Beyond toys and troops: the potential role of drones in the warehouse
With their ability to be “eyes in the sky,” drones can help automate many repetitive, time-consuming, and potentially dangerous activities in the warehouse.
Drones have captivated our imagination in various ways, from being recreational toys to military weapons. Meanwhile, prominent corporations like Amazon and Walmart are already experimenting with using drones to deliver products to customers. However, their potential goes far beyond these realms, as they have also found invaluable applications in the dynamic and demanding environment of the modern warehouse. Through the integration of cutting-edge sensors, high-resolution cameras, and advanced processing equipment, drones are proving to be essential allies in the quest for increased efficiency and enhanced productivity within warehouse operations.
Drones and the modern warehouse
What unifies all warehouses is their shared characteristics of being vast, bustling, and frequently crowded. Today’s warehouses are bigger and more complex than ever. As the demand for e-commerce products skyrockets, the average size of a warehouse has ballooned to accommodate consumer preferences. The typical warehouse is around 50,000 square feet, with some extending to as big as 4 million square feet. Warehouses have grown up as well as out. Some have implemented mezzanines that use their vertical space, and others have narrow aisles to maximize shelving.
Given this busy and complex environment, there may initially be some concern about using drones in the warehouse. After all, we’ve all seen toy drones that end up in a neighbor’s tree. So, will warehouse drones get lost in the storage racks or, worse, crash into workers below? Ideally not. Like autonomous mobile vehicles (AMVs), these more sophisticated drones are equipped with navigation technology that allows the unit to avoid obstacles. These small, but mighty machines are capable of autonomous navigation, allowing them to move efficiently within a warehouse without the need for constant human intervention. Drones can also save time by quickly flying across a large warehouse or up to hard-to-reach spaces to find specific products. In this way, they can reduce the amount of time employees spend walking across a warehouse floor or searching for items. Humans no longer would have to climb tall ladders to inspect products and risk injuries. Instead, they can stay safely on the ground and review data collected by a drone. Furthermore, drones can be equipped with sophisticated sensors, cameras, and readers to detect RFID tags and barcodes as well as temperature, possible safety concerns, and any unusual activity. In addition, software algorithms can be used to deliver the insights that make these solutions useful for businesses.
Four use cases
As a result of this level of sophistication, there are many compelling use cases for drones in the warehouse. Below are four main ways drones are already being used to support the warehouse industry.
1. Inventory management:Proper inventory management is critical in the warehouse industry. It is the process of accounting for, ordering, and organizing product stocks to ensure items on hand are in good shape (that is, not damaged or expired) and of sufficient quantity to fulfill anticipated needs. However, manual inventory control can be prone to human error and costly in terms of labor and potential mistakes.
Instead of having workers go around the warehouse counting items and scanning barcodes by hand, drones can perform stocktaking, inventory audits, and cycle counting more efficiently and more accurately. Equipped with an RFID scanner, a drone is capable of wirelessly reading the information on the RFID tags attached to warehouse inventory. This allows drones to count, record, and relay RFID data en masse. Drones can confirm the correct items are where they should be, keep track of stock levels, and search for items that are listed as out of stock or missing.
Drones can also be used for item searches. Searching for products during the picking process is one of the most time-consuming and costly activities in a warehouse. A drone camera can perform these searches seamlessly and report back to human workers.
2. Inspections: Any business environment that gets constant use, such as a warehouse, will also be prone to frequent wear and tear. A broken shelf, dislocated stair rail, or cracked flooring can create a serious safety hazard. A damaged piece of equipment can stall operations and cost the company time and money.
Traditionally, detailed inspections in the warehouse would be done in person, with a manager walking through the aisles examining key equipment, racks, floors, walls, and ceilings. Drones can automate and speed up the inspection process. For example, a drone can fly through the warehouse to capture visual data for managers to review later. Even better, artificial intelligence (AI) solutions can take an initial pass at that data and identify potential areas of concern in real time. In this way, drones can alert management of serious safety hazards, helping them to avoid machinery breakdowns or serious accidents on the warehouse floor while also freeing them up to perform more value-added activities.
3. Indoor intralogistics: Warehouses are busy facilities where smaller items are constantly being moved and relocated from one area to another. Drones can assist with these intralogistics tasks. Even though most drones are used for tracking inventory and are only equipped with a camera, some drones can include mechanical grippers (similar to robotic arms), magnetic grippers, vacuum systems, claw or clamp mechanisms, or a payload release system. As drone technology continues to evolve, human workers will still need to load and assist products onto drones, but once the item is loaded, a drone can fly autonomously through a warehouse without the need for human navigation. For example, a drone can transport a machine part to the area of the warehouse where a repair is taking place. Drones can also move small products for fulfillment activities. To be sure, the gripping, payload, and navigation capabilities of today’s drones remain limited, but these applications are certain to expand in the future.
4. Surveillance and security:As mentioned earlier, warehouses can be massive buildings. Many of them are full of expensive equipment and products, making them attractive targets for thieves. Having security measures in place is essential. Fortunately, drones can fly through a warehouse 24/7 and provide a live feed for security staff to watch from a central location. Alternatively, AI-enabled software can analyze the video footage produced by a drone to alert owners of any unusual activity.
Leveraging the power of drones
The field of warehousing offers significant potential for the integration of new technological solutions, which can enhance efficiency and provide a competitive edge to businesses. The implementation of drone technology in warehouses offers several key benefits. Not only can drones perform repetitive, time-consuming tasks, like inventory counting and inspections, faster and more accurately than humans, they also can take dangerous tasks off workers’ shoulders. Instead of having employees conduct inspections in potentially dangerous areas, drones can be used. Drones also can be used to reach products on high shelves, so workers don’t have to make the climb.
By leveraging the power of these aerial devices and other automation tools, warehouses can optimize processes across multiple facets of operations, ultimately elevating their overall performance and results.
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
Shippers are actively preparing for changes in tariffs and trade policy through steps like analyzing their existing customs data, identifying alternative suppliers, and re-evaluating their cross-border strategies, according to research from logistics provider C.H. Robinson.
They are acting now because survey results show that shippers say the top risk to their supply chains in 2025 is changes in tariffs and trade policy. And nearly 50% say the uncertainty around tariffs and trade policy is already a pain point for them today, the Eden Prairie, Minnesota-based company said.
In a move to answer those concerns, C.H. Robinson says it has been working with its clients by running risk scenarios, building and implementing contingency plans, engineering and executing tariff solutions, and increasing supply chain diversification and agility.
“Having visibility into your full supply chain is no longer a nice-to-have. In 2025, visibility is a competitive differentiator and shippers without the technology and expertise to support real-time data and insights, contingency planning, and quick action will face increased supply chain risks,” Jordan Kass, President of C.H. Robinson Managed Solutions, said in a release.
The company’s survey showed that shippers say the top five ways they are planning for those risks: identifying where they can switch sourcing to save money, analyzing customs data, evaluating cross-border strategies, running risk scenarios, and lowering their dependence on Chinese imports.
President of C.H. Robinson Global Forwarding, Mike Short, said: “In today’s uncertain shipping environment, shippers are looking for ways to reduce their susceptibility to events that impact logistics but are out of their control. By diversifying their supply chains, getting access to the latest information and having a global supply chain partner able to flex with their needs at a moment’s notice, shippers can gain something they don’t always have when disruptions and policy changes occur - options.”
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”