Kesko to deploy AI-ready cloud WMS across grocery logistics
Finnish retail group Kesko is undertaking a major warehouse technology upgrade, selecting Manhattan Active Warehouse to replace the legacy WMS used by its grocery trade. The cloud-native platform will also provide access to agentic artificial intelligence through Manhattan Active Agents and Manhattan Agent Foundry.
The project covers five distribution centres initially, with a further greenfield facility planned for 2029–30, as well as a range of terminal hub operations. For Kesko, the objective is not simply to renew software. The retailer wants a technology foundation that can evolve continuously without the disruption normally associated with large enterprise upgrades.
Real-time control for a complex grocery network
Kesko’s grocery business combines K-food stores with Kespro, its wholesale operation. The division recorded net sales of €6.5 billion and comparable operating profit of €418 million in 2025. At that scale, warehouse execution has a direct bearing on availability, delivery reliability and the ability to respond to changing demand.
The new system is intended to interpret operational signals in real time and turn them into faster decisions. Kesko expects to use Manhattan’s Wave Coordinator, Labour and Warehouse Associate Agents, while assessing additional agents for inbound processes through Manhattan’s Agent Foundry.
That approach reflects a wider change in industrial software. Rather than treating AI as a separate analytics layer, companies are increasingly embedding task-specific agents inside execution systems, where they can support workforce coordination, warehouse flow and operational responses.
From system replacement to operational differentiation
Kesko’s logistics leadership has linked the investment to the high cost of missed fulfilment commitments. In grocery, an incomplete or late order can quickly send a customer to another supplier, making accurate and timely distribution a commercial requirement rather than only an operational metric.
The retailer’s decision also signals how cloud deployment is changing the role of the WMS. Continuous updates, scalable infrastructure and configurable AI tools can reduce the technology gap between distribution operations and the wider digital retail environment. Kesko’s grocery business therefore becomes a test case for how Nordic retailers can use warehouse software as a source of resilience and competitive advantage.
