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.