital twin today creates the data foundation on which AI models can be trained and deployed.
  • Typical AI use cases: optimized task assignment, predictive maintenance, automated inventory recognition, intelligent route planning.
  • The result: a fully digital, transparent, and automated warehouse with an ROI of under one year.

In times of artificial intelligence and digitalization, many warehouses still remain stuck in the analog world. Taking the leap into digital warehouse management is a major step. The range of solutions is confusing, and the right questions – those that first need to be asked – are often complex. One thing is clear: without digital warehouse management, companies lack a crucial lever to address both operational and strategic challenges, such as reducing empty runs and search times, minimizing inventory errors, or meeting delivery dates and budget targets. At the same time, digital warehouse management enables the achievement of broader goals, such as implementing AI solutions or conducting data analyses at a company-wide level. This requires high-quality data. While many warehouse operators are aware of their bottlenecks, they often lack the digital know-how to ask the right questions and find the appropriate solution. 

The path toward a digital warehouse includes the following steps: 

1

Identify and analyze warehouse logistics processes 

2

Define clear goals – the right questions lead to the right solutions 

3

Leverage warehouse knowledge – enabled by real-time digital data 

4

Integrate digital warehouse management 

1

Identify and analyze warehouse logistics processes 

Warehouse logistics should add value. Yet, daily routines still dominate many analog warehouses in manufacturing companies. Often, it remains unclear how individual processes interact, which leads to persistent inefficiencies. The result? Long search times, empty runs, high scan durations, and manual workflows. In many cases, warehouse operations still rely on paper, explains Benedikt Heinen, Director Business Development & Consulting at identpro:

“Forklift drivers record each goods movement on paper, drop their notes into a basket at the end of their shift, and later that day, the dispatcher comes by bike, collects all the slips, and manually enters the data into the system.”

These warehouses are far from real-time tracking or efficient batch traceability, let alone inventory reliability, delivery accuracy, or seamless tracking of batch numbers. Manual errors, lost paperwork, and stock discrepancies are inevitable. The consequences range from costly re-production and extra shifts to special charges from waiting carriers and customers. Analog warehouse logistics also mean long onboarding times, which is no longer acceptable in light of the skilled labor shortage. 
There is no way around digital warehouse management. Precise and comprehensive data capture is the essential foundation for all digital solutions. That’s why it is crucial to record and process all goods movements and information digitally, in real time and without error-prone manual processes. This requires identifying and defining processes and bottlenecks in warehouse logistics and deciding in favor of digital warehouse management.   

2

Define clear goals – the right questions lead to the right solutions   

Once the processes in the warehouse are defined, the next step is to derive concrete objectives: What exactly is the digitalization initiative supposed to achieve? Based on that, it’s important to ask the right questions to pave the way. “After deciding to digitalize, many companies realize they need a digital warehouse management system. But what they really need, a digital twin, often isn’t even on their radar at first,” says Benedikt Heinen. identpro’s digital twin is a real-time virtual replica of the actual warehouse. Currently, no other provider can offer this synchronously and without delay.

It shows virtually where specific goods are located or which forklift is in motion. The system collects data from sensors, positioning systems, and a warehouse management system (WMS), ERP system, or similar. 

The challenge on the path to digital warehouse management lies in asking the right questions at the start, according to Benedikt Heinen. Many manufacturing companies feel overwhelmed by the sheer number of warehouse software options. That’s why, in early conversations, he often sees himself as a consultant, guiding companies from the analog into the digital world.

Key questions for digital warehouse management:  

  • Which warehouse processes are causing problems or excessive costs? What are the error rates, inventory deviations, and how frequent are empty runs and search times? 
  • What should be achieved through digital warehouse management? 
  • Which processes and systems already exist? Which ones should be digitized? 
  • What KPIs do we need for real-time digital warehouse management, and how can we improve our data quality? 
  • Which warehouse management software solutions match our requirements? 
  • How will roles and responsibilities change in the digital warehouse, and what new competencies will be needed? 
  • What investments are required, and what funding opportunities are available? 
3

Leverage warehouse knowledge – powered by real-time data  

On the journey to a digital warehouse, it makes sense to proceed step by step. If Wi-Fi or LTE is already available in the facility, the dispatcher can leave their bike behind once a real-time digital twin of the warehouse is implemented. This enables each produced pallet to be digitally recorded and inventory levels to be tracked via software. 
Those exploring digital warehouse management will quickly encounter a wide range of terms and technologies. At the core is the Warehouse Management System (WMS), a software solution for managing stock levels, storage locations, and processes, including digital inventory management. 

In the next step, the WMS interfaces with a Warehouse Execution System (WES), which manages fleet operations for both human-operated forklifts and Autonomous Mobile Robots (AMRs). For fully automated tracking of forklifts, robots, or goods movements, real-time locating systems (RTLS) are essential. Depending on the provider, technologies such as laser localization, RFID, UWB (ultra-wideband), or vision systems are used. 

