All the Statistics Warehouse Automation You Need to Know

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All the Statistics Warehouse Automation You Need to Know

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The world of warehousing has undergone a dramatic transformation in recent years. Gone are the days of paper-based systems and manual labor for every task. Warehouse automation has emerged as a powerful tool to streamline fulfillment processes, boost efficiency, and empower your workforce. This blog dives deep into the compelling statistics surrounding warehouse automation, providing valuable insights for businesses looking to optimize their back-end operations.

Contents

  • Understanding Warehouse Automation
  • General Warehouse Automation Statistics
  • Warehouse Automation Statistics for Efficiency
  • Warehouse Automation Statistics for Labour Management
  • Warehouse Automation Implementation Statistics
  • Warehouse Automation Statistics: Future Outlook
  • Key Takeaways
  • Case Study
  • Potential Drawbacks and Mitigation
  • Actionable Steps

Understanding Warehouse Automation

What is Warehouse Automation?

Warehouse automation involves the use of technology to automate various processes within a warehouse or fulfillment center. This includes automating tasks such as inventory management, order processing, and material handling. The goal is to increase efficiency, reduce human error, and allow employees to focus on more complex tasks.

The Impact of Automation on Warehousing

In the 21st century, warehousing has evolved significantly from its manual, paper-based past. Previously, the entire workforce was responsible for every menial task, a system prone to inefficiency and errors. Warehouse automation has transformed this landscape by automating various processes within warehouses and fulfillment centers, making operations more efficient. Not only does warehouse automation accelerate logistical processes, but it also alleviates the burden on the workforce, allowing them to focus on more complex tasks.

General Warehouse Automation Statistics

1. Superior Supply Chains Drive Revenue Growth

79% of companies with superior supply chain functionalities achieve higher revenue growth (Deloitte). This statistic underlines the crucial role warehouse automation plays in creating a high-performing logistics system. By optimizing warehouse processes, businesses can gain a significant competitive edge.

2. Increased Productivity and Efficiency

Warehouse automation can lead to a 25% increase in productivity, a 20% gain in space usage, and a 30% improvement in stock use efficiency (EasyPost). These figures showcase the tangible benefits of automation. Businesses can expect faster fulfillment times, better space utilization, and more efficient inventory management.

3. Rapid Growth in Logistics Automation

The global logistics automation market is projected to grow from $19.27 billion in 2023 to $21.9 billion in 2024 at a compound annual growth rate (CAGR) of 13.6% (Research and Markets). This rapid growth reflects the widespread recognition of automation’s value in streamlining logistics operations and meeting ever-growing consumer demands.

4. Significant Investment in Warehouse Automation

The global warehouse automation market is expected to reach $54.53 billion by 2029, growing at a CAGR of 16.20% during the forecast period (Mordor Intelligence). This substantial investment reflects the industry’s recognition of the transformative benefits of warehouse automation.

Key Trends in Warehouse Automation

  • Robotics Integration: The integration of robotics is expected to drive a significant portion of growth in the warehouse automation market. By 2025, approximately 50,000 robotic warehouses may be developed, and users may deploy up to 8 million robots by 2030 (Kardex-Remstar).
  • Technology Adoption: The adoption of warehouse management systems (WMS) remains high, with 87% of 3PLs implementing these systems (Extensive). Other technologies such as 5G, AI, and IoT are also driving warehouse automation forward.
  • Financial Considerations: Labor costs constitute 50% to 70% of a warehouse’s budget, making automation a critical strategy to reduce costs (G2). Warehouse automation can reduce labor costs by up to 60% and operational costs by up to 30% (Modern Materials Handling).

The Software Powerhouse: Warehouse Management Systems

Warehouse Management Systems Lead the Way
 
72% of respondents identify warehouse management systems (WMS) as the premier warehouse automation software (Supply Chain Management Review). Warehouse management systems (WMS) go beyond warehouse management, offering functionalities like inventory management, order management, and labor management. A robust WMS can become the cornerstone of your warehouse automation strategy.
 

Warehouse Automation Statistics for Efficiency

Order Picking and Time Management
Order picking consumes at least 50% of warehouse workers’ time (Sciendo). Even with partial automation, order picking remains a time-consuming process. This statistic emphasizes the need for comprehensive automation solutions to streamline picking tasks and boost overall efficiency.
 

 

Accuracy Improvements with Automation

Warehouse automation systems can increase picking accuracy to 99.99% (MHI). Automation not only speeds up picking but also minimizes errors. Warehouse automation systems like WMS can ensure smooth and accurate fulfillment by automating specific picking tasks.
 

Cost Efficiency and ROI

Warehouse management systems and pick-to-light systems cost between $500,000 and $2 million, with a payback period of 0.5 to two years (Westernacher). While the upfront cost might seem substantial, the rapid return on investment makes it a compelling proposition for businesses seeking cost efficiency.
 

