IFS, a global leader in Industrial AI software, unveiled its plan to acquire Softeon, a recognized Gartner Visionary known for its cloud-native Warehouse Management System (WMS), Warehouse Execution System (WES), and Distributed Order Management (DOM) solutions. This strategic move is set to expand IFS’s capabilities into the rapidly growing $8.6 billion warehouse management systems market, enabling unified support for manufacturing and warehouse operations on a single intelligent platform.
This acquisition marks a significant step in IFS’s long-term strategy to extend its manufacturing software leadership into supply chain execution. As companies face ongoing supply chain transformation challenges including modernization pressures, aging infrastructure, and labor scarcity the integration of sophisticated warehouse solutions is increasingly essential. Softeon’s advanced WMS and WES offerings will complement IFS’s Industrial AI technology, delivering more intelligent, automated, and agile warehouse operations for complex enterprise environments.
Softeon’s customer base includes well-known global enterprises such as Sears Homes Services, Sony DADC and DB Schenker Logistics, underscoring the company’s strong market presence and proven solution capabilities.
Industrial AI Applied to Warehouse Operations
The combined solution will embed agentic AI and physical AI orchestration throughout warehouse processes from fulfillment and labor optimization to real-time yard visibility and automated systems integration addressing limitations of legacy systems that depend heavily on manual workflows.
The acquisition supports IFS’s broader vision for Industrial AI, first introduced at Industrial X Unleashed, which emphasizes contextual, industry-specific intelligence deployed directly where work occurs. Softeon’s cloud-native technology aligns with this vision and forms the foundation for delivering advanced warehouse automation and intelligence at scale.
Enhanced Robotics and Autonomous Capabilities
With this acquisition, IFS plans to integrate Softeon’s solutions with its existing partnerships in robotics and automation, including collaborations with Boston Dynamics and 1X Technologies. The goal is to enable highly autonomous warehouse environments where physical robots and digital AI workers collaborate to execute complex order fulfillment tasks, improving throughput, accuracy, and labor efficiency.
By bringing together Softeon’s native integrations with robotics, voice systems, and automation technologies alongside IFS.ai’s agentic capabilities, the combined platform will unlock new levels of operational intelligence enabling enterprises to reallocate human workers to higher-value tasks such as judgment-based decision making and exception management.
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A New Competitor in Warehouse Technology
The warehouse management segment is currently poised for disruption, with many organizations seeking modern, AI-enabled solutions that move beyond traditional architectures. The convergence of Softeon’s cloud-native WMS platform with IFS’s Industrial AI and robotics expertise is expected to offer a differentiated solution that addresses the demands of large-scale, mission-critical industries and complex supply chain ecosystems.
For manufacturers and asset-intensive enterprises in aerospace and defense, energy, engineering and construction, transportation, and other sectors, the acquisition delivers integrated functionality that supports seamless orchestration between production, warehouse execution, and field service operations.
Executive Commentary
Mark Moffat, CEO of IFS, said: “The warehouse is the next frontier for Industrial AI. As we work with increasingly complex global manufacturers and asset-intensive enterprises, warehouse operations must become as intelligent and autonomous as the production lines they support. Softeon brings proven warehouse expertise to IFS, and we deliver next-generation AI, robotics orchestration, and deep industrial domain knowledge. Together, we’re redefining what’s possible when you apply Industrial AI where it matters most: on the warehouse floor, in real-time, with measurable impact on throughput, accuracy, and workforce capacity.”
Jim Hoefflin, CEO of Softeon, said: “Joining forces with IFS represents an extraordinary opportunity to accelerate our innovation in warehouse management. Our customers have been asking for advanced AI capabilities, seamless integration with robotics, and stronger connection between warehouse operations and broader supply chain processes. IFS brings exactly that, along with unmatched experience serving the demanding, mission-critical industries where precision and reliability are non-negotiable. This partnership allows us to deliver the next generation of warehouse intelligence while maintaining the deep domain expertise and customer focus that has made Softeon a trusted partner to leading enterprises worldwide.”