The path to AI in warehouse management: Why the network is your first step

Will AI and digitization evolve your warehouse operations? Absolutely. Will these transformations guarantee better efficiency for post/parcel and third-party logistics (3PL) providers? Not without a strategic and holistic approach to data and operations first.

AI in warehouse management is already reshaping how forward-thinking leaders make decisions. But AI’s success depends almost entirely on fundamentals that rarely make headlines: network infrastructure, data strategy, and a willingness to rethink operations. Before you can see results from AI, your operations must be ready to connect, contextualize, and act on data.

Why AI in warehouse management often fails

Many post/parcel providers and 3PLs realize their network isn’t AI-ready only after a deployment stalls. Automated guided vehicles (AGVs) lose connectivity, data silos persist, or analytics lag behind real-time needs.

Choosing an AI tool and designing your network to fulfill that specific tool’s requirements is risky. AI tools evolve at breakneck speed. What’s cutting-edge today could be considered legacy next year, leaving you with a network that can’t support tomorrow’s needs.

Start with business needs, not AI tools

The smarter move is to focus on your warehouse’s business needs first. What do you want to improve?

• More accurate forecasting to prepare for demand surges.
• Scalable capacity that can align production with volume fluctuations.
• Resilient operations that can withstand disruptions like labor shortages.
• Greater customer transparency to deliver accurate order status.
• Less downtime with predictive maintenance.

Only after your business priorities are defined are you ready to chart how and where AI fits into your operational roadmap.

The core challenge: Data must be actionable

Every modern warehouse is generating data from a mix of systems: smart conveyors, autonomous mobile robots (AMRs), cloud-based order trackers, and PLCs. This data forms the basis for operational visibility, but data alone isn’t enough for AI. To unlock its potential, the data from these sources must be unified and contextualized.

For example, raw data can indicate whether a belt motor is running. Contextualized data, however, brings conveyor status and live-order data together with AMR positioning and expected delivery SLAs. When the system detects a backlog, it can automatically reroute tasks or alert personnel, avoiding shipment delays.

The more data your warehouse needs to gather and contextualize in real-time, the greater the demands on your network’s bandwidth, latency, and scalability.

Your network: The foundation for AI success

A resilient, scalable, and unified OT/IT network is the true enabler. It gives you the flexibility to apply any kind of AI tool. Without this foundation, your network will be a bottleneck.

A disconnected network (The Problem)

• Connectivity: Devices and platforms are siloed and not detectable for AI control.
• Consistency: Data is unstructured, creating "islands" of information and integration battles.
• Performance: High latency and low bandwidth prevent real-time decision-making.
• Security: Insecure systems prevent safe data sharing between internal and external partners.
• Scalability: The network cannot adapt as data volumes and digital complexity grow.

An AI-ready unified network (The Solution)

• Connectivity: All devices, machines, sensors, and platforms are connected and detectable.
• Consistency: Data flows in a consistent, structured, and accessible format.
• Performance: The network has the high bandwidth and low latency required for real-time AI.
• Security: Systems support secure, real-time data sharing across the ecosystem.
• Scalability: The network can easily scale to handle growing volumes and new digital tools.

How Belden creates an AI-ready infrastructure

Most sites aren't ready for AI. They juggle legacy PLCs, digital I/O, old and new protocols, fieldbus and Ethernet, and IT/OT silos. These disparate technologies must be integrated before AI can deliver business value.

Belden’s complete connection solutions help create an AI-ready infrastructure that eliminates technical debt and empowers you to work with any AI provider you choose. Their focus on the network as your foundational layer helps you connect to what’s possible. With the right digital backbone in place, you can ingest, contextualize, and analyze what’s happening in real-time with every system and process.