WHITE PAPER

THE WAREHOUSE
OF THE FUTURE
• How will warehouses be designed in the future?
• Who will work in warehouses in the future?
• How will warehouses be sustainable in the future?
 contents
01 Executive Summary 03

02 Introduction
1. Introduction to Warehouse Automation
04

2. The Warehouse of the Future

3. Purpose of this report

03 Warehouse Design
1. What will the Warehouse of the Future look like?
06

2. The Challenge
3. The Agile Solution
4. Take-aways: All Shapes and Sizes, for all customers

04 Workforce
1. Who will work in the Warehouse of the Future?
09

2. The Challenge
3. The Robotics Solution
4. Human-Robot Partnership
5. Case Study: Maersk Contract Logistics
6. Take-aways: A Safe and Stimulating Place of Work

05 Sustainability
1. How will the Warehouse of the Future be sustainable?
12

2. The Challenge
3. Effective Measurement
4. Digitisation of the Warehouse
5. Case Study: Best Supply Chain (Shanghai Warehouse)
6. Case Study: Maersk Contract Logistics
7. Efficiency in energy use and space
8. Take-aways: Efficiency is key

06 Conclusion 15
 Part 1: Executive Summary

Executive Summary
The following White Paper seeks to paint a picture of the ideal Experts in the warehousing industry noted that several
warehouse of the future and highlight how the warehousing workforce challenges are constraining the sector, including
and automation industries can unite to overcome challenges an aging population, employee retention issues and migration
and achieve positive advancements for the entire warehouse changes. The report finds that experts agree that robots will
sector. Based on insights from CEOs, CTOs, Country Managers, be able to complement human labour, rather than replace
Directors, and academics with expertise in the fields of it, filling in gaps where necessary and making warehouses a
warehouse management, logistics, and robotics, Hai Robotics safer and more stimulating place to work by enabling workers
will explore answers to the key questions facing the sector: to take on more technical roles supervising automation. It
is recommended that the upskilling of workers should be
• How will warehouses be designed in the future? a priority for the industry going forward. The warehouse
industry currently lacks an agreed-upon way to measure
• Who will work in warehouses in the future?
emissions and energy use, limiting the potential ambition
• How will warehouses be sustainable in the future?
to decarbonise warehouse operations. It is recommended
that the industry work together to establish firm standards
for sustainable operations, in order to better observe the
The report finds that the warehouse of the future will be more positive impacts that automation can have. These include
tailored and efficient at meeting the needs of customers efficiency in energy use and space and savings on paper
through the use of agile robotics solutions. Experts predict use, by digitizing processes. The key challenges identified
that scalable automation processes will be implemented by Hai Robotics’ research will be building multi-channel,
across the market to achieve greater capacities, increased cross-network software solutions which integrate different
storage density and improved putaway rates, particularly as processes together into one seamless supply chain, and
the e-commerce boom continues. tackle institutional aversion to new technologies. Robotics
companies and warehouse managers can work together to
ease the transition to automated warehouses, by engaging
with workers, investors and new business prospects on the
benefits of these systems.

03
 Part 2: Introduction

Introduction
1. Introduction to Warehouse Automation • Shelf-based picking: including Vertical Carrousel Modules,
Horizontal Carrousel Modules, and Vertical Lift Modules
Since the invention of the forklift in the early 20th century, (VLMS).
the warehouse industry has been trying to find more efficient • Bin-based picking: including Crane-Based Mini-Load ASRS
ways of picking and transporting goods from Point A to Point and Vertical Buffer Modules (VBMs).
B. Increasing stock turnover and reducing delivery times • Robotic picking/delivery: including Robotic Shuttle Systems,
has been the goal of managers for decades, but has become Robotic Cube Storage, and Floor Robots (AGVs/AMRs).
a necessity with the advent of e-commerce from the late
1990s onwards. Vendors can now reach more consumers and The e-commerce boom has seen a proliferation of various types
offer more choice, meaning warehouses need to keep more of robotics picking/delivery technologies capable of handling
goods in stock at any one time. This has been accelerated different volumes, types, and velocities of non-palletised
by the COVID-19, as online shopping became a necessity. inventory. The type of technology that organisations choose will
The increase in online returns policies has also created new ultimately depend on the specific operation, the storage density
pressures on picking and sorting activity, and the need to needed, the throughput goals, and the budget.
implement sophisticated stock management systems. The
development of automated technologies has accelerated to One example is the emergence of autonomous mobile robots
meet this challenge. (AMRs), which can move entire shelves to workstations so
pickers can pick the required item. They can understand and
Several companies design, engineer and manufacture a move through their environment independently, using artificial
wide variety of self-contained, goods-to-person, automated intelligence and machine learning. This is a significant help for
storage and retrieval systems (ASRS). With the focus shifting transporting stock within a warehouse, as its smart features
from picking pallets and cases to picking individual items can increase flexibility and safety.
or “eaches”, there has been an explosion of types of ASRS
technologies available in the market to help warehouse, Another example is collaborative mobile robots, which are flexible,
distribution and manufacturing operations make this change. safe and easily programmable. They are specifically designed
to assist human employees as they perform various order
ASRS technologies can be broken down into three major fulfillment and warehouse activities. This easy programmability
categories based on how they deliver goods: is ideal for warehousing operations, which tend to be dynamic.

