Warehouse robotics company Nomagic, applying general-purpose Physical AI to optimize warehouse operations, today announced a new ‘Shoebox Picker’ as part of its portfolio of solutions.

As a cutting-edge application of Physical AI, the Shoebox Picker is the AI perception and robot control system with an intelligent end of arm gripper designed for high-reliability handling of two-piece and unsealed shoeboxes. The Shoebox Picker’s powerful AI software analyzes specific characteristics of each shoebox including size, weight, lid type and orientation to predict the ideal movements for the pick task, then guides the arm gripper to execute the pick. This enable a secure process – even for unsealed shoeboxes with separating lids – without taping, crushing or losing the lid, allowing the solution to pick what is often considered unpickable.

In modern warehouses, handling shoeboxes is one of the hardest tasks to automate. In a typical fashion e-commerce warehouse, shoeboxes constitute approximately 20% of all items. For fulfillment centres specializing in footwear, this percentage is significantly higher.

With endless variations in size, weight, and lid type, shoeboxes can create a bottleneck that prevents a fully automated fashion workflow. Until now, all operations related to picking, packing, and sorting shoeboxes have been a manual process with standard robotic systems failing to achieve the same precision as the Nomagic solution.

The Shoebox Picker is first of its kind with its unique abilities to:

• Handle Two-Piece and Unsealed Boxes: It securely grasps boxes without requiring them to be taped or sealed, preventing lids from separating and contents from spilling.
• Manage Variation: It effectively handles a diverse mix of shoebox designs, accommodating different sizes, weights, and materials.
• Provide Multi-Orientation Capability: The system can pick shoeboxes placed both vertically and horizontally, a common state in dense warehouse storage.

The Shoebox Picker eliminates the need for items to be singled out or pre-oriented, a requirement that made automation impractical before. This enables the solution to achieve a throughput of up to 450 UPH for shoebox-only handling and up to 600 UPH for mixed bins, while covering more than 98% of shoebox SKUs currently available in the market.

Kacper Nowicki, co-founder and CEO of Nomagic comments: “The Shoebox Picker is a great example of the embodiment of Physical AI. It combines the intelligence of AI with a physical system to solve real-life physical problems. Automated shoebox handling is an immense challenge in logistics. The Shoebox Picker enables automation for this missing part of fashion logistics. I’m proud to see Nomagic pushing the boundaries of what is possible with Physical AI for intralogistics.”

In addition to footwear and apparel brands, the Shoebox Picker is especially advantageous for e-commerce fulfillment centres or third-party logistics providers that manage warehouses and fulfillment for fashion retailers as well as retailers and companies that use dark stores or micro-fulfillment centres to fulfill online orders.

The Shoebox Picker will premiere at LogiMAT (March 24-26) in Stuttgart, Germany at Nomagic’s Booth 1GA57 in Hall 1G.

When Germany’s largest grocery retailer re-evaluates its entire order-picking technology, it’s about more than just optimisation — it’s about long-term strategic viability. EDEKA recognized early on that its existing pick-by-voice system could no longer meet the growing demands for efficiency, ergonomics, and cost-effectiveness. The requirements for a new system were clear: it needed to be more powerful, more flexible, and more economically attractive — all while integrating seamlessly into existing operations.

Following a brief but intensive testing phase, the decision was made. Ehrhardt Partner Group (EPG) won out with ‘LYDIA Voice’. The solution not only met all technical and economic criteria, but also enabled a smooth, phased transition by allowing parallel operation with the legacy system. This approach allowed approximately 10,000 users across 33 locations to become familiar with the new technology without any loss in productivity. The rollout was carried out gradually across regional distribution centres.

From fresh fruits and vegetables to beverages and cosmetics, EDEKA offers an exclusive assortment of around 25,000 food and non-food items. This wide-ranging product selection meets the needs of a diverse and varied customer base. With 11,100 stores, the EDEKA Group is one of the most powerful players in the German grocery retail sector and a reliable partner for independent retailers, suppliers, wholesale customers, and convenience store operators. A strong commitment to quality shapes every aspect of the company’s operations throughout the entire value chain. This is especially evident in logistics. EDEKA’s wholesale operations are managed by seven regional companies that ensure all products arrive fresh and on time at more than 7,000 EDEKA stores. Deliveries are made from a total of 38 logistics centres spread across Germany, ensuring a seamless and reliable supply chain.

