Robotics—and the software used to direct and guide them—have evolved to the point where they are now well-suited to the dynamic and variable warehouse environment. As a result, we are about to see a rapid adoption of smart robots.
For years, intralogistics operations have been trapped in a mostly manual status quo, where the majority of tasks and activities performed within distribution and fulfillment centers are done by human beings. But we are now on the cusp of an explosion in automation, ignited by the increasing sophistication of robotic solutions designed for the warehouse. These “smart,” autonomous robots not only automate the “tasks of the hands”—such as picking and packing—they also share data in real time for faster and better decision-making. They can sense their environment, carry out computations to make decisions, and perform actions automatically, rapidly, and accurately.
Experts predict that the use of robotics in supply chains will rapidly go beyond fringe implementations to mainstream use and being considered “table stakes.” The analyst group Gartner says, “By 2026, 75% of large enterprises will have adopted some form of smart robots in their warehouse operations.” This rapid adoption is being driven in part by the ability of smart robots to lower touches and reduce reliance on manual labor. But there are other factors at play as well, including:
Cost and lead times for smart robots are dropping;
Use cases are multiplying (as can be seen in the case studies at the bottom of this article);
Return on investment (ROI) is improving, thanks to robots that require limited or no coding and “low-touch” robotics systems; and
The intelligent logistics software that controls robotic processes (for example, warehouse management systems, warehouse execution systems, and warehouse control systems) is maturing.
At the same time, technology enablers for robotics are converging. These enablers include:
Sensors and vision technology that give robotics the ability to see, sense, and interact with objects;
Standard interfaces and open protocols that enable system wide connectivity and communication between robots;
Edge and cloud computing that facilitate high-speed data analysis and data sharing, as well as real-time operations management; and
Machine learning and artificial intelligence (AI) that makes autonomous robotics possible and enables continuous improvement .
Everything is coming together to mark the beginning of a golden age of robotics. There is already an enormous range of robots on the market. This includes standalone robots for tasks like assembly, picking, and transportation, as well as cobots and even flying robots for inventory management. At the other end of the spectrum are comprehensive solutions that automate entire intralogistics processes. All of these robotics vary widely and have impacts on implementation timeframes, performance, and payback expectations.
In this article, we focus on autonomous robotics for core intralogistics processes, because they have the biggest potential to make a positive impact on overall operations. Today, there are autonomous robotic systems for every core logistics process, including storage and retrieval, conveying and sorting, picking, packing, and palletizing. These types of robots range from shuttle systems and picking robots to pocket sorters and autonomous mobile robots (AMRs). The sidebar below presents
four proven applications of autonomous robotics in distribution and fulfillment operations.
Getting robotics right
When you think of a robot in the warehouse, the first thing that probably comes to mind is an AMR zipping around the facility transporting orders or a robotic arm picking goods. But a robot is so much more than the hardware that you see on the floor. It’s an integrated system composed of hardware, software, vision technology, sensors, and interfaces.
Almost half of the respondents (46%) to a “2022 Intralogistics Robotics Study” by Peerless Research Group recognize that fact, saying they would prefer to buy their robotic solution as an entire integrated system—a pure capital expenditure initiative—that includes hardware, software, support, and maintenance.
In fact, key to the development of this blossoming golden age of robotics is the software used to direct and guide this next generation of robots. Robots are only as good as the software that drives them. Autonomous robotics for distribution and fulfillment operations require three types of software:
1. Intelligent logistics software for dynamic orchestration of complex distribution and fulfillment processes. This software includes warehouse management systems (WMS), warehouse control systems (WCS), and systems for gathering and analyzing the real-time data coming from the robots and other machines, as well as packing software, analytics, computerized maintenance management systems, and more.
2. A universal AI platform that can be applied to any use case or customer environment. The AI enables robots to quickly learn to manipulate objects without being told what to do.
