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Making the Right Investments in Automated Warehouse Technology
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"Making the Right Investments in Automated Warehouse Technology"

Investment in warehouse automation is growing rapidly, with the industry expected to be worth $30 billion by 2026. Automated systems are fundamental to your competitiveness, helping you maintain profit margins and service levels that are under constant pressure. Benefits of investing in automated systems include optimizing warehouse labor, reducing costs, managing supply and demand, and meeting consumer expectations.

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, as 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 guide 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 guide 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.

This guide will cover:

• 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. We hope this provides a useful starting point and additional context for your warehouse automation investment decisions.

We hope this provides a useful starting point and additional context for your warehouse automation investment decisions.


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