A New Sound

Order picking is a critical component of EDEKA’s logistics operations, playing a key role in maintaining a smooth and efficient flow of goods. However, the limitations of the existing pick-by-voice system had become increasingly apparent: lack of flexibility, ergonomic issues, and growing complexity in collaboration with the provider made a system change inevitable. EDEKA set out in search of a solution that not only delivered technologically but was also future-ready. That search led to LYDIA VoiceWear — the innovative picking vest developed by the voice recognition and logistics software experts at EPG.

Already familiar to the team, LYDIA VoiceWear was put to the test under real-world conditions — and the results were convincing across the board. Malte Kruse, Head of IT Logistics Systems EDEKA Minden Hannover, summed up the decision clearly:

“LYDIA VoiceWear offers functionality that’s truly one of a kind — there’s nothing else like it on the market. What’s more, our employees can be productive right away, without any prior voice training. That’s a significant advantage. With our previous system, that wasn’t possible — and when it comes to seasonal workers, quick onboarding is absolutely critical to our operations.”

Switching to Voice During Live Operations

EDEKA’s decentralized structure results in a highly diverse IT landscape — a factor that posed a significant challenge during the transition to the new pick-by-voice system.

“This was essentially open-heart surgery, as the switchover took place during ongoing operations,” explains Tim Just, CEO of Voice Solutions at EPG. “Despite the wide range of different systems and the autonomy of the regional companies, the rollout was smooth and uninterrupted. A key factor in this success was the strong commitment of EDEKA’s decision-makers and the openness of its employees.” It quickly became clear that LYDIA Voice was capable of managing the existing complexity and translating it into an efficient, unified system — even under real-time, live conditions.

Ergonomics That Work

The decision to adopt the LYDIA VoiceWear picking vest originated from an initiative by EDEKA Minden-Hannover. The system allows for maximum freedom of movement during pick-by-voice operations while meeting key requirements for ergonomics, speed, and flexibility in order fulfillment. Instead of using a separate headset, the microphone and speaker are integrated directly into the wearable system — providing not only greater comfort but also clear voice transmission. The built-in audio system also supports users who wear hearing aids — a significant advancement in inclusion and accessibility, since traditional headsets have often posed a barrier in this area. From a technological standpoint, digital audio transmission is robust and offers high bandwidth.

Another standout feature is the integrated beamforming technology, which significantly reduces background noise — even in high-noise warehouse environments. The microphone array, consisting of four high-performance microphones, creates a directional ‘funnel’ effect for speech input. This ensures accurate voice recognition, even when multiple pickers are working close to each other. “All of our hardware and software components are developed with a strong focus on user-friendliness,” explains Just. “That leads to significantly higher acceptance and noticeably greater user satisfaction — an effect that became immediately clear at EDEKA.”

Following the rollout in EDEKA Minden-Hannover, EDEKA Nordbayern also began implementation of LYDIA Voice and LYDIA VoiceWear. Today, more than 4,400 devices are in use across 33 logistics centres.

Logistics companies can avoid expensive mistakes by understanding that a technology business case is not the same, or as good as, a strategy, writes Brad Forester (pictured, below), the Founder and Managing Partner of JBF Consulting.

For shippers and logistics leaders, the story is becoming uncomfortably familiar. A compelling demo. A polished ROI model. Confident assurances that a new transportation, warehouse, or visibility platform will ‘pay for itself’”’ within 12 to 18 months. The business case is approved; contracts are signed – and three years later, the organization is left with under-utilised technology, frustrated users, and the realisation that the expected value never materialised.

In many cases, the cost of that mistake can quietly creep past eight figures. The problem isn’t that companies are investing in technology. It’s that they are confusing a technology business case with a technology strategy. And the two are not the same.

The Illusion of Vendor-Supplied ROI

Vendor ROI models are designed to sell software, not to diagnose organizational readiness or strategic fit. They rely on optimistic assumptions: rapid adoption, clean data, standardized processes, and a level of internal alignment that most organizations simply don’t have at the time of purchase.