3. An automation data system for the collection, distribution, and maintenance of item attributes. It turns out, robots need a lot of data to function efficiently. For example, fully automated palletizing systems may require up to 50 item attributes for correct handling. Insufficient automation data leads to damaged items, downtime, and, in some cases, cleaning costs.
For robots, data drives performance. Unfortunately, today’s master data wasn’t designed for robotics. It often doesn’t include information like packaging type, contents, center of gravity, tilting behavior, stackability, and pickability, to name a few.
Manually recording all this data takes time and money, and the quality of the data may suffer. You have to look at the item, measure its dimensions, enter all the data, and check twice to make sure everything is correct. It’s not an efficient process.
An automation data system records all necessary article attributes in less than 30 seconds. It essentially decodes an item’s “DNA” and adds this information to the master data. The software also distributes, manages, and continuously improves data quality using self-learning AI. It even shares article properties across networks to avoid damage during transport. It provides one central source of data.
Build a business case before you buy
Although smart robots hold great potential to transform distribution and fulfillment operations, it’s important to have a plan and business case in place before trying to implement them. As the 2022 MHI Annual Industry Report says, “The number one barrier to adoption is the lack of a clear business case.” Successful implementation of autonomous robotics requires a thoughtful approach before you buy. The following steps can help you evaluate your options and choose the right robotic solution for your operation:
1. Define your near-term objectives. What are you trying to do? Alleviate labor pains? Accelerate throughput? Increase storage capacity? Improve employee and customer experiences? Do more in the same space? Enable sustainable operations?
2. Determine your key decision drivers. What will drive your decision? Cost? Lead time? Cubic utilization? Throughput? Prioritize these to ensure you make the best decision based on your business drivers and available budget.
3. Evaluate solutions and vendors. It’s important to be aware of the variety of available applications. The
sidebar below presents just four of the many use cases. Furthermore, don’t just buy a robot. Buy a system and the organization that backs it. Investing in robotics shouldn’t be transactional. It should represent the beginning of a mutually beneficial and ongoing relationship.
4. Create a multi-year map for your journey. What are your long-range goals? Do you ultimately want to achieve a fully autonomous supply chain? Build resilience? Get to net-zero greenhouse gas emissions?
Evaluating and planning a robotic implementation can take time, but it is important not to delay the process. As Gartner says, “Supply chains will become autonomous faster than you expect.”Supply chain leaders are already making autonomous robotics for core intralogistics processes a key component of their strategies. You should too.
Autonomous robotics is a rapidly growing area of automation in the warehouse with an increasing number of possible applications. The following case studies present just four examples of autonomous robots and possible applications.
The incredible shrinking process
One of the world’s largest retailers was looking to build a next-generation fulfillment network that would be able to rapidly pick and ship online orders to meet aggressive delivery agreements. The retailer also wanted to create a positive workplace that would attract and retain employees.
The core component of their high-tech fulfillment centers is a massive robotic shuttle system that spans from floor to ceiling and maximizes every square inch of its footprint. With this advanced system, the retailer:
Doubles storage capacity, because the system can accommodate millions of items,
Doubles the number of orders they can fill in a day,
Improves the comfort for employees who no longer have to walk up to nine miles each day to retrieve goods, and
Creates new tech-focused jobs that provide more meaningful work and higher wages for associates.
The robotic shuttle system significantly streamlines the fulfillment process because it packs a lot of functionality into one system. It automatically stores stock and overstock. It picks, buffers, and sequences orders. It also supplies goods-to-person workstations and replenishes other work areas.
Instead of a manual, 12-step process, the retailer now has an automated five-step process. The shuttle system seamlessly integrates with the intelligent logistics software, making it possible for the retailer to fulfill orders in just 30 minutes from click to ship.
Robots are now in fashion
Apparel picking is notoriously difficult for robots. There’s a vast range of product sizes, shapes, textures, weights, and packaging. Items change shape when picked up. Stock keeping units (SKUs) change during seasonal rotations. It’s virtually impossible to hard-code all the variables.
