Supply chain agility: Designing to get the most out of automation in warehouse logistics
January 09, 2026
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How to use technology and robotics in warehouse design to achieve supply chain agility
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A version of this blog first appeared as “Getting the most out of automation in warehouse logistics” in Design Quarterly, Issue 26.
Automation is changing warehouses all around us. New technology—things like robotics and predictive analytics—is reshaping the logistics industry. Imagine a warehouse designed to optimize its layout for maximum operational efficiency. The new automated warehouse is key to achieve supply chain agility.
Robotics are coming to warehouses.
- In 2022, 40 percent of companies had no plans to use robots. In 2024, that was only 8 percent, according to the annual Intralogistics Robotics Survey from Peerless Research Group, MHI, and The Robotics Group.
- Grandview research predicts a compound annual growth rate of 18.5 percent for the North America warehouse automation market from 2025 to 2030.
- A Deloitte survey says that 41 percent of warehousers have adopted robotics. And 42 percent plan to start using robotics in the next five years. Roughly the same portion plans to use predictive analytics in the next five years.
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There are five main areas where the warehousing industry can leverage technology to improve supply chain agility.
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Automation and robotics are part of a complex system that achieves supply chain agility. Supply chain agility means the warehouse is dynamic and adaptable.
The logistics facility can quickly respond to a changing market. To become agile, organizations also need to collaborate with their supply chain partners and streamline decision-making and operations. But first they need to figure out how to best use automation and warehouse design.
What do logistics companies need to know from a design perspective to use this technology? How can they use logistics automation to achieve supply chain agility?
How do we improve supply chain agility? Here are five areas to focus on.
1. Demand forecasting: Advanced analytics can help warehouses predict demand and adjust the inventory as needed. By using artificial intelligence (AI) and predictive analytics, companies can make their supply chains more agile and responsive. These tools allow companies to plan and move inventory based on expected demand.
For example, predictive models can use weather data to forecast spikes in sales. Is it going to be hot? More ice cream. Rainy? Expect more umbrella sales. This approach helps companies in many ways, including
- More informed decisions
- Reducing waste
- Improving efficiency across operations
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Here are No. 1 (demand forecasting) and No. 4 (warehouse management systems) areas where the warehousing industry can use technology to boost supply chain agility.
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2. Inbound and outbound tracking: Warehouses can deploy radio frequency (RF) or inductive systems to track inventory. These systems—often called RFID (radio frequency identification)—use tags that communicate with reader devices, similar to smart barcodes. Instead of scanning each item, RFID tunnels or towers can read multiple tags at once as products move through them. This makes it easier to keep track of what’s coming into and going out of the warehouse without slowing down operations.
3. Robotics for picking, packaging, and loading: Advanced sensors and AI-powered cameras let robots handle complex tasks. For example, they can find and select a specific product from a tote of mixed items. This automation speeds up the activity at the warehouse. And it shortens the time between order and shipping.
Robots such as AMRs (autonomous mobile robots), articulated robots, and COBOTs (collaborative robots) work long hours. And they don’t need breaks. They help logistics companies meet demand and reduce the impact of warehouse worker shortage.
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Here are the No. 2 (inbound and outbound tracking) and No. 5 (automated and denser storage) areas for supply chain agility in warehouses.
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4. Warehouse management systems (WMS): This is basic automation. When integrated with RF tracking, WMS provides warehouses with real-time visibility into
- Inventory levels
- Order fulfillment
- Shipping processes.
It makes it easier for logistics providers to handle products and get them into the electronic system.
5. Automated and denser storage: Use AS/RS or storage grid systems for increasing efficiency, densifying storage, and reducing labor costs. Newer systems are able to tie into the conveyance for the rest of the warehouse. In some cases, they can even use the same robots.
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The No. 3 area to use technology in warehouses is robotics for picking, packaging, and loading.
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What aspects of the building and operations do we need to understand to design the automated warehouse?
What are we starting with? Is the new automation going into an existing operational facility? Or an empty building? Or is it starting from the ground up?
Does this facility have existing automation systems, and are they performing well? Does this project need to be integrated with the existing systems, or will they all be removed? Does this facility need to stay operational during construction?
These are all key questions at the start of an automation project. Some systems like large-scale AS/RS are better if in a new building specifically built to its requirements. Others, like COBOTs, are more adaptable to existing building conditions.