These models are not inherently dishonest, but they are incomplete. They focus on what the software can do in ideal conditions, not what the business is actually prepared to execute, sustain, and scale.

That gap between promise and performance is well documented. In a late-2025 survey, only about one-third reported being satisfied or very satisfied with their current routing and scheduling technology. Nearly two-thirds described their experience as neutral or dissatisfied despite having justified the investment through formal ROI analysis.

For executive teams, this creates a dangerous illusion of certainty. The spreadsheet says the investment works. The payback period looks reasonable. The risk appears to be contained. What’s missing is a clear understanding of whether the technology aligns with the company’s operating model, maturity level, and long-term objectives.

The Pre-Buying Gap

While many technology failures are realized during implementation, the root causes of those failures are often baked in long before the RFP is issued. This ‘pre-buying gap’ is where organizations skip the hard work of defining what success actually looks like beyond cost savings. They move directly from pain points, saying ‘we need better visibility’ or ‘we need to automate’, when selecting vendors without first answering foundational questions:

• What strategic problem are we solving?
• Which decisions do we expect this technology to improve?
• What capabilities must exist outside the system for it to deliver value?
• How will this investment change behaviors, processes, and accountability?

The hesitation many organizations express reflects an implicit recognition of this gap. In the same survey, 60% of respondents said they have no plans to implement new routing and scheduling technology within the next two years. This is not a lack of awareness or innovation appetite; it is a sign that leaders increasingly understand the risks of buying technology before the strategy is clear. Without addressing the pre-buying gap, technology becomes a very expensive experiment instead of a strategic enabler.

Functional Requirements: The Uncomfortable Truth

Functional requirements are often treated as a box-checking exercise. In reality, they should be a forcing mechanism for strategic clarity. Too often, requirements are copied from legacy systems or shaped by vendor marketing language. This leads to bloated lists that obscure what truly matters.

The survey referenced earlier reinforces how rarely technology limitations are the real constraint. When asked what inhibits implementation, more than half of respondents cited cost as the primary barrier, while over a quarter pointed to lack of internal resources. Factors such as IT constraints and executive alignment also surfaced, while pure functionality gaps ranked far lower.

In practice, most technology initiatives don’t fail because software can’t deliver. They fail because the organization is not structured, staffed, or aligned to support the change the software demands. Effective requirements start with outcomes, not features. They distinguish between what is essential to execute the strategy and what is merely nice to have.

Benchmarking Provides Context

Another critical due diligence step often overlooked is objective industry benchmarking. Without understanding how peers with similar network complexity and operating models perform, it’s nearly impossible to set realistic expectations. A 5% freight savings claim may sound impressive until you realize the organization is already operating in the top quartile or dangerously misleading if foundational inefficiencies remain unresolved.

Benchmarking helps leadership distinguish what technology can influence versus what requires structural change. It also helps prioritize investments instead of chasing incremental gains that won’t move the needle.

Strategy Before Software

Perhaps the most expensive mistake companies make is allowing technology selection to drive strategy instead of validating strategy first. When vendors are asked to define the future state, organizations risk outsourcing critical thinking. The roadmap becomes shaped by product capabilities rather than business priorities.

Executive alignment and business case clarity consistently appear as inhibitors to successful implementation; an indication that many initiatives move forward before leadership agreement and success metrics are fully defined. By performing strategy work before issuing an RFP, buyers also gain a far more comprehensive understanding of the true work effort involved. This includes the internal resources required, the organizational changes needed, and a realistic timetable for implementation.

That clarity materially improves cost estimation. Instead of relying on high-level vendor assumptions, organizations can more accurately quantify implementation effort, internal labour, change management, and ongoing operating costs. When paired with a clearer articulation of business benefits, this creates a far more precise and defensible estimate of ROI and payback period.

More precise costs plus more realistic benefits produce better buyers; buyers with grounded expectations, stronger governance, and a higher probability of realising value after go-live. Strategy validation means pressure-testing assumptions before they are embedded in contracts. It asks whether the organization has executive alignment on trade-offs, the operating model to support new capabilities, and the governance required to measure value realisation over time. If the answer to any of these is unclear, the organisation is not at a disadvantage; it’s simply not ready to buy.

