Shifting gears: In a piece written by Pas Tomasiello, Vice President of Sales, APAC at Dematic, CeMAT Southeast Asia revealed how supply chain leaders are embracing automation, resilience, and AI to redesign and adapt for the future.
Across Southeast Asia, the conversation around supply chain automation and robotics is shifting from interest to implementation. Retailers and manufacturers, previously hesitant to automate their warehousing and distribution facilities, are increasingly investing in automation. Urban warehousing is being rethought entirely, as businesses grapple with the pressures of e-commerce growth, increasing customer expectations and limited space and labour availability.
Labour shortages are no longer just a looming problem; they’re already reshaping how businesses think about automation. And while resilience remains a key goal, flexibility has also become a central part of achieving the gold standard for operations. Businesses are moving past the hype and asking what supply chain automation can do for them now, in real terms, across planning, execution, and performance.
It’s a time of rapid change for Southeast Asia’s logistics and supply chain sectors, and CeMAT offered a snapshot of the trends shaping what comes next.
The automation shift
Logistics automation and robotics is now starting to gain real traction in Southeast Asia. Historically, apart from select sectors like food & beverage, pharmaceuticals and pureplay e-commerce, supply chains in the region have relied on manual operations or low levels of automation. While this isn’t new globally, it’s only now becoming a clear priority for Southeast Asia. Local companies have begun working with automation providers to explore their options more seriously, be it for their own or their third-party logistics suppliers’ facilities, some even participating in European study tours to see what best-in-class operations look like.
This growing interest highlights the increasing operational pressure on businesses. Consumers want convenience, availability, and faster delivery times. Automation is fast becoming a necessity to remain competitive and scalable.
Resilience now means flexibility
There is also a renewed focus on resilience across Southeast Asia. In 2025, resilience looks vastly different to what it did even a few years ago. Previously, being resilient meant maintaining operations through disruptions. Today, it means being able to pivot entirely in response to unexpected change.
Executives are no longer asking whether automation can support seasonal swings in volume. They are asking if it can support a complete shift in their product mix, a sudden acquisition, or a change in distribution strategy. Retailers want to know whether their systems can handle everything from apparel to footwear, or pivot from e-commerce to wholesale, without compromising performance. Food and beverage manufacturers want to know whether their systems can handle more products, handle layer and case orders, or e-commerce orders, while other manufacturers are looking at systems that can supply products to assembly lines faster and their spare parts systems handle increasing products while delivering superior service levels to customers. In a geopolitical environment defined by unpredictability, flexibility is the real measure of resilience.
Urban warehousing goes vertical
Urbanisation and space constraints are top of mind for businesses in the region, especially in relation to warehouse design. With limited and expensive land in major cities, the shift from traditional single-storey distribution centres to multi-storey facilities is becoming more pronounced. As the demand for faster delivery grows, businesses are moving their warehouses closer to the customer. This change is driving a new approach to automation, one that prioritises compact, layered configurations.
This vertical shift is driving a new approach to warehouse automation. Instead of expansive layouts, systems must now be reimagined to fit compact, layered spaces. Storage might sit on one level, picking on another, and dispatch operations on a third, each tailored to work within the footprint of a stacked site. While the core technologies remain the same, their design and integration require greater precision, flexibility, and creativity to operate effectively in these confined environments.
Labour scarcity changes the equation
The labour landscape is also changing. In the past, automation in Southeast Asia was often viewed through the lens of cost. Why automate when labour is cheap? However, that question is becoming less relevant. The reality now is that labour may be affordable in some parts of the region, but it’s not always available or easy to retain.
Working in a warehouse is physically demanding, and younger people are increasingly seeking opportunities elsewhere. Companies are finding that there simply aren’t enough workers to match the growing demands of fulfilment. In this environment, automation is key to ensuring operational continuity.
This change in thinking also challenges an old assumption in the logistics world. Previously, automation had a reputation for being inflexible and difficult to scale. It was seen as something that locked a business into a specific way of working. Manual operations were considered more adaptable because people could be moved or redeployed as needed. That belief is now shifting. With the right design, modern automation can offer more flexibility and operational control, not less. Modern systems are modular, reprogrammable, and capable of supporting multiple use cases. The more automated a facility is, the easier and faster it becomes to respond to change, because fewer people need to be trained, managed, or reallocated, and you have increased control over your operations.
AI and digital twins spark curiosity
Businesses are keen to understand how Artificial intelligence (AI) will shape the warehouse of the future. While businesses are still in the early stages of adoption, interest in AI-driven solutions is accelerating. The concept of the digital twin is increasingly capturing interest. By creating a digital replica of a warehouse using the same software that runs the physical environment, companies can test scenarios, model order flows, and predict problems before they happen.
This goes well beyond traditional simulation. A digital twin can be used after implementation to model the impact of changes such as adding new product categories or shifting picking strategies. Layered with AI, the system can learn from patterns and begin to make real-time decisions. For example, it might identify that a specific order cycle is about to fail before an order has even hit the floor, recommending a solution in advance.
This isn’t a vision of future operational capability. The technology already exists and is being explored in real-world settings. It has the potential to fundamentally change how businesses plan and operate, reducing risk and increasing adaptability.
A regional market moves toward action
In 2025, the most telling shift among businesses in Southeast Asia is the change in tone. In previous years, the focus was on what is possible. This year, it is about what comes next, moving from curiosity to commitment. Many organisations are now asking how to start their automation journey, not in theory, but in practice. They’re looking for clear steps to prepare for future growth, with a strong emphasis on readiness and real-world application.
While the economic landscape across the region remains uneven, businesses are clearly planning ahead. Some are working on the assumption that markets will rebound significantly around 2027. That means the time to invest in capability is now. It also means companies are actively seeking guidance, roadmaps, and proof points from technology providers. The focus has clearly shifted toward structured, forward-looking implementation strategies.
Readiness for the future
If there is one unifying theme across Southeast Asia, it is readiness. The industry is no longer waiting for perfect conditions to begin investing in smart logistics and automation. Businesses understand that success in the years ahead will depend on what they do now.
Whether its grocers entering the automation space for the first time, manufacturers embracing digital twins, or retailers preparing for radical shifts in demand, the industry is changing fast. This year’s progress shows that Southeast Asia is not just keeping pace, but in many ways, it’s leading the way.