Automation, robotics and, more recently, AI are reshaping the logistics landscape. Yet despite all the hype, most aren’t ready to access the full benefits that can be found in technologies like AI, writes Scott Merrick, Managing Director at Inteq.
Inteq’s research shows that 62% of retailers believe AI and machine learning will redefine logistics within the next five years, but many report they still aren’t prepared, held back by high upfront costs and complex integration challenges.
The gap between belief and action is where the opportunity lies. But there are some key points to consider when looking to further deploy AI and automation.
It’s a journey, not a one-off transformation
One of the biggest myths around automation is that it takes one big transformation to get it right. It doesn’t: there’s no silver bullet and technology is ever-changing. The businesses that succeed treat automation as an ongoing journey of continuous improvement, not a single project with a fixed end date.
The days of a one-off upgrade or technology switch are gone. Today’s warehouse automation decisions are no longer just operational – they are strategic, technological, and financial.
Every business is unique, and so too are its automation needs. The right solution is bespoke, often blending different makes and models of hardware. So, success absolutely relies on a software-first approach that connects the wider business into one seamless operation, not a collection of stitched-together parts, processes or projects.
Software first, but hardware agnostic
This is what we call the Integrated Dividend: put the right software in place first to coordinate robots, storage, conveyors and people as one operation, and you can unlock wider integration, remaining agile as new technology emerges.
Software-led integration reduces that fragility, improves resilience and makes it far easier to scale and add new automation over time. This is because the foundation underneath is already built to absorb it. The same principle of unity is true for AI. AI will deliver its best results when it sits on top of that software-first integration layer, with access to data across every system. Without it, insights stay trapped in silos and value gets lost before it reaches anyone (or anything) who can act on it.
The warehouse of the future doesn’t wait for problems to occur – it avoids them proactively. AI will increasingly be used to predict peaks and allocate work, trigger changes or position stock in smarter locations to handle these and prevent equipment failures before they happen.
The real advantage it offers comes from shortening the time between knowing something and acting on it. Businesses that can anticipate disruption, not just respond to it, will outperform those who rely purely on human intuition and experience.
This depends on businesses having strong operational data to build on prior to integrating AI – something often easier said than done.
Every square foot, every person, counts
Everyone is trying to do more with what they have. Warehouse space comes at a premium, and new locations bring new complexities before capacity. That’s why getting the most from every square foot already available must come before expansion, and solutions like automation and AI are critical in making this possible.
But while these can be strategic platforms for growth, none of this works without agreement at the top. Too often there is a disconnect between senior leaders and the teams running day-to-day supply chain operations.
Without alignment, automation fails twice over: either under-delivering because ambitious strategy never reaches the warehouse floor or losing sight of the bigger picture because operational teams are focused on immediate fixes.
Only with a shared and mutually understood business case, can businesses unlock the full value of automation, for the day-to-day and long-term growth.
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