A Strategy-First Mindset

Technology can be a powerful accelerant, but only when it is anchored to a clear, validated strategy. The most successful organizations invert the traditional buying process. They invest first in understanding themselves before investing in tools.

This approach doesn’t slow decision-making; it improves it. It leads to fewer surprises, stronger vendor partnerships, and measurable value that holds up under scrutiny. As a result, the most expensive technology mistake isn’t buying the wrong system — it’s buying a system without a strategy.

From March 24 to 26th the international materials handling industry will meet in Stuttgart. For Dambach Lagersysteme, LogiMAT 2026 provides an opportunity to showcase innovative products addressing key challenges in intralogistics. As an independent specialist in stacker cranes, shuttle systems, conveyor technology, and material flow control, the company will present at Hall 1, Booth F41, a portfolio of solutions designed to maximize space utilization and increase warehouse efficiency.

With intralogistics solutions such as the flexible ‘Rail Guided Vehicle System’ and proven warehouse equipment, DAMBACH Lagersysteme demonstrates its extensive product range for system integrators and general contractors. As one of the few independent providers with a broad range of intralogistics components, customers receive objective advice and support in selecting the optimal system.

In addition to presenting new and established products to an interested and knowledgeable audience at LogiMAT 2026, DAMBACH Lagersysteme will take the opportunity to exchange ideas with partners: “LogiMAT is a key meeting point for us to discuss the future of warehouse logistics with decision-makers,” emphasizes Dr. Benjamin Thumm, Managing Director. “Here we nurture long-term partnerships with system integrators and general contractors.”

Moreover, LogiMAT offers DAMBACH Lagersysteme a platform for knowledge transfer. With a presentation on ‘Efficiency in Pallet Handling: System Differentiation and Technology Comparison’, Thumm will provide a comparison of different systems. The short presentation takes place on Thursday, March 26, 2026, from 11:00 to 11:30 AM at Forum North, Hall 7, Booth 7C65.

“The industry is changing rapidly. Investing today secures competitive advantages for tomorrow,” explains Jörg Marx, Head of Sales at DAMBACH. “With us, you gain a partner who not only delivers technology but solutions that make your processes more efficient.” Beyond the presentation, staff will be available to exchange ideas and answer questions from visitors.

Under the motto ‘Passion for Details – Discover the Difference,’ LogiMAT will aim to set new European standards for the 24th time. The largest trade fair for intralogistics solutions and process management addresses the central questions and challenges the industry faces today and will continue to face in the future, focusing on increasing demands for efficiency, flexibility, and sustainability in the digital era.

AR Racking has launched a new galvanised version of its AR LS system, with galvanized steel shelving uprights, a medium-duty shelving solution designed for picking operations and manual storage.

With this launch, AR LS abandons the painted finish for its uprights, adopting galvanizing on the uprights as its standard option, in line with the evolution of the company’s complete catalogue towards solutions with higher performance and longer useful life. The rest of the system’s components remain configurable according to the needs of each installation.

The galvanised finish strengthens the value proposition of the system: greater resistance to wear and demanding conditions (humidity, abrasion, frequent cleaning), less need for maintenance and a longer lifecycle of the installation. The result is stronger and more reliable infrastructure that helps ensure the operating continuity of the warehouse and optimises the total cost of ownership.

Improved durability

AR LS maintains its modular architecture to facilitate extensions, reconfigurations and adaptations to changes in demand, ensuring agile implementation and system evolution without interrupting daily operations. The solution also offers a wide range of accessories to customise levels, dividers and protections according to the type of goods and work flows.

Galvanised steel shelving

“With galvanised AR LS we have taken another step in our commitment to solutions that work in the day-to-day operations of the warehouse: greater strength and durability to ensure operational availability”, pointed out Gorka Arteaga, EMEA Sales Director at AR Racking.

Intralox, a global provider of specialty material handling equipment for warehouses and distribution centres, announces its presence at LogiMAT 2026, March 24-26 in Stuttgart, Germany. At stand 1GA89 the company will show its full line of material handling equipment, including induction, switching, merging, singulating, gapping and sorter solutions. This year’s Intralox booth features the ‘SmartPath™’ Singulator and Gapper.