04
 Part 2: Introduction

The latest solution involves Autonomous Case-handling 2. The Warehouse of the Future
Robots (ACR) that can store and retrieve several cases at the
same time in narrow storage aisles. These robots are agile, As this industry develops, there are several key questions
scalable and easy to integrate with existing infrastructure that must be answered:
and systems.
• How will warehouses be designed in the future?
Hai Robotics has developed the first such ACR system,
• Who will work in warehouses in the future?
incorporating HaiPick robots, workstations and a HaiQ
software platform to perform picking, sorting, and transporting • How will warehouses be sustainable in the future?
operations. HaiPick robots have a small footprint and a vertical
reach of up to 10 meters high (over 30ft), which can reduce a Exploring these areas in more detail will provide insights into
facility's storage footprint by up to 75%. the challenges and opportunities which warehouse managers
and robotics developers must face together.
Technology is evolving very quickly, as robots can now pick,
sort and transport stock in record time, even with sensitivity
to different shaped and sized products. Warehouses are
thus becoming more intelligent and efficient, as these 3. Purpose of this report
solutions are put into practice in Third-Party Logistics
(3PL), e-commerce, fashion/apparel, automotive, retail, This report seeks to paint a picture of the ideal warehouse
healthcare and electronics sectors. However, the industry of the future, based on insights from industry experts. We
has been impacted by misconceptions that the expansion have interviewed CEOs, CTOs, Country Managers, Directors,
of warehouse robotics means that warehouse workers will and academics with expertise in the fields of warehouse
lose their jobs and be ‘replaced’ by more efficient machines. management, logistics, and robotics. We asked them
Such a dystopian vision of the future of warehousing has about their view of the future of warehouse automation,
clouded the public’s hopes for further advancements and the impact it would have on workforces and sustainability,
created unnecessary worries for workers. This is not a view the risks facing the industry, and the potential avenues for
shared by the industry itself, as we will outline in this White collaboration to drive forward progress. The purpose of the
Paper, but it is nonetheless a powerful misconception. report is to highlight how the industry can unite to overcome
challenges and achieve positive advancements for the
In addition, the story of Amazon, as a leader in warehouse entire sector.
automation, has also been a significant influence on
perceptions. The purchase of Kiva is widely considered to
have opened up a gap in the market and paved the way for
a boom in development activity, raising the bar for robotics
companies around the world. China’s dominance in this
market is also remarkable. In 2021, the country installed
268,200 robots, across a wide range of industries. 52% of
all newly deployed robots in 2021 were installed in China.
Other countries leading the way include Japan, at 49,900
annual installations, the United States, at 33,300 annual
installations, and Germany, at 20,500 annual installations.

The question now is: where does warehouse automation go

from here?

