Kesko has chosen the ActiveWarehouse solution from Manhattan Associates to replace its outdated, batch-based warehouse management system at the distribution centres of its grocery retail operations. The Finnish retail group plans to initially roll out the cloud-native solution, which includes agent-based AI capabilities, at five distribution centres.
With this platform, Kesko aims to interpret operational signals in real time and respond to them. To this end, the retail group intends to use AI agents to streamline its processes. This will enable Kesko to meet its delivery commitments more reliably.
Following the planned rollout across the five distribution centres, Kesko also intends to implement the solution at a new site in Nurmijärvi, north of Helsinki. The company is planning to open this site, which will utilise numerous automation solutions from Knapp, in either 2029 or 2030. The Retail Optimiser reported. Several terminal hubs are then set to follow. These regional transshipment points consolidate and sort goods for onward delivery but typically only store them for short periods.
Kesko wants upgrades without downtime
Kesko also aims to create a warehousing and technology infrastructure that can evolve without the usual disruption caused by software updates. Manhattan Associates operates ActiveWarehouse on a cloud-native microservices architecture. The platform is set to receive new features every 90 days without the need for any system downtime.
The Nordic retail giant also plans to deploy AI agents specially developed by Manhattan. The Wave Coordinator Agent is designed to identify the causes of stock shortages during picking waves and find suitable alternative stock. With the Labour Agent, Kesko aims to monitor staff workload and reallocate workers in response to changes in demand. The Warehouse Associate Agent is designed to guide warehouse staff through individual work steps directly on their mobile devices.
Kesko is evaluating additional AI agents
In addition, Kesko is evaluating further specialised agents designed to support additional processes in the goods-in department. To this end, the retail company intends to use the Manhattan Agent Foundry. This development environment enables users to create, customise and manage AI agents.
