Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Distribution centers (DCs) everywhere are feeling the need for speed—and their leaders are turning to automated warehouse technology to meet the challenge, especially when it comes to picking.
This is largely in response to accelerating shipment volumes and rising demand for same-day order fulfillment. Globally, package deliveries increased by more than 50% between 2018 and 2020, and they have been steadily growing ever since, reaching an estimated 380 billion last year on their way to nearly 500 billion packages shipped in 2028, according to a 2024 Capital One Shopping research report. Same-day delivery is booming as well: The global market for same-day delivery services was nearly $10 billion in 2024 and is expected to rise to more than $23 billion by 2029, according to a January report from consultancy The Business Research Co.
Adopting technologies that can boost DC throughput rates while improving accuracy and efficiency can go a long way toward helping companies keep up with those changes. Two recent projects reveal how both simple and more complex systems are answering the call for higher-velocity operations in DCs of all types and sizes.
FROM PAPER TO VOICE
Pickers at European fruit and vegetable wholesaler Gebr. Gentile AG are working faster and making fewer errors in getting fresh produce out the door after a pick-by-voice solution was installed at the wholesaler's Näfels, Switzerland, logistics center in 2023. Company leaders implemented Lydia Voice from logistics technology vendor Erhardt + Partner Group, allowing the wholesaler to move from a paper-based picking system to an automated one that has streamlined the process and is helping workers get the thousands of shipments that move through the nearly 10,000-square-foot refrigerated facility each day out the door quickly.
"The products stay in our warehouse for an average of 0.7 days, meaning the goods that come in are immediately shipped out again," Renato Häfliger, managing director at Gentile AG, said in a statement describing the project late last year. "We handle approximately 80 to 100 tons of goods daily. Ideally, our inventory rotates quickly, ensuring maximum product freshness."
In all, the Näfels facility handles between 200 and 300 different items for roughly 200 customers.
"On average, this corresponds to 6,000 to 10,000 shipping units that our pickers must process daily," Häfliger adds. "Each order involves about 20 to 60 picks. Using paper lists made this process challenging, as employees never had both hands free. This led to errors and noticeably slowed down the workflow."
Häfliger and his colleagues wanted a hands-free solution that would speed up the picking process—but they couldn't afford the downtime of a complex IT project or the added time to train both regular and seasonal workers on a new system. The beauty of the voice-picking system was that it could be used by any worker without prior training—regardless of gender, accent, or dialect—and could be installed and up and running quickly. That's because the system uses deep neural networks—technology that simulates human brain activity, particularly pattern recognition—to learn and understand language instantly. The software acts as a voice assistant, guiding workers through the picking process via a headset and wearable computer—leaving workers' hands and eyes free for picking tasks. The technology can be integrated into any enterprise resource planning (ERP) system or warehouse management system (WMS) so that work flows seamlessly to the pickers on the floor.
Häfliger says the system proved to be "very easy and intuitive to use during testing, so it [was] ready to go immediately. This was one of the main reasons why we quickly decided on this system, as we employ many seasonal workers in addition to our core team. Long training periods are simply not an option for us."
Today, workers are picking faster, with fewer errors, and orders are moving more swiftly through the Näfels DC—Häfliger cites a double-digit increase in efficiency since switching from paper to voice.
ROBOTS TO THE RESCUE
Sometimes, DC operations call for even more automation to best respond to their picking challenges.
That was the case for contract logistics services specialist DHL Supply Chain when business leaders there were looking for a way to improve warehouse operations in the company's health-care fulfillment business.
Workers supporting one of DHL's health care-focused clients were using a manual, cart-based picking system that simply wasn't allowing them to keep up with the fast-paced facility's fulfillment demands. Pushing heavy carts long distances throughout the warehouse left associates fatigued at the end of the day, slowed the overall fulfillment process, and opened the door to errors. DHL Supply Chain leaders needed a system that would alleviate the physical strain on workers, cut cycle times, and improve quality. They turned to warehouse automation vendor Locus Robotics to solve the problem, ultimately deploying 100 autonomous mobile robots (AMRs) to boost picking operations.
Today, the AMRs work alongside pickers, directing them to bin locations throughout the warehouse via the most efficient path—eliminating the need for pickers to push those heavy carts long distances and allowing for hands-free picking directly into shipping boxes. The AMRs then deliver completed orders to the next stage of the process on their own.
