The future of automation in the warehouse: A revolution in supply chain management

Article - General
By Sarah Tijou|4th December 2023

In the fast-paced world of supply chain management, the future is being shaped by the integration of technology and automation. This intersection of technology and operation promises to redefine the way warehouses operate, improving efficiency, safety, and productivity.

During GDS Group’s latest Supply Chain North America summit, the Vice President of Corporate Development at Locus Robotics shared her insights. Here’s some of Gina Chung’s key themes and ideas, for deeper understanding of the revolution taking place in the world of logistics.

GDS Host, Sarah Tijou, introducing keynote speaker, Gina Chung from Locus Robotics

The problem: Manual operations and inefficiencies

Gina believes a lot of the barriers to adopting automation “still boil down to market awareness.” And with this in mind, she says the most pressing issue in the industry is the prevalence of manual warehouse operations. She reveals that 80% of warehouses worldwide are still manually operated, leading to substantial inefficiencies in supply chain operations.

The manual labour required in these operations is not only inefficient but also burdensome for the workers, who may cover significant distances daily. Gina says, “our customers just can’t find the labour, and that’s one of the key elements; the drivers of automation.” So, to combat these issues, automation in warehouses becomes crucial.

The solution: Flexible and intelligent automation

The future of warehouse automation, according to Gina, hinges on solutions that are both flexible and intelligent. In response to these challenges, the industry is continually incorporating more AI into its solutions.

This includes AI-driven software, business models that offer scalability, and the ability to deploy automation in existing facilities without substantial infrastructure changes. Gina’s company, Locus, exemplifies this approach by providing flexible automation solutions that aim to cover a wide range of use cases within warehouses.

What are the benefits of flexible automation?

Gina highlights key benefits of flexible automation:

  • Increased productivity: Through flexible automation, customers can double or even triple their productivity.
  • Scalability: Automation solutions that can scale up and down with changing business dynamics allow companies to handle peaks and valleys efficiently.
  • Quick deployment: These systems can be deployed in as little as 6 to 8 weeks, providing immediate bottom-line benefits.
  • Robotics as a service: This concept of robotics as a service, Gina shares is a subscription-based model that allows companies to access upgrades, features, and maintenance with minimal upfront investment.

Flexibility and mobile robotics

One of the most significant advantages of flexible automation is the ability to deploy a fleet of robots that can handle various tasks within a warehouse. Gina says, “I think robots will be doing more and more of the heavy lifting.” Mobile robots can adapt to different dynamic environments, collaborating with human workers, navigating obstacles, and facilitating tasks like picking, put-away, and returns.

Gina walks the audience through the workflow in an automated warehouse, demonstrating how robots can handle a diverse range of products, adapt to language preferences, pair with other devices, and efficiently complete picks, put-aways, and other tasks.

“We’re at the point now as an industry where we’re able to have over 700 robots in a single site, a million square foot warehouse, zooming safely around people.”
-Gina Chung, Locus Robotics

The future: Expanding the scope of automation

Gina predicts that the future of automation in warehouses would involve robots capable of performing multiple tasks. These robots would adapt to various requirements and collaborate with other automation solutions, such as sortation systems and robotic arms.

While the idea of “lights-out” warehouses is on the horizon for certain industries, it may not be the norm for most warehouses, as human workers will continue to play a crucial role in warehouse operations. As Gina says, “In any major automation deployment, there’s still a lot of people to help facilitate these robotics and automation systems.”

Cybersecurity and integration

Gina addresses concerns about cybersecurity, emphasizing the importance of security in cloud-based automation systems. Locus prioritizes security by adhering to guidelines, implementing on-premises servers, and ensuring data protection for its customers.

What challenges can you expect when adopting automation?

The key challenges in the adoption of automation are market awareness and integration complexity. While the market is gradually becoming aware of the benefits of automation, more education is needed to dispel misconceptions and demonstrate the ease of implementation.

Integrating various automation solutions and fostering seamless collaboration between different technologies is another hurdle that the industry needs to overcome.

The future of warehouse automation

Gina’s insights offer a glimpse into the transformative power of automation in warehouses. The future holds promise of increased efficiency, flexibility, and collaboration between human workers and robots.

As supply chain management evolves, automation is poised to play a pivotal role in enhancing productivity, reducing inefficiencies, and redefining the way we view the warehouse of tomorrow.

With an increasing number of companies embracing automation solutions, the future of the warehouse promises to be more efficient, safe, and productive than ever before.

GDS Summits are tailored 3-day virtual event conferences that bring together business leaders and solution providers to accelerate sales cycles, industry conversations and outcomes.

Regarding the Supply Chain Insight Summits 82% of Delegates said the overall experience of Digital Summit they attended was either Above Average or Excellent and 75% of Solution Providers said they would be interested in sponsoring future events.

For more, click here to hear from attendees on how GDS has helped them to achieve their business outcomes.

Continue the debate at GDS’ Supply Chain Insight Summits where we bring together senior supply chain executives who are actively seeking to share, learn, engage, and find the best solutions.

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