Educational Resources
What is Warehouse Automation? Examples, Types, and Benefits
Learn how automated solutions can enhance efficiency, reduce costs, and improve accuracy in warehouse operations.
The logistics and warehousing industry is undergoing a massive transformation, thanks to the rise of robotics and automation technology. As businesses face increasing pressure to meet rising demand, improve efficiency, and overcome labor shortages, the adoption of robots in logistics has become a required step for companies looking to get ahead.
In 2023, the global logistics automation market was valued at $73 billion in 2024 and is projected to reach $217.26 billion by 2033. Companies see these technologies as the path to building a better warehouse and the inevitable future of this industry, where goods move intelligently and automatically throughout the supply chain.
Moreover, automation in logistics is synonymous with increased speed and accuracy. Robots handle tasks with increased precision, ensuring that goods are processed quickly and correctly. In fact, a Cyngn study found that our vehicles ran workflows 4x more efficiently than their human counterparts. This improvement in operational efficiency helps companies reduce delivery times and enhance customer satisfaction, making logistics a true competitive advantage.
In this article, we’ll take a deep dive into supply chain robotics and all the ways that the logistics industry is benefiting from the rise of intelligent automation.
The Future of Logistics
As these technologies come together, logistics will become more interconnected, data-driven, and capable of meeting customer needs with greater speed and accuracy. For businesses ready to embrace this future, the payoff will be significant.
Automation in warehousing and transportation, combined with artificial intelligence, will reshape everything. Autonomous vehicles and drones will shift from novelties to the very definition of how goods move, particularly in last-mile delivery. This shift will streamline operations and drive down costs, making it possible to meet the ever-growing demand for faster, more efficient logistics.
But it’s not just automation—IIoT (Industrial Internet of Things) will become standard as well. IoT technology is already enabling real-time asset tracking and monitoring from production to delivery.
However, the trend line of such data digitization is such that we can expect operators to have visibility over (nearly) all aspects of the supply chain and its component parts.
Additionally, things will become far more intelligent. These tools will evolve from robotic process automation to decision-making. In a few years, we can expect the potential logistics nightmare of the longshoreman strike will be automatically resolved by an intelligent logistics automation system. Everything from procurement, distribution, demand planning and forecasting will be under its purview.
Another trend we’re seeing is toward sustainability. In January, the EU expanded its cap and trade system to cover CO2 emissions from large ships entering EU ports. We can expect similar regulations to continue as sustainability moves beyond a “nice to have” to become a business imperative.
Many Industries Will Be Impacted
Robotic automation will significantly impact several industries:
- Ecommerce and Retail. Optimizing warehouse operations, streamlining order processing, and improving last-mile delivery.
- Manufacturing. Enhancing internal transport, inventory management, and overall production efficiency.
- Third-Party Logistics (3PL). Increasing throughput, reducing costs, and addressing labor shortages.
- Transportation and Shipping. Developing autonomous vehicles and automating loading, unloading, and fleet management processes.
- Healthcare and Pharmaceuticals. Streamlining supply chain management, automating inventory tracking, and ensuring regulatory compliance.
- Food and Grocery. Improving cold chain logistics, automating fulfillment, and increasing accuracy in grocery orders.
The expansion of robotics in these sectors will drive unprecedented efficiency and reduce operational cost across industries.
However, the workforce will also be affected, with a shift towards roles in robotic system maintenance and AI development. Companies will need to adapt their operations to remain competitive in this evolving landscape.
Warehouses Will Continue to Be Modernized
Modern warehouse automation has become the standard and we can expect this trend to continue. As they become hubs of digital transformation, warehouse optimization is now the norm. Robotics, AI, and automation are enabling businesses to optimize workflows, reduce human error, and launch 24/7 operations. Amazon kicked off the distribution center automation phenomenon, a trend that is spreading to the entire sector.
Warehouse robots such as AGVs and AMRs are streamlining the transport of goods across distribution centers, while robotic arms and cobots (collaborative robots) assist workers in pick-and-pack, putaway, and point-to-point tasks, moving up to 800 items per hour. With this advanced technology, leaders will be able to scale more effectively meeting growing customer expectations with precision and speed.