SmartPath is an activated roller belt (ARB) solution that combines both singulation and gapping functions into a single, compact piece of piece of equipment. It sits upstream of a sorter and can prepare 2D bulk package flow to be merged into a single-file stream for an automated sorter. Extremely small activation zones enable precise, independent control and low error rates, increasing throughput of a wide range of package types, including polybags. SmartPath can also act as a buffer, momentarily holding or slowing packages to match the induction rates that the downstream sorter is designed to handle. This capability helps avoid jams and maximise downstream sorter equipment with no operator intervention required. With a length of just 2.4 meters (eight feet), SmartPath requires up to 42% less space compared to other solutions.

“Space is always at a premium in logistics facilities, whether you’re trying to minimise the footprint of a new system or retrofitting around existing conveyors,” says Florian Mattheis, Industry Team Leader EMEA, Intralox. “SmartPath delivers the gapping performance downstream systems need while fitting into even the tightest layouts, which is why it’s so valuable to order fulfilment processes.”

SmartPath integrates into new or existing lines and can be utilised in several warehouse applications, including:
• Singulating and gapping packed orders for outbound sortation. After employees pack orders and place them on conveyor, SmartPath singulates and gaps each order properly before handing them off to the shipping sorters.
• Returns processing. As returned orders enter warehouse and distribution centres as irregular, non-uniform bulk flow, SmartPath singulates and gaps orders for further processing through automated systems.
• Autoinduction to loop sorters. SmartPath provides the precise, constant stream of packages high-speed loop sorters require, helping reduce labour requirements and maximise sorter utilisation.

Pairing SmartPath with the Intralox ARB Sorter S7000 can enable an even more condensed footprint, using up to 60% less space than other approaches. This is a key example of how the company’s technology integrates seamlessly and works together to provide additional value and address the evolving needs of parcel and warehouse operations. The Intralox bulk-to-sorted product line offers a range of equipment to handle incoming bulk flow, induction, singulation, gapping and sortation, unlocking greater capability and performance while reducing cost and footprint.

Beer and soft drinks powerhouse Carlsberg Britvic has changed supplier for the manufacture of thirty-seven new trailers for its primary logistics operations, replacing older vehicles. The order placed with Tiger Trailers was split into a trio of fixed double decks with wraparound rear curtains, and thirty-four single deck trailers which are also curtainsided.

Sarah Perry, VP Customer Supply Chain at Carlsberg Britvic, comments: “In addition to Tiger’s reputation for high quality products and strong customer service, we were also impressed by its sustainability agenda – which includes investing in energy efficiency, planting one tree for every trailer ordered, and its community road safety activities. We are very pleased with the finished vehicles.”

Carlsberg Britvic’s thirty-four new single deck Tiger curtainsider trailers showcase bold liveries spanning Pepsi MAX, Lipton Ice Tea, 7UP, 1664, Robinsons, Tango, Birrificio Angelo Poretti, J2O, and Carlsberg Danish Pilsner, highlighting the recently formed business’ sizeable portfolio of beverage brands. The new designs offer a taste of Carlsberg Britvic’s extensive portfolio of 41 brands which includes premium beer and cask ale, plant-powered juice shots and iced coffee, sugar free soft drinks and alcohol-free brews. These trailers will primarily transport bottles and cans, and at times will carry large-pack loads such as kegs and casks, delivering to internal sites, NDCs, RDCs, wholesalers, supermarkets, larger festivals, and sports grounds.

The three Hobgoblin-branded double deck trailers have both a fixed three-quarter-length main deck rated at ten tonnes with Expamet steel flooring for added safety and durability, and an additional fixed deck above the neck area, rated at four tonnes. Cargo is secured using three full-height nets fitted to each side, with transverse netting enabled by the under-deck tracks. These trailers will move just-in-time stock around the network for next-day deliveries, from the primary logistics hubs to the secondary operations satellite sites, where transport is taken over by a 300-strong fleet of rigids from 3.5t vans to 26t trucks, delivering to pubs, clubs, sporting venues and small festivals.

