The complete guide to warehouse automation

Warehouse automation offers:
✓ scalable robotics
✓  real-time WMS visibility

 

Future-proof your warehouse operations today.

Warehouse automation at a glance

  • Definition: Warehouse automation streamlines inventory movement and warehouse processes with minimal human intervention.

  • Key benefits: Increased efficiency, reduced costs, improved accuracy, enhanced workplace safety, and scalability.

  • Main technologies: AS/RS, robotic picking systems, AMRs, conveyor and sortation systems, warehouse management software.

  • Current trends: AI, IoT, cloud-based WMS solutions, and sustainable automation practices.

  • Implementation tip: Start with a clear goal, choose scalable technologies, and partner with experienced providers like TeamViewer.

Table of contents

Why warehouse automation is a strategic priority 

Warehousing and logistics have rapidly evolved in recent years. Driven by surging e-commerce demands, global supply chain disruptions, and rising labor costs, companies are under pressure to modernize their warehouse operations. Speed, accuracy, and scalability are no longer optional—they're expected.

This is where warehouse automation comes in. It enables businesses to meet modern expectations while reducing operating costs and increasing agility. Automation equips warehouses to do more, faster, and with fewer errors, creating a strategic edge that strengthens the entire value chain.

From small e-commerce hubs to global distribution networks, companies that embrace automation are more competitive, resilient, and better equipped for growth.

What is warehouse automation?

Warehouse automation refers to the use of digital technologies, robotics, and intelligent systems to handle the physical and data-driven aspects of warehousing. This includes receiving, storing, picking, packing, and shipping—all managed through a combination of automated hardware and software.

Automation solutions can be deployed in stages, starting with barcode scanners or mobile tools and evolving into full-scale warehouse management supported by robotics and real-time data systems.

Types of automation in warehouse operations

Physical automation

Machinery like robotic arms, conveyors, autonomous mobile robots (AMRs), and drones for material handling and inventory control.

 

Digital automation

Software like warehouse management systems (WMS), AI-powered decision engines, and IoT platforms that enhance visibility and control.

 

Hybrid automation systems

Integrated solutions that combine physical hardware with intelligent digital platforms for seamless operations.

By integrating these systems, businesses unlock a smarter, safer, and more responsive warehouse environment. The following graphic shows how digital and physical automation components work together. They span information technology and equipment layers to form a fully integrated warehouse automation ecosystem.

Benefits of an automated warehouse

The benefits of transitioning to an automated warehouse extend beyond speed. Modern warehouse automation systems redefine workflows, enhance data accuracy, and deliver scalable solutions across all logistics functions.

1. Greater operational efficiency

Manual tasks are slow and error-prone. Automation replaces repetitive processes with real-time, consistent performance, allowing for higher throughput without proportional increases in labor.

2. Higher inventory accuracy

Real-time data capture through radio frequency identification (RFID), barcode scanners, and Internet of Things (IoT) sensors reduces the risk of stockouts and mispicks, while also streamlining inventory audits and reconciliation.

3. Reduced labor dependency

Labor shortages are a global concern. Automation mitigates this by reducing reliance on manual roles, allowing staff to focus on strategic, high-value tasks.

4. Scalability and flexibility

As demand increases, automation systems scale with minimal disruption. Whether handling seasonal peaks or long-term growth, automation success depends on smart planning. Our complete guide to warehouse optimization explains how to align technology, layout, and workflows effectively.  

5. Safer work environments

Automation reduces the need for manual lifting, repetitive motion, and exposure to hazardous conditions. This leads to lower injury rates and improved compliance.

 

Core technologies in automated warehouse systems

Choosing the right warehouse automation systems depends on your business size, complexity, and goals. Here’s a breakdown of the key technologies:

System
Description

Automated storage and retrieval systems (AS/RS)

High-density storage systems that quickly move items in and out of racks.

Autonomous mobile robots (AMRs)

Self-navigating robots that transport materials within the warehouse based on live routing data.

