Today’s supply chain and warehouse managers are contending with a range of challenges brought about by global disruptions and evolving market demands.
The difficulties facing professionals in warehouse and logistics operations are both complex and interrelated – from shortages of skilled labour and rising operational costs to changing regulatory requirements, shifting consumer expectations, and geopolitical tensions affecting shipping and supply routes.
Although tackling these issues may appear daunting, intelligent technology and automation offer a clear path forward, enabling warehouse managers to respond to these pressing concerns in a comprehensive manner, while also supporting wider supply chain traceability objectives.
Navigating Supply Chain Challenges
If recent years have been marked by an increasingly difficult business environment, 2025 appears likely to follow suit. As Deloitte’s 2025 Manufacturing Industry Outlook notes, “manufacturers are expected to continue to face a challenging and uncertain business climate due to a combination of higher costs, potential policy changes following the US and global elections, and geopolitical uncertainty”.
The costs of raw materials and other inputs are forecast to rise, further increasing the expense of business operations, while attracting and retaining skilled talent will remain a significant hurdle. Anticipated policy shifts following worldwide elections and ongoing geopolitical developments may influence supply chains, customer demand, and long-term investment in the manufacturing sector. Changes to trade policies and tariffs may alter international regulations, raise the price of raw materials and components, and cause widespread repercussions across supply networks.
Simultaneously, consumer expectations for quicker delivery times, ‘Amazon-style’ fulfilment, and enhanced supply chain transparency are mounting pressure on warehouse and supply chain leaders.
This complex web of interdependent challenges is prompting companies to explore ways of increasing productivity and achieving more with fewer resources—delivering and dispatching products faster, without a corresponding rise in costs. Doing so requires operational agility and efficiency, including streamlined workflows and near real-time visibility of supply and demand to effectively manage disruptions, shortages, and fulfil orders with consistency and transparency.
It may seem like an impossible task—but in today’s digital age, support is available in the form of smart technologies and automation.
Why Invest in Warehouse Automation?
Businesses have been investing in warehouse automation for decades, leveraging technology to handle routine, repetitive, and manual tasks such as picking, palletising, data entry, stocktaking, quality control, transfer and analysis, and shipping.
This trend has accelerated significantly in recent years due to technological advancements. In 2023, 60% of warehouse managers stated they intended to increase their automation budgets by 20% in 2024. Meanwhile, the global warehouse automation market is projected to grow from $19.9 billion in 2022 to $54.6 billion by 2030. The warehouse robotics sector is also expanding rapidly, with an annual growth rate of 20–25%, according to Statista, while McKinsey forecasts that robot shipments will rise by more than 50% annually through to 2030.
The advantages of warehouse automation are considerable. These include reduced human error, enhanced productivity and efficiency, and – crucially – access to real-time data, offering visibility not only within the warehouse but across the broader supply chain. This real-time data serves as the backbone for addressing the operational challenges currently faced by supply chain leaders.
At the centre of warehouse automation lies the Warehouse Management System (WMS). To effectively boost productivity, improve agility and efficiency, and meet both regulatory and consumer demands, businesses must ensure that accurate data flows into, through, and out of the WMS.
Machine-readable identifiers such as GS1 QR codes, barcodes, and RFID tags can facilitate seamless data transmission from the production line into the warehouse. Vision systems can verify the accuracy of these identifiers, support reliable data exchange, and enable efficient product sorting. Within the warehouse, automated barcode and RFID scanners expedite stocktaking and enhance traceability of products in transit. Managers can also deploy robots, cobots, and secure print-and-apply labellers to assist with routine tasks like picking, packing, sorting, and pallet labelling – further streamlining operations and minimising injury risks.
These solutions are bolstered by a variety of smart technologies, including adaptive coding and marking systems, pallet and parcel dimensioners, and variable-height vision systems with ‘liquid’ lenses to handle a wide range of package sizes and ensure accurate measurements for efficient shipping.
When correctly integrated, smart production line systems and automated warehousing technologies work in unison to facilitate smooth data flow both into the warehouse and outward through the supply chain – a critical enabler of full supply chain traceability.
For many warehouse managers, the ultimate ambition is to realise a fully automated ‘lights-out’ warehouse – an intelligent, data-driven facility where operations are seamlessly managed and optimised through artificial intelligence (AI) and machine learning, which analyse patterns, predict issues, and continually improve efficiency.
However, the journey to that point requires careful planning. EY reports that 30–50% of robotic process automation projects fail globally, while Gartner predicts that at least 30% of generative AI initiatives will be abandoned after proof of concept by the end of 2025. Identifying and addressing potential pitfalls early on is therefore essential for success.
Making Automation Work
The three most frequently cited barriers to successful warehouse automation are poor planning, lack of integration, and workforce readiness. Organisations must approach automation with careful planning—unclear objectives, incompatible systems, and disjointed data flows can quickly result in confusion, data silos, communication breakdowns, and an overall lack of cohesion. Equally important is ensuring that your workforce is prepared. Transitioning to automated processes requires digital fluency and familiarity with new information systems, which may mean that traditionally trained production staff need upskilling before such a significant transformation can take place.
Key steps to enable successful automation include:
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Plan and execute with precision
Clearly define your business case and success metrics. Begin with manageable initiatives—target the ‘low-hanging fruit’ to generate early results and build momentum. Continuously monitor progress and be ready to adapt. -
Collaborate for success
Work with solution providers who are open to collaboration and can ensure their technologies integrate seamlessly with your existing systems, especially your Warehouse Management System (WMS). -
Ensure upstream alignment
Coordinate with production and supply chain partners to maintain the quality and readability of barcodes, 2D codes, and data entering the warehouse. -
Ensure downstream visibility
Align with downstream partners to achieve full visibility and traceability across the wider supply chain—particularly critical in retail and consumer-facing sectors. -
Engage and upskill your workforce
Identify potential gaps in digital literacy or technical knowledge and provide relevant training early on. Involve your team in identifying automation opportunities where quick wins can be achieved to build confidence and engagement.
By taking a thoughtful, inclusive, and collaborative approach, businesses can unlock the full value of warehouse automation while minimising risk and disruption.
Conclusion: Build for Integration and Growth
The warehouse is arguably the linchpin of today’s supply chains – the central hub where upstream operations and downstream distribution converge. Maximising efficiency, productivity, and operational visibility within the warehouse is essential to an organisation’s ability to not only meet but master the demands of modern business.
However, this is no simple task. Collaborating with a trusted partner who possesses deep expertise in integrated production line and warehousing solutions can provide a clear path forward and support a successful, sustainable transition towards greater automation and supply chain transparency.
