Kesko links cloud warehouse execution with agentic AI

Kesko links cloud warehouse execution with agentic AI

Kesko is using a warehouse management replacement to address a broader Industry 5.0 challenge: how to make large logistics networks more adaptable without sacrificing operational reliability. The Finnish retail group has selected Manhattan Active Warehouse for its grocery trade, replacing a legacy system with a cloud-native platform that includes access to agentic AI.

The programme initially covers five distribution centres. Its planned scope also includes a greenfield site expected in 2029–30 and a range of terminal hubs. Rather than treating the WMS as a fixed application that is periodically replaced, Kesko wants a foundation capable of continuous development.

Human-centred execution supported by AI

Kesko expects to deploy Manhattan’s Wave Coordinator, Labour and Warehouse Associate Agents. It is also exploring purpose-built agents for inbound operations through Manhattan Agent Foundry. These tools are intended to help interpret live operational information and support decisions around warehouse flow, labour and task execution.

The emphasis is significant. Agentic AI is being placed close to the execution layer, where it can assist people working with changing orders, available capacity and exceptions. This differs from using AI only for retrospective reporting. The practical value will depend on whether recommendations improve responsiveness while keeping human teams in control of operational decisions.

Resilience through a continuously evolving platform

Kesko’s grocery trade, which includes K-food stores and Kespro, recorded €6.5 billion in net sales and €418 million in comparable operating profit in 2025. At that scale, fulfilment performance is closely tied to customer retention. An incomplete or late delivery can make alternative suppliers more attractive.

For Kesko’s grocery business, the cloud WMS is therefore part of a resilience strategy. A platform that can absorb new capabilities, support a future distribution site and respond to operational signals may help reduce technology rigidity as the network changes. The project illustrates how digitalisation can connect workforce support, automation and supply-chain adaptability in one execution environment.

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