Market insights

Beyond automation: Why people are essential in fulfilment centres

The logistics industry is undergoing a major transformation driven by automation and innovation

As global supply chains become more complex and labour shortages persist, businesses are increasingly turning to automated solutions to enhance efficiency and scalability. However, the most successful logistics hubs today blend automation with human expertise, creating a hybrid approach that optimises operations.

Transforming fulfilment centres with advanced technologies

Today's warehouses are adopting advanced technologies to improve efficiency and accuracy. One of the most impactful innovations in fulfilment centres is Automated Storage and Retrieval Systems (AS/RS). These systems enhance warehouse efficiency by retrieving and delivering products with precision. By reducing worker travel time and optimising space, AS/RS technology significantly improves overall productivity.

Another key advancement is the rise of Autonomous Mobile Robots (AMRs). For example, in Kuehne+Nagel's French Hub in Chartres, AMRs play a vital role in order sorting, independently navigating warehouse environments and transporting goods while adapting to real-time conditions. Their ability to reroute around obstacles ensures seamless warehouse operations.

Collaborative Robots (Cobots) are also transforming fulfilment centres by working alongside human employees to handle repetitive tasks such as picking and packing. This hybrid approach allows human workers to focus on quality control and problem-solving, enhancing both productivity and operational accuracy.

Meanwhile, AI-driven Warehouse Management Systems (WMS) enable predictive insights for demand forecasting, inventory adjustments, and process optimisation. These data-driven systems allow for smarter, more efficient warehouse operations, improving decision-making and resource allocation.

The balance between human expertise and automation

Automation is reshaping fulfilment centres, but its true potential is unlocked when combined with human expertise. Arjan van Baarle, Global Head of Innovation and Automation at Kuehne+Nagel Contract Logistics, explores how automation and human expertise intersect in a recent podcast, offering key insights into the evolving landscape of warehouse automation.

Logistics automation goes beyond technology; it thrives on the integration of people, processes, and innovation. Companies that invest in skilled teams, strategic implementation, and continuous learning can maximise automation's potential. A hybrid approach combining human expertise with automation enables faster, smarter, and more resilient fulfilment solutions. Success depends on thoughtful design, rigorous testing, and data-driven decision-making to proactively address challenges and drive long-term efficiency.

For global consumer brands, automation is key to fulfilment strategy. Robotics and AI systems enable efficient scaling and seamless management of e-commerce, retail, and wholesale channels. Predictive demand planning ensures stock availability, reduces overstocking, and minimises waste. Automation also improves last-mile logistics, speeding up order processing and cutting fulfilment lead times. In a fast-paced consumer landscape, automation helps brands meet rising demands while delivering an exceptional customer experience.

Building the fulfilment centres of the future

Creating the warehouses of the future requires more than technology adoption; it demands long-term vision and adaptability. These centres must be scalable, with systems that evolve over 10 to 20 years, seamlessly integrating with existing infrastructure. Preventive maintenance ensures continued efficiency and maximises uptime for sustained success.

Automation is no longer optional; it's essential in modern logistics. By embracing advanced robotics, AI-driven WMS, and collaborative technologies, distribution centres can boost efficiency, accuracy, and scalability. The key to success is a strategy that balances automation with human expertise, offering flexibility, resilience, and a competitive edge.

By finding the right balance, businesses can build future-proof fulfilment centres that drive innovation, efficiency, and customer satisfaction in an increasingly competitive market.