Guide

Warehouse Automation Guide

Prioritize automation investments that boost associates and customer delight.

15 min read
  • guide
  • automation
  • warehouse

Automation spectrum overview

Warehouse automation ranges from simple (conveyor belts) to complex (fully autonomous robots). The right level depends on your volume, labor market, growth trajectory, and capital. Don't chase automation for its own sake—every investment should solve a specific constraint. The most successful warehouses automate incrementally, learning from each phase before expanding. Start with your biggest bottleneck and work outward.

Low-cost quick wins

Before buying robots, optimize what you have. **Pick-to-light**: LED indicators guide pickers to locations (reduces search time 30%+). **Voice picking**: Hands-free instructions via headset (improves productivity 15–25%). **Automated labeling**: Print-and-apply systems for consistent label placement. **Conveyor sortation**: Simple conveyors move goods between zones, reducing walking. **Workstation optimization**: Ergonomic pack stations with tools in reach. These investments typically pay back in 6–12 months.

Mid-tier automation options

**Carton erectors and sealers**: Automate box assembly and closing at pack stations. **Automated dimensioning**: Capture dimensions and weight instantly for rate shopping. **Put walls**: Lighted sorting stations for batch-to-order sorting. **Mobile robots (AMRs)**: Autonomous carts that follow pickers or transport goods between zones. **Print-on-demand labeling**: Generate shipping labels only when ready, reducing waste. Budget $50K–$250K per solution; expect 12–24 month payback.

Advanced robotics and AS/RS

**Goods-to-person (GTP)**: Robots bring shelves to workers (6 River Systems, Locus). **Automated Storage and Retrieval (AS/RS)**: Vertical lifts and shuttle systems for dense storage. **Robotic picking arms**: Vision-guided robots pick individual items. **Fully autonomous mobile robots**: Self-navigating vehicles for transport and picking. These systems require $500K–$5M+ investment, significant integration work, and facility modifications. ROI takes 3–5 years. Suitable for 50,000+ orders/month operations.

Building your automation roadmap

Step 1: Map current processes and measure baseline metrics (time studies, productivity, accuracy). Step 2: Identify constraints—what limits throughput today? Step 3: Model demand growth over 3–5 years. Step 4: Evaluate automation options against constraints with vendor demos. Step 5: Build phased roadmap: quick wins Year 1, mid-tier Year 2–3, advanced as needed. Step 6: Budget for integration, training, and maintenance—not just equipment. Step 7: Pilot before scaling—test one zone or process before warehouse-wide rollout.

Frequently asked questions

How do we calculate automation ROI?

Compare total cost (equipment + integration + maintenance + training) against labor savings, throughput gains, and error reduction over 3–5 years. Include opportunity cost of capital.

Will automation replace our workers?

Automation typically changes roles rather than eliminating them. Workers shift from walking and carrying to supervising, troubleshooting, and value-added tasks. Address this transparently with your team.

What's the minimum volume for automation?

Simple automation (conveyors, pick-to-light) works at 500+ orders/day. Robotics typically requires 2,000+ orders/day to justify investment. Volume alone doesn't determine fit—labor availability and growth plans matter too.

Put this guide into practice

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