Other key factors when choosing a modern warehouse solution include the use of AMRs and the ability to integrate with ERP systems like SAP. What matters most is how well the components work together and how well they align with the company’s existing processes and strategic goals. 

4

Integrate digital warehouse management 

identpro digitizes and automates warehouse logistics without requiring modifications to existing infrastructure.

Internal material flows can be managed completely without handheld scanners thanks to the intelligent Warehouse Execution System (WES), which combines laser-based localization with a real-time digital twin of the warehouse. The real-time localization is based on a proprietary laser-based technology that requires no additional infrastructure: no QR codes, cameras, GPS, or radio antennas. Instead, each vehicle is equipped with a laser scanner that continuously scans its environment. The scanner detects static structures such as walls, racks, and columns, and compares them with a digital map of the warehouse. The identpro system can even orient itself in dynamic environments: it determines the position of pallets based on a combination of fixed and moving objects. The laser map is automatically updated whenever new objects enter or leave the warehouse. This allows the system to calculate the exact vehicle position in real time and with very high precision. 

It works with both autonomous robots and human-driven forklifts, enabling continuous tracking of all movements in the digital warehouse without costly construction work. “The digital twin virtually mirrors the warehouse and shows exactly where each item is located. The WES takes care of intelligent task distribution and ensures smooth operations,” explains Benedikt Heinen. 

As a result, errors and search times are reduced, empty runs are minimized, and the solution can be seamlessly integrated into existing systems like SAP EWM. identpro thus enables a fully digital, transparent, and automated warehouse. It supports forklift drivers with accurate task execution and significantly reduces onboarding time. 

Next Level AI: Artificial Intelligence in Industrial Warehousing 

The future of digital intralogistics lies in AI-powered warehouses. 
Those looking to integrate artificial intelligence (AI) into their warehouse management should first assess which processes can benefit from data analysis, pattern recognition, or automated decision-making. Common use cases include: Optimized task assignment to vehicles, Predictive maintenance, Automated inventory recognition, Intelligent route planning. The first step toward an AI-ready warehouse is to create a real-time digital twin. This allows the WES to reduce empty runs and create more efficient workflows. Over time, the collected data can be used across the entire organization for AI-driven analytics. 

High data quality forms the basis for training AI models and integrating them into existing systems. Close collaboration between IT, logistics teams, and specialized solution providers like As a result, errors and search times are reduced, empty runs are minimized, and the solution can be seamlessly integrated into existing systems like SAP EWM. identpro thus enables a fully digital, transparent, and automated warehouse. It supports forklift drivers with accurate task execution and significantly reduces onboarding time. 

is crucial. Together, they can define realistic goals and implement specific use cases step by step. 

Digital warehouse management and AI can deliver real business value with an ROI of less than a year. 

KI im Lager

Frequently Asked Questions (FAQ) on Warehouse Digitalization

The most proven approach is to proceed step by step. First analyze your own processes and bottlenecks, then define concrete goals, select the right technology, and finally integrate it into live operations. Many companies fail because they invest in solutions too early, before the underlying data questions have been addressed. Reliable real-time data capture is the indispensable foundation for every further digitalization step.

A Warehouse Management System (WMS) manages inventory, storage locations, and orders. It plans what needs to be done. A Warehouse Execution System (WES) controls the actual execution in real time: which forklift truck handles which order, in what sequence, on which route? identpro’s WES goes one step further by combining real-time localization of all vehicles with intelligent control of all transport orders without manual intervention.

The most common technologies are laser localization (LiDAR), RFID, UWB (Ultra-Wideband), and vision systems. LiDAR-based localization as used by identpro requires no additional infrastructure in the warehouse. The laser scanner on the vehicle detects the fixed warehouse structure and calculates the exact position from it: accurate to the centimeter, in real time, without floor markings, cameras, or radio antennas.

No. identpro digitalizes the warehouse without any structural modifications. Existing forklift trucks are fitted with laser scanners, and a standard Wi-Fi or LTE connection is sufficient. Racks, floors, and existing IT systems remain completely unchanged. Integration with ERP systems such as SAP EWM is handled via interfaces without system disruptions.

A warehouse is AI-ready when it has a complete, current, and error-free real-time data foundation. The first step is implementing a digital twin. It provides the raw data on which AI models can be trained. Typical initial AI use cases are optimized task assignment, predictive maintenance, and intelligent route planning.

identpro customers typically achieve an ROI of under one year. Savings come from eliminated search times, reduced empty runs, automated bookings, fewer inventory errors, and significantly shorter onboarding times for new staff. Added to that are strategic benefits such as the foundation for AI deployment and the ability to demonstrably meet overarching goals like delivery reliability and compliance.

Do you want to digitize your warehouse, gain more transparency and exploit the full potential of your resources?

We at IdentPro support you in this endeavor and would like to shape with you the future of intralogistics. Schedule a personal consultation now!

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