At an Amazon warehouse in Louisiana, Robin lifts and sorts packages. Hercules moves pods full of goods. Sequoia retrieves items to pick and pack for online orders.

These aren’t the names of Amazon employees – they’re the names of robots Amazon is using at its warehouses to aid human workers and make e-commerce fulfillment operations more efficient. Amazon has deployed more than 750,000 robots across its operations since it acquired Kiva Systems in 2012.

Amazon and other big players, however, are somewhat unique. The majority of warehouses still haven’t automated, according to Christina Dube, director of marketing for the Americas for material handlings company Kardex.

But that could soon change, as the logistics and fulfillment sector intends to spend more than 30% of its capital expenditures on automation. Dube said automation adoption is “skyrocketing” as companies realize they’re challenged by labor and space constraints, and automation could help ease those pain points while offering numerous other benefits and a quick ROI.

For businesses that want to grow, automation is not optional anymore, people are jumping in with both feet.

Warehouse Automation Starts With Data

Myriad types of automation and materials handling equipment exist in a warehouse. There are vertical lifts, carousels and conveyor systems.

Across its network, DHL Supply Chain has installed robots that pick goods, unload pallets and wrap items, along with automation such as storage and retrieval systems, sortation technology, autonomous forklifts and much more, according to Omer Rashid, VP of operations development at the company.

But before warehouse operators, 3PLs and shippers get caught up in the shiny objects, they have to focus on the software that connects and coordinates it all, said Ryan Chesterfield, founder of Auto-FC, a consulting firm specializing in warehouse automation.

“If you don’t have a solid warehouse management system … then it’s too early for robotics or conveyor belts,” Chesterfield said.

Warehouse management systems, known as WMS, often connect to other tech related to inventory or transportation coming in and out of the warehouse, such as order management systems (OMS) or transportation management systems (TMS).

DHL has an automation platform that lets it integrate technologies without needing to customize them. At Amazon, cloud infrastructure supported by Amazon Web Services processes data from machines, sensors and cameras – all of which allows the robots to operate effectively.

Five Benefits of Warehouse Automation

Here are just a few reasons to streamline your warehouse’s operations with automated robots.

Improved labor conditions

Over the last three years, employment in the warehousing and storage industry has flatlined. As of May, U.S. employment numbers are hovering around 1.8 million, approximately the same they’ve been since November 2021, according to the Bureau of Labor Statistics.

Automation can aid warehouse employees in ways that make the job less physically taxing and more desirable. Unloading boxes involves a lot of bending, lifting and twisting for humans, which can prove strenuous over the course of many hours. At times, warehouse workers have to unload in hot or cold conditions, depending on the weather and the type of trailer.

Better use of space

Warehouses tend to be tall, with ceilings around 30 to 40 feet. But most vertical storage racks and shelves, especially if warehouses want to store goods within reasonable reach for employees, are eight to 12 feet tall.

Automated solutions can transport goods up and down so that vertical space is maximized and workers don’t need to bend or scale a ladder to reach products.

Faster operations

Small fixes can add up over time. SKU Distribution, a 3PL which provides warehousing and fulfillment services, uses cluster picking, which involves a warehouse worker collecting products for multiple orders at the same time.

Employees have a handheld device that guides them through the warehouse “in the most efficient manner,” said SKU Distribution Founder and CEO James Peacock. From one location, the worker then picks several products simultaneously, which eventually get sorted into 15 or 20 different orders.

Flexibility to meet demand

During demand surges or peak holiday times, warehouse software and hardware allow warehouse operators to scale up quickly without trying to find staff available on short notice for temporary work.

“When volume spikes … you don’t have to panic or overextend your workforce,” – Ryan Chesterfield, founder of Auto-FC

During 2021’s peak season, DHL scaled up its use of picking robots by more than 30%, which helped it meet the uptick in demand, Rashid said.

One potential downside of relying on automation is the potential for technology or hardware failures, which could result in unexpected downtime as businesses wait for an expert to fix the software or for a replacement part to arrive.