FAQ Intralogistics: Solving common warehouse automation challenges

How can we use warehouse space more efficiently? 

Making the most of your space can help you expand capacity without significantly increasing costs. One way to use warehouse space more efficiently is to add automated storage systems. 

The costs of renting, maintaining, and running your space add up. Instead of adding square footage and increasing those expenses, make the most of your building’s height by using automated storage solutions. Automation enables easy access to high-density vertical storage space. 
The type of automation that’s best for your warehouse space depends on whether you store palletized or light goods. Here are some examples:

• Pallet stacker cranes: A pallet stacker crane carries pallets up and down, between different storage levels of a warehouse. Pallet stacker cranes work well in buildings with high ceilings and limited floor space. They can also be designed to handle large or unusual loads and customized to carry more or fewer loads, depending on your warehouse configuration and needs. 
• Roaming pallet shuttles: Pallet shuttles carry pallets throughout warehouses and distribution centers without assistance. Pallet shuttles designed for vertical movement (up and down) as well as horizontal movement can move products safely through dense  storage locations. 
• Light goods cube storage: Cube storage systems stack bins filled with light goods on top of each other. They are equipped with software that remembers what items are in which bin and where it is in the cube. When a worker needs an item, the cube storage system will unstack the bins and deliver the correct bin to the worker. Modular cube storage systems can be arranged to fit any existing warehouse space.  

Provider perspective: Swisslog offers automation solutions to make the most of your warehouse's floor space and available height.

Our solutions include: 

• The Swisslog Vectura pallet stacker crane can operate at heights up to 48 meters and handle one, two, or more loads in many layouts. 
• The Swisslog AgileStore is a roaming pallet shuttle designed to carry goods through a warehouse. Unlike traditional shuttle systems that move in only two directions, the AgileStore can move in four directions—forward, backward, left, and right—and up and down. This four-way capability maximizes warehouse space by supporting deep-lane racking and vertical stacking. 
• The Swisslog AutoStore can stack bins with multiple SKUs, in essence, different types of products, on top of each other. Over time, the system learns which products are in the highest demand. It keeps those products on the top layer to ensure faster picking times. The Swisslog AutoStore has a modular design that can work around structural elements in buildings, such as columns, floor height differences, and other space constraints.  

Is it better to build a new warehouse or retrofit an existing one?

Whether it is better to build a new warehouse or retrofit an existing one depends on your needs. What level of performance do you need to achieve today or in the near future? What is your long-term strategy? 

Building on a greenfield site, an area that hasn’t been built on before, will give you the most design freedom and long-term efficiency. This is a great option for long-term performance gains.

The benefits of building from scratch include:

• Designing for time-saving automated warehousing systems.
• Creating spaces with high-density storage. 
• Improving energy performance to reduce operating costs over time. 

However, greenfield projects come with challenges, including: 

• High upfront capital.
• Longer permitting and construction timelines.
• Potential environmental hurdles to clear or community resistance. 
• Finding the right location. Finding available land in densely populated urban areas is difficult, and building farther from city centers can increase transportation and labor challenges. 

If you are looking to boost capacity quickly, consider retrofitting an existing warehouse. Retrofitting:

• Allows much faster deployment.
• Typically requires less initial investment.
• Emits less carbon than new construction and avoids new land use. These two factors can reduce the environmental impact of the building project. 
• Uses established sites that are often closer to customers, infrastructure, and labor pools.

Structural and technical limitations are the main drawbacks of retrofitting. When your building wasn’t originally designed for automation or energy optimization, making it work can be challenging. Fixed dimensions, floor loads, and column spacing can restrict automation options and reduce your long-term efficiency.

Retrofitting also carries the risk of uncovering hidden structural or infrastructure defects. If you decide to renovate, you risk disrupting operations, especially if your facility stays open during upgrades. Another potential drawback is the impact of the work on existing operations. Good planning will shorten the time required for the retrofit and help mitigate disruptions to existing operations.

What are the best strategies for retrofitting a warehouse?

Retrofitting your warehouse, instead of building new, can save you time and money when done correctly. The best strategies for retrofitting a warehouse for automation include choosing flexible automation systems, phasing implementation, and using software to unite operations.