Robotic picking and packing systems

Robots with sensors and AI vision to accurately pick and place goods.

Conveyor and sortation systems

Systems that streamline the internal movement and sorting of goods, reducing transit times.

Warehouse management systems (WMS)

Cloud-based or on-premise platforms that centralize inventory control, order management, and process optimization.

Drones and IoT devices

Devices that perform rapid inventory counts, environmental checks, and data transmission for real-time visibility.

Each system plays a critical role in building a connected, responsive, and intelligent warehouse ecosystem.

Want the big picture on logistics optimization?

Together, these technologies form the backbone of modern logistics strategies. Discover smart logistics solutions from TeamViewer.

Trends shaping warehouse automation in 2025 and beyond 

To maintain a competitive edge, businesses must embrace the innovations reshaping modern logistics. 

  • Artificial intelligence and machine learning: AI supports autonomous operations by learning from data patterns, optimizing picking sequences, forecasting stock levels, and even predicting maintenance needs.
  • Internet of things (IoT): IoT devices collect, share, and process warehouse data in real time—enabling instant alerts, proactive maintenance, and inventory visibility. 
  • Cloud WMS solutions: Cloud-based warehouse management systems offer flexibility, fast deployment, and easy integration with business systems. 
  • Green automation initiatives: From electric AMRs to recyclable packaging automation, sustainability is no longer optional. Automated systems reduce energy usage, minimize waste, and support ESG goals.

Common challenges and strategic solutions 

Warehouse  automation can  be challenging, which is why it’s important to have a  thoughtful strategy and the right technology partnerships. Below are four of the most common hurdles—and how to overcome them:

  • 1. High upfront investment

    If you’re hesitant to automate  due to the initial capital requirement, start with modular solutions and focus on areas with the highest ROI.

  • 2. Workforce adoption

    Automation shouldn’t replace humans but empower them. Training and clear communication ease the transition and build internal support.

  • 3. Integration complexity

    A successful automation strategy should connect easily with ERP, CRM, and logistics platforms. Look for providers with strong integration and API support.

  • 4. Change management

    Cultural change takes time. Executive sponsorship, clear KPIs, and employee engagement are key to long-term success.

Implementation roadmap: From manual to automated 

Follow these six key phases to move from manual processes to a fully automated warehouse.

  1. Audit current operations: Map out processes and identify bottlenecks.
  2. Set measurable KPIs: For example, aim to reduce error rates by 40%, improve your pick rate by 30%, or cut labor hours by 25%. 
  3. Select the right technologies: Prioritize flexible, scalable solutions that integrate easily.
  4. Start small, scale fast: Launch pilot projects, gather data, then roll out more widely. 
  5. Train your workforce: Upskill your staff to work alongside automation, maximizing productivity. 
  6. Monitor and optimize: Use dashboards, reports, and alerts to continuously improve performance.

Is warehouse automation right for you?

If your business faces one or more of these challenges, automation could be the key to unlocking growth:

  • labor shortages or high turnover
  • inconsistent order accuracy
  • customers demanding speed
  • inventory inaccuracies or visibility gaps
  • difficulty scaling during seasonal demand

Even incremental improvements can deliver meaningful return of investment.

Conclusion

Modernize your warehouse, maximize your advantage

Warehouse automation is a proven strategy for reducing friction, increasing resilience, and outperforming in logistics. With TeamViewer as your partner, you can scale smarter, digitize faster, and stay competitive.

Ready to transform your warehouse operations?

Empower your business with TeamViewer’s intelligent automation solutions—optimize inventory, scale smarter, and future-proof your logistics today.

FAQ

The use of technology to perform warehouse tasks—like picking, packing, and inventory tracking—with minimal human input.

Fixed, programmable, flexible, and integrated automation—ranging from rigid systems to fully connected smart environments.

  1. Basic: Scanners, WMS

  2. System-level: Conveyors, sorters

  3. Advanced: Robots, AI, full autonomy

Daifuku is widely considered the largest, alongside Dematic, Honeywell Intelligrated, and Swisslog.