Tiger tailors its products to meet each customer or end user’s requirements, and in this instance the drinks firm specified flush-fitting rear doors, various additional grab handles and straps to raise operator safety, plus added vehicle durability through galvanised components and extra buffers.

Thomas Stott, Key Account Director at Tiger Trailers, says: “Manufacturing trailers for transporting some of the world’s best-known alcoholic and soft drinks is a privilege and we’re very pleased to welcome Carlsberg Britvic as a Tiger customer following their tendering decision to choose us as their new supplier for these build contracts. The new liveries they designed for these latest curtainsiders look fantastic. We look forward to supporting the Carlsberg Britvic team going forward with our range of aftercare services.”

Carlsberg Britvic’s thirty-seven new Tiger trailers entered the drinks firm’s network via its Burton-on-Trent site initially, with the double decks set to haul between internal secondary depots, and the single decks destined for duty anywhere from Scotland to Cornwall, joining its primary logistics fleet comprised 50 tractor units, 120 trailers and 8 tankers.

Europa Road has confirmed that UK exporters have transitioned smoothly to its new Delivered Duty Paid (DDP) services following the abolishment of one-off tax representation in France for non-EU businesses which came into force on 1 January and is yet another damaging effect of Brexit.

Leading provider of acoustic solutions, Allaway Acoustics, is a prime example of a UK-based business that would have been severely impacted by the new French legislative requirements. Allaway provides materials for data centres across the EU – with bespoke acoustic solutions to control noise emissions from power generation and cooling equipment. A third of Allaway’s business is with European markets, including large projects in Germany, Netherlands and France, so any delays could have a significant financial impact.

The new rules require UK exporters shipping goods into the EU (via France) under DDP terms to hold a French VAT number. Alternatively, the EU importer can appoint Europa to zero-rate the import VAT on their behalf.

At the end of 2025, confusion around these new French regulations was rife and threatened to undermine British exporters’ confidence in European trade. While the changes generated widespread concern in the run-up to their launch, Europa’s customers have continued trading with minimal disruption.

Faced with the challenges of these new French regulations, Europa offered early intervention to all its customers, including Allaway, and outlined the options available to ensure its EU customers didn’t face disruption or delays.

Drawing on its experience with 100 in-house customs specialists working across the EU and UK, Europa expanded its DDP Flow services to offer a choice between: ‘DDP Flow – Importer’s Signature’ and ‘DDP Flow – Own French VAT Number’. It’s early days, but to date the company reports equal numbers of its customers choosing each option, reflecting their differing operational and commercial needs.

Allaway considered both DDP Flow options and, with Europa’s support and guidance, opted for ‘DDP Flow – Own French VAT Number’. This option reduced the impact on Allaway’s customers and, with Europa’s support, the company was able to secure their French VAT number in time to send its first shipments in the New Year.

Sam Giles, Head of Logistics at Allaway Acoustics, commented: “The news of Regime 42 was widespread, which made it all feel daunting. However, Europa supported us every step of the way, clearly outlining the options available and how this would all affect our customers. On paper, the ‘DDP Flow – Importer’s Signature’ option seemed like the best solution for us, but with further advice we found the ‘DDP Flow – Own VAT Number’ would ensure ‘business as usual’ for our customers.

“Initially, I struggled to know our best option but with the hands-on approach the Europa team provided, it made our options clear and ensured I fully understood each process from start to finish. Europa supports our largest projects, which meant we really had to get this right. As we support fast paced and high-profile building projects in the EU with our bespoke acoustic solutions, timing is everything.”

Andrew Baxter, Chief Executive Officer at Europa said “Early on there was a great deal of confusion in the market including incorrect claims that British exporters would lose access to Regime 42. Our focus was to provide clarity and choice so customers could continue trading with confidence. Though some customers were more prepared that others, our branch teams across the county have worked hard to minimise any challenges they faced, ensuring we provide the fastest and best value for customers.

“We’re pleased to be able to support major UK exporters, such as Allaway and help them navigate the best solution to keep goods flowing.  The fact that exporters have adopted both solutions shows the importance of flexibility. What matters is that goods are continuing to move seamlessly across borders.”

