The warehouse robotics market is growing, which is a good indication that more and more companies are opting to add warehouse robots to their business.
Amazon, one of the largest retailers in the world, has led the charge in robotics investments, accounting for 38% of the robotics market in 2021.
A 2021 survey conducted by Material Handling Institute (MHI) showed that 49% of supply chain leaders reported increased technology spending in their warehousing operations.
Much of the impetus behind the push toward investments in warehouse robots may stem from the increase in ecommerce spending.
Sending orders directly to customers from warehouses is often more labor-intensive, slower on a per-case basis, and, in consequence, more expensive than fulfilling retail orders.
Keep reading to find out the benefits of integrating warehouse robots into your business.
What are Warehouse Robots?
Warehouse robots are advanced machines designed to automate tasks within a warehouse, streamlining operations and improving efficiency.
These robots are equipped with sensors, cameras, and software that enable them to perform a variety of functions like picking, packing, sorting, and transporting goods.
By handling repetitive and time-consuming tasks, warehouse robots reduce the need for manual labor, minimize errors, and enhance overall productivity.
They come in different types, such as Automated Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs), robotic arms, and even drones, each tailored to specific tasks.
With warehouse robots, businesses can scale operations, optimize space, and meet the growing demands of modern supply chains more effectively.
How Warehouse Automation Technologies Have Evolved
Warehouse robotics have been around for a long time, but they didn’t work well in most operations due to limited capabilities and rigid designs.
Their abilities were fairly cut and dried back in the 1960s when robotics were invented, making them unsuitable for modern warehouse automation technologies where flexibility is imperative.
Today’s robotic warehouses have evolved significantly.
They’re more versatile, capable of working safely alongside humans, and are integrated with advanced warehouse automation technologies to handle complex tasks.
These robots can now manage a wider variety of operations and adapt on the fly as freight types and volumes change, making them indispensable in modern warehousing.
The Benefits of Robotic Warehouse Systems
Robotic warehouse systems are revolutionizing the way warehouses operate.
From improving efficiency to reducing errors, these systems take the hassle out of managing tasks.
With robotic warehouse systems, businesses can handle larger volumes, streamline operations, and meet growing demands with ease.
Let’s explore the key benefits they bring to modern warehousing.
1. Reduced Labor Effort
In recent years, the rise in ecommerce popularity has created large numbers of warehousing jobs.
The problem? Filling those jobs. Warehousing work can be very labor-intensive, and it makes it difficult to get and keep associates.
One workplace safety survey showed that the warehousing and transportation industries spend $84 million per week on serious, non-fatal injuries.
This is where companies like Newl come in. At Newl, we use robotics and automation to take over many of the more labor-intensive tasks in warehouses.
By doing so, we not only improve operational efficiency but also create safer, more sustainable work environments for employees.
When robots take over some of the more labor-intensive warehouse tasks, or even just help make tasks less labor-intensive for workers, it can improve workers’ health and their ability to continue doing their job.
2. Robots Outpace Human Speed
According to one automation company’s estimate, AS/RS systems can reduce the time workers spend walking to pick orders by up to 40%, giving them more time to fill more orders and improving overall productivity.
A report released by Harvard Business Review showed that warehouse automation has increased worker productivity by up to 37% year over year.
While that number seems very small, the overall increase in productivity by robotics warehouse over the years adds up to a 16% increase in worker productivity over the course of the review.
Even less dramatic automation systems can have a huge impact on productivity. Pick-to-light systems, which aren’t even all that technical, can improve productivity by 30%-50%.
3. Cost Effective
Warehouse robots aren’t cheap, but neither are labor costs. Labor accounts for 50%-70% of the average warehouse operating budget.
When the labor market is tight, that percentage oftentimes goes up in individual warehouses as companies scramble to offer more competitive wages to get their share of the available labor pool.
Thanks to increased productivity, reduced labor costs, and reduced expenses due to injuries on the job, warehouse robotics can be very cost-effective when the right system is put into place.
It can cost, on average, $7,000 to replace an hourly warehouse worker. By reducing turnover thanks to better working conditions, robotics can also help companies save money on recruitment and onboarding costs.
4. Higher Accuracy
To err is human, but not so much robot. While it can certainly happen, warehouse robotics are far less likely to make mistakes than people.