05
 Part 3: Warehouse Design

Warehouse Design
1. What will the Warehouse of the Despite the numerous robotics solutions on offer, and although
it is improving, the logistics industry still lacks the general
Future look like?
awareness of what automation can currently do for individual
As the use of robotic solutions across the warehouse sector warehouses. Coupled with the lack of understanding, is an
grows, companies of all shapes and sizes and right across institutional aversion holding companies back from investing
the supply chain are considering the benefits of automated in a robotics future. New technologies are still perceived
solutions. There is little consensus within the industry on as costly and time-consuming to implement in existing
what form the warehouse of the future will take, due to the operations. The reality today is that the capital expenditure
wide range of uses for automation in different operations. needed to implement a robotics solution is significantly
Therefore, accommodating flexibility in warehouses will be the lower than it was a few years ago. The challenge faced by the
key focus for the industry, going forward. Our research shows warehouse robotics industry is to educate logistics companies
that agility is essential. The warehouse of the future will not on what robotics solution is most practical to implement and
be designed to accommodate robots, but rather robots will be how such investment could seamlessly fit into their existing
designed to blend quickly into existing operations. ecosystem for little cost.

The COVID-19 pandemic, the explosion in online retail and the

2. The Challenge interconnected nature of the modern global economy has and
is already shaping the face of the warehouse and logistics
To date, innovation in the warehouse automation industry industry. The nature of ‘just-in-time’ supply chains or the ever-
has come from the top players such as Amazon, who have the growing expectations of consumers – accustomed to next-day
resources to invest in bespoke custom solutions in gigantic or even same-day deliveries, has seen enormous investment
purpose-built compounds. To these lucky few, with almost in logistic networks in recent years. Ever larger regional hubs
endless resources, designing and implementing an entirely (typically above 9.2k square meters or 100k square feet) linked
automated warehouse – from the ground up – is a feasible to smaller, more localised distribution centres in urban areas
endeavor. However, the cost of such a solution is prohibitive to are increasingly becoming the norm. Yet the workers needed
some parts of the wider industry. to staff such sites are in short supply, as countries like the UK,
US and even China are having to contend with.

06
 Part 3: Warehouse Design

3. The Agile Solution

The advances in warehouse robotics, coupled with rising for sustainable and scalable productivity. As confidence
labour costs, difficulties finding workers and the declining cost in automation grows, additional robotic solutions can be
of robotics solutions, has created a watershed moment for deployed to cover increasingly more complex aspects of the
the logistics industry. Companies that don’t have the capital warehouse pipeline.
investment required to build a custom warehouse from the
ground up, can invest in robotic solutions to enhance their
operations and efficiency. As such, the industry in general “The good thing about these kinds of agile solutions is that they’re
– led by companies like Hai Robotics – is designing and scalable and modular, you don’t have to spend a ton of money
upfront. You can get a few robots in to automate a process in the
implementing much-needed solutions that can blend quickly warehouse and then develop it from there if it works.”
into existing operations and can evolve to suit the changing
Simon Duddy, Editor, Handling & Storage Solutions
needs of potential customers, based on an agile design.

In recent years, an emerging class of warehouse robots

designed to augment operations and work collaboratively When we spoke to industry experts, they marveled at the
with humans has come to market. From collaborative robots wide array of companies now taking advantage of their ability
known as cobots – that work together with employees, with to deploy small fleets of robots to meet specific, smaller-
no safety equipment needed – to autonomous mobile robots scale needs. One expert noted that as the robotics industry
or automated guided vehicles, the diversity of technology developed and costs dropped, the type of companies investing
solutions on the market today allows for precise, cost- in robotics solutions would also change, now including SMEs,
effective options to suit any need. as well as large companies

The agile solution offered by companies like Hai Robotics This diverse range of customers should be front-of-mind
enables warehouse operators to pick and choose what for robotics developers, particularly as smaller companies’
solution would work best within their existing operations. decisions to invest will look very different from the big
It targets components of operations, rather than an players. Return on Investment will be a more immediate
entire system overhaul. This approach means companies concern for SMEs, who can’t afford to make big investments
reluctant to invest vast sums of money into an entirely that will only come to fruition five or six years down the
automated warehouse can test the water by deploying a few line. Therefore, cost and speed of deployment will be key to
robots to automate a specific process. It can also alleviate unlocking this market.
bottlenecks for those who want to improve efficiencies
without disrupting workflows and making large capital
investments. In some cases, governments will support the
“I cannot imagine even a small company not keeping an eye out [on
introduction of automation into companies. For example, robotics] because eventually the technology is going to progress,
the UK government launched a scheme in 2021 allowing and they will be left behind.”