Logistics Automation
Automation is the backbone of modern logistics operations. With logistics robots taking over repetitive and manual tasks like sorting, packing, and palletizing, companies can allocate human labor to more strategic activities.
For example, businesses that implement automation can see up to a 48% improvement in productivity and a 42% decrease in operating costs. This transition enables quick and cost-effective scalability.
Logistics optimization relies heavily on automation systems such as Automated Guided Vehicles (AGVs) and Automated Storage and Retrieval (AS/RS). These technologies significantly enhance supply chain efficiency by enabling goods to move seamlessly with minimal human intervention. Moreover, implementing solutions like autonomous vehicles can free up 30%-50% of a skilled worker’s time, empowering them to concentrate on more value-added tasks.
Autonomous Robotics
Autonomous robots are perhaps the most exciting version of logistics automation. Autonomous Mobile Robots (AMRs) are particularly popular for their ability to independently navigate warehouse floors, avoid obstacles, and optimize routes in real-time using sophisticated sensors and AI algorithms.
A 2020 report from the International Trade Organization found that companies in the early stage of adopting robotics found a 5% efficiency increase for every 1% increase in overall robotics density.
In other words, businesses that invested in expanding their robotics footprint saw significant gains in productivity and operational efficiency, underscoring the direct correlation between the density of robotic systems and improved performance.
The Role of AI in Logistics Automation Will Continue to Expand
Artificial intelligence (AI) plays a critical role in logistics automation as companies seek to improve decision-making, enhance efficiency, and enable predictive maintenance.
In the context of robotics, AI-driven algorithms empower autonomous systems to perform tasks with greater precision and speed, optimizing operations at every level. At Cyngn, AI also plays a pivotal role in enabling safe and efficient driving, especially in complex and dynamic environments. From inventory control to route planning, AI allows robots to analyze vast amounts of data in real-time, making logistics systems more responsive and adaptive to changing conditions.
One of the most impactful uses of AI in logistics robotics is predictive maintenance, which can significantly enhance operational uptime. Predictive maintenance powered by AI has been shown to reduce unplanned downtime by 20–40%.
This technology doesn't just prevent costly disruptions—it also increases the longevity of critical equipment by identifying potential issues before they cause failures.
As a result, businesses can experience up to a 35% boost in production, and operational efficiency increases, leading to both cost savings and a more streamlined, automated supply chain.
The Role of Robots in Logistics Automation
From palletizers and sorting robots to self-driving vehicles, robotics are the backbone of intralogistics automation, enabling businesses to operate more smoothly and efficiently. They are essential for powering 24/7 operations, ensuring continuous, seamless workflow without interruptions.
Let’s dive into some robot use cases.
Robots to Transport Goods
When it comes to internal transport, robots handle the heavy lifting, speeding up various workflows. Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), equipped with advanced sensors and AI, are frequently used to move materials between storage, production lines, and shipping areas without human intervention, improving internal logistics.
AMRs have been proven to reduce manual labor by 30-50%, freeing workers to focus on higher-value tasks while robots efficiently manage repetitive transport routes. Additionally, robots significantly boost productivity, with some companies reporting a 48% increase in throughput after implementing automation.
As robotics technology advances, their ability to handle heavier loads and integrate seamlessly with existing systems will continue to transform the logistics industry.
Conveyor Systems
Conveyor systems have long been a cornerstone of warehouse automation, providing a reliable means for goods to move efficiently through different stages of the logistics process, following the goods-to-person (G2P) approach. Today, half of all logistics companies use conveyance systems at their facilities.
These systems facilitate the seamless movement of products along predefined paths, reducing the need for manual handling and increasing overall throughput. When combined with robotic arms and pick-and-place technologies, conveyor systems can manage everything from sorting to packaging, significantly accelerating operations.
Unfortunately, conveyors are inflexible and unable to lift heavy loads, which has inspired many organizations to consider alternatives such as AGVs and AMRs.