• Adapt automation to the building rather than altering the building itself: Many automation systems are modular, meaning they contain smaller units that can be arranged in different formations. Modular designs allow automation systems to fit around fixed columns, irregular layouts and low ceiling heights. Choosing modular systems can simplify retrofitting by eliminating the need to completely renovate your space.
• Use phased implementation: Deploy automation in stages while manual operations continue, minimizing disruption for customers. Consolidate inventory in specific zones or temporarily shift stock to secondary locations to free up space for the first phase.
• Choose flexible automation technologies that match your site’s constraints: Automation comes in all shapes and sizes. Pallet shuttles, stacker cranes, goods-to-person systems and autonomous mobile robots (AMRs) all offer different advantages in facilities with limited space or unusual layouts.
• Implement robust control software: Starting out with a single software system to control all operations will help the retrofit go smoothly. A comprehensive software program will allow you to integrate new automation with existing systems, coordinating manual and automated processes while improving visibility and performance.

How can we make our supply chain more flexible and scalable?

Having a flexible, scalable supply chain helps you adapt quickly to changes. You can make your supply chain more flexible and scalable by incorporating more automation in your warehouse or distribution center. The key is to use automation systems with smart designs and subsystems that adapt to your storage and fulfillment requirements.

Here are some examples of how automation can help supply chain companies scale and remain flexible: 

• AMRs equipped with smart software can change routes and tasks in near real-time when layouts, volumes or processes change. This enables flexible, continuous material flow throughout the facility. 
• Modular warehouse software integrates new functions, automation technologies or process rules without replacing the entire system.

When SKUs change, and assortment sizes fluctuate, systems must adapt. These solutions adjust to changes while maintaining reliable, efficient, and accurate product flow.

Provider perspective: Swisslog AutoStore is a scalable automation solution. You can add bins to accommodate more products or add robot to increase throughput without interrupting operations. Other extensions, such as adding grid modules or major changes with the workstations, may temporarily disrupt operations during installation. 

How can we calculate ROI and TCO for warehouse automation?

Understanding the return on investment (ROI) and total cost of ownership (TCO) for warehouse automation will help you establish whether the benefits outweigh the costs. You can calculate ROI and TCO for warehouse automation by adding quantifiable benefits and subtracting costs. 

Also consider time to value. How many months or years does it take to recoup the initial costs? Since all automation requires some initial investment, adding time to the equation will make your estimate more accurate.  

Use these metrics to calculate ROI:

• Labor savings: Automation increases the productivity of your existing workforce, reducing the need for overtime pay or added headcount. Requiring less overtime and automating rote tasks can improve employee retention, so you spend less on hiring, onboarding, and training new staff.
• Productivity gains: Higher throughput or picks per hour improve ROI by enabling growth without proportional labor increases.
• Lower quality-related costs: Improving accuracy through automation reduces returns and rework.
• Space optimization and better inventory efficiency: Automation (like vertical stacking units) helps you make the most of your space. You can delay or eliminate the need for warehouse expansion while reducing holding costs. 
• Indirect ROI: Improved service levels, faster order cycles and higher customer satisfaction can increase revenue. 

TCO combines the following expenses:

• Upfront capital costs such as equipment, software, installation and testing. 
• Ongoing operating expenses, including maintenance, energy, support and specialized labor. 
• Miscellaneous costs such as downtime risks and end-of-life expenses (the cost of disposing of or recycling equipment).

How can we deal with a lack of skilled warehouse labor?

The number of workers available for warehouse work does not meet demand. You can deal with a lack of skilled warehouse labor by reducing manual tasks and supplementing your existing workforce with automation. Automating rote tasks, like picking and filling orders or moving products through a warehouse, means you don’t have to spend time and money keeping those positions filled. 

Although automation helps you deal with shortages of workers, you don’t need to completely automate your warehouse to overcome labor challenges. Semi-automated systems equipped with intelligent software, such as vision technology, can deliver significant benefits by guiding warehouse employees through tasks. For example, pick-to-light systems improve accuracy, speed and ease of work.

Fully automated systems that handle unpleasant tasks, such as working in cold-storage, or difficult tasks, such as transporting large items through a warehouse, can offset a lack of skilled warehouse labor. Reducing the number of positions needed to complete these tasks makes working in a warehouse more attractive and can improve safety and reduce health-related absenteeism. 

How can we deploy new warehouse processes faster?

