Decoding the buzzwords: what these 6 logistics concepts actually mean

Artificial Intelligence, Smart-everything, robotics, digital twins, agents and automation - the logistics market is changing terminology as new technologies emerge and either replace manual tasks or empower teams to be more efficient and productive. The industry is buzzing with new concepts, but what do they really mean?

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In this piece, we are going to look at 6 macro trends that describe advanced technologies and approaches transforming warehousing and logistics, and explain the underpinned value or innovation for each of them.

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Agentic AI in Warehousing

Agentic AI refers to the use of autonomous, goal-oriented AI-powered systems that can act independently of human intervention. ChatGPT, for example, is not an agent - probably one of the most used and known large language models, it is more of an assistant, and not an independent, autonomous actor.

In warehouses, agentic AI is a real game-changer, representing the next step beyond using intelligent technology merely to gather and interpret data. AI agents can analyse insights, make decisions, assign tasks, anticipate issues, allocate resources, and coordinate with other agents. For example, an AI agent might analyse real-time inventory data, automatically determine what needs to be restocked, and place an order.

Stepping from the use of AI-enhanced tools to human-and-agentic AI environments typically marks a significant transition toward an adaptive warehouse. An adaptive warehouse, another key term we'll explain later, self-optimises, learns, and collaborates to increase efficiency and resilience, reduce environmental impact, and empower people to take on higher-value roles.

Of course, the most important question here is how do we know we can trust agents to make the best, most ethical decisions? While efforts continue to explain how AI agents make decisions, it is essential to emphasise that humans remain responsible for high-level strategic moves. AI tools are designed to augment human capabilities, not replace them.

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Digital Twins 

Digital twins are dynamic digital replicas of real-world objects, systems, or processes. They enable simulation, analysis, and optimisation of the physical entity they represent.

For example, a warehouse’s digital twin might include a 3D replica of the space along with real-time data on inventory levels or the current locations of pallets. These virtual models go beyond offering live tours of the space, when integrated with sensors, IoT devices, or intelligent robots, they become powerful tools for management and optimisation.

Live digital twins consolidate real-time data into a single source of truth, accessible online. This allows teams to gain critical insights and accelerate decision-making. When combined with AI and AI agents, digital twins can simulate various scenarios, anticipate stock fluctuations, optimize space utilisation, and reduce costs related to compliance.

A high-performing digital twin depends on accurate, timely data, something that’s difficult to achieve through manual processes alone. That’s why cameras, sensors, and autonomous data-gathering robots that operate around the clock with high precision will become standard tools for competitive players.

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Logistics 5.0

Logistics 5.0 represents the next stage in the evolution of logistics, building upon the automation and digitisation of Logistics 4.0 to focus on human-machine collaboration, sustainability, and resilience. 

In Logistics 4.0, the focus was on optimisations and digitalisation through the use of technologies like IoT, AI and cloud computing to help organisations get better visibility and control than ever over their supply chain operations.

The next step puts humans in the spotlight, highlighting how people and technology can collaborate to build better operations and a more sustainable future. Logistics 5.0 emphasises a human-centred approach, integrating technology with the needs and well-being of workers while also prioritising environmental responsibility. This shows that people are not being replaced, but empowered.

Technology plays a key role in improving warehouse safety (for example, through pick-up robots), helping workers boost performance, and allowing them to focus on higher-value tasks. New roles will emerge, and new skills will become essential, but humans will continue to play a central role in supply chain operations, not just managing them, but also ensuring they are ethical, accurate, and fair.

Smart tools also contribute to better worker well-being, employer branding, and company culture. Digital platforms can generate tailored content to attract new talent or keep remote teams aligned, while AI can support personalised learning paths and career development.

Sustainability is the other essential pillar of Logistics 5.0. The tools and practices introduced in Logistics 4.0 are now being leveraged to reduce carbon footprints, minimise waste and energy consumption, and explore alternative energy sources. Examples include using robots that can operate in the dark to save energy, deploying electric vehicles, installing solar panels, and adopting green packaging.

