As warehouses lag in automation, AGVs are emerging as crucial tools to boost efficiency, safety, and scalability.
The world is hurtling toward full-scale automation, yet warehouses remain stuck in the past. While manufacturing floors and supply chains embrace the digital revolution, many warehouses are still clinging to manual processes. This could be because the methods are safe and known. However, this strict adherence to the past is causing many warehouses to lose ground to competitors who have embraced focusing human assets on the most value-added work while embracing automation for the rest.
Warehouses are the backbone of modern logistics, and bottlenecks that hold up progress are also diminishing profits. The gap between what is possible with automation and what is happening in warehouses is costing businesses millions.
The brutal truth
Despite all the buzz about smart factories and supply chains, predictive analytics, and AI-driven logistics, most warehouses are behind the curve of what’s possible. The numbers don’t lie:
Only 20 per cent of manufacturers in Asia have fully integrated Industry 4.0 technologies. That means 80 per cent are still crawling when they could be sprinting.28 per cent of warehouses currently use automation – but that number is set to skyrocket to 79 per cent within five years. If you’re not already adapting, you could be left behind. The global warehouse automation market was valued at $23.84 billion in 2023 and will more than double by 2030.
Warehouses that continue to operate manually will find themselves increasingly challenged in an industry that demands speed, accuracy, and flexibility, especially with today’s consumers’ instantaneous last-mile expectations. The reality is, that companies that fail to automate will struggle to meet demand, experience higher operational costs, and fall behind competitors who have embraced the future.
Roadblocks to the new way are a myth
Some common misconceptions about adopting a new, automation strategy for warehousing:
Lack of digital talent – If your workforce isn’t trained in data analytics, automation, and AI integration, you’re already behind. The digital skills gap can be a killer, and the companies that don’t invest in training will fall behind the competition. Automation doesn’t just mean deploying robots – it means having people who understand how to optimise and manage an automated environment.
Resistance to change – Employees and managers alike often resist automation, fearing job loss or operational upheaval. But the reality is that smart warehouses create higher-value jobs while eliminating repetitive tasks. Instead of moving pallets manually, workers can oversee automated systems, manage logistics data, and optimise workflows.
The AGV revolution
If your warehouse still relies on manual forklifts, and slow workflows, AGVs (Automated Guided Vehicles) are your first step toward the automated, new way to warehouse. Driverless, self-operating, precision-driven robots are already transforming warehouses across the world – and the results are clear.
Gone are the days of long and arduous deployments of simple floor-to floor tugging or low-lift forklifts. Today’s AGVs are full-scale robots that are simple to deploy, easy to manage, and can reach heights of up to 17m.
For most warehouses, 33 per cent of the day is left in the dark. What if you could turn that slumber time into perpetual productivity? When the workers go home for the day, AGVs could be staging pallets for the next morning’s deliveries or plugging the holes in the Swiss cheese of your racking to optimise storage density and improve flows.
The right AGV solution can also eliminate the need for cycle counting – and its cost. In same-day fulfilment operations, overnight pre-staging can add an additional shipping wave on the same day.
AGVs work 24/7 without breaks, cutting order fulfilment times and reducing human errors. Efficiency gains of 30-40 per cent is now the norm. Same-day delivery is the expectation: slow and inefficient warehouses will be abandoned in favour of high-speed, automated facilities.
Labour shortages and rising wages are crippling warehouses. AGVs can eliminate up to 90 per cent of labour costs, ensuring consistent, reliable performance. They don’t need sick days, breaks, or training refreshers. They just work.
AGVs don’t get tired. They don’t make mistakes. They don’t cause accidents due to fatigue. Warehouses using AGVs see a reduction in workplace injuries and damage to goods. In an industry where forklift accidents account for thousands of injuries each year, automation is a game-changer.
AGVs adapt instantly, optimising workflows in real time. Also, AGVs that are adapted from OEMs can be used in manual mode or are ready in back stock should you need more. There is no need to hire seasonal workers or struggle with training – scaling operations becomes seamless.
AGVs that scale with your growth
Driverless CB stacker: Suitable for inbound and outbound dock operations, LOWY CB automates pallet movements from receiving to storage and from storage to outbound staging. It can seamlessly integrate with existing facility to even load and unload from trailers/trucks for an integration of inbound and outbound processes. BALYO’s (capped or uncapped? Needs to be consistent) ATL helps in cutting down labour dependency on critical dock operations and improving throughput by allowing warehouses to ship faster.
Driverless reach: Designed for narrow aisle operations up to 11m, Reachy, BALYO’s reach forklift, optimises storage space in brownfield warehouses where real estate is tight. It also plays a crucial role in supporting order picking operations, ensuring faster access to stored inventory with minimal human intervention for brownfield sites.
Driverless VNA (very narrow aisle turret): Built for high-density storage up to 17m, VNA AGVs help warehouses utilise previously unused vertical space, reducing the need for facility expansions. These robots are designed to handle large SKU volumes (up to 30 per) while maintaining precise inventory control.
By deploying these AGVs, operations will grow as demand grows, putting those who utilise AGVs ahead of the curve. If a facility operates with fewer than three shifts, AGVs enable the company to run an extra full shift without additional labour costs. For 24/7 operations, they ensure consistent throughput across all shifts while saving up to 80 per cent of pallet movement costs.
Hardware and software for the win
AGVs are more than just their hardware. The software connectivity that seamlessly integrates into a Warehouse Management System (WMS) or Warehouse Control System (WCS) gives heightened control and insight for better decision-making and warehouse performance.
AGV software constantly refines operations, learning from warehouse traffic patterns and demand fluctuations to shave seconds off every movement – which adds up to a lot of savings over a 12-month period. The smartest warehouses will use this data not just to automate, but to optimise and predict future trends.
The best AGV control software connects with existing WMSs and Enterprise Resource Planning (ERP) tools, ensuring smooth, automated inventory tracking. No more guessing where stock is located, cycle counting or dealing with misplaced inventory – the system knows, and it moves products with robotic precision.
AGVs are just the beginning. As automation advances, warehouses are already integrating automated case and piece picking, AI-powered predictive analytics, and even autonomous drones for inventory tracking. An autonomous warehouse is not science fiction – it’s here.
Haves and have nots
Warehouses that refuse to modernise are doing themselves a disservice. AGVs and smart automation aren’t luxuries anymore – they’re survival tools.
By 2030, warehouses that fail to automate will be in the history books while those who invest in AGVs and software-driven optimisation will dominate the industry.
This is the future of warehousing. Are you ready to lead, or will you be left behind?