Base building requirements: Optimizing the warehouse with robots requires a building that can accept all the infrastructure that comes with automation.
We look at the quality of the floor slab, the foundations, and the capacity in the roof for hanging loads. We also note the existing clear heights and other spatial constraints, like bracing and roof drains, which may limit automation options.
For example, we worked with a client on upgrading an existing warehouse shell that was not built with any intention of having robotics. After scanning the existing floor slab, we determined the amount of grinding required to meet their equipment specifications for flatness and levelness was extensive. We worked with our structural team, the client, and the contractor to determine if the slab would have sufficient capacity after grinding and if the expected lifespan and cost of repairing the slab would be less than replacing it entirely.
Utility requirements: Expanding robotics and conveyance systems in a warehouse often means upgrading utilities. We must confirm power and internet bandwidth requirements with what is on-site or available from the local utility.
Other services, like vacuum and compressed air, are essential for the operation of robotic systems. We may need to add them to the facility.
Higher storage density can trigger fire protection upgrades, too. For example, one logistics provider wanted to add more robotics in its warehouse but didn’t have enough power infrastructure. The options?
- Waiting until the electric utility could bring in a new service.
- Renting diesel generators. These are costly and carbon intensive.
- Reducing the scope of the project to fit the on-site power.
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Automation and robotics are part of a complex system that achieves supply chain agility. Supply chain agility means the warehouse is dynamic and adaptable.
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Safety protocols/access: Warehouses have rules for health and safety. Automation and robots make these safety protocols more complex. In designing automated warehouses for supply chain agility, we need to know which areas are off-limits to people and which are for service technicians. Even trained associates must follow specific procedures to keep themselves safe.
For robotics installations that are not intended to be in the same area as warehouse workers, it’s important to have fenced areas with access control. We should design extra space to provide for the fence line, door clearance, and working clearance around the equipment. Depending on the size of the enclosure, we also need to consider egress routes from inside and around the outside.
Maintenance and repair: Warehouse design should allow access to maintenance and technical areas with robotics. To help provide efficient maintenance and repair for automation, we consider the access pathways and points for technicians.
Where can trained techs access and service robots and automated storage and retrieval systems? It’s a fact, robots break down. Staff may need to provide on-site maintenance and repairs. Our design should provide a specialized and enclosed repair area. Staff will need a clear access route from the robotics area with an opening large enough to bring in equipment. Space and utilities should be allocated for bench work, floor clearance, parts storage, and any large specialty tools, like lifts or drills.
" }Automation is not the end goal. The prize is supply chain agility.
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Design can help you get the most out of automation and achieve supply chain agility. Your warehouse design should do these three things:
1. Optimize warehouse layout and flow with:
Flexible storage: Design storage areas that can handle different inventory needs. For example, use totes that can work for either single items or cases. Make sure the space can flex to handle surge demand, seasonal products, and quick-changeover items.
Streamlined processes: Plan the layout to reduce manual handling and maximize automation. Include conveyors and robotics to keep material moving efficiently from reception to exit.
2. Integrate automation with the workforce: Automation in the warehouse will change the number of on-site workers. There may be fewer item pickers, for example, because that role is more likely to be automated. But there will be a need for trained associates and technicians who can manage and service the automation.
Technical roles require specific skills. Logistics providers will need to train personnel to operate and maintain robotic systems. Employers may need to meet these needs with additional hiring and training. And, as technology advances, they will need to adapt the workforce.
3. Provide employee comfort: People are still important in the automated warehouse. They’re just fulfilling different roles than they did in the past—and likely better ones.
We can enhance employee comfort and well-being by providing break areas with views of the outdoors and places to sit outside. And when indoors, we want to make sure the space is climate-controlled for comfort. We should also use automation as an opportunity to improve worker safety. By removing tasks in more dangerous areas—like along the docks and in trailers—and automating tasks that are prone to causing injuries—like lifting and bending—new technologies can improve worker well-being.
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According to the MHI Industry Report, 45 percent of companies surveyed in late 2024 are investing in automation equipment over the next three years.
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The goal? Supply chain agility
Automation is not the end goal. The prize is supply chain agility.
The goal is to establish a responsive environment for rapid adjustments. This helps provide a seamless flow of goods from inventory to customers. Designs that make the most of the automation revolution will deliver benefits in the logistics marketplace.
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