companies to claim 130% capital allowances on qualifying Vaggelis Giannikas, Associate Professor, University of Bath
plant and machinery investments. In China, advanced
robotics is one of the key areas targeted by the Made in
China 2025 plan, ensuring support for robotics is part of the
national economic strategy. Larger companies are also increasing their robot fleets to
meet the challenges of increased e-commerce. In order to
Recently we have seen new alternatives to large capital stay competitive, vendors must offer a wide range of stock,
investments such as Robot as a Service (RaaS), a subscription- flexible returns policies and speedy delivery times. Robots can
based model where customers pay for in-demand services help vendors to upgrade their capacity and capability to handle
of a robotics solution. Companies using this service model increased turnover, particularly those with sophisticated AI
provide total solutions that include operation, maintenance, technology like the HaiQ software.
and management services, in addition to the robotic system

07
 Part 3: Warehouse Design

“E-commerce companies are holding more stock and offering

more choices to consumers, increasing the complexity of
handling activities. Picking and packing goods to send them to
a consumer’s home address takes more space than preparing
them to send to a retail outlet. Returns activity is also quite
space hungry.”

Clare Bottle, CEO, UK Warehousing Association

4. Take-aways: All Shapes and Sizes,

for all Customers
Robotics and automation present an amazing opportunity for
warehouses to improve their speed and efficiency. In the not-
too-distant future, human pickers might have less time on
their hands, but there will need to be a lot more investment
in developing and testing warehouse automation systems,
maintaining warehouse robots, and improving automated
logistics workflows.

Warehouse design will be impacted less by the robots

themselves, and more by the realisation that when
implemented correctly, a robotics solution combined with the
creativity, judgment, and agility of human workers, will create
a far more agile and productive logistics network for a wide
range of customers.

With any new technology, there will always be some who have
an aversion to the unknown. There is a psychological barrier
that individuals and even companies as a whole need to get
past before adopting automation. The agile approach will help
to ease this transition.

08
 Part 4: Workforce

Workforce
1. Who will work in the Warehouse of absence of workers due to self-isolation requirements and
illness. This squeeze on the workforce coincided with the
the Future?
continued boom in e-commerce, as isolating households relied
Some ideas of the warehouse of the future envisage the on rapid online deliveries for essentials, placing particular
eventual elimination of human labour within warehouse pressure on the logistics industry. In countries like the US,
operations, assuming that automation will outgrow the need the difficulty of retaining workers is often attributed to the
for human supervision entirely. This is not the view shared quality of the work itself, with swathes of employees seemingly
by the majority of those in the warehousing and automation quitting to seek more satisfying and flexible jobs. Industries
industry. Our research shows that most view automation as that rely on in-person work, rather than work that can be done
an assistant to humans, rather than a replacement for them. from home, have suffered the most severe shortages. For
Robotics offers an opportunity for a safer, more stimulating instance, the US Chamber of Commerce calculated that the
environment for warehouse workers and a bright solution for leisure and hospitality industry, in particular, has experienced
pressing demographic issues facing the workforce. the highest quit rate since July 2021, consistently above 5.4
percent. Wholesale and retail trade isn’t far behind, with a
quit rate of 3.3% in June 2022. Employers are under pressure

2. The Challenge to offer better working conditions and opportunities for

development, if they are to attract and retain workers.
A variety of global crises have exposed vulnerabilities in
international labour markets over the past decade, leading to
worker shortages in key sectors such as logistics, healthcare,
“There is a recruitment problem with warehouse workers, due
transport and hospitality. to the fact that it traditionally depends on hard labour. That is a
factor impacting potential employees.”

Britain’s exit from the EU and the end of free movement of Vassilis Pandis, Chief Technology Officer, Logidot

EU citizens to the UK caused sectors such as hospitality,

logistics, transport and healthcare to suffer a steep rise
in unfilled vacancies, due to the loss of EU workers. The
COVID-19 pandemic also disrupted the free movement of
people, and forced workplaces to reckon with the regular

