The Warehouse Automation Revolution is Here

Modernizing the warehouse has enormous benefits for picking, packing, throughput, delivery speed, and customer satisfaction.

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Key takeaways for investing in warehouse automation

 

  • An overview of warehouse automation, including the current state-of-play, key technologies, and the critical factors driving decision making.
  • The benefits of investing in automation, including labor optimization, cost savings, supply chain management, and customer satisfaction.
  • A deeper dive into four critical decision factors: Labor cost and availability, scalability and future planning, consumer-focused service levels, and future-proofing.
  • The challenges of investing in warehouse automation and the key uncertainties and risks that supply chain executives are dealing with.
  • How the shift to a 3PL solution can minimize the risks of investment. 
Geodis warehouse automation

70

%

of warehouses, with autonomous mobile robots, achieved double‑digit improvements in productivity.

77

%

of organisations are serious about automated warehouse systems.

+

4

million

commercial robots will be installed in 50,000+ warehouses by 2025.

Why warehouse automation matters

Warehouse automation is becoming fundamental across all players in the supply chain—suppliers, manufacturers, in-house providers, third-party logistics, and other stakeholders. It’s easy to see why: well-implemented automation is essential to reducing costs, managing labor, meeting customer demands, and future-proofing operations.

 

The issue is that warehouse automation requires investment, and lots of it. Significant up-front capital expenditure combines with multi-year infrastructure projects and concerns around future demand and technological relevance. This makes warehouse automation investment decisions difficult—balancing enormously significant promises and benefits on one side with questions about ROI and risk appetite on the other.

 

Executives and senior managers have good reasons to be cautious, but they still need to deliver. There’s a lot at stake, from operational efficiencies and cost optimization, to delivering better customer experiences and outcomes.

 

This paper explores many of these concepts, in particular the most important factors for investing in automation, and the best ways to achieve that. At the heart of this is the tension between promises and risks—what automation could deliver, versus the direct and indirect costs of investment. This paper also proposes a solution to these challenges: shifting the risks by moving towards true, end-to-end third-party logistics (3PL) providers who are leading the field in automation investments.