Tata Consultancy Services has been selected by Kalmar Oyj, a global manufacturer of heavy material handling equipment and services, as its strategic IT partner to spearhead a full IT service transformation.

To enable Kalmar to operate even more efficiently, TCS will help establish a modern, integrated, AI-powered, digital core IT foundation that will reduce costs while enhancing agility and efficiency. As per the partnership, TCS will consolidate Kalmar’s IT landscape into a single integrated delivery model spanning application maintenance and development services, end-user service, and infrastructure and hybrid cloud operations. TCS will introduce an AI-driven operations framework and a unified command center to enhance observability, strengthen service reliability, and reduce operational complexity across Kalmar’s global footprint. As part of the collaboration, TCS will also enhance the digital experience of Kalmar’s 5,200 employees by using AI to support better human-machine collaboration. By driving continuous innovation, TCS will enable Kalmar to remain a perpetually adaptive enterprise.

Tero Lehtonen, CIO, Kalmar said, “Our decision to partner with TCS is built on the confidence gained from a successful history of collaboration. We are convinced by the ability of TCS in establishing a modern, agile, and AI-first IT foundation for Kalmar. Our collaboration is among the key enablers to achieving our strategic goals.”

Subhadipta Samantray, Country Head, TCS Finland said, “Kalmar’s decision to partner with TCS as its strategic IT services provider is a strong endorsement of our ability to support global organizations through comprehensive, post-separation transitions and build the digital foundations of their future. With our deep contextual knowledge, strong local presence, delivery expertise along with global AI-leadership, we look forward to supporting Kalmar with enhanced operations, and continuous digital innovation for the years ahead.”

Arun Pradeep Surendra Mohan, Business Head – Travel & Logistics, EMEA, TCS said, “Our focus for Kalmar is to build a resilient, AI-first digital core that delivers agility, reliability, and scale. By combining deep contextual knowledge with TCS’ AI expertise and an integrated IT delivery model, we will help simplify Kalmar’s global IT landscape, strengthen operational resilience, and enhance employee experience enabling continuous innovation and strengthen long-term competitiveness.”

TCS has had a presence in the Nordic region since 1991, and its 20 000 consultants serve clients in Finland, Sweden, Denmark, and Norway. Deeply rooted in innovation, TCS PaceTM Studio in Stockholm offers its Nordic customers exclusive access to its PaceTM ecosystem.

The fleet management industry is undergoing rapid change. From digitalisation and sustainability mandates to evolving commercial pressures and the global expansion of connected mobility technologies, the next 12–24 months will be a defining period for fleet operators across Europe and beyond. The latest European industry reports collectively illustrate a sector coming to grips with technology, regulation and operational necessity, according to vehicle connectivity firm Cubic3.

The Forces Shaping Fleet Strategy

According to a recent industry overview, a survey of over 1,800 fleet decision-makers across 15 countries highlights four principal trends for the upcoming year. These priorities reflect both operational imperatives and broader shifts in corporate and public policy environments.

Key among them are the acceleration of electrification, the heightened emphasis on safety and compliance, the deeper adoption of telematics and data analytics, and the strategic optimisation of vehicle utilisation. Across haulage, delivery, car sharing and corporate fleets alike, these trends are no longer abstract objectives but day-to-day operational pressures.

Electrification and sustainability continue to dominate strategic planning for fleet directors. The combination of EU regulatory pressure, nationwide emissions zones, and corporate net-zero commitments is transforming fleet composition and management practices. Electric vehicle (EV) adoption is no longer simply a vehicle-type choice; it requires fleet managers to integrate dedicated EV-focused tools, for example, battery health monitoring, charger-aware routing and energy usage optimisation, into broader operational systems. These capabilities are emerging as essential components of any modern fleet strategy, particularly as fleets accelerate toward zero-emission targets while maintaining service reliability and cost control.

European Market Expansion Against a Global Backdrop

As Europe’s fleet management ecosystem evolves, the global market is expanding rapidly. The latest MarketsandMarkets report projects that the global fleet management market will grow from an estimated USD 37.71 billion in 2025 to USD 70.26 billion by 2030 at a compound annual growth rate (CAGR) of roughly 13.3 per cent. Growth drivers include the expanding footprint of commercial vehicle fleets in logistics, utilities, and field service operations, as well as a growing imperative to improve cost control and regulatory compliance.