DHL Supply Chain has been reaping big rewards since launching the AMR system in 2018. The "pick-to-box" approach has helped reduce errors by 50% and has boosted efficiency by eliminating the need for a separate packing area in the warehouse. Cycle time for orders has fallen by 60%, worker training time has decreased by 90%, and pickers are feeling less fatigued.
"By replacing carts with AMRs, DHL saw increased consistency in warehouse associate output, as the physical demands of walking long distances with heavy loads were minimized," leaders at Locus Robotics explained in a case study about the project. "By integrating [AMRs], DHL improved order quality, reduced operational touchpoints, and enabled rapid cycle times—all essential for a health care-focused supply chain."
Demand for AMRs and similar automated material handling equipment is unlikely to slow in the years ahead: The global market for logistics automation was valued at $34 billion last year and was projected to reach more than $37 billion this year, rising to an expected $81.5 billion in 2033, according to data published last fall by Straits Research. Hardware—which includes AMRs, automated storage and retrieval systems (AS/RS), automated sorting systems, and the like—is the driving force behind that market growth, according to the research.
Such anticipated demand circles back to those accelerating shipment volumes: The Straits research also found that more than a third of material handling executives said their primary need for implementing DC automation is to fill more orders—faster and at a lower cost.
Meal kit producer HelloFresh relies on automation to guarantee fresh and accurate shipments to customers—and that reliance has only increased as the company has grown from a small German startup to a global enterprise serving consumers in 18 countries. Surging demand, expanding menus, and the ever-present challenge of meeting high food quality and safety standards add complexity to the HelloFresh model, necessitating a focus on technologies that can give the business an edge as it grows.
Zeroing in on the U.S. market, company leaders took a leap nearly five years ago that would help HelloFresh meet burgeoning local demand and set the stage for further expansion of its menu and capabilities. They added a brand-new distribution center (DC) in Irving, Texas, that would feature the most advanced technology in the company's North American fulfillment network to date.
"Once we had identified that we were moving toward a greenfield site, we saw the opportunity to have an enhanced fulfillment system in the building," Kyle DeGroot, vice president of operations engineering and technology for HelloFresh, says of the Irving project. "We wanted the capability to expand our product offering while maintaining or increasing efficiency from a fulfillment standpoint."
The answer to that challenge: an automated storage and retrieval system (AS/RS) from AutoStore. The system is now the centerpiece of a customized, high-tech fulfillment process that is speeding operations, increasing throughput, and improving productivity—all while giving HelloFresh the flexibility to shift and expand its menu without complicating the fulfillment process.
TAMING COMPLEXITY
HelloFresh was founded in 2011 in Berlin and has grown from its early days as a community-based business into a global organization that delivered more than 1 billion meals to customers in 2023, according to company data. Faced with escalating demand in the U.S., HelloFresh set out to expand its fulfillment network in 2020, adding the 377,000-square-foot Irving facility and bringing the company's U.S. fulfillment network to a total of eight DCs.
More than that, the Irving DC was an opportunity to advance the company's use of automated warehouse technology and build on its presence in the Dallas-Fort Worth metropolitan area—both because of the facility's size and because it was a greenfield site, offering a blank slate for innovation. The goal was to leverage the reliability, density, and speed of AutoStore as the heart of an automated meal kit assembly process, according to HelloFresh and leaders at Swisslog, the material handling automation specialist that designed and installed the AutoStore system.
For Swisslog, the project represented a departure from typical AS/RS installations, which are designed to handle traditional distribution center operations, including e-commerce and store fulfillment.
"HelloFresh is in the distribution business, shipping meals to the home. However, once we took a closer look at [the business], we [realized] that it acted more like a production operation," explains Colman Roche, vice president of AutoStore solutions for Swisslog Americas. "Items are moving in and out faster than in a typical system."
That's because HelloFresh orders need to be filled quickly and under precise conditions to meet food freshness and safety standards. And there are a lot of moving parts: HelloFresh subscribers can customize their meal plans from more than 100 weekly menu and market item offerings and choose the day of the week they want orders delivered. The company sources meal ingredients to minimize the time between receipt and shipping, and carefully packages components to ensure freshness and simplify preparation.
The meal kits themselves may include fresh produce, starches, seasonings, recipe cards, and nutritional information along with proteins—such as fish, chicken, and beef. Subscribers can also supplement their meals with snacks, desserts, and other items from the HelloFresh Market. As a result, a typical HelloFresh outbound container includes 16 items, which must be packed in a prescribed sequence. The entire process is conducted in a chilled environment that is maintained at 33 degrees Fahrenheit.