The Impact of Robotics on Logistics

Robotics could reduce logistics costs by up to 40% and increase productivity by 25% to 70% by 2025 (Roland Berger via Sales Layer). Robotics, a form of warehouse automation, holds immense potential for the future. It can free up human workers for more complex tasks while enhancing productivity and reducing costs.
 

Workflow Automation Adoption

31% of businesses have fully automated their workflows at least once (SelectHub). This statistic highlights the growing adoption of warehouse automation solutions. Businesses are increasingly recognizing the advantages of automation in overcoming operational challenges and achieving optimal efficiency.
 

Warehouse Automation Statistics for Labour Management

1. High Labour Costs

Labour accounts for at least 50% to 70% of a company’s warehousing budget (G2). High labor costs highlight the financial benefits of warehouse automation in reducing dependency on manual labor. 
 
2. Safety Improvements
Warehouses have a high injury rate, with roughly 1 in 20 workers sustaining injuries (US Bureau of Labor Statistics). Warehouse automation can mitigate this risk by automating hazardous tasks and improving workplace safety.
 

3. Cost Savings

A typical warehouse with 100 employees can incur labor expenses exceeding $3.5 million annually (Westnacher). Warehouse automation can be a cost-effective alternative to a large workforce, offering more reliable and efficient operations.
 

4. Labour Shortages

73% of warehouse operators struggle to attract enough qualified labor (Instawork). The ongoing labor shortage in logistics makes automation even more critical. By automating tasks, businesses can become less dependent on manual labor and mitigate the impact of staffing challenges.
 

5. Training and Retention

54% of organizations plan to invest in supply chain and technical training to retain their workforce (Logistics Management). While automation is taking center stage, skilled workers remain crucial. Businesses can leverage automation to create a safer and more satisfying work environment, boosting employee retention.
 

Warehouse Automation Implementation Statistics

1. Investment in Automation Systems

66% of companies expect to invest in conveyor and sortation systems in the next three years (Modern Materials Handling). The widespread adoption of these systems indicates a shift towards more automated fulfillment processes.
 

2. Global Adoption of Automation Technologies

Over 620,000 shipments of various warehouse automation technologies are expected worldwide by the end of 2024 (Omdia). This substantial number reflects the global embrace of warehouse automation. As more businesses recognize its advantages, the demand for automation solutions is likely to surge further.
 

3. Importance of Innovation

96% of industry leaders view innovation as crucial for growth (Deloitte). Embracing innovative technologies like warehouse automation is essential for staying competitive.
 

Warehouse Automation Statistics: Future Outlook

Growth of Robotic Warehouses

 
Predictions suggest there will be around 50,000 robotic warehouses by 2025, housing over 4 million robot installations (European Business Review). The rise of robotic automation signifies a significant transformation within the warehousing industry. Robots can handle tedious tasks with precision, minimizing errors and ensuring peak efficiency.
 

Market Expansion

The global warehouse automation market is expected to surpass $54.53 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.20% during the forecast period (Mordor Intelligence, Research and Markets). This phenomenal projected growth reflects the immense potential of warehouse automation. As technology advances and solutions become more accessible, widespread adoption is likely.
 

Key Takeaways

Warehouse automation presents a future-proof approach for businesses to stay ahead of the curve and cater to the evolving needs of modern consumers. Statistics paint a clear picture: automation offers a multitude of benefits, including enhanced efficiency, improved labor management, and cost-effective operations. As the industry continues to witness rapid growth and innovation, businesses that embrace warehouse automation are well-positioned to thrive in the years to come.
 

Embracing Automation: The Road Ahead

Over the next three years, an estimated 60% of companies plan to invest in conveyor systems and sortation systems (Parcel Industry). This statistic signifies the widespread adoption of specific automation technologies within warehouses. Businesses are actively seeking solutions to enhance efficiency and streamline fulfillment processes.
 
By the end of 2022, global shipments of various warehouse automation technologies are expected to reach approximately 620,000 (Omdia). This substantial number reflects the global embrace of warehouse automation. As more businesses recognize its advantages, the demand for automation solutions is likely to surge further.
 

A Glimpse into the Future of Warehouse Automation

 
Predictions suggest there will be around 50,000 robotic warehouses by 2025, housing over 4 million robot installations (Kardex-Remstar). The rise of robotic automation signifies a significant transformation within the warehousing industry. Robots can handle tedious tasks with precision, minimizing errors and ensuring peak efficiency.
 
The global warehouse automation market is expected to surpass $54.53 billion by 2030, growing at a compound annual growth rate (CAGR) of 16.20% during the forecast period (Mordor Intelligence, Research and Markets). This phenomenal projected growth reflects the immense potential of warehouse automation. As technology advances and solutions become more accessible, widespread adoption is likely.
 
Mishal Khan

Mishal Khan

Author

UPDATED ON: 15th Dec 2022

Mishal is a dedicated copywriter and content writer with experience across various niches. Currently, Mishal is focused on writing guides and other compelling blogs on warehouse management, logistics and more, crafting engaging and informative content to help businesses understand and master their supply chain. Passionate about delivering quality content, Mishal aims to make complex topics accessible and enjoyable for all readers.

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