AGVs
Automated guided vehicles (AGVs) are a staple of logistics automation, known for their ability to transport goods along predetermined paths using a combination of sensors, magnetic strips, or laser-guidance systems.
AGVs are highly reliable and can carry heavy loads, making them ideal for large warehouses and manufacturing facilities, where things tend to not change that much. In fact, according to the American Society of Mechanical Engineers (ASME), AGVs have the capacity to increase efficiency by 50-70%.
As part of a broader automation strategy, AGVs help streamline internal logistics and reduce operational bottlenecks.
AMRs
Autonomous mobile robots (AMRs) take automation to the next level by navigating warehouse spaces autonomously. Unlike AGVs that follow fixed paths, AMRs use advanced sensors and AI to optimize routes in real-time, enabling them to avoid obstacles and adjust to changes in the given environment.
Their flexibility makes them well-suited for dynamic environments where human and robotic interactions occur simultaneously, and where traditional AGVs may struggle. Therefore, we can expect that, over time, AGVs will be phased out in favor of these much more intelligent alternatives.
By automating tasks such as picking, sorting, and transporting items, AMRs enhance efficiency and flexibility, enabling businesses to respond quickly to changing demands. At Cyngn, our study found that our AMRs can increase efficiency by 33%.
Learn more about the differences between AGVs and AMRs here.
Robots to Assist Pick-and-Pack Workers
Cobots
32% of current production lines are managed by both robot and cobot technology. Collaborative robots, or cobots, are designed to work safely alongside humans. Unlike traditional industrial robots, cobots are equipped with sensors and safety features that allow them to operate in shared workspaces. Cobots are ideal for tasks like order picking and packing, where their flexibility and ease of integration offer a significant advantage.
Robotic Arms
Robotic arms are a versatile tool in logistics automation, capable of performing various tasks such as picking, packing, palletizing, and sorting. Equipped with advanced vision systems and AI algorithms, they are particularly useful in high-speed environments, where their precision and consistency outperform manual labor. Robotic arms can handle a wide range of products, from small packages to large containers, also making them ideal for diverse inventory.
Robots to Support Inventory Management
Automation is a game-changer for inventory management, providing accurate tracking, real-time visibility into stock levels, and reducing the risk of human error. For example, robots equipped with RFID and barcode scanning capabilities enable stock monitoring and inventory tracking throughout the warehouse.
This technology allows businesses to quickly identify discrepancies and adjust inventory levels. In fact, using RFID can improve inventory accuracy rates to as high as 99%. This improved accuracy enables businesses to nail stock management and reduce the risk of overstocking or stockouts.
Automated inventory systems further facilitate faster replenishment by efficiently transporting items to their designated locations, minimizing delays in order fulfillment.
Robots to Enable 24/7 Operations
In 2019, Supply Chain Drive wrote an article which detailed the switch of several major retailers from Amazon to Fedex to always-on operations. The pandemic only exacerbated this transition. Today, most major organizations in the space operate at least 6, if not 7, days a week.
As the cost of deploying autonomous solutions comes down, we can expect this trend to continue with smaller logistics organizations, driven by the need for faster delivery times and heightened customer expectations.
Robots to Optimize Operations
Logistics robots not only increase speed but also help optimize operations. Automated systems like AGVs, AMRs, and robotic arms streamline workflows, allowing for faster order fulfillment and fewer mistakes. They also gather lots of data, which operators use to streamline operations and reduce efficiencies.
At Cyngn, we’ve had customers apply the lessons they learned setting and optimizing their autonomous workflows to their manual workflows. Robots, after all, require a kind of precision that can inspire broader optimizations.
5 Benefits of Deploying Robots for Logistics Automation (+ Stats)
1. Increasing Efficiency
Robots can handle repetitive tasks with ease, reducing the time it takes to complete them and reducing the need for manual labor. As a result, businesses can increase throughput and improve overall operational efficiency. In fact, a Cyngn study found that our vehicles increased efficiency by 33%.
2. Overcoming Labor Shortges
According to a study by Descartes, 37% of companies face significant labor shortages, 61% are dealing with transportation issues due to understaffing, and 58% report that these shortages have affected customer service.