"That insight [into the nature of HelloFresh's operations] allowed us to take a different look at the system design and come up with something that flowed more easily [in a production environment]," Roche explains.
PUTTING THE SYSTEM TO WORK
HelloFresh uses varying levels of automation at its facilities around the world, but the AutoStore system in Irving is by far the most advanced, according to DeGroot, who describes the project as a unique application of the technology. Unlike typical installations—in which orders are initiated within the AutoStore and work their way through the fulfillment process via picking stations, pack out, and eventually to shipping—orders begin outside the AutoStore, in a manual pick zone. Orders are then inducted into the AutoStore via conveyor in a sequence that maximizes throughput and worker productivity.
Roche and DeGroot describe the process as follows: Orders are initiated in a manual pick zone, where box assembly begins with proteins and ice packs. Boxed orders are then transported by conveyor and inducted into the AutoStore in a controlled sequence and dynamically grouped in batches of four based on commonalities across the orders.
The partial orders are then delivered to pickers working at carousel ports, along with bins of ingredients from the AutoStore inventory that are needed to complete the order—this allows workers to pick directly into cartons at the AutoStore ports. Workers can fulfill four orders simultaneously, maximizing the number of picks they make from each bin. Inventory is replenished through the system's 11 induction ports to maintain freshness.
Downstream from the AutoStore, orders are conveyed to automated carton sealers and labeling equipment, and then sorted for shipping.
Swisslog's SynQ warehouse execution system (WES) manages the entire process—including routing, picking across all zones, replenishment, sortation, and label printing. SynQ also provides centralized inventory management and visibility based on a first-expired, first-out (FEFO) strategy that helps ensure freshness. The WES is integrated with the facility's warehouse management system (WMS) as well.
"[SynQ] is the brain behind everything, bringing it all together," says DeGroot.
Getting the system up and running was no small accomplishment, given its size and scale. The cube-based AS/RS takes up 100,000 square feet of the facility's total 377,000 square feet of space. It includes 150 robots, nearly 30,000 storage bins, 18 carousel ports for picking, 11 conveyor ports for induction, four quality assurance ports, 6,000 feet of conveyor, four carton erectors, 12 protein pick zones with pick-to-light cells, a sortation system, and carton sealing and labeling equipment.
HUMMING ALONG
HelloFresh went live with the Irving AutoStore in 2022 and has been operating at full production since 2023. Company leaders say the system is 25% more efficient and accurate while shipping 20% more recipes compared to the rest of its fulfillment network. One of the biggest benefits is flexibility: Today, HelloFresh can easily expand its menu, adding recipes and ingredients without introducing complexity into the fulfillment process—all thanks to the software integration, synchronization, and the power of the AutoStore.
"This is something we could not have done before," DeGroot says, emphasizing the scale, speed, and flexibility of the system. "And it's the reason we use the Irving facility for expansion initiatives."
Under terms of the deal, Symbotic will build a system that automates Walmart’s Accelerated Pickup and Delivery centers (APDs), with an initial order covering hundreds of stores and adding an estimated $5 billion to Symbotic’s future backlog for building the robots.
Walmart’s APDs are micro-fulfillment centers located at its retail stores that can fulfill e-commerce orders by using store inventory to enable buy online pick up in store (BOPIS) sales. Those sales add up to a large number, since Walmart’s store-fulfilled deliveries grew nearly 50% year-over-year, surpassing a $2.5 billion monthly run rate, during its quarter ended October 31, 2024. And it could grow even larger, since approximately 90% of the U.S. population lives within 10 miles of Walmart’s more than 4,600 stores.
Wilmington, Massachusetts-based Symbotic is a publicly traded company with a large ownership stake held by Walmart itself and by logistics technology investor SoftBank. Symbotic has been developing its automated fulfillment system in Walmart DCs since 2017, and landed a deal in 2021 to install those platforms in more than half of Walmart’s DCs. In 2022, Walmart expanded that order to include all 42 of its regional DCs.
Bentonville, Arkansas-based Walmart said that Symbotic will now engage in a development program funded by Walmart to enhance current online pickup and delivery fulfillment systems as well as to design new systems to meet the needs of customers. If performance criteria are achieved, Walmart is committed to purchasing and deploying systems for 400 APDs at stores over a multi-year period, with an option to add additional APDs in the coming years.
