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Wednesday, 19 March 2025

Meeting warehouse business goals with automation

Zebra Technologies, which digitises and automates frontline workflows, has released its latest Warehousing Vision Study, Elevating Every Move: The Formula for High-Performance Warehousing*, in which frontline workers have communicated the benefits of automating warehouse operations – and the risks of not automating fast enough.

According to the study, 63% of Asia-Pacific (APAC) warehouse leaders plan to implement both artificial intelligence (AI) software (63% globally) and 65% expect to see augmented reality (AR) (63% globally) within five years. In addition, 63% surveyed in the region plan to increase spending on warehouse modernisation in the next five years, with global leaders at 64%. Numbers were also very close on modernisation, with 64% planning to accelerate their modernisation timelines by 2029 in APAC, against 63% worldwide.

Interact Analysis has projected that global warehouse square footage will increase by 27% to 42 billion sq ft in 2030, from 33 billion sq ft in 2023. Warehouse labour spend is also expected to show long-term expansion, with an estimated CAGR of 7% through 2030. As this expansion continues and daily order volumes increase, feedback shared by global frontline workers as part of Zebra’s Warehousing Vision Study suggests that warehouse leaders will need to move a bit faster to expand workforce capacity:

- More than eight in 10 (88%) associates (85% globally) report that if employers do not invest in technology to improve warehouse operations, they will not meet business objectives.

- More than three quarters (77%) of associates (74% globally) are concerned they are spending too much time on tasks that could be automated.

- Nearly eight in 10 (79%) of APAC associates (72% globally) are concerned about safety on the (increasingly busy) warehouse floor, with 72% (70% globally) specifically worried about injuries.

- Seven in 10 (73%) APAC associates (69% globally) reported there is a lack of qualified staff on the warehouse floor while a further 76% were concerned about fatigue and physical exhaustion (69% globally).

Increased e-commerce activity is also making “faster delivery to the end-customer” (37% globally, 36% APAC) a top challenge for warehouse teams, even as technology use is on the rise. Operationally, warehouse leaders admitted they found it challenging to maintain fill rates (51% globally, 45% in APAC) and prepare orders (47% globally, 51% in APAC) to the standards outlined in their service level agreements (SLAs).

In APAC, missed SLAs are a significant financial burden for 88% of decision-makers (83% globally), underscoring the need to swiftly address inefficiencies. Order accuracy (41% globally, 43% in APAC) and outbound processes (41% globally, 40% in APAC) were cited as the top two operational challenges in the Zebra study.

Given the disparity between customers’ growing expectations and warehouse operators’ limited hiring capacity, warehouse associates say it’s important that collaborative robots (88% globally, 91% in APAC), ergonomic mobile devices (88% globally, 90% in APAC), communications applications (87% globally, 90% APAC), and task management tools (91% globally, 94% in APAC) are used to help solve workplace issues. 

More than nine in 10 associates (93% globally, 92% in APAC) also believe the increased availability of automation and mobile technologies would help attract and retain more warehouse associates, especially given they personally feel more valued (89% globally, 90% in APAC) by their employers when provided with technology tools and automation designed to help them.

“Warehouse leaders in APAC are increasingly recognising the need to integrate automation solutions in their facilities, as employees highlight how Zebra’s latest EM45 handheld computers with integrated RFID reader and other Zebra's Enterprise Mobile Computer portfolio can improve their daily workflows,” said Christanto Suryadarma, Sales VP for Southeast Asia (SEA), South Korea and Channel APJeC Zebra Technologies.

“By automating material movement, data collection, and information management, businesses can create safer warehouses while ensuring a steady, reliable flow of goods to the market—leading to higher customer satisfaction and greater employee engagement.”

Warehouse leaders believe the biggest impact of mobile device-based AI applications will centre on worker safety, quality control, and inventory management. While 82% of warehouse leaders in APAC (79% globally) say AI will positively impact their ability to detect potential hazards and issue alerts for prevention, 81% in APAC (78% globally) think AI would make an impact on their ability to detect issues or anomalies using AI. In addition, 78% (77% in APAC) feel AI applications would impact their ability to forecast needs, streamline stock levels, and maximise space.

Eight in 10 APAC leaders also said that automation improves morale, similarly reflected by 81% globally.

Ultimately, warehouse leaders say their biggest supply chain network challenges are “innovating with technology and intelligent automation” and “meeting changing customer service expectations.” Yet, the latter will not prove possible until warehouse leaders figure out a clear path forward with technology, Zebra Technologies stated.

“Frontline workers often find themselves juggling multiple tasks, many of which can and should be automated,” said Vivien Tay, APAC Vertical Marketing Solutions Lead for Warehousing, Transport & Logistics, Zebra Technologies.

"With the Asia Pacific warehousing market experiencing rapid growth, the need for warehouse leaders to embrace digitalisation, automation, and intelligent solutions has never been greater. At Zebra, we are committed to driving this transformation and equipping frontline workers with solutions to enhance efficiency and productivity."

*Zebra Technologies commissioned a global research study to explore the trends and technologies shaping warehouse and distribution centre operations. Conducted online by Azure Knowledge Corporation, the study gathered insights from over 1,700 associates and decision-makers across manufacturing, retail, transportation, logistics, and wholesale distribution.

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