This study addresses the need for empirical studies involving Cyber Physical Systems (CPS) in Smart Production Logistics (SPL). The study explores the challenges for generating, handling, and using real-time location information originating from CPS in SPL. We conduct an explorative case study at a multinational manufacturer developing a CPS for material handling. Drawing from SPL literature and organization theory, the results show how increased information processing capacity may reduce equivocality and uncertainty in SPL leading to active perception, response, and autonomous decision-making. The study presents important managerial implications that may be essential for developing CPS in SPL