According to Gartner, “warehouse labor availability constraints inhibit companies from meeting their fulfillment obligations. Companies struggle to determine whether to automate or not and, if so, how much, where and when. Logistics leaders can use this research to help them make smart automation decisions.”
“Companies often don’t conduct a detailed analysis of organizational technical and cultural readiness for warehouse automation, which can lead to inappropriate choices. Gaps and flaws in their existing systems and failure to assess cultural readiness will not be fixed with automation. Logistics leaders expect to achieve outstanding results for speed, cost and service levels with automation. However, they rarely set clear targets for every metric they need in order to achieve those results. Reducing logistics costs while achieving volume and throughput goals remain the primary business objectives used for justifying warehouse automation projects. However, most logistics leaders are not well-informed about which supply chain costs to analyze to justify the investment of an automated warehouse.”
“In the 2022 Gartner Supply Chain Technology User Wants and Needs Survey, 98% of companies said that they ‘either have or are considering cyber-physical automation.’ Furthermore, 59% said their biggest motivator was labor availability while 41% of them said it was labor cost.”
Gartner provides an in-depth framework for how to successfully implement warehouse automation in four key steps. Learn how to leverage this roadmap to evaluate your company’s readiness for automation, set strategic goals, select the right technology, and analyze your ROI.
We believe this Gartner report supports supply chain leaders by offering relevant data and research insights to help guide their decisions. Utilize these available insights by downloading a complimentary copy of this research from Gartner. Use it to guide you as you consider important operational decisions for your company.