“This is a highly strategic transaction for Symbotic as we expand upon our long-term relationship with Walmart and broaden our product offering beyond the traditional warehouse to eCommerce settings for last mile delivery,” Rick Cohen, the chairman and CEO of Symbotic, said in a release.
Logistics tech provider Zebra Technologies today said it has acquired Photoneo, a Kentucky provider of 3D vision and AI-powered robotics that makes the Brightpick line of warehouse robotics for automating fulfillment tasks like order picking, consolidation, dispatch, and stock replenishment.
Terms of the deal were not disclosed, but the companies said that proceeds of the sale will be reinvested to accelerate Brightpick’s expansion across the U.S. and Europe. Following the sale, Photoneo will be renamed Brightpick, and continue operating as a separate entity focused on developing and deploying AI robots to automate warehouse operations, they said.
According to Zebra, the deal will also expand its presence in the 3D segment of the machine vision market, which is the fastest growing part of that sector. Specifically, Photoneo’s intelligent sensors are particularly effective within the vision-guided robotic (VGR) segment, and are certified to interface with many of the largest robotic manufacturers for a variety of use cases including robot-arm applications for bin picking.
“The combination of Photoneo’s 3D machine vision solutions with Zebra’s advanced sensors, vendor-agnostic software and AI-based image processing will provide a unique portfolio of offerings to our customers globally,” Joe White, Chief Product & Solutions Officer, Zebra Technologies, said in a release. “Together, we will help our customers across automotive manufacturing, logistics and other key markets maximize the potential of machine vision within their frontline operations.”
For many small to medium-sized warehouse operations, it can be challenging to find equipment that improves efficiency but doesn’t break the bank or require specialized training. That was the dilemma that faced coffee roaster and distributor Baronet Coffee when it moved its operations to a 50,000-square-foot facility in Windsor, Connecticut. The company, a fourth-generation family-owned and -operated business, has moved several times since its founding in 1930. But this time it ran into a hitch: The large forklifts it was accustomed to using were creating pain points in the new facility.
Specifically, the narrow aisles and high shelving at the new site made it difficult for the company’s forklift trucks to maneuver through the warehouse. Plus, those big, bulky forklifts required operators with specialized training. And while the warehouse has some 35 employees, not all of them had the necessary credentials—which left the operation vulnerable to staffing shortages and bottlenecks.
So Baronet Coffee launched a search for a flexible, low-cost truck that could maneuver in small spaces and would be easy for team members to operate. For help with the selection process, it tapped Big Joe Forklifts, a Downers Grove, Illinois-based company that makes electric lift trucks.
LOW COST, HIGH FLEXIBILITY
The company found what it wanted in Big Joe’s PDSR, an AC walkie reach stacker with power steering that offers a 3,000-pound lift capacity and can reach heights of up to 189 inches. What makes this model ideal for the Baronet Coffee warehouse is the combination of a tight turning radius, low operating cost, and flexibility.
The PDSR uses a pantograph, which is a mechanism that extends the loads being handled beyond the straddle legs to lift or lower products and can be retracted for compact turns. The PDSR also features power steering, side shift, proportional hydraulics, and tilt, which allows operators to reach and side-shift within the narrow racking and in pass-through racking as well.
“Being able to manipulate that pallet, to put it exactly where we need it, has been [a huge plus for the operation],” explained Chase Martin, process engineer at Baronet Coffee, in a video. “The walk-behind truck gives workers the flexibility to go up high or down low or even into the middle of the racking and move product around very easily and safely.”
THE RIGHT FIT
After one day on the job, Baronet Coffee knew the PDSR was the right fit.
“Big Joe’s PDSR really fit the niche really well for us, Martin said in the video. “It’s a unit that isn’t as big as a forklift, and we don’t need people that are certified to drive it. But it does all of the things that we need it to do—getting up high, reaching, tilting side, shifting—to make our day-to-day order picking easier. From an operational standpoint, this is definitely a big success for us.”
Mike Vilarino, business integration manager at Baronet Coffee, agrees, adding that one of the lift truck’s biggest strengths is its ease of use. “People definitely gravitate toward the Big Joe PDSR. It’s very easy to just grab the truck, [go] out on the aisle, pick what you need, and get out of there,” Vilarino said in the video. “The PDSR is a huge value to Baronet due to the fact that the training requirements for operators are minimal—we’re able to get people up to speed very, very fast, and they’re able to perform their job duties in a timely and safe manner.”