Europe is distinctive both in its maturity and its aspirations. Recent European fleet industry reports forecast significant regional uptake of fleet management systems, with the installed base of active systems set to grow markedly through the end of the decade. One strategy forecast suggests that fleet management systems in Europe could increase from 18.1 million active units in 2024 to approximately 30.5 million by 2029.

In fact, independent analysis highlights Europe’s own fleet management market expanding from an estimated USD 11.82 billion in 2025 to USD 21.90 billion by 2030. This is supported by a robust 13.1 per cent CAGR and reflects the combination of regulatory complexity, rising EV penetration, and fleet operators’ increasing demand for real-time data, automation and integrated cost management.

Technological Drivers: Telemetry, Data and Automation

At the heart of this transformation is technology. Fleet management systems, once an optional extra for larger enterprises, are now central to operational efficiency for fleets of all sizes. These systems integrate telematics, IoT sensors, GPS tracking, and analytics engines to deliver comprehensive visibility over vehicle performance, driver behaviour, route optimisation, and compliance reporting. This data-rich environment enables predictive maintenance, more intelligent routing, reduced fuel and energy costs, and improved safety outcomes. For haulage and delivery operators working on increasingly tight margins, these capabilities directly impact profitability and service reliability.

Cloud-based fleet management platforms are also gaining traction because they offer the scalability, secure access and real-time updating capabilities that today’s distributed and multi-national fleets require. These platforms allow fleet managers to respond dynamically to shifting conditions, integrate with back-office systems, and ingest large volumes of operational data without the constraints of legacy on-premises infrastructure.

Commercial and Regulatory Imperatives

Beyond technology, fleet management in Europe is shaped by commercial pressures and regulatory frameworks. Urban low-emission zones, congestion charges, and evolving safety standards demand granular reporting, compliance tracking, and automated policy enforcement at the vehicle- and driver-level. This environment is forcing operators to adopt tools that can ensure regulatory alignment at scale.
Commercial logistics fleets, particularly those operating in last-mile and cross-border markets, are actively investing in systems to improve reliability, reduce carbon emissions, and enhance customer service. The growth of e-commerce and same-day delivery models has pushed efficiency to the top of the agenda, making advanced route planning and performance monitoring core investible functions.

From Fuel Cards to Intelligent Fleet Payments

To successfully deliver this transformation, fleet managers face persistent challenges: fragmented systems, disconnected data and limited visibility across fuel spend. Fuel price volatility, fraud risk and the expansion of EV charging and tolling networks have increased pressure on fleet operations in the future.

FleetWallet3 helps fleet operators regain control of one of their most vulnerable cost centres: in-vehicle payments. Traditional fuel cards are prone to fraud and inefficiency, whereas FleetWallet3’s cloud-based, AI-enabled platform links directly to telematics data to enable secure, real-time transactions.

By analysing live vehicle and journey data, FleetWallet3 can detect and prevent anomalous spending before losses occur, while providing clear visibility into fleet-wide expenditure. With automated workflows and PSD2-compliant security, fleet managers can manage fuel, tolls and mobility services from a single dashboard, improving cost control and operational efficiency at scale.

Outlook: What Comes Next for Fleet Leaders

This year, Europe’s fleet ecosystem faces both opportunities and hurdles. The ongoing integration of EVs presents clear sustainability benefits but requires investment in charging infrastructure and sophisticated energy management tools. The rapid expansion of connected vehicle data streams offers unprecedented insights, yet raises questions around data governance, cybersecurity and interoperability. Moreover, as AI and machine learning continue to mature, they will increasingly shape fleet decision-making, from predictive diagnostics and automated route optimisation to real-time spend control and intelligent payment authorisation.

Fleet managers who align strategic priorities with robust, integrated technology platforms will be best positioned to navigate this environment. As digitalisation, sustainability mandates and financial accountability converge, fleet management is evolving from a logistical function into a strategic enabler – one where payments, data and operational intelligence must work seamlessly together.