09
 Part 4: Workforce

China faces a similar labour shortage, partly due to an Robots will also take on the roles in a warehouse that are
emerging ‘demographic gap’ caused by an aging population, more dangerous and uncomfortable for workers, such as
low birth rate and low level of immigration. In particular, the picking heavy goods from shelves. This will help to reduce the
aging population poses issues for traditionally physical jobs amount of ‘hard labour’ that warehouse work entails, leading
like warehousing, as the ability to lift heavy units and stand up to a more appealing workplace and enticing workers back.
for long periods is important. The trend of an aging population Industry experts agreed that automating the processes in
is being experienced in several countries, including the UK, warehouses would lead to a better working environment and
where 22% of the population will be aged 65 and above in enable workers to benefit from the assistance of robotics.
ten years. Employers have learned that they cannot rely on a
supply of young workers to take on these physically intensive
roles, so should consider how older workers can be supported 4. Human-Robot Partnership
to fill in the gaps. Those with disabilities and health conditions
limiting their capacity for manual labour should also be Far from being replaced entirely, human labour will be vital
accommodated and given equal opportunities to their able- to the smooth running of automated warehouses in the
bodied peers. This will have wider societal benefits and bring long-term. However, the roles that humans will play will
a diverse range of talent into warehouses. undoubtedly change, as automation expands. The human
supervision of operations will become more technical and
grounded in the more mentally stimulating work of discerning
and fixing problems in warehouse processes. This will
3. The Robotics Solution
require workers with the skills to carry out data analysis,
The further integration of automation and robotics into use software systems and repair robots when they break
warehouse operations offers a solution to all of these down. The systems of automation in place within warehouses
pressures. By utilizing robots’ ability to pick and sort goods are increasingly complex and advanced, requiring project
on the warehouse floor, the shortage of young, skilled managers, project engineers, software engineers and
labour will be felt less acutely. They will be able to perform controls engineers to keep ever ything moving along
the ergonomically challenging roles that older or disabled smoothly.
workers cannot do, allowing employers to better utilise those
workers for other key tasks. Relying on robots for labour-
intensive tasks will also ensure that workplace injuries are “The human ability to judge the situation is going to be absolutely
less common, particularly when it comes to repetitive tasks critical. Humans should be able to focus on bringing the most
value with their skills, while autonomous systems enhance and
that often cause strain. This is a vital step that employers complement that.”
should take to protect and attract a diverse array of workers.
Andrei Danescu, CEO, BotsAndUs

“There shouldn't be any excuses for finding ways of making the

workspaces a lot more inclusive, inclusive and open to pretty These skills are not easily adopted by robots and must be
much everyone.”
supplied by workers, but there will need to be attention to
Andrei Danescu, CEO, BotsAndUs ensure that the existing workforce can be upskilled where
necessary. The industry should band together to achieve a
smooth transition for the workforce and encourage more
“Robotics can make warehouse jobs more interesting, safer, less young people to train in engineering and consider a career in
tedious and less strenuous for humans.” logistics.

Clare Bottle, CEO, UK Warehousing Association

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 Part 4: Workforce

5. Case Study: Maersk Contract 6. Take-aways: A Safe and Stimulating

Logistics Place of Work
The Warehouse of the Future will not be fully ‘dark’, there
will always be a role for humans. The uptake of automated
solutions will transform the warehouse from an often
dangerous and gruelling workplace, into a safe and
stimulating environment, in which workers work alongside
robots. External demographics challenges have stretched
the sector to its limits but advances in robotics offers
an opportunity not only to fill in the gaps, but to make
warehouses a safer, more stimulating and appealing place to
work, for a wide range of workers.

To achieve this transformation, the industr y should

Maersk Contract Logistics provides third-party logistics take the necessity of upskilling the workforce seriously.
services to its partners, more than 400 world-famous Interviewees emphasised that changes should happen in
casual wear companies. Before Maersk Contract Logistics dialogue with workers and unions, to ensure that worries
decided to deploy Hai Robotics’ customised Autonomous about ‘workers stealing jobs’ are quashed and countered with
Case-handling Robot systems at its distribution centre in the opportunities that increased automation can offer for
Shenzhen, China, managers were worried about how the training, wages and job satisfaction.
sector was going to cope with ongoing labour shortages,
particularly as there was a skills gap among the available As the case study at Maersk Contract Logistics demonstrates,
workers. Kuang Jianfang, 50, had been unemployed robots are reliable and welcome co-workers in the warehouse
for the past 20 years and was concerned about having sector. We anticipate that the increase in automation will be a
the necessary skills to work in a modern warehouse in positive, rather than negative, force in global labour markets,
Shenzhen. After spending six months working with the enabling workers to take on more fulfilling roles and increase
Autonomous Case-handing Robot (ACR), Kuang found productivity overall.
things were different in the warehouse. Working with
robots was actually much easier and less intense than she
thought. "They don't speak, but they are crystal clear about
everything, and are my most reliable partners," Kuang
said, talking about her robot co-workers. With the help of
robots, warehouse work is no longer a young person’s game,
workers no longer have to walk 16km a day or climb up and
down ladders to retrieve stock.