Changes to how your warehouse operates can lead to service delays. How quickly you can deploy new processes will lessen the impact. Deploy new warehouse processes faster by planning ahead and clearly defining your project’s scope. Doing the work upfront will help minimize rework later. 

Having the right team in place is also important. Put experienced workers on the job and clearly delegate responsibilities and roles. Encourage the team to work with established subcontractors. 

Speed up deployment by:

• Coordinating each element of a greenfield project — from building construction to moving in equipment and even implementing software systems. Aligning the work can improve how quickly the project comes together. 
• Choosing automation solutions with short implementation times or limited infrastructure requirements. Some solutions are preconfigured, pretested, and can be assembled onsite, which drastically reduces setup time. 
• Looking for software platforms that integrate with existing systems or don’t require extensive configuration. 

Provider perspective: Swisslog AutoStore and CarryPick, an AMR-based solution, have minimal infrastructure requirements and can become productive within months. Similarly, Swisslog ProMove is a modular automated pallet technology that doesn’t require input from engineering or additional setup assistance. Choosing these solutions can increase the speed of your deployment. 

Swisslog SynQ improves deployment speed by enabling faster configuration and standard integration. Companies don’t have to spend extensive amounts of time setting up the software before getting to work.

How can we increase the throughput of our logistics operations?

Increasing throughput is essential to meeting customer requirements despite staffing shortages. One way to increase the throughput of your logistics operations is by using automation. Automated storage and picking solutions can move products more quickly through your warehouse. 

Automation doesn’t necessarily mean replacing all workers with machines, though. Picking speed and accuracy can be significantly enhanced in manually operated warehouses with improvements such as warehouse management software, designing shorter picking paths and implementing goods-to-person systems.

When increasing throughput through automation: 

• Consider throughput optimization, accounting for the initial system design as well as potential expansions. 
• Look for modular systems that can scale, so your warehouse can easily accommodate more products. 

Provider perspective: Swisslog works can help you meet pressing problems and then adjust or add on solutions as other needs arise. One solution we offer to increase throughput is AutoStore, a modular bin-stacking system, which can pick and sort quickly and can scale to accommodate larger volumes of items. 

Another example is AgileStore, our four-way pallet shuttle system. Adding pallet shuttles to AgileStore can quickly increase throughput. 

How can we reduce delivery errors in order fulfillment?

Order fulfillment work must be done quickly. Errors, such as sending the wrong product to a customer, naturally happen along the way. Reduce delivery errors in order fulfillment by minimizing manual processes and supporting employees with technology that improves order accuracy. Finding ways to either automate error-prone processes, assist workers or do a little of both will right this problem. 

Combining automation and intelligent software solutions can create a robust fulfillment environment with significantly fewer delivery errors. Here are some practical suggestions:

• Use software-based guidance such as screens with clear instructions, intuitive picking workflows and real-time system feedback. 
• Verify every step of the fulfillment process with technologies like barcode scanning, which ensure that the correct item, quantity and order are being handled. 
• Add control mechanisms, such as weight checks at packing stations, to help detect errors before shipments leave the warehouse. 
• Replace manual processes with automation where needed to increase reliability and improve consistency. 
• Enable transparency throughout the fulfillment process with systems that integrate with software platforms, such as SAP extended warehouse management (EWM) systems. 

Provider perspective: Swisslog offers pick-from-light and pick-to-light systems that visually guide operators to the correct storage locations. These systems help improve the accuracy of manual picking. Swisslog also offers automated pallet and small-parts solutions designed to reduce errors through standardized and repeatable processes. 

Swisslog SynQ is an intuitive software platform that provides transparency, helping you find where accuracy can be improved and focus on those areas. 

How can we build a more resilient supply chain?

Having a resilient supply chain is critical with the ongoing geopolitical and economic challenges. You can build a more resilient supply chain with a strong logistics strategy. Prioritize flexibility, redundancy, and transparency throughout your supply chain — from your vendors to transportation, warehousing and delivery.

Ensure your supply chain can absorb disruptions and adapt to changing market requirements by:

• Building in redundancies: Multiple pick stations, additional robots or alternative material flow paths help maintain operations during disruptions and demand peaks. 
• Simplifying servicing: Make sure it’s easy and safe to service your systems, even during ongoing operations, to reduce downtime and speed up recovery. 
• Using supported software solutions: Strong IT support from your software provider ensures you get help as soon as systems show signs of trouble. 