Innovation, collaboration, and responsibility are equally important elements of Logistics 5.0.

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Smart warehousing / Smart Logistics

A tool, process, or workflow becomes “smart” when it incorporates advanced technologies and data-driven strategies to optimise warehouse and broader supply chain operations.

Smart warehousing focuses on improving efficiency, accuracy, and speed within the physical warehouse space, while smart logistics encompasses the broader network of processes involved in moving goods from origin to destination, including transportation and delivery.

A smart warehouse, for example, may integrate sensors, IoT devices, RFID tags, autonomous robots, and AI-enhanced software. By adding this layer of intelligence to operations, manual tasks can be automated, efficiency improved, and deeper insights generated to support faster, more informed decision-making For example, autonomous robots are capable of digitising up to 10.000 pallet locations/hour and compare the data they gather with information in the system in a few seconds.

Smart warehouses are seen as “the next stage of evolution in warehouse management” (source) as they mark the transition from “blind warehouses” to more transparent, data-driven operations. Real-time visibility into stock and movements becomes possible, and the whole business and team is enabled to become more agile and efficient.

Smart logistics expands these ideas and defines a shift towards a more intelligent supply chain. Every process on the way - transportation, fleet management, warehousing, shipments - gets optimised through the use of technology (for example, by using GPS-based dynamic routing). An intelligent or adaptive warehouse that uses AI and agents to learn and adapt becomes part of a smart network where all parts are connected and collaborate to transfer knowledge and adjust in real time for optimal results. 

We are thus looking at a more data-driven, automated ecosystem where accuracy and speed are increased, resources are better allocated, and waste-related costs are cut.

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Hyperautomation

Hyperautomation is  a business-driven, disciplined approach that uses multiple advanced technologies like AI, machine learning, and robotic process automation (RPA) to automate as many business and IT processes as possible, aiming for end-to-end automation across an organisation.

In short, “Hyperautomation is the concept of automating everything in an organisation that can be automated.” (source) For example, in a hyperautomated warehouse, autonomous mobile robots (AMRs) not only move goods but also self-schedule maintenance and recharge. Robots perform real-time inventory audits, while AI-powered systems orchestrate picking and routing tasks, predict demand spikes, and automatically trigger supplier orders - all with minimal human intervention.

Hyperautomation comes with important benefits. It increases efficiency and accuracy, as robots can work 24/7, it cuts costs, it’s scalable across entire networks, reduces labour-associated risks and, very importantly, it supports real-time decisions. AI can be used to provide important insights and real-time visibility over the most important issues or opportunities, leading to faster and better decisions

With so many new available technologies, hyperautomation is considered to become a real “condition of survival”.

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Adaptive Warehousing 

An Adaptive Warehouse is a fully autonomous, self-learning warehouse powered by AI and AI agents. It can learn, adapt and act autonomously to optimise the entire unit or network.

Adaptive warehouses, the final stage in the digitalisation journey we explored in our most recent whitepaper and a core component of Logistics 5.0, leverage robotics, AI, and agent-based systems to optimise a wide range of processes, from asset utilisation and workforce management to sales and customer relations.

By using real-time data, adaptive warehouses offer greater visibility and enable proactive decision-making, sometimes even executing decisions without human intervention. For instance, such a system might pre-allocate gates for incoming products, assess the most efficient putaway plans, simulate scenarios, and adapt accordingly. As a result, trucks no longer dwell in yards, time is saved, and inventory is handled more efficiently.

Adaptive warehouses will evolve into components of adaptive supply chains - smart, dynamic networks that collaborate, anticipate and adapt. In this environment, humans will continue to play vital roles in strategy, innovation, leadership, and people-focused activities.

To learn more about why Adaptive Warehouses are the future, check out our whitepaper.