Hai Robotics works with its clients to provide training and

resources for operators. Warehouse workers at Maersk
Contract Logistics received a day of training, covering
how to operate Hai Robotics’ HaiQ System and maintain
the robots in optimum conditions for longer and smoother
operations, as well as the safety measures and procedures.

11
 Part 5: Sustainability

Sustainability
1. How will the Warehouse of the automation helps to reduce its impact on the environment
rather than make the problem worse. Yet very little official
Future be sustainable?
data exists to measure the exact impact of automated
The logistics industry, alongside a myriad of other industries, warehouse solutions. Individual case studies do suggest
will increasingly come under scrutiny and pressure to reduce that automated and robotic solutions do offer notable
its environmental footprint. Increasing digitisation of the sustainability improvements, however.
warehouse space can increase efficiency but to calculate the
sustainability of the warehouse of the future, experts argue New warehouses are typically built to the sustainability
we should be looking at the whole life cycle of a product or standards of recognised green-rating systems such as
the whole supply chain in and out of the warehouse. Our LEED (Leadership in Energy and Environmental Design) or
research found a consensus around the belief that robotics are ‘sustainability-ready ’, having the structural integrity
and automation would benefit sustainability, primarily by to support adding sustainability features such as rooftop
increasing the efficiency of the warehouse. However, it also solar panels. However, until the industry fully understands
highlighted the lack of an agreed industry measurement on the positive impact of automation, such as reducing a
the sustainability of warehouse automation. warehouse’s carbon footprint or drastically reducing paper
usage through digitisation, it will be a challenge to convince
the Warehouse of the Future that automation is a valuable

2. The Challenge tool in the push for a more sustainable future.

Warehouses are a crucial part of many businesses but can

also be a major drain on the environment as supply chains
“There is now pressure on warehouses from consumers to reduce
are a significant contribution to global carbon emissions. their environmental footprint. Technology certainly helps with
As outlined above, globally, warehouses are still reliant on that. If you can minimize the movement of pickers and save on
distance travelled, you will save on your carbon emissions”
human operatives and expend significant energy on heating
and lighting. Vassilis Pandis, CTO, Logidot

As such, warehouses should evolve to play a stronger role

in making the world’s economy sustainable, and ensure that

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 Part 5: Sustainability

3. Effective Measurement 5. Case Study: Best Supply Chain

To ensure mainstream acceptance of automation as a tool
(Shanghai Warehouse)
to deliver sustainable processes, the warehouse industry
needs to agree upon an effective strategy for measuring
the benefits of automated solutions. This should be a
holistic measurement that seeks to capture the entirety of a
warehouse’s functions.