How can automation like conveyors or AMRs be integrated without causing big disruptions?

Conveyors and autonomous mobile robots (AMRs) can significantly improve throughput. Getting them set up quickly helps you avoid unnecessary downtime and the associated costs. Automation, like conveyors or AMRs, can be integrated without causing big disruptions through a phased, modular, and software-driven approach.

AMRs are especially simply to use in existing spaces because they don’t require fixed infrastructure and can often operate alongside manual processes. Consider the following tips for introducing AMRs and conveyors with little inconvenience to daily operations:

• Choose the right solution: Consider your throughput needs, layout constraints and future requirements to reduce the need to change automation systems. 
• Take it one step at a time: Use modular, pre-tested components to minimize downtime. 
• Use centralized software: Having a single platform for your operation streamlines operations.  Orchestrating AMRs, conveyors and other systems via warehouse management software (WMS) or SAP extended warehouse management (EWM) systems. 
• Simulate operations: Model the AMR or conveyor performance to reduce risks. Assessing how well the systems work before putting them in place can help you identify and fix bottlenecks.
• Tap into support: Ensure easy service access and take assistance offered by automation vendors to minimize disruptions.

How can we start using warehouse automation on a small scale?

Automating your warehouse can be daunting. Instead of doing everything at once, start using warehouse automation on a small scale with a step-by-step approach. Begin with a software platform that standardizes processes, increases transparency, and prepares operations for automation. These systems improve efficiency immediately while requiring minimal physical changes to your warehouse.

Next, introduce automated transport or sortation solutions to reduce manual handling and increase throughput. Modular systems, which can be added piece-by-piece, limit risk and allow gradual investment. As demand increases, add robots, workstations, AMRs or shuttles. This incremental approach ensures flexibility and protects your investment.

Provider perspective: Modular solutions such as Swisslog AutoStore help you expand by adding bins or robots as volume increases.

For pallet handling, scalable systems like Swisslog’s AgileStore allow vehicles or capacity to be added without disrupting ongoing operations. 

How can we improve our warehouse IT strategy, especially when it comes to AI and cybersecurity?

Keeping data safe and secure helps increase customer confidence and prevent damaging breaches. You can improve your warehouse IT strategy for AI and cybersecurity by conducting risk assessments, strengthening defenses, and investing in staff training. Best practices include: 

• Enhance cybersecurity with multi-layered defenses. Use firewalls, endpoint protection, regular patching and real-time monitoring to protect your warehouse control systems and IT infrastructure. 
• Use secure warehouse management and automation tools to ensure secure and efficient operations while maintaining system visibility. 
• Be vigilant by conducting continuous risk assessments and security audits. Regularly assessing risks helps you identify vulnerabilities and address them before they impact operations. 
• Tighten internal security. Implement secure software development practices and strong access controls within your warehouse management systems (WMS) to limit breaches.  
• Invest in staff training on “cyber hygiene” so your teams can safely manage IT systems. For example, enforce habits like locking computers and not sharing passwords. 
• Regularly review performance metrics and security to ensure your IT strategy evolves with changing business needs and technological threats.

Provider perspective: Choosing robust, secure software is a good starting place for protecting your warehouse or fulfillment center from IT threats. Swisslog’s software portfolio is built to be both secure and usable. 

What will the Cyber Resilience Act mean for automated warehouse operations?

The Cyber Resilience Act (CRA) was set in place in 2024 by the European Union (EU) to improve cybersecurity for products with digital elements. The CRA requires that all hardware and software used in automated warehouse operations comply with EU cybersecurity standards by 2027. The CRA applies to all EU member states and may eventually impact countries in the EEA Single Market (Norway, Iceland and Liechtenstein).

The CRA is intended to ensure that automation runs safely and reliably, minimizing the risk of cyberattacks that could disrupt order fulfillment or material flow. To prepare for the CRA, plan for regular system audits, software updates and secure integration of third-party components.

Although the CRA may seem like more work, the preparations you complete now will make your warehouse systems more resilient and secure. Even if your company is outside the EU, the CRA may affect you. Its rules will apply if you sell products within the EU market through distributors, online platforms or other channels

Provider perspective: Swisslog’s software portfolio and IT services are designed to support CRA compliance. With Swisslog software, when the CRA is in place, you can keep operations going and stay within regulatory alignment.