Demand for warehouse automation continues to build in response to labor shortages and safety concerns. Zebra Technologies Corp. today released the findings of its latest “Warehousing Vision Study,” which discussed the benefits of automating warehouse operations — and the risks of not automating fast enough.
The study, titled “Elevating Every Move: The Formula for High-Performance Warehousing,” is based on a survey of more than 1,700 warehouse warehouse associates and decision-makers across sectors such as manufacturing, retail, transportation, logistics, and wholesale distribution. Azure Knowledge Corp. conducted the survey in April and May of 2024. It includes perspectives from key regions around the world.
“Warehouse associates are telling us they feel their lives would be better if their employers thoughtfully integrated more automation solutions into their workflows,” stated Andres Boullosa, global warehouse vertical strategy leader at Zebra Technologies.
“Automating material movement, data collection, and information management helps make busy warehouses safer,” he added. “It also makes it easier for teams to meet SLAs [service-level agreements] and maintain a steady, reliable flow of quality goods to the market, which increases both customer satisfaction and worker engagement.”
Zebra finds warehouse workers under strain
According to the study, 63% of warehouse leaders plan to implement artificial intelligence and augmented reality (AR) within five years. In addition, 64% plan to increase spending on warehouse modernization in the next five years, and 63% have already accelerated their modernization timelines or plan to do so by 2029.
Interact Analysis has projected that global warehouse square footage will increase by 27%, from 33 billion sq. ft. (3 billion sq. m) in 2023 to 42 billion sq. ft. (3.9 billion sq. m) in 2030. The research firm also predicted that spending on warehouse labor will expand at a compound annual growth rate (CAGR) of 7% through 2030.
As this expansion continues and daily order volumes increase, frontline workers suggested in the survey that warehouse leaders need to move faster to expand workforce capacity:
- 85% of associates said, “If my employer does not invest in technology to improve warehouse operations, we will not meet business objectives.”
- 74% of associates were concerned they are spending too much time on tasks that could be automated.
- 72% of associates were concerned about safety on the increasingly busy warehouse floor, with 70% specifically worried about injuries.
- 69% of associates reported a lack of qualified staffers on the warehouse floor and expressed concerns about fatigue and physical exhaustion.
“One of the insights of the study is that the relationship between workers and automation is changing,” Boullosa told Automated Warehouse. “Workers say they want automation, and warehouse leaders were already under pressure from top management to keep up with customer demand and changes, particularly around e-commerce and omnichannel. Now the pressure [to automate] is coming from both sides.”
Warehouse operators acknowledge challenges
Warehouse leaders admitted that they find it challenging to maintain the fill rates (51%) and prepare orders (47%) outlined in their SLAs, noted Zebra. They cited order accuracy and outbound processes as the top two operational challenges.
Increased e-commerce activity is also making “faster delivery to the end customer” a top challenge for warehouse teams, even as technology use is on the rise, found the company‘s study.
“Many companies are barely surviving and said that if they had better tools, they’d be in a better position to meet those SLAs,” said Boullosa. “It’s not only about enabling workers or getting more value, but also helping with performance at the end of the day.”
Given the disparity between customers’ accelerating expectations and operators’ limited hiring capacity, warehouse associates said they were open to using collaborative robots (88%), ergonomic mobile devices (88%), communications applications (87%), and task management tools (91%) to address workplace challenges.
Ninety-three percent of the associates surveyed agreed that the increased availability of automation and mobile technologies would help attract and retain workers. Also, 89% said they feel more valued by their employers when provided with tools to help them.
How can robots and AI help workers?
Warehouse leaders said they expect mobile devices and AI applications to improve worker safety, quality control, and inventory management. While 79% said AI will help them detect potential hazards and issue alerts for prevention, 78% said that AI could help detect issues or anomalies.
In addition, 77% of operators reportedly felt that AI applications would enable them to to forecast needs, streamline stock levels, and maximize space.
Many of the respondents who plan to augment their warehouse operations or have already done so said their goal is to mitigate errors (71%) and meet SLAs (70%). They want automation to increase worker efficiency and productivity (54%) as well as reduce order errors and manual picking (53%).
Plus, 82% of warehouse leaders agreed that giving workers on the floor more technology would help them exceed productivity goals while reducing physical strain and preventing injuries. Eighty-one percent of the leaders said they believe that automation improves morale.
“The technology to address this interest isn’t as flashy or attractive as humanoid robots, but I was surprised by the demand for RFID for inventory accuracy and visibility,” said Boullosa. “Wearables have gotten lighter and easier to interact with, and a lot of customers have evolved into cloud-based warehouse management systems [WMS].”
“A lot of respondents believe that AI will help with faster, more data-driven decisions for quality checks,” he explained. “We’re looking into AI companions to help workers ensure that their work is done correctly and to help with training. It’s fascinating where this space is moving. I’m excited about it from an innovation perspective — we can enable the workforce even more.”
Leaders also need more help, finds Zebra
Warehouse leaders said their biggest supply chain network challenges are “innovating with technology and intelligent automation” and “meeting changing customer service expectations.” However, the latter is not possible until they figure out a clear path forward with technology, asserted Zebra.
“There are so many things that frontline workers are being asked to do in warehouses, including things they don’t enjoy doing, which could and should be automated today,” added Boullosa. “It’s good to hear so many warehouse leaders plan to digitize, automate and add intelligence to their frontline operations, and we are here to help.”
If warehouse robot orders have slowed down, as reported by Interact Analysis and others, how can that be reconciled with the demand cited by the survey respondents?
“The past couple of years have been challenging, with interest rates and the cost of capital being really high. ROI [return on investment] was a challenge,” replied Boullosa. “But I’d approach it more from the evolving relationship between the workforce and automation. Warehouses have been risk-averse and reluctant to implement new technologies for fear of disrupting their operations.”
“Their ability to recruit and retain skilled workers continues to be an issue,” he continued. “They should focus on assisting workers rather than replacing them. From my perspective, there are more incremental ways to connect with workers, and the study confirms that technology is going down that path rather than starting with more greenfield sites.”
Report shares regional findings
Zebra Technologies discussed the regional results of its study:
- Asia-Pacific: Missed SLAs are a tremendous financial burden for 88% of decision-makers, underscoring the need to swiftly address inefficiencies.
- Europe: Workplace safety remains a concern, with 73% of associates worried about injuries on the warehouse floor.
- Latin America: 70% of decision-makers who plan to augment/automate or have done so already said the biggest driver for adoption is the need to mitigate errors.
- North America: 88% of decision-makers agreed that new technology is essential to staying competitive in the fast-paced, on-demand economy.
“What I found interesting is that most respondents globally — except in Europe — were most interested in performance,” said Boullosa. “In Europe, they were most interested in safety, which goes back to the cost of workers being so high. Retention is a top priority from a business-practice perspective.”
Zebra provides tools to help businesses grow with asset visibility, connected frontline workers, and intelligent automation. The Lincolnshire, Ill.-based company‘s portfolio includes hardware, software, and services, including autonomous mobile robots (AMRs) acquired with Fetch Robotics for $290 million in 2021.
Zebra said it has more than 50 years of experience with innovation, operates in more than 100 countries, and has customers including over 80% of the Fortune 500. The company will be exhibiting at Booth S637 and speaking at ProMAT in Chicago next month.
The 2025 Robotics Summit & Expo, which will be in Boston on April 30 and May 1, will have a track on warehousing and logistics. It will also be co-located with the Advanced Automation Forum, which focuses on digital transformation.
