Today’s supply chain and warehouse managers are navigating numerous challenges that stem from a combination of global disruptions and shifting market demands.
The challenges facing warehouse and supply chain logistics professionals are complex and interconnected, from skilled labour shortages and rising business costs to changing regulatory demands, shifting consumer expectations, and geopolitical tensions causing shipping and supply issues.
While addressing these problems may seem insurmountable, smart technology and automation can provide the direction for change, helping warehouse managers to address these pressing issues holistically whilst also ensuring alignment with broader supply chain traceability goals.
Global business challenges
If the last few years have been dominated by an increasingly challenging business climate, 2025 looks set to continue that trend. As Deloitte’s 2025 manufacturing industry outlook states, “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”.
Raw material and other input costs are expected to grow, increasing the cost of business operations, while finding and retaining skilled workers will remain problematic. Anticipated policy changes following global elections and other geopolitical events may also impact supply chains, demand, and long-term investment in manufacturing. Changes to trade policy and tariffs could affect international regulations, drive up raw material and component costs, and have ripple effects throughout the supply chain.
At the same time, consumer expectations for faster delivery times, ‘Amazon-like’ distribution capabilities, and greater supply chain transparency, are adding to the pressure on supply chain and warehouse leaders.
This complex set of interdependencies is prompting businesses to look for ways to increase productivity and do more with less: producing and shipping goods faster without increasing costs. This calls for operational agility and efficiency, with optimised workflows and near real-time visibility of supply and demand to manage disruption and shortages and fulfil orders seamlessly and transparently.
One could be forgiven for likening this to an impossible challenge; however, in today’s modern era, help is at hand in the form of smart technology and automation.
The case for warehouse automation
Businesses have been investing in warehouse automation for decades, using technology to automate routine, repetitive, and manual processes, including picking, palletising, data entry, transfer and analysis, stocktaking, quality control, and shipping.
This trend has increased significantly in recent years with technological advancements. In 2023, 60% of warehouse managers reported plans to increase their automation budgets by 20% in 2024, while globally, the warehouse automation market is expected to grow from $19.9 billion in 2022 to $54.6 billion by 2030. Similarly, the warehouse robotics sector is growing at a rate of 20–25% annually, according to Statista, while McKinsey reports that robot shipments are expected to increase by >50% per year through to 2030.
The benefits of warehouse automation are significant. These include reduced human error, increased productivity and efficiency, and – critically – access to real-time data to unlock visibility of what is happening both within the warehouse and in the upstream and downstream supply chain. Indeed, it is this real-time data that interlinks and underpins solutions to the operational challenges leaders face today.
The warehouse management system, or WMS, is at the heart of warehouse automation. To successfully and holistically increase productivity, optimise operational agility and efficiency, and meet consumer and regulatory demands, businesses must ensure that the correct data feeds into, through, and out of the WMS.
Machine-readable codes and identification technologies, including GS1 QR codes, barcodes, and RFID tags, can help to enable seamless data flow from the production line into the warehouse. At the same time, vision systems can be used not only to verify the accuracy of these codes but also to ensure reliable data transfer and effective sorting of products. Within the warehouse, automated barcode and RFID scanners can further facilitate data transfer – speeding up stocktaking and enabling traceability of products moving through the system. Warehouse managers can also elect to utilise robots, cobots, and safe print and apply labellers to assist human workers with routine tasks like packing, picking, sorting, and pallet labelling – further streamlining processes and reducing the risk of injury. All this can be complemented by many and varied smart technologies, such as adaptive coding and marking systems, pallet and parcel dimensioners, and variable height vision systems equipped with ‘liquid’ lenses to manage diverse package sizes and ensure precise measurements for efficient shipping.
When properly integrated, smart systems and technology utilised on the production line and automated warehousing solutions will complement one another and support the flow of data into the warehouse and out into the wider supply chain – a crucial link in the chain for complete supply chain traceability.
A warehouse manager’s ultimate goal may be to achieve a fully automated ‘lights out’ warehouse, a smart and dynamic facility where streamlined data flows in and out and which incorporates the use of artificial intelligence (AI) and/or machine learning to analyse data patterns, predict potential issues, and further streamline operations.
But – how do we get there? With EY citing that between 30–50% of robotic process automation projects fail globally, and Gartner predicting that at least 30% of generative AI projects are likely to be abandoned after proof of concept by the end of 2025, taking steps to identify and address pitfalls early is fundamental.
Making automation work
The three most commonly cited barriers to warehouse automation are poor planning, lack of integration, and workforce readiness. Businesses need to plan and tread carefully – as unclear business value and misaligned or incompatible systems will inevitably lead to workplace confusion, data silos, a lack of communication, and the inability for data to flow seamlessly. And, of course, organisations should not underestimate the importance of workforce readiness. The move to automation will demand a digital fluency and familiarity with information and processes that may need traditionally trained production line workers to be upskilled before embarking on a project of such significance.
Fundamental steps to take are:
- Plan and execute carefully. Understand your business case and key success metrics. Start slowly: pick off your ‘low-hanging fruit’ that will deliver early success and inspire confidence. Monitor and adapt.
- Collaborate for success. Identify suppliers that are willing to work together to ensure that their solutions can integrate with your existing systems, particularly your WMS.
- Align with your upstream supply chain and production partners to ensure the optimum quality of readable barcodes, 2D codes, data coming into the warehouse.
- Align with downstream supply chain partners for complete transparency throughout the wider supply chain, particularly within a retail/consumer environment.
- Bring your workforce along with you. Identify potential skills/digital literacy gaps and invest in training upfront. Involve your workforce in potential applications for automation where early wins can be achieved.
Conclusion
The warehouse is arguably the lynchpin in today’s supply chains, the single point where upstream and downstream distribution points collide. Ensuring warehousing efficiency, productivity, and operational visibility is key to an organisation’s ability to navigate – indeed, conquer successfully – modern business demands.
Yet the challenge is complex. Working with a trusted partner with experience and expertise in providing production line and warehousing solutions designed for integration and data transfer will set you on the right path and support your direction of change.
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