Fortunately, shifting work to robots that can handle repetitive and physically demanding tasks adds robustness and reliability to various workflows.
3. Scaling Operations
Stanford estimates that there are more than 3.4 million industrial robots deployed worldwide, enabling organizations to shift a significant portion of their workflows over to automated systems and scale their operations without a proportional increase in labor costs. They can quickly adapt to fluctuating demands, allowing businesses to ramp up production and fulfillment processes.
This shift has supported the growth of the logistics industry.
4. Improving Safety
Robots enhance workplace safety by taking over hazardous tasks and reducing the risk of injury. This is particularly important in industries where workers face risks associated with heavy lifting and hazardous machinery, such as operating forklifts or transporting heavy pallets. A Verve Motion study found a 60-80% reduction in workplace injuries when workers used a robotic exoskeleton.
5. Predicting Maintenance
There are many logistics automation software tools that can predict when maintenance is required, preventing downtime and costly disruptions. According to a GE Digital study, predictive maintenance can reduce reactive maintenance by up to 40%. By continuously tracking performance data, robots can help operators optimize their maintenance strategies and alert them to potential issues before they lead to failures.
How to Bring Automation Robotics to Your Warehouse
When it comes to deploying automation or robots at your facility, there are many approaches and logistics automation strategies. In most cases, following this path will lead to the biggest impact the quickest.
1. Map Current Operations
Before implementing automation, it's essential to map out your current operations. This process involves analyzing workflows and will help you identify bottlenecks and inefficiencies that can benefit from automation.
2. Identify Automation Goals
Next, define your goals for automation. Are you looking to reduce labor costs, increase throughput, or improve accuracy? Having clear objectives will guide your decision-making process and will prepare you for when you bring in an automated logistical specialist.
3. Review Warehouse Management Software (WMS) Tools
Ensure that your WMS integrates with the robots and automation tools you plan to deploy. A robust WMS can enhance coordination between robotic systems and human operators, streamline inventory management, and provide real-time data analytics
4. Consider Robotic Process Automation (RPA)
Robotic Process Automation (RPA) can streamline administrative tasks like data entry, order processing, and inventory tracking. By automating these back-office functions, you can free up resources for more strategic tasks.
5. Select Types of Logistics Robots
Choosing the right robots to enable smart warehousing depends on your specific needs. From AGVs to AMRs and robotic arms, each type of robot offers unique capabilities that can enhance different aspects of your operations. Consider factors like workload volume and compatibility with existing systems.
6. Choose an Automation Consulting Partner
Finally, working with an experienced automation consulting partner can help you navigate the complexities of robotics implementation. Logistics automation companies, like Cyngn, are standing by to support you in this process. A partner can provide valuable insights and ensure a smooth transition to your chosen automated logistics systems.
7. Roll Out Robotics
Once you've selected the right automation solutions, it's time to roll out your robotics strategy. Ensure that your team is trained, and that your systems are integrated for a smooth deployment.
8. Track Return on Investment (ROI)
Tracking ROI is essential to measure the success of your robotics implementation. Monitor key performance indicators (KPIs) such as cost savings, throughput, and error reduction to assess the effectiveness of your automation strategy.
Learn about Cyngn’s deployment process and how we can get you up and running in under two weeks, here.
Future-Proof Logistics with Robotics from Cyngn
By partnering with Cyngn, businesses can future-proof their logistics operations. As a logistics company, you know the importance of being able to adapt to changing demand and other fluctuations in your business. With scalable solutions and ongoing support, Cyngn ensures that your business stays ahead of the competition in a rapidly evolving industry.
Our fleet of AMRs, including our Autonomous Tugger, Autonomous Stockchaser, and Autonomous Forklift, automates repetitive hauling tasks, propelling your business forward and maximizing productivity per shift.
Key benefits include:
- 4x more productive than a forklift.
- 25% cheaper than a forklift driver.
- 33% more efficient than a pallet jack.
- 360-degree perception and multiple safety redundancies prevent accidents and keep people safe.