A global third-party logistics provider (3PL) conquered these obstacles with a robotic system that picks into a pocket sorter. The robotic picking system has a “brain,” so no hard-coding is required. It can handle virtually any item and unstructured scenario—even transparent, reflective, and floppy polybags.
The robot brain rapidly processes visual information and identifies the optimal gripper, gripping point, and gripping speed. Then the robot arm places items onto a pocket conveyor for sorting, grouping, and routing to packing stations. When new SKUs are introduced, the AI brain infers from past experiences, learns with every grip, and shares learnings with other robots via the cloud.
Item DNA created using the automation data system provides an additional performance boost. The software automatically captures item attributes, adds them to the master data, and gives all connected robots the information they need to function more efficiently.
The automation data works in tandem with the AI brain. One example? Some apparel have no suitable suction spots, so robots can’t pick them. Without automation data, articles will be rejected by the robotic picking system and sent back to the robotic shuttle system. This negatively impacts performance. With automation data, the item will be flagged during decanting and never sent to the robotic picking system in the first place.
Elevating efficiency
A global online retailer was challenged with consistently meeting consumer demands for faster delivery. The company also wanted to utilize space more effectively to accommodate a broad and constantly changing range of goods.
The answer? A pocket sorter that uses overhead space. Everything from clothing to shoes to accessories and more are conveyed, buffered, and merged to quickly complete online orders.
The robotic pocket sorter is part of a seamlessly integrated system, which includes a robotic shuttle and robotic picking and packing systems as well as intelligent logistics software. The software controls, monitors, and optimizes all of the processes. Items are handled in the most efficient way possible because the master data has been enhanced to include item attributes.
The shuttle system delivers items to both manual and robotic picking stations, where items are automatically inducted into pockets. Goods can be dropped at any location in the warehouse—without the pockets slowing down or stopping—thanks to a patent-pending pocket mechanism, which opens and closes automatically. RFID technology keeps track of every single item.
Single items are sent to pack stations in the right sequence using intelligent matrix sortation software, which also contributes to the pocket sorter’s ability to process up to 50,000 items per hour. The fully automatic pocket sorter gives the online retailer what it needs to meet today’s service level agreements (SLAs) while at the same time being scalable enough to meet tomorrow’s needs.
Shaping the future of e-grocery
A national grocer was among the first to pilot automated micro-fulfillment centers (MFCs) to handle e-grocery orders. The grocery chain deployed its first automated MFC in 2019 and opened seven new MFCs in 2021. The chain believes e-grocery will eventually comprise 20% of its business.
To increase the speed, capacity, and accuracy of its e-grocery operations without increasing the footprint, the grocer is deploying next-generation MFC technology. The company’s MFCs use autonomous mobile robots (AMRs). These “open shuttles” roll independently within the MFCs and are completely safe for use around people.
The AMRs seamlessly integrate with the robotic shuttle systems. Goods are stored in the system and picked at goods-to-person workstations. Completed orders are transported by AMRs to a flow rack and assigned a buffer conveyor. This ensures the right orders get to the right customers at the right time.
The AMRs require very little space, because they turn on their own axis. As a result, they can work in tight spaces with narrow aisles. That makes AMRs more flexible, cost-effective, and space-efficient than automated guided vehicles (AGVs). They’re faster and easier to install too, because they require:
No structural modifications,
No special pathways or fixed routes,
No additional markers,
No induction loops in the floor, and
No human oversight during operations.
The AMRs use virtual lines defined and managed by intelligent fleet control software, which ensures smooth and efficient traffic flow. The software also ensures the vehicles avoid humans and other obstacles as they transport totes full of groceries.
The national grocer believes automated MFCs are a key element to their future success. Their e-grocery business has become more strategically important to them. Their goal is to make e-grocery a competitive advantage. AMRs will help them do it.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.