The software and AI that drives warehouse robots have systems in place to ensure items are placed correctly, orders are filled accurately, and inventory is kept in direct accordance with items that come in and go out of the warehouse.
AS/RS systems, for example, can increase order accuracy to up to 99.99%. Many types of warehouse automation can also help warehouse laborers perform their duties more accurately.
5. Greater Scalability
Whether your business needs to scale order fulfillment, introduce new product lines, or relocate to a new facility, robotic systems offer the flexibility to adapt quickly.
They can be reprogrammed effortlessly to align with your changing operational demands, ensuring smooth transitions without extensive delays or disruptions.
Robotics seamlessly integrate with your existing Warehouse Management System (WMS), allowing for updates and adjustments with minimal downtime.
This eliminates the need for significant additional investments or costly modifications, making the technology a cost-effective solution for evolving businesses.
By using robotics, your company can confidently explore new growth opportunities and stay competitive in a dynamic marketplace.
These systems are specifically designed to grow alongside your business, offering scalability and efficiency as your operations expand.
At Newl, we ensure your business can expand effortlessly.
Our network and technology enable smooth transitions, efficient scaling, and strategic growth, making it easier for you to seize opportunities and thrive in new markets.
Beyond Robotics: Other Tech Making Waves in Warehousing
Warehouse robots that manage physical tasks aren’t the only technologies transforming the warehousing industry.
Some other technologies that are changing the way warehouses operate include:
- Upgraded software systems like WMS and ERP
- Mobile scanning devices
- Digital barcodes and RFID tracking
- Internet of Things (IoT) sensors
- Navigation systems to reduce warehouse congestion
- Wireless telemetry
Will Robots Replace People in Warehouses?
While there are certainly visionaries out there aiming for fully automated warehouses, we’re not quite living in Jetson’s world just yet.
It’s not very realistic in most operations at this point. In most operations that utilize robotics, robots work alongside humans to help make their jobs less labor-intensive, faster, and help workers to be more accurate.
For now (and for the foreseeable future), robots won’t be taking over human warehouse jobs entirely.
In fact, the number of warehouse jobs has increased over the last several years despite the rise in the use of robotics.
Partner with Newl for Modern Warehousing
Struggling to find a warehousing partner that truly understands your needs?
At Newl, we combine cutting-edge technology with a global network to simplify and supercharge your warehousing operations.
1. Advanced Technology
Our innovative systems integrate with your operations to automate processes, improve accuracy, and save both time and money. It’s time to eliminate manual inefficiencies.
2. Global Reach
With strategically located warehouses across Canada and the US, and a network of trusted logistics partners worldwide, we ensure your business stays connected and operational wherever you expand.
3. Tailored Solutions
From customized storage plans to inventory tracking and full-service logistics, we design solutions that align with your business goals and operational needs.
Let’s start a conversation about how we can simplify your warehousing experience. Reach out to us today!
Final Thoughts
Robotics are changing the way warehouses operate, making them more efficient, flexible, and safer for workers.
By reducing labor-intensive tasks, improving adaptability, and seamlessly integrating with existing systems, robotic solutions are paving the way for smarter warehousing.
Businesses can scale, explore new opportunities, and stay competitive in an ever-changing market without breaking the bank.
At Newl, we’re committed to helping businesses embrace modern warehousing solutions that drive growth.
With our advanced technology and global network, we make it easy for your business to adapt and scale.
Let’s build the future of warehousing together.
Frequently Asked Questions
1. What are the three levels of warehouse automation?
Warehouse automation can be divided into three main levels:
- Manual: All tasks are handled by people using basic tools like forklifts and carts.
- Partially Automated: Combines human effort with technology, such as conveyors, automated storage systems, or basic robots to assist with tasks.
- Fully Automated: Advanced systems and robotics handle most operations, requiring little to no human involvement.
2. What is the current trend in warehousing?
Warehousing is evolving rapidly, with 2025 trends focusing on greater automation, the use of advanced Warehouse Management Systems (WMS), eco-friendly practices, and collaborative robots (cobots).
These innovations are designed to enhance efficiency, cut costs, and improve overall operations.
3. What is a smart warehouse?
A smart warehouse is a facility that uses technology like robotics, sensors, and software to manage operations that were once handled manually.
Tasks like inventory management, order picking, and shipping are automated, making processes faster, more accurate, and more efficient.