Researchers, Peterson and Gonzalez, at the Massachusetts

Institute of Technology propose a carbon emissions
calculator, based on energy expenditure. In their analysis, they
determine that automation is an energy-efficient option for
e-commerce fulfillment, by comparing the carbon footprint
of the additional workers required. In their model facility, they
find that 7 additional employees would be needed, generating
around 43 MT of CO2 per year by commuting 55 minutes to Before deploying Hai Robotics’ solution, workers at the Best
work. This is more than the 30MT of 28 CO2 generated by the Supply Chain’s Shanghai warehouse used to take an average
core automation technology. of 40,000 steps a day in what was a fully human staffed
warehouse. After Hai Robotics deployed an automated system,
An agreed-upon measurement of emissions and energy use the average daily steps for pickers dropped down to 10,000
would help to set the standard within the warehouse industry steps. Furthermore, after the automated warehouse went
and allow companies to be compared on their contribution to online in March 2022, paper delivery orders were no longer
energy efficiency. required. Since March, the warehouse has received 1,106,529
pieces of delivery data (one piece of data equals to one label
paper), which is equivalent to saving 1,106,529 sheets of A5
paper. This is equivalent to saving 55 trees. Partnering with
4. Digitisation of the Warehouse Hai Robotics is part of Best Supply Chain’s strategy to create a
greener, low-carbon supply chain system.
Automation and robotics within a warehouse allow for
greater oversight of the systems and processes that go into
its operation. The integration of technologies like machine
learning, the Industrial Internet of Things (IIoT), and big data
6. Case Study: Maersk Contract
into the warehouse floor – through automation – provides
real-time visibility of how people and materials move around
Logistics
a warehouse. With such data, the operations and processes Automation and robotics within a warehouse allow for
can be improved or refined to increase efficiency as every greater oversight of the systems and processes that go into
movement, package handled or item used can be recorded its operation. The integration of technologies like machine
and records updated in real-time. One of the key benefits of learning, the Industrial Internet of Things (IIoT), and big data
digitisation is the reduction of paper delivery orders, which into the warehouse floor – through automation – provides
helps to reduce deforestation. real time visibility of how people and materials move around
a warehouse. With such data, the operations and processes
can be improved or refined to increase efficiency as every
movement, package handled or item used can be recorded
and records updated in real-time. One of the key benefits of
digitisation is the reduction of paper delivery orders, which
helps to reduce deforestation.

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 Part 5: Sustainability

7. Efficiency in energy use and space

While our research shows that human labour will always be a
part of warehouse operations, automation can reduce some
need for electricity, with certain sections of a warehouse
handed over to robotic solutions – becoming dark zones void
of the need for light or heat, save for periods where repairs
need to be made. Furthermore, the advances in energy-
efficient robotics, can also result in significant energy bill
savings, particularly where diesel or petrol-powered vehicles
can be replaced by electric automated guided vehicles.

One of the main challenges facing the logistics industry is

meeting the market's increased demands. For fully manual and
human-operated warehouses, this demand can only be met by
increasing the physical footprint of warehouses. Automation
provides companies with the chance to maximise existing
space, reducing the need for investing in additional properties
and contributing to lower energy usage.

8. Take-aways: Efficiency is key

Automation can help to improve warehouses’ carbon footprint
in three ways: cutting down on paper waste, improving
energy efficiency and improving space efficiency. However,
more research and discussion is needed to establish metrics
for the sustainability of warehouses and automation. While
efficiency is key, renewable energy sources should be utilised
where possible, in order to fully decarbonise the warehouse
as soon as possible.

14
 Part 6: Conclusion

Conclusion
The Warehouse of the Future • Self-inspections to assess where robotics would be most
useful in operations is an excellent first step towards
building the warehouse of the future.
Warehousing has undergone a transformation as the age
of automation has advanced. New advanced technology • Evaluating your long-term human resources recruitment
has expanded companies’ ability to provide customers plan can help to identify future changes in the workforce,
including supporting ageing staff and mitigating shortages.
with a wide range of stock, rapid delivery and efficient
returns processing. Artificial intelligence is increasing the • Developing a sustainable business model, with attention
to energy efficiency can also provide insights into where
sophistication of software systems, contributing to more robotics solutions can reduce the environmental footprint
efficient processes within the warehouse. Robotics has also of the warehouse.
enabled the industry to tackle several serious threats to
supply chains, by supporting understaffed warehouses, all
while ensuring more efficient use of space and energy. Among the robotics and warehousing industries, the key
challenges identified by our research will be building multi-
We hope that more and more companies consider utilizing channel, cross-network software solutions which integrate
these benefits in their warehouses and invest in advancing different processes together into one seamless supply chain,
the technology further. There is still work to be done to and tackling institutional aversion to new technologies. Robotics
maximise the potential of warehouse automation and ensure companies and warehouse managers can work together to
that the technology is accessible across the market. Further ease the transition to fully automated warehouses, by engaging
funding for research and development will support robotics with workers, investors and new business prospects on the
providers to build ingenious solutions. While already popular benefits of these systems.
among venture capitalists, there is always more that the
robotics community could achieve with robust funding for
new projects.

For companies considering implementing Automatic Storage

and Retrieval solutions in their operations, there are several
places to start.

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[email protected] General Enquiry

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