From traditional to high-tech, goods-to-person picking systems are quickly becoming table stakes for operating in a fast-paced environment marked by tight labor capacity.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Labor challenges and productivity demands have long been pushing business leaders to adopt automated solutions for their warehouses and distribution centers, a trend that accelerated during the Covid-19 pandemic and that shows no signs of abating as 2022 gets underway. Goods-to-person (GTP) picking systems are among the most popular and easiest ways to automate, as both traditional and more advanced systems can yield results quickly and put companies well on their way to meeting their operational goals.
Recent studies attest to those benefits.Gartner research from 2021 predicted that demand for robotic GTP systems would quadruple through 2023, largely to deal with labor challenges. Such systems address the need for social distancing by moving goods from one person to another—and doing it so efficiently that they increase productivity and improve storage density along the way, according to Gartner.
“While the social distancing aspect is an imminent benefit, robotic GTP systems will provide value long after the pandemic is over,” Gartner Analyst Dwight Klappich said in an April 2021 Gartner.com article. “This technology is advanced and economical, and can easily be tailored to work in every kind of warehouse environment.”
But what exactly are GTP systems—robotic or otherwise—and how do they work? Here’s a back-to-basics look at some of the types of GTP technology available today and the benefits they can bring to material handling operations.
DETERMINING WHAT’S RIGHT FOR YOU
Essentially, goods-to-person picking systems deliver items to an operator, so that the operator doesn’t have to travel between locations in a facility. They can be used in retail operations, in warehouses and fulfillment centers, in point-of-use applications in manufacturing and packaging operations, and, increasingly, for merchandise returns. E-commerce fulfillment centers are seeing among the highest rates of GTP adoption, driven mainly by the accelerated growth of online buying since the spring of 2020. The situation was especially acute in the grocery market, where demand for microfulfillment systems—highly automated, small-footprint systems located close to the end-consumer—has skyrocketed over the past two years, according to Kevin Reader, vice president of marketing for logistics solutions provider Knapp. Up-to-the-minute ordering and expectations of fast delivery are driving the need.
“In an environment that’s constantly demanding later order windows during the day and next-day delivery—there’s not much of an option,” Reader says, emphasizing the growth in demand for GTP systems in general. “[This technology] is becoming almost table stakes.”
GTP systems fall into two general categories: 1) Traditional systems such as horizontal or vertical carousels, which present items to pickers in a warehouse or DC operation, as well as vertical lift modules (VLMs), which take advantage of a facility’s ceiling height to store and present items to workers; and 2) More advanced, high-density solutions, including shuttle-based systems and automated storage and retrieval systems (AS/RS), which deliver products to a worker at a pick station. Some advanced solutions also use autonomous mobile robots (AMRs) to deliver products to workers.
Logistics solutions providers work with customers to select the best type of system for their particular application.
Determining the best system hinges on the particular “use case” in the market, according to Laura Bickle, senior offering manager for Honeywell Intelligrated’s warehouse execution software (WES). Use cases can include e-commerce order fulfillment, retail or store fulfillment, omnichannel and combination applications, buffer systems (which accumulate units for grouping, such as for palletization and cartonization), and inventory management. Bickle explains that at Honeywell, GTP stations can be used for multiple functions, including picking items for orders, putting away inventory (for example, replenishing an AS/RS by decanting items from vendor cases into plastic totes that are stored in the AS/RS), and conducting inventory cycle counts.
And although each use case is different, there are some guiding principles for determining the best system for a particular organization.
“There are several factors that need to be considered,” according to Bickle. “What type of products are in the system? How much space is available? What is the density? What is the desired throughput? How are orders to be filled—retail or e-commerce? How many different zones is product coming from, and is buffering needed?”
Bruce Bleikamp, director of product management for material handling solutions provider MHS, agrees, emphasizing that data is the most important part of developing a solution—lots of data.
“We like to look at the orders,” Bleikamp explains. “We typically ask for a year’s worth of data. What are they moving? How many? How is it packaged? … These are things we have to understand. So we ask for a lot of data.”
Reader, of Knapp, adds that it’s also important to understand the role existing software plays in an organization, along with overarching business considerations, and the ebb and flow of orders through the facility.
“Understanding all those elements and the interplay with machine capacity is really critical to making these systems work effectively,” he says.
BENEFITS: WHAT TO EXPECT
Productivity improvement is the primary benefit of installing a GTP system, as these systems allow more picks per operator and help boost overall facility throughput. This is especially beneficial in a tight labor market, Bleikamp points out.
“Everyone is struggling with the ability to get labor,” he says, especially in the warehouse and DC, where picking tasks often involve heavy lifting, lots of walking, and repetitive actions that can lead to stress and injuries. “It’s hard to get people [for those positions], so you have to do more with the resources you have. Automating helps with that.”
Chris Steiner, Americas vice president of solution development for logistics solutions provider Dematic, adds that reducing workers’ travel time through a facility drastically increases performance levels. In a manual operation, a worker typically picks about 100 pieces per hour; reducing travel time via automation can increase that volume up to 700 or more per hour, he says.
“The most expensive parts of the fulfillment supply chain are the first 100 yards and the last mile,” Steiner explains. “[Goods-to-person picking systems] help eliminate that first 100 yards.”
Although labor optimization is key, order quality is “the next frontier” when it comes to benefits and improvements, Steiner adds. Because inventory is tracked, presented, and typically confirmed by the automated system, order fulfillment accuracy skyrockets. What’s more, the controlled environment typically means less product damage and fewer errors. Assisted by the system, workers are less fatigued and make fewer mistakes—all in a better working environment.
“Generally, [these systems] are ergonomic in nature, so it’s a good working environment, which helps with quality [and] employee retention,” Steiner adds.
ALWAYS EVOLVING: WHAT’S NEXT?
As technology evolves, GTP systems are becoming more high-tech and driven by advanced software systems and controls. Reader says there’s been an increase in demand for GTP systems of all types, but particularly in systems that include robotic picking—those that use robotics to automate tasks that require manipulating individual items, as opposed to automating transportation through a facility. Such systems require artificial intelligence (AI), vision systems, cloud technology, and the like to automate the complex tasks of selecting products for an order.
Steiner adds that there’s also growing interest in collaborative robotic solutions—in which robots work alongside associates for picking and related tasks—as well as goods-to-robot solutions, or a combination of both, depending on the organization’s needs and goals. He says many customers are looking to create the right mix of solutions that justify the investment in advanced technology.
“[Customers will] mix robotic picking … with goods-to-person picking,” using robotic picking for steady, non-peak demands, and adding workers during busier periods, he says.
Whatever the mix or level of automation, the experts say demand for GTP systems and their more advanced and evolving counterparts is only set to accelerate over the next few years.
“It’s almost a perfect storm of macro-economic drivers that are driving the need for increased efficiency in the fulfillment space,” Steiner adds, circling back to the labor shortage and supply chain delays that have plagued companies over the past year or so. “But I think it’s consumer behavior that has changed the most. … From the beginning of the pandemic, e-commerce [saw] about eight years’ worth of growth in three months and [that] has continued; it hasn’t leveled off. That has created a significant space of demand that is affecting the [service level agreements] of our customers to their customers, and, in turn, continues to drive the need for increased investment in this type of technology.”
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.